SVB Financial Group

SVB Financial Group (SVB or SVBFG) is a financial services holding company headquartered in New York City.[2] The company's main business unit was the commercial bank Silicon Valley Bank, until the bank failed in March 2023 after a bank run. The company was a member of the S&P 500 index until March 15, 2023.[5][6] According to public filings, as of December 31, 2022, SVB Financial Group had 164 subsidiaries.[7]

Until March 2023, the companies subsidiaries included Silicon Valley Bank and SVB Private, a private banking service affiliated with Silicon Valley Bank that, along with its affiliates SVB Investment Services and SVB Wealth, offered client services especially catered to private equity and high-net-worth individuals. Both Silicon Valley Bank and SVB Private were placed in receivership and sold to First Citizens Bank.[8][9] SVB Securities was sold to its management in July 2023 and renamed Leerink Partners.[10] SVB Capital was sold in May 2024 to a newly formed entity affiliated with Pinegrove Capital Partners.[11]

History

SVB Financial was founded as Silicon Valley Bancshares on April 23, 1982, by Bill Biggerstaff and Robert Medearis over a poker game.[12][13] Silicon Valley Bank was incorporated as a wholly owned subsidiary in October 17, 1983.[1]

In 1988, the company went public via an initial public offering, raising $6 million.[14]

The company's stock price soared through the dot-com bubble but fell 50% when the bubble burst.[15] The company reincorporated as a Delaware corporation in 1999.[3][16] Ken Wilcox became CEO in 2000.[17]

In 2001, the company's investment banking arm, SVB Securities, expanded its business with a $100 million acquisition of Palo Alto Alliant Partners, which was rebranded SVB Alliant.[18] In 2002, it formally entered the private banking business, building on prior experience and relationships with wealthy venture capitalists and entrepreneurs.[19]

On May 31, 2005, Silicon Valley Bankshares rebranded as SVB Financial Group, signaling the company's diversification away from commercial banking.[20] SVB Alliant ceased operations in 2007.[21]

In December 2008, SVB Financial received a $235 million investment from the U.S. Treasury through the Troubled Asset Relief Program.[22] The U.S. Treasury received $10 million in dividends from SVB Financial and, in December 2009, the company repurchased the outstanding stock and warrants held by the government, funding this through a stock sale of $300 million.[23]

In 2015, CEO Greg Becker indicated that SVB had yet to make immediate plans to re-enter the investment banking sector as it had before 2006.[24]

In January 2019, SVB Financial acquired Leerink Partners LLC, and renamed the business SVB Leerink.[25] In 2021, SVB acquired Boston Private Financial Holdings and merged its subsidiary Boston Private Bank & Trust Company into Silicon Valley Bank and SVB Private.[26] In 2021, SVB acquired media and telecom research company MoffettNathanson LLC.[27] In February 2022, SVB Leerink was rebranded as SVB Securities.[28]

In August 2024, SVB Financial Group received a U.S. judge's permission to turn over its assets to creditors and end its bankruptcy.[29] As part of its bankruptcy restructuring, SVB Financial sold various assets, spinning off its venture capital business and investment banking unit.[30]

External links

• Bankruptcy website