J.P. Morgan, PNC amongst suitors for SVB holding firm

JPMorgan and PNC are among the many potential suitors in talks to amass SVB Financial Group in a deal that might exclude the industrial financial institution presently underneath U.S. authorities management, based on sources aware of the matter.

Why it issues: A purchaser for the opposite SVB divisions might stabilize these companies, that are being impacted by the collapse of the industrial financial institution, referred to as SVB Financial institution.

Of observe: SVB Monetary Group introduced on Monday that it’s launching a strategic options course of for the holding firm and different property.

• The method to promote SVB Financial institution continued over the weekend, with Reuters reporting that potential bidders are cooling on their pursuit. U.S. regulators backstopped the bank on Sunday evening.

State of play: SVB Monetary Group is the holding firm that, along with its SVB Financial institution enterprise, has three different segments — asset administration, non-public wealth, and a securities enterprise.

Particulars: The method across the holding firm continues to be fluid, sources mentioned — and can proceed to play out over the following couple of days.

• Apollo Administration and Morgan Stanley are additionally a part of the discussions across the holding firm, the sources mentioned. Apollo’s curiosity is anticipated to focus on financing a transaction or buying components of the enterprise, they added.
• After publication, a PNC spokesman mentioned, “PNC just isn’t in talks to amass SVB Monetary or Silicon Valley Financial institution.”

Price noting: The three entities, referred to as SVB Non-public, SVB Capital and SVB Securities, are significantly smaller than the SVB Financial institution entity now underneath FDIC management, the corporate’s 2022 10K reveals.

• SVB Monetary Group mentioned Monday morning that the corporate is in search of strategic options for the holding firm and SVB Capital and SVB Securities.
• SVB Capital is a enterprise capital and personal credit score fund, and SVB Securities is the funding banking enterprise.

For the file: J.P. Morgan, Apollo and Morgan Stanley didn’t instantly return calls in search of remark.

Editor’s observe: The story was up to date with a remark from PNC and to incorporate SVB Monetary Group confirming the gross sales technique of the holding firm and different property.

Michael Flaherty is an editor for Axios Professional Offers. Begin your free trial at AxiosPro.com.