SVB Financial
Group, the former owner of Silicon Valley Bank, whose collapse earlier this year sent shock waves across the U.S. banking sector, has reached a deal to sell its investment banking division.
SVB Financial said Sunday that it had entered into a definitive purchase agreement to sell SVB Securities to a group including some of its own managers, led by Jeff Leerink, and backed by hedge fund Baupost Group. The deal will see the bidders acquire the healthcare-focused business—to be renamed Leerink Partners—for a combination of cash, repayment of an intercompany note, the assumption of certain liabilities, and a 5% equity instrument in the buyer entity.
“This transaction is a significant milestone in SVB Financial Group’s strategic alternatives process,” SVB Financial’s chief restructuring officer, Bill Kosturos, said in a statement.
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