Investing.com — SVB Financial, the parent company of the now-defunct Silicon Valley Bank, said Friday it has entered into a definitive agreement to sell its venture capital arm, SVB Capital, to an entity backed by Brookfield Asset Management (TSX:) and Sequoia Heritage.
SVB Financial did not disclose financial details of the deal, but said it will be arranged for a combination of cash and other “economic considerations.” Bill Kosturos, SVB Financial’s chief restructuring officer, said the deal had a “significant cash component.”
The company said it had struck a deal with an entity tied to Pinegrove Capital Partners and backed by Brookfield and Sequoia.
SVB Capital and Pinegrove will continue to operate independently, SVB said. The deal still needs to be approved by regulators.
The company had filed for bankruptcy last year after Silicon Valley Bank collapsed during a bank run, becoming the third-largest bank failure in U.S. history.
SVB had since sold its banking division to First Citizens BancShares Inc (NASDAQ:), while its investment banking division was sold to some of its top management.
SVB had said earlier this year that it was considering letting its creditors take over the venture capital arm, after initial talks about a sale to a consortium failed.
