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SVB new boss says 'business as usual' as Blackstone and rivals eye loan book

Published 2023-03-14, 10:10 a/m
© Reuters SVB new boss says 'business as usual' as Blackstone and rivals eye loan book
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Proactive Investors - Silicon Valley Bank (SVB) is continuing to operate "as usual" under a new structure, its new chief executive said, though its loan book is being eyed by three of the largest alternative asset managers after the California lender was seized by federal regulators last week, according to a report.

Apollo Global Management (NYSE:APO), Blackstone (NYSE:BX) and KKR & Co have expressed interest in snapping up a book of loans held by SVB, per a Bloomberg report citing people with knowledge of the matter.

SVB's loan book was valued at US$73.6bln at the end of December.

The size of the loan book being examined by Apollo and Blackstone was not disclosed, and Blackstone is reportedly also looking at other assets it could purchase from the bank, one source told Bloomberg.

Apollo, Blackstone and KKR declined any request for comment.

After the US Federal Deposit Insurance Corporation took control of the bank, all deposits of SVB were transferred to a newly created entity, Silicon Valley Bank NA, with clients able to access their deposits starting Monday morning.

The CEO of the new entity, Tim Mayopoulos, told clients that the lender was open and “conducting business as usual” on Monday, per a letter seen by Reuters.

He said in the letter that the bank would provide more information as soon as it was available.

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