Private equity firms Apollo and KKR among those reviewing Silicon Valley Bank loans

0 17

People wait outside the headquarters of Silicon Valley Bank in Santa Clara, CA, to withdraw money after the federal government intervened during the bank’s collapse, on March 13, 2023.

Nikolas Liepins | Anadolu Group | Getty Images

Private equity firms Apollo World Guide and KKR among the parties reviewing Silicon Valley Bank’s loan book, people familiar with the discussions told CNBC.

Two of the people said Apollo might be interested in getting a piece of the business at par. However, one of the sources said that it is not clear how the Federal Deposit Insurance Corp. plans to proceed as the regulator may prefer one buyer for the fund.

PE firm Apollo reviews SVB's loan book

The people CNBC spoke to asked to remain anonymous because they were not authorized to share confidential information about the talks. The people also confirmed that Blackstone and Carlyle Group are among those participating in the process, which is still at an early stage.

Previously, Bloomberg reported that several private equity firms have been conducting due diligence on the loan fund. That report, which cited several people with knowledge of the talks, said Apollo, The management of Ares, Black stone, The Carlyle Group and KKR were among those who reviewed a possible deal.

The companies declined to comment on the report.

The FDIC seized control of technology-focused SVB on Friday. Over the weekend, the group held an auction, which did not find a buyer. That led the regulator to create a bridge bank, in which the bank’s deposits are now based in California. A plan was then drawn up on Sunday to freeze SVB investors to prevent further panic in the financial system.

—CNBC’s Christina Cheddar Berk contributed to this report.

Leave A Reply

Your email address will not be published.