- SVB had loans worth $74b at the end of 2022
- Total assets were $209b, uninsured deposits - $175b
KKR & Co., Blackstone Inc., and Apollo Global Inc., three of the biggest alternative asset managers in the world, have shown an interest in a loan portfolio held by defunct US lender Silicon Valley Bank, insiders told Bloomberg.
The corporations are just a few of the entities interested in buying SVB assets according to the insiders, who wished to remain anonymous. SVB had loans worth $73.6 billion at the end of 2022.
The loan book’s size is not known at the moment. Blackstone is also looking into other assets it can grab from the failed institution.
Bank’s total assets were $209B
SVB had total assets of $209 billion and uninsured deposits of around $175 billion at the end of 2022. It had to sell many of those assets, which were bonds, and lost money because the interest rates rose. The bank also has loans to VC funds, rich entrepreneurs, startups, and growth companies.
The Federal Deposit Insurance Corp. (FDIC) took control of the bank on March 10 after tech startups, which made up the bulk of its customer base, started withdrawing their deposits in panic.
Moody’s downgraded SVB’s parent company
According to Moody’s, the bank has “a long-established track record in the sector which supports its expertise, conservative underwriting, and better than peer asset quality performance.” Regardless, the ratings agency downgraded SVB Financial Group’s debt. This is SVB’s parent company.
Insiders added that the loan portfolio was appealing and had not contributed to the bank’s failure. The auction organized for the bank by the FDIC last weekend failed to attract a buyer.
The FDIC set up an interim bank, where SVB deposits will be held. The regulator promised all depositors would get their money back. SVB Financial is looking into the option of selling off SVB Securities, SVB Capital, and other units.
