SkyBridge Capital and Atlas Merchant Capital Compete for SVB Capital
SkyBridge Capital, led by Anthony Scaramucci, and Atlas Merchant Capital are both vying for SVB Capital, the venture capital and credit-investment arm of SVB Financial Group. Vector Capital is also in the running to acquire the credit investment firm. A decision on the winning bidder is expected to be made soon.
Potential Deal Could Fetch $250 Million to $500 Million
The potential deal for SVB Capital, currently undergoing bankruptcy proceedings, could have a value ranging from $250 million to $500 million. However, it is important to note that the transaction is not guaranteed and must still undergo review by the creditors’ committee.
The Fall of Silicon Valley Bank
Silicon Valley Bank, a popular lender to tech and growth startups in Silicon Valley, failed on March 10 and came under the control of the Federal Deposit Insurance Corporation (FDIC). Subsequently, SVB Financial Group filed for Chapter 11 protection, allowing the sale of its assets. First Citizens Bancshares acquired many of Silicon Valley Bank’s loans and deposits.
About SkyBridge Capital
SkyBridge Capital manages a portfolio exceeding $1.8 billion, with significant investments in digital assets totaling approximately $580 million. Anthony Scaramucci leads the firm. Scaramucci gained notoriety in 2017 when he was removed as communications director for then-President Donald Trump after just 10 days.
Other Competitors: Vector Capital and Atlas Merchant Capital
Vector Capital specializes in middle-market technology and technology-enabled businesses. On the other hand, Atlas Merchant Capital operates in New York and London, offering investment strategies in public and private markets.
Hot Take: Banking Crises and FDIC Challenges
The collapse of Silicon Valley Bank follows the recent collapse of crypto-friendly bank Silvergate. Silvergate, heavily impacted by the fall of FTX, had to sell debt securities at a loss to cover user withdrawals. The FDIC is currently grappling with $13 billion worth of hard-to-sell mortgage bonds from Silicon Valley Bank and Signature Bank, which were taken over by the FDIC.
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