SVB Financial Group
| Company type | Public (until bankruptcy) |
|---|---|
| Industry | Financial services |
| Founded | April 23, 1982 in Santa Clara, California, United States |
| Founder | Bill Biggerstaff, Robert Medearis |
| Defunct | August 2024 |
| Fate | Filed for Chapter 11 bankruptcy; assets sold and restructured |
| Headquarters | New York City , United States |
Key people | Gregory W. Becker (CEO), Roger F. Dunbar (Chairman), Michael R. Descheneaux (President) |
| Products | Commercial banking, private banking, investment banking (formerly) |
| Revenue | US$7.40 billion (2022) |
| US$1.51 billion (2022) | |
| Total assets | US$211.8 billion (2022) |
| Total equity | US$16.0 billion (2022) |
Number of employees | 8,553 (2022) |
SVB Financial Group (commonly referred to as SVB or SVBFG) operated as a holding company within the financial services sector, with its headquarters located in New York City. Its principal operation was the commercial bank known as Silicon Valley Bank, which experienced failure in March 2023 triggered by a bank run. Prior to this event, SVB Financial was included in the S&P 500 index until March 15, 2023. As of December 31, 2022, the group encompassed 164 subsidiary entities.
Before its downfall, notable subsidiaries comprised Silicon Valley Bank and SVB Private—a private banking division serving private equity firms and high-net-worth individual clients through affiliated entities SVB Investment Services and SVB Wealth. Both these units were placed under receivership and subsequently acquired by First Citizens Bank. In July 2023, SVB Securities was divested to its management team and rebranded as Leerink Partners. Additionally, in May 2024, SVB Capital was sold to a party connected with Pinegrove Capital Partners.
Among the senior leadership were CEO Gregory W. Becker, chairman Roger F. Dunbar, and president Michael R. Descheneaux. For the fiscal year 2022, SVB reported revenues amounting to US$7.40 billion, net earnings of US$1.51 billion, total assets valued at US$211.8 billion, and shareholders' equity of US$16.0 billion. The workforce numbered 8,553 employees at the end of 2022.
History
SVB Financial originated as Silicon Valley Bancshares on April 23, 1982, founded by Bill Biggerstaff and Robert Medearis. The Silicon Valley Bank subsidiary was officially incorporated in October 1983 as a fully owned entity.
The company went public in 1988 through an initial public offering, raising $6 million in capital. Its stock price soared during the dot-com bubble but subsequently declined by half following the market crash. In 1999, the firm restructured as a Delaware corporation. Ken Wilcox assumed the role of CEO in 2000.
In 2001, SVB expanded its investment banking operations by acquiring Palo Alto Alliant Partners for $100 million and renaming it SVB Alliant. The following year marked entry into private banking services aimed at affluent venture capitalists and entrepreneurs.
On May 31, 2005, Silicon Valley Bankshares changed its name to SVB Financial Group to better represent its broader business interests beyond traditional commercial banking. The SVB Alliant division was discontinued in 2007.
During December 2008, SVB Financial secured a $235 million capital injection from the U.S. Treasury under the Troubled Asset Relief Program. By December 2009, the company had repurchased all government-held shares and warrants using proceeds from a $300 million stock issuance.
In 2015, CEO Greg Becker indicated that there were no immediate intentions for SVB to resume investment banking activities at levels seen before 2006.
January 2019 saw SVB Financial acquire healthcare investment bank Leerink Partners LLC, which was subsequently renamed SVB Leerink. In 2021, SVB purchased Boston Private Financial Holdings and integrated its subsidiary Boston Private Bank & Trust Company into Silicon Valley Bank and SVB Private. That same year also included acquiring MoffettNathanson LLC, a research firm specializing in media and telecommunications sectors. In February 2022, SVB Leerink was rebranded as SVB Securities.
In August 2024, SVB Financial Group obtained judicial approval to transfer its assets to creditors and conclude bankruptcy proceedings. As part of this restructuring process, it divested multiple assets and separated its venture capital and investment banking divisions.
Collapse of Silicon Valley Bank
In March 2023, Silicon Valley Bank (SVB) experienced a collapse triggered by a bank run, during which clients sought to withdraw approximately 81% of its deposits—equating to $142 billion out of $175 billion—within a span of two days. This event marked the most significant bank failure in the United States since the 2008 financial crisis and ranked as the second-largest bank collapse in the nation’s history by asset size.
On March 10, 2023, the California Department of Financial Protection and Innovation intervened by shutting down SVB and appointing the Federal Deposit Insurance Corporation (FDIC) as receiver. All assets were transferred to a newly created bridge bank. The holding company was not included in this receivership process and subsequently moved its headquarters from Santa Clara to New York City.
By March 13, SVB Financial Group commenced efforts to divest its affiliate companies, SVB Capital and SVB Securities. Jeffrey Leerink, founder of SVB Securities, showed interest in repurchasing the firm. On March 17, SVB Financial Group filed for Chapter 11 bankruptcy protection. Prior to this filing, investment firms such as Centerbridge Partners, Davidson Kempner Capital Management, and PIMCO had acquired stakes in anticipation of the bankruptcy.
On June 18, 2023, SVB Financial Group reached an agreement to sell SVB Securities through a management buyout led by Leerink, supported by the Baupost Group; however, MoffettNathanson LLC was excluded from this transaction. The bankruptcy court approved the sale in July 2023, after which SVB Securities was renamed Leerink Partners.
On January 9, 2024, SVB Financial Group revealed plans to transfer ownership of SVB Capital to a newly formed entity controlled by its creditors. Following this, on March 20, 2024, it announced the sale of its Indian subsidiary, SVB Global Services India, to First Citizens BancShares.
Most recently, on May 3, 2024, SVB Financial Group entered into an agreement to sell its investment platform business, SVB Capital, to a new organization affiliated with Pinegrove Capital Partners and financially supported by Brookfield Asset Management and Sequoia Heritage.