Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Private equity giants including Apollo, Blackstone eye SVB loan book- reports

Published 03/14/2023, 07:59 AM
Updated 03/14/2023, 02:32 PM
© Reuters. FILE PHOTO: Signage is seen outside the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo

(Reuters) -Apollo Global Management Inc, Blackstone (NYSE:BX) Inc and KKR & Co (NYSE:KKR) Inc have expressed interest in a book of loans held by Silicon Valley Bank (SVB), Bloomberg News reported on Tuesday, citing people familiar with the matter.

The loan portfolio is seen as an attractive buy and was not a contributing factor in the bank run that caused SVB's demise, the report said.

Buyout giants Ares Management (NYSE:ARES) and Carlyle Group (NASDAQ:CG) are also looking to buy the loan book, the Financial Times reported, citing people familiar with the matter.

The surge in interest in the book follows the tech lender's failure last week to raise equity to plug a $1.8 billion hole after selling its $21 billion portfolio of securities at a loss.

The fiasco led to $42 billion of deposit outflows in a day and escalated worries of a contagion across financial markets, with Californian regulators later shutting down SVB — a subsidiary of the defunct SVB Financial Services Group.

On Monday, SVB said it was planning to explore strategic alternatives for its businesses, including holding company SVB Capital and SVB Securities.

© Reuters. FILE PHOTO: Customers wait outside as an employee enters the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki/File Photo

The bank brought on board restructuring veteran William Kosturos, who was previously the restructuring chief for Washington Mutual that collapsed during the global financial crisis in 2008 in what was the biggest bank failure in U.S. history.

Apollo, KKR and Ares declined to comment. Blackstone, SVB and Carlyle did not immediately respond to Reuters' requests for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.