Private equity firms Apollo and KKR among those reviewing Silicon Valley Bank loans
Individuals wait exterior the Silicon Valley Financial institution headquarters in Santa Clara, CA, to withdraw funds after the federal authorities intervened upon the financial institution’s collapse, on March 13, 2023.
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Non-public fairness companies Apollo International Administration and KKR are among the many events reviewing a e-book of loans held by Silicon Valley Financial institution, individuals acquainted with the discussions informed CNBC.
Two of these individuals stated Apollo could also be focused on buying a chunk of the enterprise at par. Nonetheless, one of many sources stated it’s unclear how the Federal Deposit Insurance coverage Corp. plans to proceed because the regulator could favor a single purchaser for the belongings.
The individuals CNBC spoke with requested anonymity since they weren’t licensed to share confidential particulars in regards to the discussions.
Beforehand, Bloomberg reported that a number of personal fairness companies have been conducting due diligence on the mortgage belongings. That report, which cited a number of individuals with data of the talks, stated Apollo, Ares Administration, Blackstone, Carlyle Group and KKR have been amongst these reviewing a possible deal.
Ares and KKR declined to touch upon the report. Blackstone and Carlyle weren’t instantly out there to remark.
The FDIC seized management of tech-focused SVB on Friday. Over the weekend, the company held an public sale, which did not discover a purchaser. That prompted the regulator to create a bridge financial institution, which now homes the California-based financial institution’s deposits. A plan was then devised on Sunday to backstop SVB’s depositors so as to stop additional panic within the monetary system.
—CNBC’s Christina Cheddar Berk contributed to this report.