Non-public fairness corporations Apollo, KKR amongst these reviewing Silicon Valley Financial institution loans
Individuals wait outdoors 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 corporations Apollo World Administration and KKR are among the many events reviewing a ebook of loans held by Silicon Valley Financial institution, individuals aware of the discussions informed CNBC.
Two of these individuals mentioned Apollo could also be all for buying a chunk of the enterprise at par. Nevertheless, one of many individuals mentioned it’s unclear how the Federal Deposit Insurance coverage Company plans to proceed because the regulator might desire a single purchaser for the property.
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The individuals CNBC spoke with requested anonymity since they weren’t licensed to share confidential particulars concerning the discussions. The individuals additionally confirmed Blackstone and Carlyle Group are amongst these taking part within the course of, which continues to be at an early stage.
Beforehand, Bloomberg reported that a number of personal fairness corporations have been conducting due diligence on the mortgage property. That report, which cited a number of individuals with data of the talks, mentioned Apollo, Ares Administration, Blackstone, Carlyle Group and KKR had been amongst these reviewing a possible deal.
The businesses declined to touch upon the report.
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 Sunday to backstop SVB’s depositors to be able to stop additional panic within the monetary system.
— CNBC’s Christina Cheddar-Berk contributed to this report.