SVB Financial to sell investment banking unit to the management team
The Baupost company and SVB Financial Group announced on Sunday that an agreement had been reached to sell the latter’s investment banking division to a company led by some of its own senior bankers, including Jeffrey Leerink. According to court documents filed in connection with the sale, the buyers would pay $55 million in cash and erase $26 million of SVB Financial Group’s debt. Additionally, the buyers will take on the obligations associated with deferred banker remuneration while allowing SVB Financial Group to retain 5% of the investment bank’s stock. Regulators to take over deposit operations Since Silicon Valley Bank failed earlier this year, when its botched capital raise shook the banking sector and forced US regulators to take over its deposit-taking operations, the unit, known as SVB Securities, has been for sale. The division will again use the moniker Leerink Partners, a name previously used four years ago. In an effort to support it’s expanding investme...