(Reuters) – Failed U.S. lender SVB Financial Group said on Thursday that a company affiliated with Pinegrove Capital Partners would acquire its business investment platform SVB Capital.
Pinegrove Capital Partners, backed by permanent capital from Brookfield and Sequoia Heritage, will buy SVB Capital using a combination of cash and other economic considerations, SVB Financial said. The financial cost is not disclosed.
SVB Financial is seeking bankruptcy court approval and has requested a June 5 hearing.
The transaction is also supported by SVB Financial’s key creditor groups and is subject to regulatory approvals and other customary closing conditions, the company said.
Under the agreement, Pinegrove and SVB Capital will operate independently, each led by existing management teams.
SVB Financial filed for bankruptcy last year following the bankruptcy of Silicon Valley Bank. The third-largest bank failure in US history also brought down Bank signature (OTC:) and wiped out more than half the market value of several other regional US lenders.