Folks 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 Global Management and KKR are among the many events reviewing a e book of loans held by Silicon Valley Financial institution, individuals acquainted with the discussions advised CNBC.
Two of these individuals mentioned Apollo could also be occupied with buying a chunk of the enterprise at par. Nonetheless, one of many sources mentioned it’s unclear how the Federal Deposit Insurance coverage Corp. plans to proceed because the regulator might choose a single purchaser for the belongings.
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 belongings. That report, which cited a number of individuals with data of the talks, mentioned Apollo, Ares Management, Blackstone, Carlyle Group and KKR have been amongst these reviewing a possible deal.
The businesses declined to touch upon the report.
The FDIC seized control of tech-focused SVB on Friday. Over the weekend, the agency held an auction, 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 as a way to stop additional panic within the monetary system.
—CNBC’s Christina Cheddar Berk contributed to this report.