The private equity companies Apollo and KKR are among those considering loans from Silicon Valley Bank

People wait outside the Silicon Valley Bank headquarters in Santa Clara, CA, to withdraw funds after the federal government intervened in the bank̵[ads1]7;s collapse, March 13, 2023.

Nikolas Liepin | Anadolu Agency | Getty Images

Private equity firms Apollo Global Management and KKR are among the parties reviewing a book of loans held by Silicon Valley Bank, people familiar with the discussions told CNBC.

Two of those people said Apollo may be interested in acquiring a piece of the business at par. However, one of the sources said it is unclear how the Federal Deposit Insurance Corp. plans to proceed as the regulator may prefer a single buyer for the assets.

The people CNBC spoke to requested anonymity because they were not authorized to share confidential details of the discussions.

Earlier, Bloomberg reported that several private equity companies have carried out due diligence on the loan funds. The report, which cited several people with knowledge of the talks, said Apollo, Ares Management, Blackstone, Carlyle Group and KKR were among those considering a potential deal.

Ares and KKR declined to comment on the report. Blackstone and Carlyle were not immediately available for comment.

The FDIC took control of technology-focused SVB on Friday. At the weekend, the agency held an auction, which failed to find a buyer. That prompted the regulator to create a bridge bank, which now houses the California-based bank’s deposits. On Sunday, a plan was then laid to stop SVB’s depositors in order to prevent further panic in the financial system.

— CNBC’s Christina Cheddar Berk contributed to this report.

Source link

Back to top button