Apollo Eyes SVB Assets as Suitors Circle $73.6 Billion Loan Book

Apollo Management is seeking to buy a stake in Silicon Valley Bank.

Apollo Global Management Inc showed interest in snapping up a book held by Silicon Valley Bank, the California bank that was seized by federal regulators last week.

According to people familiar with the matter, Apollo, one of the world’s largest alternative asset managers, is among other investors looking to buy some of SVB’s assets.

The bank had loans worth $73.6 billion as of December 31, 2022, but the loan book Apollo’s size is involved in couldn’t be determined.

The Federal Deposit Insurance Corporation acquired Silicon Valley Bank on Friday after its long-established consumer base of tech startups instigated withdrawing deposits en masse.

At the end of last year, the bank had more than $175 billion in primarily uninsured deposits and $209 billion in aggregate assets. Many of those assets included long-term bonds the bank had to vend at a loss amid increasing interest rates.

Silicon Valley Bank’s other assets comprise loans to early-stage and development companies, credit for wealthy entrepreneurs, and venture capital funds.

The FDIC held an auction over the weekend, but no buyers appeared. Instead, regulators created a bridge bank to house SVB’s deposits, promising to benefit all customers.

The former holding company of Silicon Valley Bank, SVB Financial Group, is also discovering the opportunity of selling off other units counting SVB Capital and SVB Securities.

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