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SVB Financial (SIVB) to Buy WestRiver's Debt Investment Business
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SVB Financial Group has entered into an agreement to acquire the debt investment business of WestRiver Group. The transaction is expected to close by the end of this year. Nonetheless, terms of the deal have not been disclosed.
With this acquisition, SVB Financial's funds management arm, SVB Capital, will be able to establish the SVB Capital Credit Platform. The SVB Capital Credit Platform will enable Silicon Valley Bank's (the banking arm of SVB Financial) clients to access new debt options and also offer “institutional investors additional investment opportunities in the innovation economy.”
Notably, SVB Capital has a history of more than 20 years of making investments in the innovation economy. It has $5.5 billion in assets under management across various funds. Following the latest acquisition, SVB Capital will also have an office in downtown Seattle, along with its current office in Menlo Park, CA.
Over the last eight years, the Seattle, WA-based WestRiver Group's debt investment arm has been primarily providing debt capital to technology and life-science companies, which have venture capital and private equity backing. With the impending acquisition and the establishment of the SVB Capital Credit Platform, SVB Capital and Silicon Valley Bank will be able to cater to the debt requirements of their clients and provide financing solutions more efficiently.
With the deal’s closure, founder and chief executive officer (CEO) of WestRiver Group, Erik Anderson, will join the SVB Capital Credit Platform as its executive chairman and also serve as the chair of the SVB Capital Advisory Committee. Further, along with Erik Anderson, Jim Ellison and Pete Scott of SVB Financial will lead the new platform with fundraising and operational support from SVB Capital.
John China, president of SVB Capital, noted, "WestRiver Group has been a fantastic partner to SVB for the last eight years. Together we have supported innovative companies across the country with the financing they need to scale. Erik and his team are a welcome addition to SVB Capital and will be instrumental in developing our credit platform and delivering on SVB's mission to be the best partner for technology and life science companies and their investors."
With this acquisition, SVB Financial will be able to further cement its foothold in the innovation economy. Thus, this will likely continue to support the company’s position as one of the foremost providers of financing solutions to innovative companies.
Shares of SVB Financial have appreciated 37.4% so far this year compared with the 3.6% fall of the industry it belongs to.
Currently, SVB Financial carries a Zacks Rank #3 (Hold).
Stocks to Consider
Waddell & Reed Financial, Inc. witnessed an upward earnings estimate revision of 1.9% for 2020 over the past month. Its shares have gained 2% over the past year. At present, it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbia Banking System, Inc. (COLB - Free Report) has witnessed an upward earnings estimate revision of 21% for the current year over the past 30 days. Its shares have lost 18.4% over the past year. At present, it flaunts a Zacks Rank of 1.
Northrim BanCorp, Inc. (NRIM - Free Report) has recorded 27% upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have lost 14% over the past year. At present, it flaunts a Zacks Rank of 1.
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SVB Financial (SIVB) to Buy WestRiver's Debt Investment Business
SVB Financial Group has entered into an agreement to acquire the debt investment business of WestRiver Group. The transaction is expected to close by the end of this year. Nonetheless, terms of the deal have not been disclosed.
With this acquisition, SVB Financial's funds management arm, SVB Capital, will be able to establish the SVB Capital Credit Platform. The SVB Capital Credit Platform will enable Silicon Valley Bank's (the banking arm of SVB Financial) clients to access new debt options and also offer “institutional investors additional investment opportunities in the innovation economy.”
Notably, SVB Capital has a history of more than 20 years of making investments in the innovation economy. It has $5.5 billion in assets under management across various funds. Following the latest acquisition, SVB Capital will also have an office in downtown Seattle, along with its current office in Menlo Park, CA.
Over the last eight years, the Seattle, WA-based WestRiver Group's debt investment arm has been primarily providing debt capital to technology and life-science companies, which have venture capital and private equity backing. With the impending acquisition and the establishment of the SVB Capital Credit Platform, SVB Capital and Silicon Valley Bank will be able to cater to the debt requirements of their clients and provide financing solutions more efficiently.
With the deal’s closure, founder and chief executive officer (CEO) of WestRiver Group, Erik Anderson, will join the SVB Capital Credit Platform as its executive chairman and also serve as the chair of the SVB Capital Advisory Committee. Further, along with Erik Anderson, Jim Ellison and Pete Scott of SVB Financial will lead the new platform with fundraising and operational support from SVB Capital.
John China, president of SVB Capital, noted, "WestRiver Group has been a fantastic partner to SVB for the last eight years. Together we have supported innovative companies across the country with the financing they need to scale. Erik and his team are a welcome addition to SVB Capital and will be instrumental in developing our credit platform and delivering on SVB's mission to be the best partner for technology and life science companies and their investors."
With this acquisition, SVB Financial will be able to further cement its foothold in the innovation economy. Thus, this will likely continue to support the company’s position as one of the foremost providers of financing solutions to innovative companies.
Shares of SVB Financial have appreciated 37.4% so far this year compared with the 3.6% fall of the industry it belongs to.
Currently, SVB Financial carries a Zacks Rank #3 (Hold).
Stocks to Consider
Waddell & Reed Financial, Inc. witnessed an upward earnings estimate revision of 1.9% for 2020 over the past month. Its shares have gained 2% over the past year. At present, it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbia Banking System, Inc. (COLB - Free Report) has witnessed an upward earnings estimate revision of 21% for the current year over the past 30 days. Its shares have lost 18.4% over the past year. At present, it flaunts a Zacks Rank of 1.
Northrim BanCorp, Inc. (NRIM - Free Report) has recorded 27% upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have lost 14% over the past year. At present, it flaunts a Zacks Rank of 1.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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