Healthcare investment firm SVB Securities has announced that its management team will buy out the company from its parent company, Silicon Valley Bank (SVB). SVB, which faced financial turmoil resulting in its bankruptcy filing in March, did not include SVB Securities in the bankruptcy proceedings.
In a statement, SVB Securities confirmed that the management team, led by CEO Jeff Leerink, along with support from The Baupost Group, has entered into a definitive agreement to purchase SVB Securities from SVB Financial Group. The specific financial details of the buyout were not disclosed, but the statement highlighted the strong financial backing from The Baupost Group, which positions SVB Securities to maintain its leadership position in healthcare investment banking.
Jeff Leerink, who founded SVB Securities in 1995, expressed excitement about returning to their heritage of owning and leading the premier healthcare investment bank and relaunching the business under the trusted Leerink Partners brand.
The buyout agreement is subject to final confirmation by the US Bankruptcy Court and regulators, along with other customary closing conditions, as mentioned in the statement.
Silicon Valley Bank faced a turbulent situation when federal regulators took control of the bank on March 10 due to trading losses and subsequent depositor withdrawals. The collapse of SVB came shortly after the winding down of Silvergate Bank, followed by troubles at Signature Bank, creating further instability in the financial sector.
