Investing.com-- SVB Financial, the parent company of the now defunct Silicon Valley Bank, said on Friday it had entered a definitive agreement to sell its venture capital arm, SVB Capital, to an entity backed by Brookfield Asset Management (TSX:BAM) and Sequoia Heritage.
SVB Financial did not disclose the financial details of the deal, but said it will be settled for a combination of cash and other “economic consideration.” Bill Kosturos, Chief Restructuring Officer of SVB Financial, said the deal had a “significant cash component.”
The firm said it entered a deal with an entity that was affiliated with Pinegrove Capital Partners and was backed by Brookfield And Sequoia.
SVB Capital and Pinegrove will continue to operate independently, SVB said. The deal is still subject to regulatory approval.
The company had filed for bankruptcy last year after Silicon Valley Bank collapsed amid a bank run, becoming the third-largest bank failure in U.S. history.
SVB had since sold off its banking arm to First Citizens BancShares Inc (NASDAQ:FCNCA), while its investment banking arm was sold to some of its top management.
SVB had signaled earlier this year that it was considering letting its creditors take over its venture capital arm, after initial talks for a sale to a consortium fell through.