PitchBook is providing ongoing coverage of the collapse of Silicon Valley Bank and its consequences for venture capital, startups and the private markets as a whole.
Latest news on SVB
In case you missed it:
- Some SVB borrowers get best of both worlds following collapse
- SVB Financial’s path forward, explained
- Former SVB bankers land at Stifel to launch venture expansion
- Asset sale overview: ‘Largest footprint in tech ecosystem’
- Early-stage founders aren’t writing off SVB 2.0 quite yet
- SVB Financial’s bond price rises after bankruptcy filing
Failed SVB to be taken over by First Citizens
North Carolina lender First Citizens Bank has agreed to take over most of Silicon Valley Bank, assuming $238 billion worth of assets, deposits and loans held by the entity created following the bank’s collapse. Read more.
Why LPs think SVB’s failure has an upside
After a mad scramble two weeks ago to get cash to companies with deposits trapped in Silicon Valley Bank, the VC ecosystem is back to business as usual. The bridge bank that controls SVB’s former assets and liabilities has not only guaranteed all deposits, but it is also honoring all lines of credit and offering new loans. Read more.
Leveraged loan fund withdrawals deepen
With the banking crisis keeping markets on edge, investors pulled $1.94 billion from US leveraged loan funds for the week ended March 22, according to Morningstar. This is the largest weekly outflow since last June and is the twentieth consecutive week in the red. Read more.
Banking crisis puts pressure on PE money supply
The banking crisis is set to perpetuate private equity firms’ financing challenges as more traditional lenders withdraw from the market. Read more.
UBS deal signals the end of Credit Suisse
After 167 years of business, Credit Suisse will be taken over by UBS in a deal aimed at quieting ongoing panic in the financial markets in the wake of Silicon Valley Bank’s collapse. Read more.
PitchBook research on SVB and the market
Analysis: Ominous questions about what comes after SVB
SVB’s blowup has left a gaping hole in the venture capital ecosystem and triggered a mass migration to alternative financial partners. Eventually, writes PitchBook’s Andrew Woodman, we will see a new version of SVB emerge—albeit under the auspices of new management that will likely have different priorities, and perhaps different values, than its predecessor. Read more.
The venture world without SVB
A host of risks and unknowns face the VC ecosystem, and the broader market, without SVB on the scene, PitchBook analysts write in new research note. At stake is the future of credit lines and other banking operations that played a pivotal role in the growth of VC investment, especially in the past few years. Also in question is future fundraising capabilities for portfolio companies that were backed by SVB Capital.
Venture debt as the market turns
In recent years, SVB had been one of the largest players in the venture debt market, providing loans to many startups in tech and life sciences. A PitchBook analyst note highlights the significant growth of venture debt in recent years, building alongside the growth of the VC market as lenders were able to offer a relatively cheap, nondilutive source of growth capital to startups in a low interest-rate environment.
LCD news and analysis on SVB an the market
FINMA defends $17B write-down of Credit Suisse AT1 bonds
Swiss financial regulator FINMA has issued a defense of its decision to wipe out holders of Credit Suisse’s additional tier one bonds as part of the state-led sale of the beleaguered lender to rival UBS. Read more.
SVB bonds rise after bankruptcy filing
LCD reported the parent company’s unsecured paper has been trading generally in the low 60s, up roughly 50% from low-40s trades earlier in the week, which itself was up from the low-to-mid-30s on March 10, when SVB was seized. Read more.
Primer: What is the ‘systemic risk exception’?
When the FDIC assumed control of Silicon Valley Bank and Signature Bank, it did so under a policy called the Systemic Risk Exception, which is designed to let regulators react if they believe a bank crisis could put the entire US banking system at risk. Here’s a primer on the origins of this policy tool and how regulators use it. Read more
Other exclusive PitchBook and LCD content on the crisis:
- PitchBook research: Collapse of bank casts long shadow on VC
- Ripple effect: The global impact of SVB’s collapse
- Liabilities behind private credit in focus as regional banks teeter
- SVB borrowers face a quandary: Wait and see or start afresh?
- Revolut, Brex partners caught in regional bank sell-off
- Investors sift for value as bank sector spreads balloon amid SVB failure
- Meet the 5 industry leaders tasked with carving up SVB
- Analysts weigh effects of SVB on CLOs, loan demand
- European risk assets are routes Credit Suisse feels the heat
- Ripple effect: International scope of the crisis
- Fintech startups race to serve LatAm founders left behind
- A race to pounce on venture debt market
- Investors sift for value as bank sector spreads balloon
- SVB collapse puts spotlight on loans to tech industry
- PitchBook research: Venture debt as the market turns
- Leveraged loan secondary market sinks in wake of SVB debacle
- Collapse puts spotlight on loans to tech industry
- ‘The relief is palpable': HSBC acquires SVB’s UK arm
- Weekend Analysis: Where will SVB’s assets end up?
- Startups with funds locked in SVB pray for a saving grace
- Silicon Valley Bank’s liquidity crisis rocks the tech world
Featured image by Sundry Photography/Shutterstock
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