Buyers will line up for Silicon Valley Bank wealth management: Banker

The unit has $17 billion in client assets, which includes high-net-worth clients the bank acquired with its 2021 purchase of Boston Private.

Bankers and buyers will be lining up to kick the tires of Silicon Valley Bank’s wealth management business, SVB Private, which includes the bank’s 2021 acquisition of Boston Private Financial Holdings, according to industry bankers and published reports.

“Silicon Valley Bank had a high-net-worth business that they are going to sell,” said one investment banker, who asked not to be named. “It’s a really small part of the company, but investment bankers are jumping on this.”

Silicon Valley Bank was seized by regulators Friday amid a run on deposits and an aborted push to raise capital. The Federal Deposit Insurance Corp. now aims to find buyers for SVB’s various businesses to return as much of clients’ money as possible, according to Bloomberg News.

According to Bloomberg News, SVB Private, the bank’s smallest unit by revenue, includes high-net-worth clients acquired in the Boston Private Financial deal. The business had $17 billion in client assets, which would be a small addition for the giants that manage trillions.

The private bank and wealth manager offers conventional products like mortgages, lines of credit, and tax and trust services, along with the not so conventional, such as vineyard development loans.

Meanwhile, the investment bank, SVB Securities, touts its services to firms in industries including software, digital infrastructure, fintech, medical devices and biopharma, according to Bloomberg News. It advised on about $9 billion in M&A transactions last year, ranking 83rd globally, Bloomberg league tables show. The unit had a loss of $95 million in 2022 on revenue of about $508 million.

With Bloomberg News.