Private investment company Apollo Global Management is asking to support its bid to buy a Silicon Valley bank.
Source: Pixabay.com
The company has held talks with Andreessen Horowitz, General Catalyst, Redpoint Ventures, and other venture capital firms (VC). During these negotiations, the support of the firm’s application for the acquisition of assets of the bankrupt bank was discussed. Currently, there is no information about the results of the negotiation process. The fact that the negotiations took place was reported by the media concerning unnamed sources.
Last Monday, March 13, it became known that a group of venture capital companies, including Andreessen Horowitz, General Catalyst, and Khosla Ventures, are working on the return of part of the Silicon Valley bank. After the financial institution was closed at the end of last week and came under the control of regulators, firms took care of solving the question of how to make the bank able to continue to provide loans and direct investments for the development of startups in the technology sector.
The Federal Deposit Insurance Corporation (FDIC) tried to sell Silicon Valley Bank at auction on Sunday, March 12. None of the major US financial institutions were interested in this proposal. This auction was organized to raise money for the payment of debts to depositors of the bank.
At the same time, the British division of the Silicon Valley Bank was sold for one 1 pound. This division was acquired by the local banking giant HSBC, which also plans to invest $ 2.1 billion to ensure that the structural unit of the bankrupt financial institution will be able to conduct business as usual.
The FDIC may offer incentives to buyers during the next auction, the date of which is still unknown. The sale of the bank is extremely important for regulators, because, according to them, the bankruptcy of a financial institution poses a threat to the entire US financial system.
