WASHINGTON (dpa-AFX) - SVB Financial Group (SIVB) said Monday it has agreed to acquire the debt fund business of WestRiver Group, a Seattle-based provider of integrated capital solutions for the global innovation economy. The transaction is expected to close by the end of 2020.
SVB Financial noted that the acquisition will enable SVB Capital, its funds management business, to establish the SVB Capital Credit Platform to provide institutional investors with additional investment opportunities in the innovation economy.
The acquisition will also provide new debt options to Silicon Valley Bank's commercial banking clients. SVB Financial Group is the parent company of Silicon Valley Bank.
SVB Financial noted that it has had a long-standing relationship with WestRiver Group and its founder and CEO Erik Anderson. The WestRiver debt team provides debt capital to venture capital and private equity-backed technology and life science companies.
Over the past eight years, WestRiver's debt program has expanded to augment and complement SVB Financial's own growth, providing Silicon Valley Bank with capital to execute on partnered transactions.
SVB Capital has been investing in the innovation economy for more than 20 years and manages $5.5 billion in assets across multiple funds.
Upon closing, Erik Anderson will join SVB as the Executive Chairman of the SVB Capital Credit Platform and will also serve as Chair of the SVB Capital Advisory Committee. Erik, along with SVB veterans Jim Ellison and Pete Scott, will lead the Credit Platform, with fundraising and operation support from SVB Capital.
As the Head of the Credit Platform, Jim Ellison will oversee the investment team, which will be responsible for originating, underwriting and managing the investment portfolio.
Chief Credit Officer Pete Scott will define investment strategies, develop new products and oversee allocation and reporting across the investment portfolio. In addition to its location in Menlo Park, California, SVB Capital will now have an office in downtown Seattle.
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