The domino effect of the bank collapse continues as SVB Financial Group, the former parent company of Silicon Valley Bank which has now come under the control of the US federal authorities, has filed for Article 11 of the US Bankruptcy Code.
As highlighted, SVB Securities and SVB Capital's mutual funds and general partner entities are not included in the subordination and continue to operate as normal as SVB Financial Group proceeds with its previously announced exploration of strategic alternatives for these businesses.
In addition, according to the announcement, SVB Capital, a venture capital platform with deep roots in the innovation economy, continues to operate normally and serve its clients. The SVB Capital funds and general partners are separate legal entities, distinct from SVB Financial Group, and are not included in the Chapter 11 filing. The SVB Capital funds continue to have access to funding sources, including subscription credit facilities and investor and general partner commitments. SVB Financial Group is committed to providing support to SVB Capital throughout the reorganization process.
