SVB gets approval to sell SVB Securities to Leerink-led entity

By Sarah Lizee

Olympia, Wash., July 5 – SVB Financial Group received court approval to sell SVB Securities LLC and SVB MEDACorp LLC to winning bidder Saffron Buyer LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Saffron Buyer is an entity led by Jeff Leerink, SVB Securities' chief executive officer and founder, and backed by funds managed by the Baupost Group LLC, as previously reported.

The purchase price consists of $55 million, the subordinated debt payoff amount of about $26 million, the assumption of transferred liabilities, a synthetic equity consideration, and any estimated MoffettNathanson distribution payable at closing, subject to adjustments.

Non-debtor SVB Securities Holdings provides investment banking services across the health care and technology sectors. It also provides equity research coverage for over 355 health care and technology companies.

SVB Securities generates income for SVB Financial primarily through investment banking fees and commissions.

The financial services and bank holding company is based in Santa Clara, Calif. The company filed bankruptcy on March 17 under Chapter 11 case number 23-10367.

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