Private equity companies Apollo, KKR amongst those evaluating Silicon Valley Bank loans

PE firm Apollo reviewing SVB's loan book

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People wait outside the Silicon Valley Bank head office in Santa Clara, CA, to withdraw funds after the federal government stepped in upon the bank’s collapse, on March 13, 2023.

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Private equity companies Apollo Global Management and KKR are amongst the celebrations evaluating a book of loans held by Silicon Valley Bank, individuals acquainted with the conversations informed CNBC.

Two of those individuals stated Apollo might have an interest in getting a piece of business at par. However, among individuals stated it is uncertain how the Federal Deposit Insurance Corporation prepares to continue given that the regulator might choose a single purchaser for the properties.

The individuals CNBC talked with asked for privacy given that they weren’t licensed to share personal information about the conversations. The individuals likewise verified Blackstone and Carlyle Group are amongst those taking part in the procedure, which is still at an early phase.

Previously, Bloomberg reported that a number of personal equity companies have actually been carrying out due diligence on the loan properties. That report, which pointed out a number of individuals with understanding of the talks, stated Apollo, Ares Management, Blackstone, Carlyle Group and KKR were amongst those evaluating a prospective offer.

The business decreased to talk about the report.

The FDIC took control of tech-focused SVB onFriday Over the weekend, the firm held an auction, which stopped working to discover a purchaser. That triggered the regulator to develop a bridge bank, which now houses the California- based bank’s deposits. A strategy was then developed Sunday to backstop SVB’s depositors in order to avoid additional panic in the monetary system.

— CNBC’s Christina Cheddar-Berk added to this report.