Justin Sullivan
SVB Securities CEO Jeff Leerink and his team are in talks to repurchase the investment banking franchise from bankrupt parent firm SVB Financial Group (OTCPK:SIVBQ), Bloomberg reported Thursday, citing people familiar with the matter.
A management buyout deal could be announced in the coming days, pending approval from the US Bankruptcy Court for the Southern District of New York, though no decision has yet to be finalized, the people said.
On Wednesday, SVB Securities, which was not included in SVB's bankruptcy filing, reportedly attracted only one qualifying bid. Leerink was seeking to finance a potential management buyout of the business, Bloomberg had previously reported.
Management of SVB Securities was said to have been exploring buying back the unit after Silicon Valley Bank, the former parent of SVB Financial (OTCPK:SIVBQ), fell into FDIC receivership in March.