SVB Financial Group said Sunday it has reached an agreement to sell its investment banking division to a group led by the unit’s chief executive, Jeff Leerink, and backed by The Baupost Group.
In a statement Sunday, SVB Financial said Leerick’s group was the top bidder for SVB Securities. A price was not disclosed. SVB Securities will be rebranded and continue to focus on healthcare-industry investments.
“The management team and I are excited to return to our heritage of owning and leading the premier healthcare investment bank and relaunching the business under the trusted Leerink Partners brand,” Leerink said in a statement. “Our firm has been a strategic advisor to our corporate and investor clients for almost three decades and this transaction allows us to continue to provide our healthcare clients with the highest quality advice and execution services they have come to expect for their M&A, capital raising, and investment needs.”
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The Federal Deposit Insurance Corporation took over Silicon Valley Bank after it collapsed in March, and First Citizens BancShares Inc.
FCNCA,
-1.21%
bought its loans and deposits.
The management buyout announced Sunday is subject to approval from U.S. bankruptcy court and other closing conditions.
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