The Baupost Group, L.L.C. and management team led by Jeff Leerink entered into a definitive agreement to acquire SVB Securities Holdings LLC from SVB Financial Group (OTCPK:SIVB.Q) on June 17, 2023. Under the terms of the purchase agreement, the bidder group will acquire the investment banking business for a combination of cash, repayment of an intercompany note, the assumption of certain liabilities (including significant deferred compensation obligations), and a 5% equity instrument in the buyer entity. MoffettNathanson LLC, a sell-side research business owned by SVB Financial Group, is not included in the transaction and will remain part of SVB Financial Group. In connection with the management buyout, SVB Securities will be rebranded Leerink Partners. The agreement is subject to final approval of the Bankruptcy Court and regulatory approval, as well as other customary closing conditions. As on June 29, 2023, U.S. bankruptcy court did not approve the sale and have asked to ensure that SVB Financial Group is not releasing any liabilities related to the collapse of its Silicon Valley Bank unit and would likely approve the sale once the court reviews the revised deal. As of July 6, 2023 Bankruptcy Court approved the deal. The closing of the management buyout, which is expected to occur in the third quarter of this year, is subject to customary closing conditions and regulatory approvals.
Centerview Partners LLC acted as financial advisor to SVB Financial. Andrew G. Dietderich, James L. Bromley and Jared M. Fishman of Sullivan & Cromwell LLP acted as legal advisor to SVB Financial. Alvarez & Marsal acted as restructuring advisor to SVB Financial. Rothschild & Co US Inc. acted as financial advisor to both management and Baupost Group. Matthew Feldman, David K. Boston and Laura Delanoy of Willkie Farr & Gallagher LLP acted as legal advisor to Baupost Group. Sven Mickisch, Dohyun Kim, Trevor R Allen, Heather Cruz, Howard L Ellin, Ron Meisler, Steven J Matays, Scott Musoff and Joseph M Penko of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to management team.

The Baupost Group, L.L.C. and management team led by Jeff Leerink completed the acquisition of SVB Securities Holdings LLC from SVB Financial Group (OTCPK:SIVB.Q) on October 2, 2023.