Private equity firms Apollo, KKR among those reviewing Silicon Valley Bank loans

Private equity firms Apollo, KKR among those reviewing Silicon Valley Bank loans

People wait outside Silicon Valley Bank’s headquarters in Santa Clara, California to withdraw money after the federal government intervened March 13, 2023 following the bank’s collapse.

Nikolas Liepins | Anadolu Agency | Getty Images

private equity firms Apollo Global Management And KKR are among the parties reviewing a loan book held by Silicon Valley Bank, people familiar with the discussions told CNBC.

Two of those people said that Apollo might be interested in acquiring part of the business at face value. However, one of the people said it was unclear how the Federal Deposit Insurance Corporation planned to proceed, as the regulator may favor a single buyer for the assets.

The people CNBC spoke to requested anonymity because they were not authorized to share confidential details about the discussions. People also confirmed that Blackstone and the Carlyle Group are involved in the process, which is still in its early stages.

Previously, Bloomberg reported that several private equity firms conducted due diligence on the loan investments. That report, citing several people with knowledge of the talks, said Apollo: Ares administration, Black Stone, Carlyle group and KKR were among those exploring a potential deal.

The companies declined to comment on the report.

The FDIC took control of the technology-focused SVB on Friday. Over the weekend, the agency held an auction that failed to find a buyer. This prompted the regulator to create a bridge bank that now houses the California-based bank’s deposits. A plan was then laid out on Sunday to stop SVB depositors to prevent further panic in the financial system.

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