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Blackstone, PNC, Apollo Among 20 Firms That Made Bids on SVB
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2023-05-11 07:59
At least 20 companies including units of Blackstone Inc., PNC Financial Services Group Inc. and Apollo Global Management

At least 20 companies including units of Blackstone Inc., PNC Financial Services Group Inc. and Apollo Global Management Inc. were involved in bids for parts of Silicon Valley Bank after it collapsed.

A posting Wednesday by the Federal Deposit Insurance Corp. listed names of unsuccessful bidders in the auction that followed the March 10 shutdown of SVB, along with separate lists of the terms offered, without saying which institution made each of the bids. There may be more bids than bidders because some of the firms made multiple offers, the FDIC said.

All told, the regulator received 10 submissions for both deposits and asset purchases including the winning bid, and five for pools of assets. It also got 10 additional bids for the private bank.

The winning proposal by First Citizens BancShares Inc. included all the deposits as well as $72 billion of assets at a 23% discount with a loss-sharing agreement.

The disclosure sheds light on how much competition exists for assets of collapsed banks. It also provides fodder for analysts and lawmakers trying to gauge the FDIC’s efforts to get the best deal for replenishing its deposit insurance fund after the failures of SVB, Signature Bank and First Republic Bank this year.

First Citizens was among at least four bidders that sought to take over all deposits and more than $70 billion in assets. Among that group, it offered the lowest discount, the document shows.

Other bids varied widely in size and terms, in some cases looking to break off certain chunks of the company. One offer sought $28 billion in assets and another $18 billion. The smallest zeroed in on $1.17 billion in assets and about $300 million in “wine-related” deposits, according to the list.

The bidders, as listed by the FDIC, were:

AG Wine Group (Attollo Capital / Gordian Group), New York

Apollo, New York

BankUnited NA, Miami Lakes, Florida

Centennial Bank, Conway, Arizona

The Bank of Nova Scotia, Halifax, Nova Scotia

Bayview Acquisitions, Coral Gables, Florida

Blackstone / Liberty Capital, New York

Brex Inc., Salt Lake City

CIBC Bank USA, Chicago

Citizens Bank NA, Providence, Rhode Island

Creative Planning, Overland Park, Kansas

Lido Advisors, Los Angeles

Northeast Bank, Portland, Maine

PNC Bank, Wilmington, Delaware

Reverence Capital, New York

Safra National Bank of NY, New York

Sixth Street Partners, New York

Stifel Bank & Trust, St. Louis, Missouri

Valley Bank, Passaic, New Jersey

--With assistance from Stephanie Stoughton and David Scheer.

(Updates with description of bids from sixth paragraph.)

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