Jun 18, 2023 - Economy

SVB Financial Group agrees to sell investment bank to CEO Jeff Leerink

Illustration: Gabriella Turrisi/Axios

SVB Financial Group has agreed to sell its investment banking division to a group led by Jeff Leerink and backed by funds managed by The Baupost Group.

Why it matters: This will bring SVB Securities' journey to a full circle. The business unit was created following SVB's acquisition in 2018 of Leerink's health care-focused investment bank.

  • Leerink, who founded the bank in 1995, remained the division's CEO at SVB.

Details: The group will acquire the business for cash, repayment of an inter-company note and a 5% equity instrument.

  • MoffettNathanson, a sell-side research business SVB had acquired to be part of its investment banking unit, will not be part of the deal.
  • The unit will be renamed Leerink Partners (its name before SVB's acquisition).

What's next: A court hearing regarding the proposed deal is scheduled for June 29.

Go deeper: Catch up on Axios' coverage of SVB.

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