SVB Financial Group has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York to “preserve value.”

Troubled SVB Financial Group has filed a voluntary petition for a court-supervised reorganization under Chapter 11 in the United States Bankruptcy Court to preserve value.
Announcing the news on March 17, SVB said that the funds of its venture capital arm, SVB Capital, and the broker-dealer SVB Securities, as well as funds of general partner entities, are not included in the bankruptcy proceedings. The entities will continue to operate in an ordinary manner, while SVB Financial Group proceeds to explore strategic alternatives for its businesses.
SVB Financial Group also emphasized that the company is no longer affiliated with Silicon Valley Bank N.A. or the bank’s private banking and wealth management business, SVB Private. The bank’s successor, Silicon Valley Bridge Bank, N.A., is operating under the jurisdiction of the Federal Deposit Insurance Corporation (FDIC) and is not included in the Chapter 11 filing.
According to SVB Group’s estimations, the firm has $2.2 billion of liquidity. In addition to cash and its interests in SVB Capital and SVB Securities, the firm has “other valuable investment securities accounts and other assets,” for which it is also exploring strategic options.