SVB Financial Group is the holding company for Silicon Valley Bank, which serves emerging and established companies involved in technology, life sciences, private equity, and premium wine, and provides customized financing to entrepreneurs, executives, and investors in such industries. It also offers deposit accounts, loans, and international banking and plays matchmaker for young firms and private investors. Subsidiaries SVB Asset Management and SVB Securities provide investment advisory, brokerage, and asset management services; SVB Private Client provides credit and banking services to wealthy individuals. The group has about 25 offices in the US, as well as branches in the China, India, Israel, and the UK.
SVB Financial makes venture capital and private equity investments through SVB Capital, which has more than $1 billion of assets under management. The company's SVB Analytics unit provides valuation and corporate equity management services to venture capital firms and venture capital-backed enterprises. The division acquired Equity Enterprises from Boardroom Software in 2010, expanding its market to public companies and complex limited liability companies in addition to the private companies it already served.
Greg Becker, who joined SVB Financial in 1993, was named the company's CEO in 2011. He succeeded Ken Wilcox, who became chairman and is focused on the company's efforts to expand in China, including a joint venture with Shanghai Pudong Development Bank.
As part of its lending activities, Silicon Valley Bank sometimes pursues warrants to purchase equity stakes in its clients. About 80% of the bank's loan portfolio is dedicated to business loans. Traditionally focused on up-and-coming firms, the bank has implemented a strategy of courting larger, later-stage clients.
SVB Financial reported record earnings of nearly $172 million in 2011. Its results were driven in part by an increase in not only loans, but also deposits, which the company invests in low-risk securities. Improved credit quality helped as well. – less