Silicon Valley Bank headquarters, Santa Clara

Silicon Valley Bank headquarters, Santa Clara

Buyers in place to snap up SVB’s wine division

Seven parties interested in acquiring the wine sector of the collapsed bank, according to former executive vice president.

The recent collapse of Silicon Valley Bank, SVB, was a bitter pill for many in the Californian wine industry to swallow, the institution very much the go-to financial services company for the sector.

And while many in the industry have been reassured that their deposits are safe, they have still been left in the lurch about their long-term banking futures without the support and assistance of SVB. While its collapse sent shockwaves through financial markets across the globe, the Californian wine industry lost both a bank and a listening voice which understood the peculiar financial issues of the industry.

Now it is hoped that the wine division of the failed bank can be rescued, with the former head of SVB’s wine division, Rob McMillan, claiming a number of parties are keen to take over that sector of the bank.

“Other banks, such as First Republic, have wine divisions,” said McMillan, speaking to the North Bay Business Journal. “A number of banks and institutions have come forward interested in assuming various assets.” The former executive vice president and founder of the Premium Wine Division, SVB, adding “My hope is that it won’t be long before such agreements are made.”

At least seven parties are believed to be interested in talking on the wine division, according to McMillan, who hoped it would be possible to keep the wine division team together. Estimates put the amount loaned to the wine industry in California since 1994 at the $4billion mark, around $1.2billion of which is currently lent in outstanding loans, according to SVB’s most recent financial results.

SVB was closed on March 10 by the Californian Department of Financial Protection and Innovation after a run by its venture capital customers.

Adam Murray
Adam Murray
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