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Silicon Valley Bank Buys Boston Private for $900M

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Silicon Valley Bank is buying Boston Private Bank & Trust for about $900 million. The combined private bank and wealth management firm is expected to have $17.7 billion in assets under management.

“Silicon Valley Bank goes the inorganic route to scale up massively in wealth management and private banking by acquiring $16.3 billion AUM Boston Private,” said Gavin Spitzner, head of Consulting Partners, on LinkedIn.

The bank currently works on two-thirds of venture-capital backed initial public offerings, Spitzner adds, and its wealth management assets before the acquisition were $1.4 billion. 

“The deal expands its presence in key markets on both coasts and more than quintuples its private banking and wealth management revenue, taking it to a combined ~$400 million” on an annual basis, he explained.

According to Silicon Valley Bank, the market potential of total investment management assets, loans and deposits of its current commercial banking clients stands at roughly $400 billion.

“Boston Private’s experienced and well-regarded team, robust service offering, and advanced technology platform will significantly bolster our private bank and wealth management capabilities and enhance our ability to offer products and services tailored to the needs of founders, executives and investors,” said Greg Becker, President and CEO of SVB Financial Group, the parent company of Silicon Valley Bank, in a statement. 

Through the deal, SVB plans to expand its wealth business via “complex strategies to manage concentrated stock positions, to add tax planning, trust services, philanthropy and estate planning, while offering a significantly improved digital client experience,” according to a press release. 

Boston Private’s clients should benefit from expanded access “to investment opportunities and participation in the innovation economy, as well as the power of SVB’s large balance sheet to support their borrowing needs,” SVB said.

Overall, the combined firm should be “well-positioned to grow and scale our business, leveraging SVB’s deep client relationships and broad reach across the innovation economy to capture a greater share of the wealth management market,” addeed Boston Private CEO Anthony DeChellis in a statement. 

The deal has been approved by both companies’ boards and should close in mid-2021.

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