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SVB Financial (SIVB) Plans to Hire Tech Bankers for New Team
Close to the heels of announcing new investment banking (IB) team for the tech sector, SVB Financial now intends to hire bankers to serve this lucrative sector. In an interview with Reuters, the company president and CEO Greg Becker stated plans to increase the size of this team to 50 by the end of this year.
Last week, SVB Financial had announced the launch of a technology IB team led by Jason Auerbach. Before joining the company, Auerbach worked as the global co-head of the TMT investment banking group at UBS AG, a division of UBS Group AG (UBS - Free Report) . The business will be targeting private equity firms, with a focus on deals between $500 million and $5 billion.
SVB Financial is hiring capital markets experts and junior bankers as it plans to expand as a full-service investment bank. Becker said, “Our clients are getting bigger, and so many of them are unicorns. Now is the right time to make sure that we're offering all the solutions that they need.”
Over the past few years, SVB Financial has been trying to diversify IB operations and with that aim, it acquired Leerink Partners in 2018. This helped the company to foray into the healthcare IB business.
Earlier in July, Erin Platts, president of the U.K. branch of Silicon Valley Bank, SVB Financial’s primary banking subsidiary, had told Reuters that the company plans to hire 150 team members in Europe as it leverages on substantial demand for investment in tech and innovation companies. The company is taking the opposite route at the time when several large financial firms, including NatWest Group (NWG - Free Report) and HSBC Holdings (HSBC - Free Report) , are cutting costs and slashing headcount.
Driven by these expansion efforts, Becker now projects the IB business to generate $100-$150 million in revenues for 2022.
Shares of SVB Financial have rallied 52.6% so far this year, outperforming the industry’s rise of 35.2%.
Image Source: Zacks Investment Research
Currently, SVB Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.