At the end of 2021, respected Wall Street media and telecommunications financial advisory firm MoffettNathanson was sold to the parent of Silicon Valley Bank. By March 2023, SVB was mired in the seizure of its banks by the FDIC, with MoffettNathanson assuring it was “business as usual” for them.
Now, the SVB relationship has entered a new chapter.
On Monday (6/20), an investor note with “an important update on MoffettNathanson’s path forward” was distributed by the firm. It shared how, over the Juneteenth holiday weekend, SVB Financial Group announced that it had entered into a definitive agreement with a bidder group led by SVB Securities CEO and Founder Jeff Leerink, along with members of its management team, to acquire SVB Securities in a management buyout supported by The Baupost Group.
This would change the name of SVB Securities to Leerink Partners, ending the tainted SVB nomenclature.
What does this mean for MoffettNathanson, which is owned by SVB Financial Group? First, it is not included in the transaction. MN will remain part of SVB Financial Group, but it will operate under the MoffettNathanson brand.
“We are excited to return to our roots as a standalone TMT research provider while leveraging the additional resources and coverage verticals we gained with SVB Securities, as we continue building upon our industry-leading position in equity research,” MoffettNathanson says, adding that the evolution “is a positive step for us,” as MoffettNathanson “remains well positioned to continue serving our clients.”
Regarding the creation of Leerink Partners, MoffettNathanson says, “We are confident in their path forward under Jeff and the management team’s leadership. The outcome is a welcome one for all parties.”
The proposed transaction is subject to final approval of the U.S. Bankruptcy Court and other regulatory approvals and customary closing conditions. A hearing to seek required court approvals is scheduled for June 29, and the transaction is expected to close shortly thereafter.
“On behalf of each of us at MoffettNathanson, we thank you for your long and valued support, and look forward to continuing to serve you,” the firm says.
