Silicon Valley Bank has just embarked on even more wealth management

SVB Financial Group today agreed to buy Boston Private Financial Holdings from Boston for $ 900 million in cash and shares.

That’s a big deal for SVB, which has built a reputation over its 37-year history as a welcoming bank for startups, as well as venture capital and private equity investors. Boston Private, founded in 1987, has approximately $ 16.3 billion in assets under management, compared to $ 1.4 billion in related assets for SVB Private Bank.

SVB, which established its wealth advisory business in 2011, has embarked on more aggressively into wealth management for several years, hiring Yvette Butler, who previously led wealth management strategies at Capital One, to mid-2018.

Butler has since added members to the bank’s wealth management team, telling Business Insider last year that “I see my job primarily as a retention strategy … The clients are already there. We have them. helped develop their fund or their business – and I see our role as a private bank and wealth advisor as building loyalty. “

Underlining SVB’s desire to strengthen its relationships with high net worth individuals who already have business relationships with the bank, Greg Becker, its President and CEO, said today in a statement on the new combination: “ Our clients rely on us to help increase the likelihood of their success, both in their professional and personal lives. “

Butler will lead the combined private banking and wealth management businesses with Anthony DeChellis, who has been the CEO of Boston Private for the past two years. DeChellis joined the team after a short stint as President of the crowdfunding platform OurCrowd and before that, as CEO of Credit Suisse Private Banking (Americas) for more than seven years.

As part of the deal, Boston Private shareholders will receive 0.0228 SVB common shares and $ 2.10 in cash for each of their shares.

Bank stocks have generally been roughed up in 2020, but as the Boston Globe notes, SVB shares have risen over 60% in the past three years due to their focus on the tech world, while Boston Private shares fell 45%.

About Monty S. Maynard

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