SVB Securities entered the large leagues of well being care deal-making this week, serving as lead adviser to house care firm LHC Group on its $5.4 billion sale to UnitedHealth Group’s Optum.
Why it issues: That form of entry demonstrates that large-cap (and public firm) M&A issues to SVB, whereas boutique funding banks are sometimes related to smaller offers.
Driving the information: SVB is on a hiring tear, including greater than 50 funding bankers targeted on well being care companies and well being tech over the past yr, sources aware of the financial institution inform Sarah. Flashback: Traditionally identified for its dominant function in biopharma and life sciences fairness underwriting, SVB’s huge push into M&A advisory began with the February 2021 appointment of heavy hitter Barry Blake.
- The financial institution poached Blake from Guggenheim Securities, naming him world co-head of funding banking. Shortly after, Robert Minear from Guggenheim jumped ship to steer SVB’s monetary sponsor origination efforts.
- Within the months that adopted, Toby King and Robert Jackey joined from Citigroup, Jon Swope from BofA, Howard Dingle from RBC Capital Markets, Whit Mayo from Credit score Suisse, Ben Brown from Baird, and Thad Davis from HSBC.
- Its newest huge get is Jed Brody, a veteran banker who was most just lately Barclays’ co-head of healthcare Americas and world head of healthcare M&A. He joined in December.
Sure, and: Past the Optum-LHC deal, which it co-led with Jefferies, the newly onboarded bench of bankers has scored different huge co-advisory roles in latest months.
- That features Trinity Life Sciences, which Axios wrote in December was valued at $1.4 billion on its sale to Kohlberg & Co.
- In the meantime, Komodo Well being just lately tapped Goldman Sachs and SVB as lead book-runners for an upcoming IPO, Axios wrote.
- Axios couldn’t affirm if LHC is the financial institution’s largest M&A advisory mandate in historical past, but it surely presumably is.
In the meantime, the financial institution has been aggressively constructing out its know-how funding banking crew, beginning by poaching a team of UBS know-how, media and telecom bankers final yr. The underside line: SVB is rapidly turning into a aggressive pressure in well being care and know-how banking.