Blackstone’s SVB Deal That Got Away Shows Private Equity Sidelined in Crisis
- Buyout firm agreed to back New Jersey lender’s offer for bank
- But the bid designed to assuage public and FDIC didn’t prevail
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Silicon Valley Bank had just collapsed and Blackstone Inc.’s dealmakers saw an opportunity. One problem: The firm didn’t want to look like a vulture.
In a deal that ultimately didn’t go through, the world’s largest alternative asset manager agreed to provide financial support for Valley National Bancorp’s bid for SVB in March. Rather than vying for SVB assets outright, Blackstone backed a regional bank — the type of buyer favored by watchdogs.