SVB Financial Group in Santa Clara, Calif., has agreed to buy WestRiver Group, a debt investor based in Seattle.
WestRiver, founded in 2002, focuses on financing technology and life sciences firms. SVB did not disclose the price it will pay.
The deal is expected to close by the end of this year.
The $97 billion-asset SVB said it will create a division within its SVB Capital unit to focus on meeting larger debt requirements of commercial banking and investment clients. The division will also offer institutional investors more opportunities to invest in cutting-edge companies.
SVB Capital manages $5.5 billion of assets across multiple funds.
SVB, the parent of Silicon Valley Bank, has had a longstanding relationship with WestRiver, participating in previous deals together. Erik Anderson, WestRiver's founder and CEO, is expected to join SVB as executive chairman of the new capital credit platform and as chairman of SVB Capital’s advisory committee.
“WestRiver Group has been a fantastic partner to SVB for the past eight years,” SVB Capital President John China said in a press release. “Together we have supported innovative companies across the country with the financing they need to scale."
The deal will give SVB an expanded presence in Seattle, where it has a loan production office.
