(Bloomberg) – Global asset management and technology lender Liquidity Group is planning to provide about $3 billion in emergency loans to startups affected by the Bank’s collapse. Silicon Valley products.
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CEO and co-founder Ron Daniel said in an interview on Sunday that liquidity has about $1.2 billion in cash ready to deliver in the coming weeks. The group is also in discussions with its funding partners, including Mitsubishi UFJ Financial Group Inc. and Apollo Global Management Inc. of Japan, to provide an additional $2 billion in loans, he said.
“By helping companies survive now, I hope some of them will be successful and come back to us in the future,” Daniel said. “We are nurturing our future customers.”
A typical loan would be a one-year loan of $1 million to $10 million, or 30% of the balance held at SVB, Daniel said. The priority is to help companies meet payroll costs.
The dramatic collapse of the tech-focused lender is sending shockwaves around the world as startup founders from California’s Bay Area to the UK worry about accessibility. their capital. U.S. regulators overseeing the emergency dissolution of SVB Financial Group are racing to sell assets and provide a portion of customers’ uninsured deposits as soon as Monday.
Launched in 2018, Liquidity Group has reached unicorn status after receiving a new $40 million investment from MUFG in February at a $1.4 billion valuation, according to a press release. solstice.
–With support from Katie Roof.
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