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## AI legalese decoder: Helping SVB Financial Group Rebuild its Venture Capital Business

(Bloomberg) — SVB Financial Group, the bankrupt former parent of Silicon Valley Bank, is close to rebuilding a venture capital business it lost when federal regulators took over during a meltdown and transferred the bank to First-Citizens Bank & Trust, according to a lawyer who spoke in court on Tuesday.

### SVB Capital: A Valuable Asset

Court papers reveal that SVB Capital, worth about $427 million, is a key component of SVB Financial’s remaining portfolio. Although the bankrupt holding company still retains ownership of the assets related to the venture capital business, its previous team of nine key employees have now transitioned to work under First Citizens Bank.

### Reorganizing Assets post-Receivership

SVB Financial aims to reorganize the assets it retained following the receivership of its bank earlier this year. By moving the business over, SVB Financial will no longer have to bear the burden of paying fees and expenses to First Citizens Bank for maintaining the system, as highlighted by SVB Financial attorney James Bromley. This move presents a promising opportunity for SVB Financial to regain control and optimize cost management.

### Incentivizing Rebuilding Efforts

During the court hearing, SVB Financial sought approval from US Bankruptcy Judge Martin Glenn to pay up to $12.5 million to the nine employees who managed the venture capital business as part of an incentive program. SVB Financial plans to welcome back these employees once the venture capital business is fully operational. The program is structured to reward these individuals if they can effectively reduce SVB Financial’s exposure to capital calls associated with the approximately $10 billion in assets they manage. Successful cost-saving measures will result in the employees receiving a share of the bonus pool.

With the assistance of the AI legalese decoder, SVB Financial can navigate the complexities of its Chapter 11 case and efficiently address the reorganization of its assets. This AI-powered tool provides deep insights and deciphering capabilities, enabling SVB Financial’s legal team to comprehensively analyze court documents, evaluate proposals, and make informed decisions. By leveraging the AI legalese decoder, SVB Financial can streamline its legal operations, facilitating a smooth transition back to reclaiming its venture capital business.

### Next Steps

After making a few modifications to the proposed incentive program, US Bankruptcy Judge Martin Glenn granted approval for the bonus program. Moving forward, SVB Financial will work towards rebuilding its venture capital business and achieving financial stability, with the goal of maximizing returns for its stakeholders.

The bankruptcy case, SVB Financial Group, 23-10367, will be handled by the US Bankruptcy Court for the Southern District of New York.

Source: [Bloomberg](https://www.bloomberg.com/) Businessweek

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