In a strategic move, Silicon Valley Bank (SVB) has forged a partnership with Forge Global Holdings to deliver specialized private market liquidity solutions to its clients. This collaboration is poised to benefit companies within the innovation sector, enabling them to manage cap tables, diversify investor bases, and retain valuable employees. With this partnership, SVB clients gain access to an array of services at a time when companies are increasingly opting to remain private longer.
Historically, the private equity world faced challenges with fluctuating market conditions, impacting investments and liquidity options. Longer holding periods for portfolio businesses have been reported due to geopolitical tensions and varying interest rates. In response, Forge’s innovative market infrastructure offers a timely solution, which could reshape steadily evolving private market dynamics. This partnership could thus mark a significant shift in how liquidity is managed for privately-held companies.
How Does This Partnership Benefit SVB Clients?
SVB’s collaboration with Forge introduces its clients to secondary market liquidity solutions, now considered essential due to prolonged private company tenure. These solutions comprise tender offers, secondary sales, and structured liquidity events, alongside controlled shareholder transactions. Consequently, participants gain access to over 19,000 institutional investors, potentially broadening investment opportunities.
What Drives Forge Solutions In the Current Market?
Forge has identified a growing need for robust private market infrastructure amid an environment increasingly reliant on data-driven, technology-focused solutions. The company’s offerings span across sectors including trading, data, custody, and wealth management. This comprehensive approach allows it to meet accelerating demand while tailoring capital solutions to SVB’s clientele.
According to Marc Cadieux, President of Silicon Valley Bank, engaging Forge’s platform streamlines capital access and employee liquidity options for SVB’s clients.
“By introducing private companies to Forge’s platform, we’re creating more opportunities for our clients to access the capital they need to scale with confidence and offer their valued employees liquidity options,”
he said, emphasizing the strategic significance of this collaboration.
Eric Thomassian from Forge reiterated the partnership’s potential to tackle inflation in demand for trusted liquidity services.
“Forge is proud to work with Silicon Valley Bank to offer their clients tailored capital solutions that support long-term company growth while meeting the liquidity needs of employees, investors, and founders,”
he remarked, highlighting Forge’s commitment to providing flexible liquidity innovations.
The decision for SVB to engage with Forge comes at a time when private equity sectors experience prolonged holding durations due to geopolitical instability, high interest rates, and trade challenges. Reports suggest that a billion-dollar surplus in portfolio business resources had been accumulated amid this stagnation, prompting entities to search for liquidity alternatives.
