In the recent development of Silicon Valley Bank’s (SVB) collapse, Royal Group, an investment firm backed by Abu Dhabi royal, is reportedly considering to takeover SVB’s UK vertical. According to Bloomberg, Sheikh Tahnoon bin Zayed Al Nahyan, United Arab Emirates' National Security Advisor, who serves as chairman of Royal Group is discussing the possibility of a potential purchase through one of its companies.
Startups and venture capital firms are concerned about losing access to cash held at the lender as a result of the instability at Silicon Valley Bank UK spreading throughout the country's tech and start-up sector. SVB, which describes itself on its website as "the go-to banking partner for founders, entrepreneurs, and investors," although being small in comparison to the UK's main banks, plays a significant role in the startup community.
As of now, bid might not be submitted because no final decision has been considered.
The likelihood of a potential buyout by Royal Group indicates the growing financial influence of Abu Dhabi on international transactions moreover it certainly brings back memories of 2008, when Gulf monarchies intervened to acquire holdings in creditors like Citigroup Inc.
Last week, Sheikh Tahnoon became chairman of the emirate’s $790 billion wealth fund, Abu Dhabi Investment Authority, making his profile strongest amongst Abu Dhabi royals.
Earlier, Financial Times reported that an unidentified Middle Eastern buyer had indicated its interest in buying SVB UK.
