SVB eyes health care M&A

SVB Securities entered the large leagues of overall health care deal-earning this week, serving as lead adviser to residence treatment firm LHC Team on its $5.4 billion sale to UnitedHealth Group’s Optum.

Why it matters: That type of entry demonstrates that huge-cap (and general public business) M&A matters to SVB, whilst boutique expenditure banking companies are often related with smaller deals.

Driving the news: SVB is on a employing tear, including extra than 50 financial investment bankers concentrated on health and fitness care companies and well being tech around the past year, resources familiar with the bank explain to Sarah. Flashback: Traditionally recognised for its dominant job in biopharma and daily life sciences equity underwriting, SVB’s big push into M&A advisory started with the February 2021 appointment of weighty hitter Barry Blake.

• The bank poached Blake from Guggenheim Securities, naming him world wide co-head of investment banking. Shortly after, Robert Minear from Guggenheim jumped ship to steer SVB’s monetary sponsor origination attempts.
• In the months that followed, Toby King and Robert Jackey joined from Citigroup, Jon Swope from BofA, Howard Dingle from RBC Money Markets, Whit Mayo from Credit rating Suisse, Ben Brown from Baird, and Thad Davis from HSBC.
• Its most current significant get is Jed Brody, a veteran banker who was most not long ago Barclays’ co-head of health care Americas and world-wide head of health care M&A. He joined in December.

Indeed, and: Outside of the Optum-LHC deal, which it co-led with Jefferies, the recently onboarded bench of bankers has scored other large co-advisory roles in latest months.

• That incorporates Trinity Everyday living Sciences, which Axios wrote in December was valued at $1.4 billion on its sale to Kohlberg & Co.
• In the meantime, Komodo Overall health lately tapped Goldman Sachs and SVB as lead e-book-runners for an approaching IPO, Axios wrote.
• Axios could not validate if LHC is the bank’s largest M&A advisory mandate in background, but it presumably is.

In the meantime, the financial institution has been aggressively setting up out its know-how investment decision banking team, starting up by poaching a workforce of UBS technology, media and telecom bankers past yr. The base line: SVB is promptly getting a competitive drive in wellbeing care and technology banking.