Profile: SVB Financial Group (SIVB.O)

SVB Financial Group, incorporated in March 1999, is a diversified financial services company, as well as a bank holding company and financial holding company. Through the Company’s various subsidiaries and divisions, it offers a range of banking and financial products and services. The Company offers commercial banking products and services through its principal subsidiary, Silicon Valley Bank (the Bank), which is a California state-chartered bank. Through its subsidiaries, the Bank also offers brokerage, investment advisory and asset management services. It also offers non-banking products and services, such as funds management, private equity investment and equity valuation services, through its other subsidiaries and divisions. SVB Financial Group has three operating segments: Commercial Banking, SVB Capital, and Other Business Services.

In August 2008, SVB Financial Group announced the opening of a non-bank venture lending operation in India. Through SVB India Finance Pvt. Ltd., the Company provides debt capital to domestic, venture-backed, early and mid-stage companies in India. The operations at SVB Alliant were ceased as of March 31, 2008.

Commercial Banking

The Company’s commercial banking products and services are provided by the Bank and its subsidiaries. The Bank provides solutions to the financial needs of commercial clients through lending, deposit products and cash management, and global banking, and trade products and services. Through lending products and services, the Bank extends loans and other credit facilities to commercial clients. These loans are often secured by clients’ assets. Lending products and services include traditional term loans, equipment loans, revolving lines of credit, accounts-receivable-based lines of credit and asset-based loans.

The Bank’s deposit account and cash management products and services provide commercial clients with short- and long-term cash management solutions. Deposit products include traditional deposit and checking accounts, certificates of deposit, money market accounts and sweep accounts. In connection with deposit services, the Bank also provides lockbox and merchant services that facilitate timely depositing of checks and other payments to clients’ accounts. Cash management products and services include wire transfer and automated clearing house (ACH) payment services to enable clients to transfer funds quickly from their deposit accounts. In addition, the cash management services unit provides collection services, disbursement services, electronic funds transfers, and online banking through SVBeConnect.

The Bank’s global banking and trade products and services facilitate clients’ global finance and business needs. These products and services include foreign exchange services that allow commercial clients to manage their foreign currency risks through the purchase and sale of currencies, swaps and hedges on the global inter-bank market. To facilitate clients’ international trade, the Bank offers a range of loans and credit facilities guaranteed by the Export-Import Bank of the United States. It also offers letters of credit, including export, import, and standby letters of credit, to enable clients to ship and receive goods globally.

The Bank offers a range of investment services and solutions to its clients that enable companies to better manage their assets. Through its broker-dealer subsidiary, SVB Securities, the Bank offers money market mutual funds and fixed-income securities. Through its registered investment advisory subsidiary, SVB Asset Management, the Bank offers investment advisory services, including outsourced treasury services, with customized cash portfolio management and reporting.

SVB Capital

SVB Capital is the private equity division of SVB Financial Group. This division focuses primarily on funds management. SVB Capital manages, sponsors venture capital and private equity funds on behalf of SVB Financial Group and other third-party limited partners. The SVB Capital family of funds consists of funds it manages, including funds of funds, such as its SVB Strategic Investors funds, and co-investment funds, such as its SVB Capital Partners funds and SVB India Capital Partners fund. It also includes sponsored debt funds, such as Gold Hill Venture Lending funds, which provide secured debt, to emerging-growth clients in their earliest stages, and Partners for Growth funds, which provide secured debt to higher-risk, middle-market clients in their later stages. Most of the funds actively managed or sponsored by SVB Capital are consolidated into its financial statements.

Other Business Services

The Other Business Services segment comprises of SVB Private Client Services, SVB Global, SVB Analytics and SVB Wine Division. SVB Private Client Services is a division of the Bank that provides a range of credit services to targeted high-net-worth individuals using both long-term secured and short-term unsecured lines of credit. These products and services include mortgages, home equity lines of credit, restricted stock purchase loans, airplane loans, capital call lines of credit, and other secured and unsecured lines of credit. It also helps its private clients meet their cash management needs by providing deposit account products and services, including checking accounts, money market accounts and certificates of deposit, other personalized banking services.

SVB Global serves the needs of the Company’s non-Untied States clients with global banking products, including loans, deposits and global finance, in foreign entrepreneurial markets, such as the United Kingdom, India, China and Israel. SVB Global includes its subsidiaries focused on foreign activities, which support the Company’s clients and facilitate their activities in those markets. SVB Analytics is its subsidiary that provides equity valuation and equity management services to private companies and venture capital firms. The Company offers equity management services, including capitalization data management, through eProsper, Inc., a company in which SVB Analytics holds a controlling ownership interest. SVB Wine Division is a division of the Bank that provides banking products and services to its wine industry clients, including vineyard development loans. It offers a range of financial solutions focused specifically on the needs of its clients’ wineries and vineyards.