Vertex Venture Holdings says it has no banking relationship to Silicon Valley Bank (SVB) in an update on its exposure to the bank.
In its March 13 note, Vertex says that its indirect cash exposure is “insignificant” through funds managed by one of its network partnerships which has a banking relationship with SVB, which was the primary bank for many venture firms and start-up companies across the US innovation ecosystem.
“At the portfolio level, about 50% of the portfolio companies with a US presence have a banking relationship with SVB. Most affected portfolio companies proactively moved their cash balances to an alternate financial institution before SVB was put into receivership on 10 March 2023,” says Vertex.
Vertex is a subsidiary of Singapore’s Temasek holdings, which does not have direct exposure to SVB, according to a report by Bloomberg.
SVB became the biggest US lender to collapse since the 2008 financial crisis when it was shut down by Californian regulators on March 10. On March 12 2023, the US government announced a decision to backstop deposits in SVB and make the funds available for withdrawal from March 13.
