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Investor presentation: SVB Capital, which manages $9.5B, invested $234M in Sequoia Capital as of May 2022, $173M in a16z funds in 2018 and 2021, and more

Kate Clark / The Information :

The Information Kate Clark

Context & Ripple Effects

This investor presentation pulls back the curtain on SVB Capital, the $9.5B fund-of-funds arm whose limited-partner money sits inside some of venture's most coveted vehicles — $234M deployed into Sequoia Capital funds as of May 2022 and $173M into Andreessen Horowitz funds across 2018 and 2021.

The disclosures matter because access to Sequoia's flagship funds is famously scarce, and because Sequoia's own momentum has continued since then: its evergreen fund grew from $13.6B in early 2023 to $19.6B per SEC filings, even through the VC funding slowdown. Whoever ends up owning these LP stakes inherits a position most allocators cannot buy directly.

First-order effects

  • Prospective acquirers of SVB Capital gain audited line-of-sight into stakes in Sequoia and a16z vehicles — the kind of brand-name LP exposure that anchors any valuation case for the ~$9.8B platform.

Second-order effects

  • A buyer affiliated with Sequoia Heritage would end up holding LP interests in Sequoia-branded funds, concentrating the firm's franchise economics on both sides of the general-partner/limited-partner table.

Third-order effects

  • Bank-attached venture platforms are migrating out of failed banking structures and into alternative-asset-manager hands, consolidating scarce top-tier LP access among fewer institutional owners.

The trend: Fund-of-funds exposure to marquee venture franchises is becoming a tradeable asset class, with distressed sellers' stakes flowing to institutional consolidators rather than back to open markets.

Discussion

  • @pekwat @pekwat on x
    Just some casual LP stakes in the funds with which you are lending to the portfolio companies whilst providing margin loans against the GP carry. All very cool. https://twitter.com/...
  • @amir Amir Efrati on x
    What's left at Silicon Valley Bank? SVB Capital, which holds meaningful LP stakes in Sequoia Capital, Andreessen Horowitz. Details here: https://www.theinformation.com/ ... by @KateClarkTweets