SVB Financial (SIVBQ) 8-K Bankruptcy or Receivership

Exhibit 99.1

23-10367-mg Doc 1410 Filed 08/21/24 Entered 08/21/24 20:32:11 Main Document

Pg 1 of 12

UNITED STATES BANKRUPTCY COURT

Southern DISTRICT OF New York

In Re. SVB Financial Group	§	Case No. 23-10367
	§
	§
Debtor(s)	§
		☐ Jointly Administered

Monthly Operating Report Chapter 11

Reporting Period Ended: 07/31/2024 Petition Date: 03/17/2023

Months Pending: 17     Industry Classification:  5   2   3   9 

Reporting Method: Accrual Basis  Cash Basis 

Debtor’s Full-Time Employees (current):	0
Debtor’s Full-Time Employees (as of date of order for relief):	0

Supporting Documentation (check all that are attached):

(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)

☐   Statement of cash receipts and disbursements

☒   Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit

☒   Statement of operations (profit or loss statement)

☐   Accounts receivable aging

☐   Postpetition liabilities aging

☐   Statement of capital assets

☐   Schedule of payments to professionals

☐   Schedule of payments to insiders

☐   All bank statements and bank reconciliations for the reporting period

☐   Description of the assets sold or transferred and the terms of the sale or transfer

/s/ James L. Bromley	James L. Bromley
Signature of Responsible Party	Printed Name of Responsible Party
08/21/2024
Date	125 Broad Street, New York, New York 10004
	Address

STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.

UST Form 11-MOR (12/01/2021) 1

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 2 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

Part 1: Cash Receipts and Disbursements	Current Month		Cumulative
a.   Cash balance beginning of month	$	233,556,002
b.  Total receipts (net of transfers between accounts)	$	8,347,149	$	894,189,206
c.   Total disbursements (net of transfers between accounts)	$	11,261,581	$	2,690,761,936
d.  Cash balance end of month (a+b-c)	$	230,641,570
e.   Disbursements made by third party for the benefit of the estate	$	0	$	0
f.   Total disbursements for quarterly fee calculation (c+e)	$	11,261,581	$	2,690,761,936
Part 2: Asset and Liability Status (Not generally applicable to Individual Debtors. See Instructions.)	Current Month
a.   Accounts receivable (total net of allowance)	$	1,959,339,928
b.  Accounts receivable over 90 days outstanding (net of allowance)	$	0
c.   Inventory ( Book   Market  Other  (attach explanation))	$	0
d   Total current assets	$	2,565,528,973
e.   Total assets	$	3,533,682,473
f.   Postpetition payables (excluding taxes)	$	57,563,919
g.  Postpetition payables past due (excluding taxes)	$	0
h.  Postpetition taxes payable	$	0
i.   Postpetition taxes past due	$	0
j.   Total postpetition debt (f+h)	$	57,563,919
k.  Prepetition secured debt	$	0
l.   Prepetition priority debt	$	0
m.   Prepetition unsecured debt	$	3,482,187,778
n.  Total liabilities (debt) (j+k+l+m)	$	3,539,751,697
o.  Ending equity/net worth (e-n)	$	-6,069,224
Part 3: Assets Sold or Transferred	Current Month		Cumulative
a.   Total cash sales price for assets sold/transferred outside the ordinary course of business	$	0	$	63,768,001
b.  Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business	$	0	$	5,054,655
c.   Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b)	$	0	$	58,713,346
Part 4: Income Statement (Statement of Operations) (Not generally applicable to Individual Debtors. See Instructions.)	Current Month		Cumulative
a.   Gross income/sales (net of returns and allowances)	$	791,270
b.  Cost of goods sold (inclusive of depreciation, if applicable)	$	0
c.   Gross profit (a-b)	$	791,270
d.  Selling expenses	$	0
e.   General and administrative expenses	$	3,164,566
f.   Other expenses	$	-17,577,131
g.  Depreciation and/or amortization (not included in 4b)	$	314,621
h.  Interest	$	0
i.   Taxes (local, state, and federal)	$	0
j.   Reorganization items	$	14,882,952
k.  Profit (loss)	$	6,261	$	-610,899,390

UST Form 11-MOR (12/01/2021) 2

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 3 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

Part 5: Professional Fees and Expenses
				Approved  Current Month		Approved  Cumulative		Paid Current  Month		Paid  Cumulative
a.	Debtor’s professional fees & expenses (bankruptcy) Aggregate Total				$6,950,653		$149,048,361		$5,584,175		$143,355,431
	Itemized Breakdown by Firm
		Firm Name	Role
	i	Alvarez & Marsal	Financial Professional		$    0		$ 62,520,059		$         0		$  62,520,059
	ii	Centerview Partners LLC	Financial Professional		$  240,000		$  9,363,647		$    479,965		$   9,123,647
	iii	Huron	Financial Professional		$  978,496		$  4,671,196		$    537,904		$   4,230,604
	iv	Jenner & Block LLP	Other		$  503,658		$ 14,572,976		$    503,658		$  14,572,976
	v	Kroll	Other		$  216,162		$  2,634,504		$    216,162		$   2,634,504
	vi	Sullivan & Cromwell LLP	Lead Counsel		$5,012,337		$ 55,285,979		$   3,846,487		$  50,273,642
	vii
	viii
	ix
	x
	xi
	xii
	xiii
	xiv
	xv
	xvi
	xvii
	xviii
	xix
	xx
	xxi
	xxii
	xxiii
	xxiv
	xxv
	xxvi
	xxvii
	xxviii
	xxix
	xxx
	xxxi
	xxxii
	xxxiii
	xxxiv
	xxxv
	xxxvi

UST Form 11-MOR (12/01/2021) 3

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 4 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

xxxvii

xxxviii

xxxix

xl

xli

xlii

xliii

xliv

xlv

xlvi

xlvii

xlviii

xlix

l

li

lii

liii

liv

lv

lvi

lvii

lviii

lix

lx

lxi

lxii

lxiii

lxiv

lxv

lxvi

lxvii

lxviii

lxix

lxx

lxxi

lxxii

lxxiii

lxxiv

lxxv

lxxvi

lxxvii

lxxviii

UST Form 11-MOR (12/01/2021) 4

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 5 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

lxxix

lxxx

lxxxi

lxxxii

lxxxii

lxxxiv

lxxxv

lxxxvi

lxxxvi

lxxxvi

lxxxix

xc

xci

xcii

xciii

xciv

xcv

xcvi

xcvii

xcviii

xcix

c

ci

				Approved  Current Month		Approved  Cumulative		Paid Current  Month		Paid  Cumulative
b.	Debtor’s professional fees & expenses (nonbankruptcy) Aggregate Total				$166,126		$2,764,988		$210,356		$2,648,545
	Itemized Breakdown by Firm
		Firm Name	Role
	i	Aldrich & Bonnefin, PLC	Other	$	0	$	20,736	$	0	$	20,736
	ii	Chapman and Cutler, LLP	Other	$	32,664	$	122,694	$	36,240	$	122,694
	iii	Cohen Ziffer Frenchman & McKenna LLP	Other	$	44,291	$	275,529	$	44,291	$	275,529
	iv	Debevoise & Plimpton LLP	Local Counsel	$	69,490	$	204,683	$	69,490	$	149,353
	v	DLA Piper Ireland LLP	Local Counsel	$	0	$	16,765	$	0	$	16,765
	vi	DLA Piper LLP (US)	Other	$	0	$	20,662	$	0	$	20,662
	vii	Farella Braun + Martel LLP	Other	$	0	$	543,393	$	0	$	503,035
	viii	Goodwin Procter LLP	Other	$	0	$	97,727	$	0	$	97,727
	ix	Herzog Fox & Neeman	Local Counsel	$	4,920	$	131,882	$	11,653	$	131,882
	x	HWG LLP	Local Counsel	$	0	$	30,585	$	0	$	30,585
	xi	Kilpatrick, Townsend and Stockton, LLP	Other	$	935	$	82,948	$	6,998	$	82,948
	xii	Miller & Olson LLP	Other	$	0	$	3,673	$	0	$	3,673
	xiii	Nishith Desai Associates	Other	$	0	$	140,975	$	0	$	134,048
	xiv	Norton Rose LLP Shanghai	Local Counsel	$	0	$	439,261	$	26,619	$	439,261

UST Form 11-MOR (12/01/2021) 5

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 6 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

xv	Proskauer Rose LLP	Other	$     0	$269,274	$     0	$269,274
xvi	Trucker Huss, APC	Other	$13,826	$364,201	$15,066	$350,375
xvii
xviii
xix
xx
xxi
xxii
xxiii
xxiv
xxv
xxvi
xxvii
xxviii
xxix
xxx
xxxi
xxxii
xxxiii
xxxiv
xxxv
xxxvi
xxxvii
xxxvii
xxxix
xl
xli
xlii
xliii
xliv
xlv
xlvi
xlvii
xlviii
xlix
l
li
lii
liii
liv
lv
lvi

UST Form 11-MOR (12/01/2021) 6

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 7 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

lvii

lviii

lix

lx

lxi

lxii

lxiii

lxiv

lxv

lxvi

lxvii

lxviii

lxix

lxx

lxxi

lxxii

lxxiii

lxxiv

lxxv

lxxvi

lxxvii

lxxvii

lxxix

lxxx

lxxxi

lxxxii

lxxxii

lxxxiv

lxxxv

lxxxvi

lxxxvi

lxxxvi

lxxxix

xc

xci

xcii

xciii

xciv

xcv

xcvi

xcvii

xcviii

UST Form 11-MOR (12/01/2021) 7

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 8 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

	xcix
	c
c.	All professional fees and expenses (debtor & committees)	$8,372,858	$201,365,797	$6,910,610	$195,416,425

Part 6: Postpetition Taxes	Current Month		Cumulative
a.   Postpetition income taxes accrued (local, state, and federal)	$	0	$	0
b.  Postpetition income taxes paid (local, state, and federal)	$	0	$	0
c.   Postpetition employer payroll taxes accrued	$	0	$	0
d.  Postpetition employer payroll taxes paid	$	0	$	0
e.   Postpetition property taxes paid	$	0	$	0
f.   Postpetition other taxes accrued (local, state, and federal)	$	16,400	$	344,134
g.  Postpetition other taxes paid (local, state, and federal)	$	0	$	355,604

Part 7: Questionnaire - During this reporting period:
a.   Were any payments made on prepetition debt? (if yes, see Instructions)		Yes	No
b.  Were any payments made outside the ordinary course of business without court approval? (if yes, see Instructions)		Yes	No
c.   Were any payments made to or on behalf of insiders?		Yes	No
d.  Are you current on postpetition tax return filings?		Yes	No
e.   Are you current on postpetition estimated tax payments?		Yes	No
f.   Were all trust fund taxes remitted on a current basis?		Yes	No
g.  Was there any postpetition borrowing, other than trade credit? (if yes, see Instructions)		Yes	No
h.  Were all payments made to or on behalf of professionals approved by the court?		Yes	No   N/A
i.   Do you have:	Worker’s compensation insurance?	Yes	No
	If yes, are your premiums current?	Yes	No   N/A   (if no, see Instructions)
	Casualty/property insurance?	Yes	No
	If yes, are your premiums current?	Yes	No   N/A   (if no, see Instructions)
	General liability insurance?	Yes	No
	If yes, are your premiums current?	Yes	No   N/A   (if no, see Instructions)
j.   Has a plan of reorganization been filed with the court?		Yes	No
k.  Has a disclosure statement been filed with the court?		Yes	No
l.   Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930?		Yes	No

UST Form 11-MOR (12/01/2021) 8

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 9 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

Part 8: Individual Chapter 11 Debtors (Only)
a.   Gross income (receipts) from salary and wages	$	0
b.  Gross income (receipts) from self-employment	$	0
c.   Gross income from all other sources	$	0
d.  Total income in the reporting period (a+b+c)	$	0
e.   Payroll deductions	$	0
f.   Self-employment related expenses	$	0
g.  Living expenses	$	0
h.  All other expenses	$	0
i.   Total expenses in the reporting period (e+f+g+h)	$	0
j.   Difference between total income and total expenses (d-i)	$	0
k.  List the total amount of all postpetition debts that are past due	$	0
l.   Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)?		Yes   No
m.   If yes, have you made all Domestic Support Obligation payments?		Yes   No   N/A

Privacy Act Statement

28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor’s progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee’s or examiner’s duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee’s systems of records notice, UST-001, “Bankruptcy Case Files and Associated Records.” See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).

I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.

/s/ Nicholas R. Grossi	Nicholas R. Grossi
Signature of Responsible Party	Printed Name of Responsible Party
Interim Chief Financial Officer, and/or Authorized Signatory	08/21/2024
Title	Date

UST Form 11-MOR (12/01/2021) 9

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 10 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

UST Form 11-MOR (12/01/2021) 10

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 11 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

UST Form 11-MOR (12/01/2021) 11

23-10367-mg   Doc 1410   Filed 08/21/24   Entered 08/21/24 20:32:11   Main Document

Pg 12 of 12

Debtor’s Name SVB Financial Group Case No. 23-10367

UST Form 11-MOR (12/01/2021) 12

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation Pg 1 of 6

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

In re SVB Financial Group	Case No. 23-10367 (MG)
	Reporting Period: 7/1/2024 –7/31/2024

Supplemental Notes to Monthly Operating Report

FACTUAL BACKGROUND

Debtor-in-Possession Financial Statements: On March 17, 2023 (the “Petition Date”), SVB Financial Group (the “Debtor”) filed a voluntary petition in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) for relief under the provisions of Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Debtor’s case is administered under the caption In re SVB Financial Group, Case No 23-10367 (the “Chapter 11 Case”). The Debtor is continuing to operate its remaining businesses as a debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

The Debtor is filing its monthly operating report (the “MOR”) for purposes of complying with the monthly operating requirements applicable in the Debtor’s Chapter 11 Case. The financial information contained in the MOR is unaudited and limited in scope to only those items and disclosures required pursuant to the Bankruptcy Code. The MOR has been completed using generally accepted accounting standards (e.g., the Financial Accounting Standards Board Accounting Standards Codification 852, Reorganizations (ASC 852)). The MOR, however, is not a complete set of financial statements pursuant to generally accepted accounting principles (“GAAP”) as it does not include all disclosures and financial statements (e.g., statement of cash flow or statement of shareholders’ equity) which are required pursuant to GAAP. Additionally, the MOR includes certain cash-basis schedules (e.g., Part 1: Cash Receipts and Disbursements) which are not in accordance with GAAP. 

The financial information disclosed in the MOR was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtor should evaluate this financial information in light of the purposes for which it was prepared. The Debtor is not liable for and undertakes no responsibility to indicate variations from securities laws reporting.

Basis of Presentation: As discussed in greater detail in the Declaration of William C. Kosturos in Support of the Debtor’s Chapter 11 Petition and First Day Pleadings [D.I. 21] and Supplemental Declaration of William C. Kosturos in Support of the Debtor’s Chapter 11 Petition and First Day Pleadings [D.I. 43], on March 10, 2023, the California banking authorities closed Silicon Valley Bank (the “Bank”) and appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver of the Bank (the “Receivership”).¹ The FDIC subsequently transferred all deposits and substantially all assets of Silicon Valley Bank to a newly created, FDIC-operated bridge bank, Silicon Valley Bridge Bank, National Association (“Bridge Bank”). Before the Receivership, the Debtor’s information management systems were primarily maintained by the Bank pursuant to a shared services agreement. As a result of the Receivership, the Debtor no longer operates the Bank and no longer has complete access to these systems. The Debtor is continuing to work with the FDIC, as well as First Citizens Bank & Trust Company (“FCB”), as successor-in-interest to Bridge Bank, to gain access to its books and records.

¹  The Federal Deposit Insurance Corporation in its corporate capacity, as receiver of Bridge Bank and as receiver of the Bank are collectively referred to as the “FDIC.”

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation Pg 2 of 6

In addition, before the Receivership, the Debtor’s executive officers, its principal accounting officer and all members of its accounting and finance teams were employed by the Bank. All of these individuals either resigned, became employees of Bridge Bank in connection with the Receivership or became an employee of FCB. The Debtor has made reasonable efforts to supplement the information available to it with additional information concerning transactions that may not have been identified in the books and records to which it has access.

Records of prepetition assets and liabilities, including, among other things, liabilities owed by the Debtor to its affiliates and FCB, are likely to be adjusted throughout the pendency of the Chapter 11 Case as claims are filed and items are approved by the Bankruptcy Court. The MOR and the Supplemental Balance Sheet and Supplemental Statement of Operations attached thereto, are an unconsolidated, stand-alone presentation of the Debtor’s assets and liabilities and income/loss. The financial results of Debtor’s subsidiaries not party to the Chapter 11 Case are included in the financial statements as Investments in Subsidiaries and Net (Gain)/Loss from Subsidiaries. 

Reporting Period: Unless otherwise noted herein or in the MOR, the MOR generally reflects the Debtor’s books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

NOTES TO MOR

Note 1: Employees

The Debtor did not directly employ any employees during the reporting period. SVB Employee Holdco LLC, a non-debtor direct subsidiary of the Debtor, employed six employees who performed services for the Debtor during the reporting period.

Note 2: Reorganization Accounting

Accounting standard ASC 852 requires expenses and income directly associated with the Chapter 11 Case to be reported separately in the statement of operations as Reorganization Items, net. Reorganization Items, net may include write-off of certain fees relating to debt obligations classified as Liabilities Subject to Compromise, expenses related to legal advisory and representation services, other professional consulting and advisory services, and changes in Liabilities Subject to Compromise. Reorganization Items, net will be recorded as such items are incurred and/or approved by the Bankruptcy Court.

Note 3: Investment Securities

Investment Securities primarily represent investments in venture capital and private equity funds, debt funds, private and public portfolio companies, including public equity securities held as a result of equity warrant assets exercised. The fair values of these investments are reflected in the financial statements and are adjusted on a quarterly basis. Fair value changes are recorded as unrealized gains or losses through net income. 

Unconsolidated venture capital and private equity fund investments: Funds where ownership interest is typically less than 5% of the voting interests of each such fund and in which there is not the ability to exercise significant influence over the partnerships’ operating activities and financial policies. The unconsolidated venture capital and private equity fund investments are carried at fair value based on the fund investments’ net asset values per share as obtained from the general partners of the funds, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.

Direct equity investments in private companies: The carrying value is based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. A range of factors is considered when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted.

2

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation  Pg 3 of 6

Note 4: Due to/from FDIC

The Debtor has reflected the known cash balances of its operating accounts and Regulation W account that were on deposit at Bridge Bank as of the Petition Date (and previously at the Bank), as a receivable from the FDIC. The Debtor does not have access to its account information at Bridge Bank so it could not independently verify the exact amount of funds that were transferred to the FDIC but has used the available information provided by FCB to reflect its best estimate of the amounts that are due to the Debtor.

Note 5: Warrants & Other Derivatives

In connection with negotiated credit facilities and certain other services that were offered by the Bank, the Debtor often acquired equity warrant assets giving the Debtor the right to acquire stock in venture-backed companies primarily in the technology, life science and healthcare industries subject to applicable regulatory limits and, in some cases, equity interests were retained in these companies following their initial public offering. The fair values of these warrants and investments are reflected in the financial statements and are adjusted on a quarterly basis. Fair value changes are recorded as unrealized gains or losses through net income. However, the timing and amount of changes in fair value, if any, of these financial instruments depends on factors beyond the Debtor’s control, including the perceived and actual performance of the companies or funds in which the Debtor invests, fluctuations in the market prices of the preferred or common stock of the portfolio companies, the timing of the receipt of relevant financial information from these companies, market volatility and interest rate fluctuations and legal and contractual restrictions. The valuation processes for warrants are as follows: 

Equity warrant assets (public portfolio): Fair value measurements of equity warrant assets of publicly traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable option volatility assumptions.

Equity warrant assets (private portfolio): Fair value measurements of equity warrant assets of private portfolio companies are priced based on a Black-Scholes option pricing model to estimate the asset value by using stated strike prices, option expiration dates, risk-free interest rates and option volatility assumptions. Option volatility assumptions used in the Black-Scholes model are based on public market indices whose members operate in similar industries as companies in the Debtor’s private company portfolio. Option expiration dates are modified to account for estimates to actual life relative to stated expiration. Overall model asset values are further adjusted for a general lack of liquidity due to the private nature of the associated underlying company.

Note 6: Investment in Subsidiaries

The primary subsidiary business operations of the Debtor during the reporting period are: 

SVB Capital Management, LLC

SVB Capital ManCo is the venture capital and credit investment arm of the Debtor, which focuses primarily on funds management. SVB Capital ManCo manages over $9.5 billion of funds on behalf of third party limited partner investors and, on a more limited basis, the Debtor. The SVB Capital family of funds is comprised of pooled investment vehicles such as direct venture funds that invest in companies and funds of funds that invest in other venture capital funds, as well as debt funds that provide lending and other financing solutions. SVB Capital generates income for the Debtor primarily through investment returns (including carried interest) and management fees.

On May 2, 2024, the Debtor announced that it entered into a definitive agreement to sell the SVB Capital business. On May 30, 2024, the Bankruptcy Court approved the Purchase Agreement for the SVB Capital business. For more information, see Order (I) Approving the SVB Capital Purchase Agreement, (II) Approving the Sale of the SVB Capital Business Free and Clear of All Liens, Claims, Interests and Encumbrances, (III) Authorizing Assumption and Assignment of Certain Executory Contracts and (IV) Granting Related Relief [D.I. 1170], entered by the Bankruptcy Court on May 30, 2024. The closing of the sale is subject to customary closing conditions.

3

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation  Pg 4 of 6

SVB Securities Holdings LLC

SVB Securities Holdings LLC consists of two businesses, MoffettNathanson LLC, a sell-side research boutique and SVB Transformation Holdings LLC, a holding company that indirectly holds certain general partner and limited partner interests in Transformation Fund I L.P. and its related entities. The Debtor and its affiliates entered into an agreed restructuring with Transformation Capital Partners, L.P. and its affiliates (together, “TCAP”) effecting (a) a transfer of control of the general partner of Transformation Fund I L.P. and its related entities and (b) an assignment of certain management agreements and related administrative and compliance obligations, in each case to TCAP, effective as of July 18, 2024.

Note 7: Taxes

Taxes receivables reflect a reasonable estimate of current tax refunds due to the Debtor and continue to be evaluated for any required allocations or adjustments.

Note 8: Liabilities Subject to Compromise (Prepetition)

Due to the filing of the Chapter 11 Case on March 17, 2023, the payment of prepetition indebtedness is generally subject to compromise pursuant to a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. The Debtor has been paying and intends to pay undisputed postpetition liabilities in the ordinary course of business. 

Prepetition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. The amounts currently classified as Liabilities Subject To Compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. The value of the claims that will ultimately be allowed by the Bankruptcy Court cannot be reasonably estimated until the evaluation, investigation and reconciliation of the filed claims has been completed. Any resulting changes in classification will be reflected in subsequent financial statements.

Note 9: Subsequent Events

On August 2, 2024, the Bankruptcy Court entered its Findings of Fact, Conclusions of Law and Order Confirming the Debtor’s Second Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy Code [D.I. 1379] (the “Order”), confirming the Debtor’s Second Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy Code attached as Exhibit A to the Order (the “Plan”). The effective date of the Plan has not yet been set.

Note 10: Questionnaire

The workers’ compensation policy that covered employees of FCB who previously performed services for the Debtor was terminated on May 1, 2023. The Debtor has obtained a new workers’ compensation policy through a professional employer organization.

I declare under penalty of perjury that, in my reasonable belief, the foregoing supplemental notes to Monthly Operating Report are true and correct.

/s/ Nicholas R. Grossi

Nicholas R. Grossi

Title: Interim Chief Financial Officer

Date: August 21, 2024

4

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation  Pg 5 of 6

		Exhibit -1
In re: SVB Financial Group	Case No.:	23-10367
	Reporting Period:	7/1/2024 7/31/2024

Supplemental Statement of Operations

	SVB Financial Group
	Current Month			Cumulative
	07/01/2024 - 07/31/2024			03/17/2023 - 07/31/2024			Notes
Income
Investment Income	$	707,936		$	14,749,161
Management Fees		83,333			33,685,869
Total Income	$	791,270		$	48,435,030
Operating Expenses
Operating Expenses		3,479,187			37,647,795
Total Operating Expenses	$	3,479,187		$	37,647,795
Operating Income / (Loss)	$	(2,687,918	)	$	10,787,235
Other (Income) / Expense
Net (Gain) / Loss from Subsidiaries	$	(15,547,664	)	$	91,252,560			[1	]
Net (Gain) / Loss on Investments		(1,984,951	)		36,293,550			[1	]
Vesting of RSUs		14,069			16,514,531
Miscellaneous (Income) / Expense		(58,585	)		5,969,189
Total Other (Income) / Expense	$	(17,577,131	)	$	150,029,831
Net Income / (Loss) before Reorganization Expenses	$	14,889,214		$	(139,242,596	)
Reorganization Items, net		14,882,952			471,656,794
Net Income / (Loss)	$	6,261		$	(610,899,390	)

Notes

[1] - Includes both realized and unrealized (gains) / losses.

UST Form 11-MOR (12/01/2021) 1

23-10367-mg   Doc 1410-1   Filed 08/21/24   Entered 08/21/24 20:32:11   Supplement

Notes and Supporting Documentation  Pg 6 of 6

		Exhibit - 2
In re: SVB Financial Group	Case No.:	23-10367
	Reporting Period:	7/31/2024

Supplemental Balance Sheet

	SVB Financial Group
	07/31/2024
ASSETS
Cash	$	230,641,570
Investment Securities		356,011,975
Capital Call Line		—
Accounts Receivable		25,534,219
Receivable from FDIC		1,933,805,708
Other Current Assets		19,535,500
Total Current Assets	$	2,565,528,973
Warrants & Other Derivatives		310,783,014
Other Assets		61,760,162
Total Other Assets	$	372,543,176
Investments in SVB Capital Funds		485,206,194
Investment in SVB Securities		94,907,796
Investments in Foreign Subs / Other		15,496,335
Total Investments in Subsidiaries	$	595,610,325
TOTAL ASSETS	$	3,533,682,473
LIABILITIES & EQUITY
Liabilities Not Subject to Compromise
Postpetition Payables		57,563,919
Total Liabilities Not Subject to Compromise	$	57,563,919
Liabilities Subject to Compromise
A/P and Accrued Expenses		81,907,429
Accrued Interest Payable		30,159,270
Other Liabilities		20,000
Long-term Debt		3,370,101,079
Total Liabilities Subject to Compromise	$	3,482,187,778
Total Liabilities	$	3,539,751,697
Equity		(6,069,224	)
TOTAL LIABILITIES & EQUITY	$	3,533,682,473

UST Form 11-MOR (12/01/2021) 1