Joe Moldovan Quoted on Impact of Bankruptcy Law on Limited Partner Rights in SVB Sale

Joe Moldovan was quoted in a March 28, 2023 article in Pensions & Investments entitled “SVB Capital LPs Eyeing Parent's Bankruptcy, Silicon Valley Bank's Sale.” The article discussed that while investors in SVB Capital's venture capital funds may not be strictly involved in the bankruptcy of its parent company or the sale of Silicon Valley Bank to First Citizens BancShares, their portfolios could be impacted.

The article explained that whether limited partners have any rights in connection with the sale depends on their limited partnership agreements and state law. Some limitations on the sale of a managing member interest can be overridden by bankruptcy law. Joe said, “In general, limited partners have an economic interest but typically don't have governance rights. Sometimes, that can change in bankruptcy.”

Read the article here.