SVB Financial Group, the former parent company of Silicon Valley Bank, is nearing a deal to sell its venture capital and credit-investment arm SVB Capital out of bankruptcy, the Wall Street Journal reported on Sept. 15.

Anthony Scaramucci’s SkyBridge Capital and Atlas Merchant Capital are competing against San Francisco-based private equity firm Vector Capital in the later stages of the bidding process, the WSJ report said, citing sources close to the matter.

Sources claimed that SVB’s venture capital arm could be sold to the highest bidder for $250 million to $500 million. The final sale, however, is not guaranteed as it would need to go under the review of the creditor’s committee.

A court decision on the sale is expected in the upcoming weeks.

In June, SVB said it was still looking for strategic alternatives for its venture capital arm, days after the company agreed to sell its investment banking division, SVB Securities, to a group led by the segment’s chief executive.

Notably, SVB Capital was not included in the SVB’s Chapter 11 bankruptcy proceedings. The bank reportedly said the entity would continue its “ordinary course operation of business despite being put up for sale.”

SVB Capital is an investment capital firm that backs other major Silicon Valley venture capital firms such as Sequoia and Andreessen Horowitz (a16z). As of December 2022, the platform held $9.5 billion in assets across 20 funds and 760 companies.

Meanwhile, Scaramucci’s SkyBridge Capital manages $1.8 billion in assets, of which about $580 million is held in cryptocurrencies and other digital asset-related investments.

SVB Financial collapsed in bankruptcy after Silicon Valley Bank’s failure in March, setting off a banking crisis in the United States. US banking regulators ordered SVB to shut down on March 10, with the firm filing for bankruptcy on March 17.

SVB crumbled alongside other crypto-friendly banks, including Signature and Silvergate Bank, in what market watchers described as the worst US banking crisis since 2008.