Oaknorth Bank, the British lender founded by entrepreneurs Rishi Khosla and Joel Perlman, is reportedly in talks to acquire the British operations of Silicon Valley Bank, according to Sky News.
The US lender collapsed last week raising fears of a banking crisis. SVB has a limited presence in the UK, but its collapse could have a significant impact on tech start-ups.
Since its launch in 2015, OakNorth has lent over £10bn to entrepreneurs throughout the UK, resulting in the creation of over 36,000 new jobs and 25,000 new homes.
Khosla and Perlman founded OakNorth after struggling to secure funding for their data analytics company Copal Amba from UK banks, despite its profitability and commercial success.
In December 2021, OakNorth completed its first acquisition, a 100% takeover of accountancy cash flow provider Fluidly.
In October 2022, OakNorth acquired a 50% stake in specialist property lenders ASK Partners to deepen its support for UK housebuilders and property entrepreneurs.
Oaknorth Bank was valued at nearly US$3bn in a funding round in 2021. According to Sky News, the bank is now in competition with rival interest from The Bank of London, revealed by Sky News on Saturday, and ADQ, an Abu Dhabi state-backed investment vehicle.
The acquisition of Silicon Valley Bank’s British operations could help Oaknorth expand its market share in the UK and strengthen its position as a lender to ambitious entrepreneurs.
