Abu Dhabi Royal Group Discusses Possible Buyout of SVB UK After Collapse

Royal Group, an investment company that is controlled by a prominent royal from Abu Dhabi, is contemplating the option of taking over the UK branch of Silicon Valley Bank, which recently went bankrupt.

The group, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who is also the National Security Adviser of the United Arab Emirates, is currently in talks regarding a potential acquisition through one of its subsidiaries.

The sources have chosen to remain anonymous due to the confidential nature of the discussions.

It has not yet been decided whether a bid will be made or not, and there is a possibility that no decision will be made.

Royal Group has not responded to requests for comment outside of regular business hours.

The troubles faced by Silicon Valley Bank UK are causing anxiety among the technology industry in the country, as startups and venture capital firms are concerned about losing access to the funds held by the bank. As a matter of fact, although the bank is smaller compared to the biggest banks in the UK, it has a significant impact in the world of startups and venture capital.

The possibility of a takeover by Sheikh Tahnoon's company is indicative of Abu Dhabi's growing financial influence in global transactions, and brings back memories of 2008 when the wealthiest monarchies of the Gulf intervened to acquire stakes in Western banks like Citigroup Inc.

In recent years, Sheikh Tahnoon has gained prominence as the most influential business figure among the Abu Dhabi royals.

He holds multiple positions, including Chairman at Royal Group and an overseeing role at another organization.

It is worth noting that Silicon Valley Bank (SVB) is aiming to raise $2.25bn through a share sale after experiencing significant losses on its portfolio of mortgage-backed securities and US Treasuries.

The bank is struggling with rising interest rates and a cash crunch at many of the US start-ups that it has funded.