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He confirmed that 6 companies investing “HOF” funds failed to withdraw their funds from “SVB”. There are offers to get 80% of the deposit value.
Onsi Naguib Sawiris, chairman of Orascom Financial Holding and founding partner of the “HOF” direct investment fund specializing in technology, told Al-Arabiya in an interview, “We have succeeded in transferring all our money and accounts from small banks. JP Morgan and Merrill Lynch.” Coincided with the collapse of Silicon Valley banking.
Onsi Sawiris added that last Thursday morning the HOF Direct Investment Fund sent messages to companies investing in the US and around the world with the need to transfer their deposits and money from SVB Bank to other banks.
He explained that the HOF has several accounts and funds in several banks, but Silicon Valley Bank is not one of them.
He pointed out that if a major bank acquires a Silicon Valley bank, it would be positive and contribute to faster access to depositors’ deposits, but on the contrary, the matter would be negative.
He pointed out that emerging companies are currently vulnerable in light of the uncertainty regarding the circumstances surrounding the resolution of this crisis, noting that several investment funds such as the “HOF” direct investment fund are now expected to provide temporary financing to emerging companies.
He pointed out that the “HOF” direct investment fund invests in more than 100 emerging companies in the US and abroad, about 30% of which have exposure to the “Silicon Valley” bank, and about 5-6 companies. Companies that failed to withdraw money from “SVB” but currently have received offers of about 80% of the value of its deposits, and the matter is being studied with those companies.
He ruled out the collapse of other banks as a result of the “SVB” crisis, but the greatest risk would be to growing companies as a result of liquidity and difficulty in obtaining financing.
California banking regulators shut down SVB Financial Group on Friday, the largest bank meltdown since the global financial crisis, moving quickly to protect depositors at the bank that focused on startups.
According to a statement, the regulator has given jurisdiction over the bank to the Federal Deposit Insurance Corporation, which will dispose of its assets.
Silicon Valley Bank, which SVB Group uses for its operations, has been insured since this year, the trust said. Almina State Bank of Kansas was last insured by the Corporation to close on October 23, 2020.
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