Refinitiv: Silicon Valley Bank Demise Creates Opportunities for Direct Lenders

Venture lending may become a more prominent business for direct lenders as Silicon Valley Bank’s demise has created more opportunities for non-bank lenders in the space. Hercules Capital, ORIX Corporation USA and Monroe Capital are a slew of direct lenders that have recently either expanded or entered into the venture debt arena and are set to benefit from the financing void left by the collapse of the US-based commercial bank.

“We are starting to see increased demand following the collapse of SVB. Borrowers need capital and are increasingly focused on counterparty risk, with banks likely becoming more risk adverse.”

Jeff Bede, Managing Director and Group Head of ORIX Corporation USA’s Growth Capital Business