Following Silicon Valley Bank's dissolution last year, SVB Financial filed for bankruptcy. As a result, it is now officially selling SVB Capital to a newly formed company, which will receive undisclosed cash and other economic considerations in exchange for permanent capital from Brookfield (BAM.TO) and Sequoia Heritage.

The transaction is also backed by the principal creditor groups of SVB Financial, pending regulatory approval.

As part of the agreement, SVB Capital and Pinegrove will each run independently under the direction of their current management teams.

"We believe the agreement maximizes the value for the benefit of SVB Financial Group's constituents, with a significant cash component as well as the ability to participate in the future upside potential of the business," stated Bill Kosturos, Chief Restructuring Officer of SVB Financial Group.

Back in January, SVB Financial declared that it was going to transfer ownership of SVB Capital. The group backing the purchase consists of MFN Partners, Pacifi Investment Management Company, Bank of America Securities, JP Morgan Securities, and King Street Capital, and together they hold 48% of SVB Financial's most senior debt.

Ten billion dollars in investments are managed by SVB Capital for 750 limited partner investors. It is still contesting the cash seizure of about $2 billion.