SVB Financial (SIVBQ) 21 Jan 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Brent and I will be your conference operator today. At this time, I would like to welcome everyone to the SVB Financial Group Q4 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. you. Thank Instructions] [Operators my Head turn of now to call Meghan O’Leary, Investor pleasure is the to over It Relations. Ma'am, please go ahead.

And Thank today. Brent. thank for everyone you, joining you, us

Beck, Becker, Our CEO of earnings We'll this and our Q&A, materially. the joined this during and statements full-year are for members statements here team our call, our by dealing President other our and We Greg disclaimer you forward-looking be results to CFO, regarding and differ management XXXX and be will results. information, Dan fourth-quarter making may call. forward-looking review encourage to in equally which release with actual financial applies in made

including some include deck. maybe discussion Greg may measures, the Becker. of filings, financial found President references in addition, to our measures, I CEO, our now, our call slide to those and reconciliation over financial release our SEC GAAP non-GAAP In turn measures, will specifically And to information about and

and Meghan to strong for profitability. thank today. quarter and growth us Thanks, reporting you another be We're of pleased all of joining

to quality. in business pressure, continues spite fee NIM growing excellent interest income fire healthy core all in of a cylinders robust and income, balance Our sheet, credit with net

While we across levels our investment moderated entire in warrants and see from record business. gains QX, continued strength

interest our XXXX net reiterating income. expectations and outlook, strong growth are for We and raising loan our

up short-term and rate And they're will Relations over earlier seems questions. lines, Investor our not materials that, available our positive which does of include to increases, the outlook of Thank Operator website. the addition, it future likely. significant section on In and open ask our I We the the increasingly afternoon, for turn this you. earnings with filed impact

would instructions] you'd At like ask again, question, in to a remind [operator to [operator like withdraw If instructions]. question to this everyone your order I time,

Ebrahim comes Poonawala of Bank question first from Your with America.

Your line is open.

afternoon. Good

Ebrahim. Hey,

but couple a in since with Remind you the your where -- in extremely volatility public look have October, at your that the when I look Maybe us or results, growth? if and market. outlook seeing sustained mentioned just stock what market do of technology at hey, of terms will Greg. is your we a in times. we're the in you stocks, be growth fee guess strong, terms strong, credit, sell-off letter, exact When sheet manifests of I it's outlook tech stocks in higher-growth be of in IPO performance terms balance it itself it

different or that Kadjar the that few Ebrahim I'll talk are business see be try to Well that I about have of could area, you public bank a we in Mark volatility the talk lot you markets. but to commercial counter will of ways. any places one to and There's have couple investment bank. see M&A Obviously then a answer the going seen in a ECM credit in it capabilities. with Mike we that. we've that could want about upside of the

will I so think M&A up. And pick

more there's upside and bit into banking little actually investment there a it and think can I offset we So will get later.

place. So one that's

Second talked place we letter. about which in would volatility investment and see gains, is in moderating in warrants the the we

my with there. healthy perspective down, believe be will still expect then this And material place time I'll you But give even we want are add. may tech clearly, where we of XXXX. some Credit if stocks see in quality still we could and Marc compression, so stay for to a compression wise, period in some it

Valuations not loans. are You pretty really have in effect repays to ripple a the way. see what material

raise repays that money balance their incredibly public sheet very perspective. private from a strong cash and and to And strong. and flow companies, cash have ability You loans is are also

is obviously outlook the to and -- volatility see the healthy some We if very think healthy. in is be market. there going it's don't even we So

it a client obviously client’s could and a in you places nice and maybe are that our last on new X innovation years really few still growth. additions, are seen tick-up very we But those new the economy. So see bullish for again, the we've

And so that down. slowing I don't see

So the isn't volatility in temporary net-net to public have material impact. of a markets, that going an

don't question. I a it. you, separate just Dan. for Got guess, I Maybe need sensitivity

meaningful a Talk laid So how you this quarter, investment our risk could. credit us And field. the few portfolio us cash there bond from wise? came what Just you've that terms that corporate that year? the over are one book is you've bond into to [Indiscernible] you added last about are in give thinking credit down out some -- we fair and in about if duration coloring in any of, adding the impact bit

private talked portfolio plus equity that saw on Ebrahim, first question effectively and securities putting work We look you at the we've capital. in investment over about to pretty so around years, happen quarter. substantial venture the balances, that $XX the the specifically, in previous if amount cash of distributions a billion -- as in there's

bullish liquidity for see still you on we're as XXXX. So guidance in the

still credit to things small the and when we're XXX collateral, portfolio range. The current mortgage-backs, work vast lines. and in where those Now, majority at the is along corporate on investment agency putting quality. we'd mortgage, high be environment work based being still of probably securities putting growth The the that's all look money that we to money XXX, quite

there expect credit from a don't any to see So perspective. issues

we've in margin portfolio this money putting to better rate least yield money is be abating we compression the to underneath So seems that news effectively that at that work, environment. the work the to securities by to of is seeing above is are good the been putting yield the

mix in a Fed expect might have the betas, 'XX, you customers. those we difference larger what could change how of Do any cycle the versus 'XX, versus behave you shift in And hiking behavior faster this than do deposit cycle just pace, last? at much dynamics be deposit either given this saw

[Indiscernible] the portfolio, modeling sensitivity, which All got that. and that that's XX% conservatism, rate with we've in we're have on balances sensitivities and beta, interest-bearing to is watching deposit consistent the the we a last that of our the we and Yeah. Ebrahim, meaning effectively that And these than would during and assumptions, last modeled hike. sooner cycle. rate net a some cycle the take faster in experienced we've interest they place beta income for

there. feel measure we like So we've got of in conservatism some

could Just to that $XXX comfortable time. take we're behavior million into all different move net could annualized with income this lien how faster $XXX client consideration interest getting pretax the that Fed number. fact and That's be to

Thank you. Got it.

America. line Alexopoulos comes question next Steve of from Your the Bank with of

is line Your open.

a still Hi JPMorgan. I'm everybody.

jobs you dude. changed Thought

is I BMA. I at Greg, to wanted with the Ebrahim, still think environment. No, start

correction obviously in paying we're out. to but stocks So getting are given market, attention the a lot cautious playing now more tech equity of VCs the

Now even seeing rounds? spec down of with, bit a more beating, stocks see to private are starting companies

when a close played I is tech it. the engagement early out. attention, haven't really such attention But discussions, would the we to in our very we market correction have in it. very seen paying It's say we're

you it raised to year. possible. have Again, and we was remember, a a checks our to was last think slowdown, talking with So to There much you it's their much money very to work. it bit so But venture powder, of And there they in could still channel with have capital, that seen be yet. little active. put clients, -- talking there's it's I so dry haven't in need

be And the companies corrections But so, Yeah, look they is in valuations. could there could to there healthy money. some do, be stage? valuation at there later raise as if still

yet. for ample There companies out that I if not start a out, any is wait to money think so again, good or two meta -- Could money. them quarter a for beyond But trend to need raise And we're seeing a evaluation? And least money. anything wait high that Possibly. to it's raise really -- trend they hold just that. to see there there's at starts

that. Okay. I to follow-up want on

are on other all and the VCs investments the of we've a you firms disrupted, we record would will in right were slow HM powder. markets the dry a this see seen market you firms think pace through cycles, do get dry that or of But because do if So powder, invest way to just think disruption? sitting P

about came back back down remember, literally about I'll that in going back. to a around call talk it was was a days when you if and It or XXX cycles, we market. of because were a had And for you dip, pause, slowed time decline a XXXX. and a it last quickly XX worried Asia it very be the slow -- go we concerns days, right, continue Well, or and Asia was very to

was about because You everyone it. wouldn't going XX can beginning different cycle. be days’ way with That do pandemic. the We the at zoom, people that to to investments of it's a look making a thought

there jump limited partners, XXXX You say when waited back pause work I they to really more was in. and long most I a And would is of really slowdown. to look back quickly, have money or go think talk didn't the to they when investors, them to at I say put one to mistake talk when too to

If just just prolonged significant possible. there domestically be it lot been less and It's prior could innovation cycles. slowdown? with you a globally, growing the combine think than likelihood I those the things has market a is fast in very

will of that's on the it because think be it's dry the sidelines And I powder why narrower?

the the I It's innovation Number see to temporary. minor X. still well, even are and growing get global -- And a to on do X, is it's and because it at an dry valuations basis. economy if to think say, be It's people number opportunity back going Number this in it's going look that's things. a powder, you do X, X correction,

short-term I be those there short-lived would could So reasons slowdown. X if it say are to is point that a the

for final Okay. And then question Dan.

Assuming another guidance x-rate we hikes. hikes, is do rate see

it. reinvest you into much company? reinvesting benefit talked potential we How guys the think about of will of about a You portion that should how back

is to could increases, we're see of portion said Steve, think objectives. the clear it's increases the a occurs. rate about into of rate expense guidance frame, going the the question we of reinvest imagine those But across range, extent rate The when March, to next that increases really I move we see mid-twenties. us timing increases time the June those that that potentially

point, of of way June would of much the could into that that move range that we see one-time, we is about we portion impacts spend. talk much it. increase that reinvest And a March, the recurring. is a think into next that we as that's at How XXXX. how So to about that If

helpful. Okay. for taking Thanks questions. That's my

thanks. Yup,

comes Jefferies. question from from line Haire next of Your Casey the

Your line is open.

Thanks. Good afternoon, guys.

Casey. Hi,

if on loan fund you majority the in mix. kind so, of of capital the guidance, growth it about of or do Obviously, the about expecting loan And it's 'XX. Are the how? in XX% call striving the banking, same the you mix just where curious So drove strength changing? see growth

start, we Casey, I'll -- look Hey XXXX, a add, be growth to predominantly I excited at call and from But with strong think to if but which we private continue to want it's develop, still about be Dan. to Mike as perspective. is continue see lending capital will mortgage might and see the continue management growth. we for the to already opportunity wealth Boston bank lending, integration Private, that [Indiscernible]

other So starting lending, bank but mortgage capital to Year. up private elements of pick predominantly lending call still as the New see as in well

Now, markets same with healthcare, there. growth in count technology, And the the don't been good life science liquidity happening of that's seen out lending. all at what's in the time, we've even

also private healthcare, So a what but still as life bank contribute. well technology, core do predominantly we as call, will and sciences capital

of good. XXX, Is obviously, you. were XXX. relative than that at where XXX securities you where Thank I are rate-wise. accurate today, update we Dan, to at then Very XXX, -- the that bps you And the yields year-end. XX-year guys know XX higher beginning new that mentioned we year. the The just

the XX-year weeks. sell-off of based Yeah, we've I least over last at where think and on sitting the seen couple the

lot same we -- that could of and period effectively this lot that rest count it's depends the for on throughout that hard a basis of flow. yield. -- to on of add of today rates the opportunities, liquidity a at a to stay another But market depends time, If look longer quarter. the XX You XX on to points

that XXX So some extent sure sticks. sell-off, we're There could the to be comfortable and rigs to opportunity with today there. that XXX, small the it the longer-term in

a but that front. guidance it's Is one deck makes The a is the finally down forward? a And half ratio reflection good bps environment-driven, just little that it is on is over then is much in credit going level for slide seem also book. that here the also just the bit. low-risk capital is last the just Okay. And at a charge-off -- that the like more me call XX plateau ACL

Yes.

on and So question. starting Yeah. starting the Cadieux, charge-offs Marc its

forms the the losses, of historically of lending like continues grow reflective well, our to lower extension is of of total lending, in towards continues dollar capital where and shrink the mortgage portfolio early-stage lending the it risk call but by loans. continued evolution lending, think I as we've majority taken a percentage to of terms,

And about portfolio change things to reserve, down for certainly the beginning in question and composition the from those your are of adjusted bring then now. to COVID the to so conspiring the I think of guidance

is if you what I now call is think reflective some from, I finally, figures this to point we're fourth could not that see the what it, come as I out imagine suggest. growth at to that normal if you on think found, it. the modest certainly in we've reserve the of And mentioned composition, quarter, the the is built but as It's would that before, during capital we'll have probably to more hard outlook, release bottom, change most would have certainly provision of normal. in see lending pretty continued growth where the basically I continues in for reserve, and pressure adjusted think some think, we and prominently COVID in close downward was back more

you. Thank Great.

the of Pancari line question Your comes ISI. next with Evercore from John

Your line is open.

afternoon. Good

John. Hey,

hikes and I of On of the growth, of for If more that just the expectations that starting the bit to get -- a ' mean, get do your piece the we practically there's end terms we X we loan by little does your at all? in do if growth much get talked seen back we've curious some -- XX. kind soon -- if about that relatively or can that? in an powder Thanks. of XXXX, nicely choke loan about you dry does the impact in how that does that that Just impact talk expectations may if really you've should again, factor dynamic, digging

[Indiscernible] Meghan.

No, we're heights, but general, much far so here. on you've there, years, you've equity. out Descheneaux, buyout, is is points you're is few the leverage to un really just been impact of well. to for number nonetheless, following how going and trying is books A us that either are and the to Mike as as this some basis they -mute best. John, loan not Clearly, figure mean, a first - known, In might particularly much the at looking some as consider, still loans than have still I that cheaper

people So you we are going that here. still are use going to have to

anticipating it's really of keep an not on. eye we're So impact but have we'll that here, an to something strong that actually

and that's levels. to the can backdrop about looking I to market Thanks. moderate way how think very you now Mike, any the that you gains, to the of a see and And terms should we off we of to it. of as this it, them expect know it, in if XXXX frame know the any there's but Got help us strong moderation investment then question warrant are I reasonably gauge at magnitude expect is turn the tough way probably helpful. to

could to it's hard. Dan. I obviously $X.X of clear It's John, we guide a could investment with what the why of exceptional year this [Indiscernible] But look To not that's don't that's like think around really repeat. to same worth likely to at coming gains. just what quarter time and we close it. as with put XXXX. the least and out saw and this good is percentage billion that range it, bullish And that hard especially the market But the put so relative XXXX or to volatility, know be that Still for about, so, in again, talking around next slower, we at still expecting to a we've been on it year. be to are a we environment

Got it.

Okay.

and mean, talked dollars to of of some lot valued a of are been of add just last but the saying. what dry fact is prime like is to difficult to of the that in -- on the but something no greater powder. of there's public talking John, a -- than we out sheet, as of really are just about what there's great consider. I'll of there, the doubt mean, close lot look that XXXX, factors we very It public. companies than some companies year, number I over you couple that formed Dan but is candidates had go Maybe listings to thing XXX went medium years lot the value I of top at significantly public There public well. predict, we last a keep if have greater went what is

good So for there exit companies be of is there. tenants lot that can a

the companies out and really a fundamentals there. strong are So lot still really, of good

Mike. around trends. then Thanks, I Greg it. But And just earlier curious know you on. the referenced investment that banking Got

color a and pipeline right a and then backdrop, or you certainly in could if us in environment does looking give we that we're If impact from seeing a that maybe on there of impacts now, everything what you little rate also bit expect of how this are terms and that the Thanks. rising outlook? at outlook

And do to I their really year we relative side nice both So we In seen we deck, of slides think when question record in categories. was how a growth of it. few How question, I in we what quarter-to-quarter that about is the them got really, answer basis. think the record built into the talked is, what have that? couple to But volatile about or of And get in a business to we've pretty in revenue the 'XX, break the quarter 'XX. that? -- would

historical is the SVB First Leerink business.

But moving and a great to do exceptional an had It the was lead year. capability last was well. and building in is we biotech, tables what was services, Exceptional It So now, trading, for research they mainly continue technology technology with with research, Healthcare and then and M&A year M&A that area. as up job wise, ECM. ECM, up it just are Biopharma. and

into little technology other So hearing go from we're or going then a either while very base us, a and from X M&A, course they for especially you're in softness services, banks larger as investment some 'XX, and healthcare base. of

fact, 'XX. that believe is when towards both a pushed technology we we've we teams on from I slow. in we we balance and in led. so, about just markets We based even more feel And we where feel who good, outlook, what and certainly are also about the that are Healthcare the if in and significant, 'XX, were market the believe having but people are upside speak a assembled, it's that the the really capital main not in you And brought the in M&A. for outlook services, trajectory team that 'XX Again, still platform the 'XX, and the ECM onto equity good M&A about the softer exceptional. of

Great. Thanks, Appreciate Greg. it.

line question with next Bill of Your comes Wolfe from the Carcache Research.

line is open. Your

may assets under characteristics Good question join the there you'd which of on-board, to base. a to year on-board on minimum management seem the of you wanted teams to find your And that you as level client you afternoon. color? speak a expect grow pace that Wolfe including certain would as targeting management, opportunity be is any I It at would number Greg, the on maybe SIVB ask teams there looking to teams management. per Thank new can would Wolfe any or share you that are parameters Can of you're compelling business? you. be quite a given

add advisors, different. we little When wealth it's a bit Yeah.

this When are very a I targeted level positive will that we're we parts. when high. level. economy, a the different and interest Lots approach individuals down of inbound, interest is so the of innovation is do in very again, into And break reception. getting The couple very,

and three so into XX. grow four if the was we getting And year. wealth it, XX the reasons. expect, joined, positive we or the advisor have is added recruiting that of exists it always to space year, that here, a I've collaborative And XX pace. the innovation from at really, And connections about they've very we positive. in calls team the number the incredibly very months XX who of is X members mainly as hires One then maybe very our at given platform. talking for for to this of we and created the And our been is said add think last discussions, 'XX. Those platform coming days, in compelling. you XX of on those again, some incredible rapid wealth going because their it's different our been have to on days, some are opportunity That's in things X calls for and And to that couple anywhere to we're on feedback. XX X, kind number of environment XX,

And so still early. it's

that So to team really so feel it's not about feel we And I can't claim victory. really good But as already recruit. really, It's is that about you I ability about But who have certainly good far our well. recruiting. about the just here.

So so kind think to -- have happening, We very tempered to because evidence the it more over outlook is it I'll foundation but coming of outlook strong. the the want a to the want we is and I see come quarters, call of positive.

on I your you in but guess, could the last sense frame be it follow-up say Technology its A would what it'd you. launch, for Thank I'm September's helpful. just you've [Indiscernible]. guessing assumed us. yet, ramp is stride hit if earlier a full where comments, Banking very you hasn't give That's from of us business in Investment helpful

bit the little this actually, robust of hit even until and and very what the 'XX. already call signed starting That you're had potential a just it would what outlook. for time we a that say being the I side, think going I -- right to And pipeline very, ten really more incredibly in takes it team mandates get that into with. take the out X,X and than a say I don't see significant again, everything we've expected communicated impressed really, And very to to wouldn't an up, But year really in full biotech of really flywheel. to later So and get full everyone said, would strong services. me is stride. get And I'll technology in healthcare order, shoot side has to months it's

a those again, we're have trajectory. M&A, offerings we most really in good public of already are And a think I couple but well. certainly on as signed

So being again, feeling good that's really foundation about the built.

great. great growth Last one me, reserve Dan, was for your driven. That's for build Okay, to hear.

ahead, such Looking reasonable should with your generally commensurate to we it? that be growth growth? expect that think in the reserve the loan hold rate Is to way reserves will your a about

where Yeah. reserves Though think, reserve perspective. it, a Marc add I effectively think rate that the probably but to we at want to at we're I when look bottom are, might something the from

lending, client going to net income that good are extent on we this solid continue quarter. generating more drive growth. so loans to additional think those to the that certainly it's with Obviously interest the I additional we're we associated to and So relationships, that going add loan see formulaic provision that saw provision

to Nothing here you. Dan. add Thank

you for my questions. taking Thank

the of Wells Jared with comes Securities. Shaw question next Your from line Fargo

open. Your line is

everybody, Hey, good Thanks. afternoon. and

Hey, Jared.

would look want be really at that? we when Circling additional if or to thinking new will investment other revenue that we would be use rates that s expand? and rates back opportunity of that expense for pull-forward an from expectation How that higher. new investments Slide go that longer a XX, there the to more it the conversation have initiatives, may bit on should be little you just or about taken opportunities acceleration, otherwise Is a

it's Yes, Jared,

Keep going.

Greg. ahead, Go

I start. wouldn't to pull-forward. it call a Jared, necessarily

what just we're how do is sure opportunistic we list. increases, to at want pace. the an very Here's to by And pick with right investments. some start a investing things we we're going to If at of up of do many have opportunities is I see in part at some some to incredible opportunities once. of revenue constrained to this accelerate look And those that say, invest would make rate long is can amount we're you there we

means So because to level. is forward? wouldn't opportunities. down of advantage amount I up it it a those it lower drop a then a and that describe going pull-forward have to way investment that pull moving dollar certain we're you take you're more It's it'll a

as So saying opportunistic. about of ahead opportunities I would a it think lot it's of we And have us.

work get some So that we'll sure. increase, rate it for do if we to put of

guide Alright. The And the question the platform looking seems light guess, AUM bank? were Okay. the the Valley. in success Silicon cause then faster around given from growth to you're I had expectation of putting to with managers, people, the and used and at continue. Thanks. onto we expecting little to you've bringing AUM prior the that the behind guide could of AUM a conservative, support expectation the grow private What with broader the relationship

Yes.

I'll have of a lending between they management need. differences think commercial you're And and have talk what about and commercial period let's running. within I about to wealth think getting thing, one it, not just banking, just we time. started. To In up a a that's And we're flywheel Commercial you it call client, usually have get, what the the banking. I'll call it's reasonable --

typically and bring money. you loan looking I'll in relatively, borrow that put private they of it you call bank place a put -- You When wealth, on time short together, in new you're a clients. and at the those period the It's to types coming for that it looking economy. with because for even are That's takes at that it's advisors them again, set, while that to them full them, convince the to relationship, a innovation we're specifically build capable. product you the have over, wealth reconnect to

increasing that's to not going and think that, then see accelerated overly flywheel wealth we goals outlook, I So see at in think once this bit going of it's I see much to going pace. going little But and just we're they much, we're saying a point. to ambitious we until a at time, AUM take effect, to are that be set

Okay, great. Thank you.

Yes.

comes question KBW. McGratty next with Your from the of line Chris

Your line open. is

the next thoughts XXXX a in Great. rate where see interested deposit outlook or sheet, do in varying on the it I'm geography growth going. you on under balance Thanks. of your off

Chris, it's Dan. Hey,

we last rate during to that where increases, much -- sectors. points, what the as balance the going basis we seeing at think you're move and seeing off sheet to XX to similar I massive cycle, to rise to think not XX pretty be saw couple money rate I imagine to shift of see behavior motivated we're not first into the a look really interest-bearing of even start towards start

really think competitive be you movement. as start to total money start start XXX think the funds, into just can of the said more you client that's the advantage, that's think at market look attractive. when I where get of I worth And point we see XX, when billion more XXX, that's I if can to balance a rates got $XXX the sheet funds. to basis you've And off

clients still could that and of we higher base. money deposit have up want we doing some did on deposits may look cost a and rates for by during offer to the the and market sheet last end low very as You which cycle balance with that,

managed see this here the that again, have more point we products to have use liquidity the we've points, over to these your put behavior, balance XX on-and-off first think To between points basis to no our of plays a that to client be couple favor. basis big XX been last points really you start of able in that migration. where years. And that's some basis developing XX sheet one, I basis bit think to I in little on So shifts XXX

balance rate that take follow-up, one I if have Maybe go of the Thanks, they the your down pages to great. you're the to it a heard rates curve. on obviously get That's sheet, Dan. bit, up. from interested moderate are of I to sensitivity know yesterday but peers the since as forward appetite some try going you the a we

Yeah, Chris, where asset by this sheet that been been naturally. we've almost we've moderating sensitivity is experiencing, one balance growth the

just investment been liquidity moving So we've at and securities what portfolio. into look the cash, doing

out we're environment As the in in least term at some seeing, rate movement that,

see. that effect, that of That some helps in in and dampen we environment rate of that some sensitivity, lock

of dampening in environment the So we're organically, advantage the in more asset sensitivity. you're the to exists rates portfolio, we're those investment securities And today. generally that seeing taking of that some the money by work putting way,

environment just -- will it tempered actions the portfolio. seeing of balance the always this with the be the sheet. nature I certainly we So for asset-sensitive will in taking being by by But

you. Thank

comes line with question & of next from Kotowski Your the Instructions] Chris Co. [Operator Oppenheimer

open. Your is line

Yeah.

the Let And roughly at a sense back the me with another And $XXX just $X.X the so it. in probably $XXX of normalized XXXX, that's million, be bigger mid-teens expect sheet cycle million saw ish? right - in gains, start secondly, about then of and that part first in on am that billion. you level to put you XXXX, thinking didn't And balance warrant your equity shot your portfolio in kind equity than in wouldn't I what was still return we is should it's X like today if position it to the an the times. XXXX,

Dan. it's Chris, Hey

think I it think to is granular way that highly about the they're position.

to companies. individual close warrants condition and the as Those react that think fact market you what's to we've from So happening XXXX a perspective. got companies individual obviously about

what's to is warrant of happened gone couple over we've to from portfolio XXXX names closer years granular of Now, the that a actually last XXXX.

it back than actually there more variability So period. the previous today in

it's certainly hard we meet would it you're the about So if assumptions easier, and it, to broader making. that have were range guidance really

but wondering but realize Yeah. particularly specifically. the I are know, -- different, I I was bonds

take, that will lumpiness, equity but you mid-teens Presumably targeting a there's on presumably the Granted through the that be return. cycle. you position

warrants positions equity cases, conversion positions in many the of are lockup we're the results into those the In while the period. Yeah. equity of

return particular, So In are associated there's no it. threshold. with

the warrant conversion into the So of IPO. post the that

$X.X your balance or or on Okay. lower of at cost that is primarily is then risk a mark-to-market today, that market? there billion on cost sheet is And the

majority Yeah. is mark-to-market. that of The vast

the a that's got included and mark-to-market ready last it. associated with methodology XX-K So the we've details in the mark-to-market of

quarterly of So that's marked is market as activity. and based the basis on XX/XX, on up-to-date a

wondering, on just team guidance environmental internal the this easy. either do job if basis on that was cadence you've just the on a have could we And very then from big from you it very view a or don't give on Again, early quarter brought and during to of an have detailed the annual strong you kind fact that year, you of factors secondly, through have expect out the of should And should makes cadence on factors I we our like if just coming start up if or bankers should strong I'm start a you ratably and view or it view we team later? that that's, does just step that -- we year then but a the curious flatten the expect.

has sheet progressive we've fairly seen, as been growth I liquidity it's think that raised. balance been with

lines, you basis. subject fee generally at less seasonal a on income If quarterly factors core to look you've

more be we investment I perspective along about. about you'd additions that's would to progressive been that quarter-to-quarter, investment just always good warrant And break really quarter-to-quarter. from out where There's types think then gains just, bit which just Generally the way way at volatility, a be areas revenues look speaking, of build banking if are in an a more subject the and they'll at with has looking to marking expense to as talked happening it. a of what's much think no we there perfect quarters. from there

it fair Thank That's me. you. Okay, enough. for

next the from line comes Securities. Jennifer question with of Demba Your Truist

Your line is open.

evening. on Leerink. Question Good

the broader How a What this now? So the few company relative focused big is be what's could next for potential of over this years? the business to sector rest SVB? revenue a

I'll add. it's Greg. Jennifer, Yeah. Dan want and may to start

technology engine. hitting Healthcare, which eight-cylinder You in describe can see of our this at it an guidance like least, is and we're cylinders I for would four on year, it's as

or So think to reached in revenue But way I your So second maybe ways that team think the of is think 'XX. I fee potential. when two there's the it the full and of bit don't opportunities that's we're about market to The And really until of the opportunity, the question sense and to exist. 'XX halfway the the it, going about the there. your of their right? even one a part robustness little kind. I is think answer be to difficult When potential, is

I have, the see years? the in this business 's Do staying that the, more the unknown. as answer that's next The business healthy. And they're that's, the to relatively the people is and that's products of that's billion-dollar a quality So, three see combination market I think this business revenue yes. or the market of could of the providing a breadth I we

potential could that's pretax to XX% top M&A. range, we have grow. So maybe to feel this good line, gravitate margins see little you higher Yes, that I you which And towards really that done about you the the then the business a line. bottom can more bit in as than for the even XX% be

Thanks so much.

Yes.

no are back I Becker. turn to There over Chief the further to now this questions like time. at call Mr. will the Greg Officer, Executive

to this thank of we that great differences year, track I everybody. in our really volatility as this is potential in eye with the for valuations. in year market through so be of us is on what continue ahead. very And of the private The again, the company uptick the and the And we're feel delivered about We success. proud robust. large We're it want very impact It's been getting still have that play deepen that know and given we're the from on in how optimistic surprised and here today. power way dry current to on year way to and based is kind Obviously, last we more expect Great. one that we their markets bottom our questions, make powder much experience still ability remain so some you we've much an certainly relationship, diminish to success. economy and joining Thanks, an and keeping cycles, more wouldn't the cycles to clients add certainly that no attention. insights seen the meaningful the we There's doing see there said, excited of well. had the on. we innovation just out this but as year volatility, so clients short things just We've to line about is small. before. our go clients their many that those past all are and we to do value But work our

as for out, world best finally, and meetings, around thank each more that and team there their of we pandemic taking the SVB, employees So in in their clients our during and the stays to spend take we in I partnership of to while care pandemic, and the are of giving healthy play hanging our colleagues and for want especially members clients. dinners, for with meantime, and I the trust Thanks hopefully thank just to And always the and In final stages themselves. getting hopefully their to want to in-person of care our other the in in-person I a look certainly care. forward wait to lot, everyone take market. the to time clients and us.

participation. you Ladies for your call. This and gentlemen, thank concludes conference today's

disconnect. now may You