Mysterious Swedish Firm With Massive Investments In SIVB, SBNY And First Republic Reportedly Suffers Huge Losses

An unheard-of (to many Americans) Swedish firm specializing in pensions, Alecta Tjanstepension Omsesidigt, owned more than 4% of Silicon Valley Bank and nearly 4% of First Republic National Bank FRC, likely leading to significant losses on its balance sheet. Alecta is Sweden’s largest pension fund firm, and Europe’s fifth-largest pension firm according to its website. 

Alecta held more than $1 billion in holdings between Silicon Valley Bank and Signature Bank according to a report from Pensions and Investments. The report states that those investments are likely written down to zero, or in other words, a complete loss.

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Because Alecta is such a large firm, it’s possible that the loss isn’t that significant, but Alecta launched an investigation into its exposure to the names and impact it will have on the firm. Alecta also worried that its nearly $1 billion holdings in First Republic would also be a complete loss, but the firm ended up selling its entire stake in First Republic, according to Bloomberg. 

The report states that Alecta’s losses from First Republic amounted to more than $700 million. So, assuming the firm recouped $200-$300 million from its First Republic holdings, the firm likely lost more than $1.5 billion through its investments in First Republic, Silicon Valley Bank and Signature Bank.

According to Alecta’s website, the firm has a little more than $100 billion in assets under management. So, the losses from those three bank names could make up around 1% of Alecta’s entire holdings. Benzinga reached out to Alecta for comment, and will update this story if Alecta responds. 

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