June 1 (Reuters) - SVB Securities is preparing a management buyout with backing from billionaire investor Seth Klarman's hedge fund Baupost Group, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

SVB Securities is the investment bank owned by bankrupt SVB Financial Group (SIVBQ.PK), the former parent company of Silicon Valley Bank.

The management's bid was the only one that emerged earlier this week during bankruptcy proceedings for SVB Financial Group, the report said, citing people. It added that there were no guarantees that the deal will happen or that Baupost will participate.

Startup-focused lender Silicon Valley Bank failed in March after a botched share sale that shook markets and preceded the collapse of two other mid-sized banks - Signature Bank and First Republic.

The U.S. Federal Deposit Insurance Corporation took over Silicon Valley Bank and regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank's assets.

Baupost, the FDIC and First Citizens did not immediately respond to Reuters requests for comment.

Baupost's founder Klarman has a reputation of managing assets carefully and never wanting to become too large, even though his fund is always ranked among the world's ten biggest.

Reporting by Niket Nishant and Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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