Goldman Sachs has announced the sale of its GreenSky platform and associated loan assets to a consortium of institutional investors led by global investment firm Sixth Street.
The transaction is expected to be completed in the first quarter of 2024, subject to standard closing conditions, the global financial institution said in a Wednesday (Oct. 11) press release.
Goldman Sachs put GreenSky up for sale in June, exploring strategic alternatives for this FinTech as it scaled down its consumer ambitions, PYMNTS reported at the time.
“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” David Solomon, chairman and CEO of Goldman Sachs, said in the Wednesday press release.
This move reflects the company’s strategy to focus on its core franchises, Solomon said. While GreenSky is an attractive business, the company is determined to advance its strategies in Global Banking & Markets and Asset & Wealth Management. Solomon said that the company has seen improved wallet share and strong growth in financing activities in Global Banking & Markets, while making substantial progress towards fundraising and management fee targets in Asset & Wealth Management.
Until the transaction is finalized, Goldman Sachs will continue to operate the platform and record ongoing business results, according to the press release.
The consortium acquiring GreenSky is led by Sixth Street and includes funds and accounts managed by KKR, Bayview Asset Management and CardWorks, the release said. The transaction also receives support from PIMCO through an asset acquisition, as well as strategic financing from CPP Investments.
Alan Waxman, co-founder and CEO of Sixth Street, said in the release, “GreenSky accelerates business growth for its network of home improvement merchants by delivering innovative payment solutions at the point of sale, and we plan to continue the company’s legacy of driving growth through enhanced technology and great user experiences.”
Goldman Sachs purchased GreenSky in September 2021 in an all-stock deal worth about $1.73 billion. At the time, GreenSky had funded home improvement borrowing options for about 4 million customers and financed more than $30 billion of business improvements for the healthcare, retail and eCommerce industries since its founding in 2016.
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