Goldman Sachs entered into an agreement to sell the GreenSky platform and associated loan assets to a consortium of institutional investors led by Sixth Street (the “Consortium”). The transaction is expected to close in the first quarter of 2024, subject to standard closing conditions.
“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” said David Solomon, Chairman and CEO of Goldman Sachs. “While GreenSky is an attractive business, we are focused on advancing the strategy we laid out for our two core franchises. In Global Banking & Markets, we’ve improved our wallet share and are demonstrating strong growth in financing activities; and across our Asset & Wealth Management platform we are making very strong progress towards both our fundraising and management fee targets.”
The transaction is expected to result in a $(0.19) earnings per share impact on Goldman Sachs’ third quarter 2023 results. Until closing, Goldman Sachs will continue to operate the platform and record ongoing business results, including the impact of an agreement for the Consortium to purchase newly originated loans.
The Consortium acquiring GreenSky is led by Sixth Street and also consists of funds and accounts managed by KKR, Bayview Asset Management, and CardWorks. The transaction includes significant support from PIMCO through an asset acquisition, as well as strategic financing from CPP Investments.
“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,” said Alan Waxman, Co-Founder and CEO of Sixth Street. “Our team, led by Sixth Street Co-Founder Michael Muscolino and Head of Asset Based Finance Michael Dryden, has brought together an impressive group of strategic partners to put GreenSky and its experienced leadership team in the best position to succeed going forward.”
Goldman Sachs & Co. LLC is serving as financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Goldman Sachs.
Wells Fargo Securities, LLC is serving as lead financial advisor to the Consortium for the transaction. BofA Securities and Mizuho Americas are also serving as financial advisors and Simpson Thacher & Bartlett LLP and Alston & Bird LLP are serving as legal counsel.