American investment bank and financial services company Goldman Sachs Group has agreed to offload the GreenSky platform and associated loan assets to a group of institutional investors led by investment firm Sixth Street.
The financial terms of the deal were not revealed.
The consortium of investors comprises funds and accounts overseen by Bayview Asset Management, KKR, and CardWorks.
Besides, the transaction includes substantial support from PIMCO through an asset acquisition and CPP Investments’ strategic financing.
Sixth Street co-founder and CEO Alan Waxman said: “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.
“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 completed the $2.2bn acquisition of the financial technology firm GreenSky in March 2022. GreenSky’s technology platform allows merchants to deliver seamless promotional payment options to consumers.
Until the deal is completed, the platform will be continued to be operated by Goldman Sachs. The financial services major will also record ongoing business results, including the impact of an agreement for the consortium to acquire newly originated loans.
Goldman Sachs chairman and CEO David Solomon said: “This transaction demonstrates our continued progress in narrowing the focus of our consumer business. 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.”
Goldman Sachs used the services of Goldman Sachs & Co. LLC as financial advisor for the deal while Wachtell, Lipton, Rosen & Katz is the legal counsel.
The consortium is served by Wells Fargo Securities as lead financial advisor for the transaction. BofA Securities and Mizuho Americas have also been roped in as financial advisors by the investors group.
Simpson Thacher & Bartlett and Alston & Bird are legal counsel for the consortium.
Subject to conditions, the transaction is anticipated to be completed in Q1 2024.
