Institutional investor plays key role in strategic financing
Goldman Sachs Group, Inc. (Goldman Sachs) has announced an agreement to sell the GreenSky platform and its associated loan assets to a consortium of institutional investors led by Sixth Street. CPP Investments, one of Canada's prominent pension fund managers, has played a key role in providing strategic financing for this transaction. The deal, subject to standard closing conditions, is expected to be completed in the first quarter of 2024.
David Solomon, chairman and CEO of Goldman Sachs, underlined the firm's ongoing efforts to refine their consumer business focus, explaining that while GreenSky is “an attractive business”, the company is dedicated to “advancing the strategy we laid out for our two core franchises.”
Goldman Sachs anticipates an earnings per share impact of $(0.19) on its third-quarter results for 2023. During the interim period until the closing, Goldman Sachs will continue to manage the platform and record its ongoing business results, including the impact of the consortium's agreement to purchase newly originated loans.
The consortium acquiring GreenSky is led by Sixth Street and includes participation from funds and accounts managed by KKR, Bayview Asset Management, and CardWorks. PIMCO has provided substantial support through asset acquisition, and the strategic financing offered by CPP Investments further strengthens the consortium's position.
“GreenSky accelerates business growth for its network of home improvement merchants by delivering innovative payment solutions at the point of sale,” said Alan Waxman, co-founder and CEO of Sixth Street. “We plan to continue the company’s legacy of driving growth through enhanced technology and great user experience.”
“Our team 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,” Waxman added.
