Goldman Sachs sells GreenSky to consortium led by Sixth Street:
- Goldman Sachs is selling GreenSky, a fintech lender and BNPL provider, to a consortium led by Sixth Street.
- The consortium includes KKR, Bayview Asset Management, CardWorks, and Pimco, with support from CPP Investments.
- The transaction will reduce Goldman Sachs’ Q3 2023 earnings per share by $0.19, and the deal is expected to close in Q1 2024.
Goldman Sachs shifts away from retail banking:
- Goldman Sachs acquired GreenSky for $2.24 billion in September 2021 but is now divesting it.
- The sale aligns with the bank’s strategy to focus on its core franchises.
- GreenSky was initially part of Goldman’s consumer banking arm but was integrated into the asset and wealth management division in a structural reorganization.
CEO David Solomon’s perspective:
- David Solomon, Goldman Sachs’ CEO, sees the sale as a “narrowing of our consumer business.”
- The bank aims to advance its strategy in global banking and markets and asset and wealth management.
Sixth Street’s plans:
- Sixth Street, the consortium leader, intends to continue GreenSky’s growth through enhanced technology and user experiences.
- Strategic partners, including Michael Muscolino and Michael Dryden, will work to position GreenSky for future success.
