Goldman Sachs is looking to sell GreenSky for USD 500 million

Thursday 21 September 2023 09:49 CET | News

US-based banking group Goldman Sachs has entered exclusive talks with a group of investment firms to sell the GreenSky business for USD 500 million.


GreenSky is an online lender that works with homeowners looking to make home improvements. According to the Financial Times, selling the company is in line with Goldman's plans to cut down on its ambitions in consumer banking. The same source reveals that the consortium of investment firms currently interested in purchasing GreenSky include Sixth Street, Pacific Investment Management, KKR, and two smaller investors. 

Goldman is looking to sell GreenSky for USD 500 million, which is around a quarter of the price it paid for it in 2022. Goldman Sachs agreed to purchase GreenSky in 2021 for USD 2.2 billion but finalised the deal at a price of USD 1.7 billion in March 2022. 

The bank aims to complete the sale by the time it reports third-quarter earnings in October, but it’s worth noting that the deal is subject to change, and it could fall through altogether. Goldman also agreed to sell the United Capital investment advisory business it acquired four years ago. 

Alternative asset managers such as Sixth Street, KKR, and Apollo Global Management, have been expanding their credit and insurance-related investment operations and have begun acquiring debt origination businesses. Sixth Street would benefit from a GreenSky deal by gaining access to a selection of home improvement loans, which are favoured by credit investors due to homeowners’ typically high credit scores.


US-based banking group Goldman Sachs has entered exclusive talks with a group of investment firms to sell the GreenSky business for USD 500 million.


Other developments from Goldman Sachs

Founded in 1869, the Goldman Sachs Group is a global financial institution offering a wide array of financial services to a diverse clientele, including corporations, financial institutions, governments, and individuals. Headquartered in New York, the firm maintains a presence in major financial centres around the world. 

In August 2023, Goldman Sachs announced the sale of its Personal Financial Management unit to Creative Planning. The deal involved Creative's wealth management teams maintaining access to investment solutions and services from Goldman Sachs Asset Management. The move was in sync with Creative's efforts to establish a robust investment management platform. In July 2023, Creative initiated a strategic custody relationship with Goldman Sachs Advisor Solutions (GSAS).

In April 2023, Goldman Sachs announced the launch of a transaction banking business in Japan to offer corporate customers in the country services such as deposits, cash management, and cross-border payments. The decision was reportedly made in the context of the global economic slowdown that drove some investment banks to push for new revenue streams.

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Keywords: banks, investment, acquisition, lending
Categories: Banking & Fintech
Companies: Goldman Sachs
Countries: United States
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