Goldman Sachs to divest fintech platform GreenSky in strategic shift
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Goldman Sachs, led by CEO David Solomon, is preparing to sell its fintech platform GreenSky to a consortium spearheaded by Sixth Street’s CEO Alan Waxman and co-founder Michael Muscolino, along with Head of Asset Based Finance Michael Dryden. The consortium also comprises KKR, Bayview Asset Management, CardWorks and is significantly backed by PIMCO through asset acquisition and CPP Investments’ strategic financing.
The deal is slated for completion in Q1 2024, with Goldman Sachs retaining operational control over GreenSky until then. This sale aligns with Goldman Sachs’ strategy to concentrate on its two core franchises – Global Banking & Markets and Asset & Wealth Management. This strategic shift has been marked by an improved wallet share and robust growth, while making substantial progress towards fundraising and management fee targets.
GreenSky, established in 2016, offers innovative point-of-sale payment solutions and has financed over $30 billion in business improvements across healthcare, retail, and eCommerce sectors. It has funded home improvement options for about 4 million customers.
Goldman Sachs initially acquired GreenSky at the height of the COVID-19 pandemic in an all-stock deal worth approximately $2.24 billion in September 2021. The acquisition was driven by a surge in home renovations during the pandemic, however, the business faced a downturn due to rising interest rates and building material costs post-pandemic.
The consortium plans to stimulate growth at GreenSky by enhancing technology and user experiences, continuing the company’s legacy of supporting home improvement merchant growth.
Advisors involved in the transaction include Goldman Sachs & Company, Wachtell, Lipton, Rosen & Katz for Goldman Sachs; Wells Fargo Securities, BofA Securities, Mizuho Americas, Simpson Thacher & Bartlett, and Alston & Bird for the Consortium.
