Goldman Sachs (GS) agreed to sell specialty lender GreenSky to a consortium of investors, an important and costly step in the Wall Street bank's ambitious goal of serving the mass market.
Goldman said it would sell the business to a consortium led by Sixth Street that also includes private-equity firm KKR & Co., KKR, Bayview Asset Management and credit-card company CardWorks. Bond giant Pacific Investment Management will buy a significant portion of GreenSky's existing loan balance, while CPP Investments will provide strategic financing.
GreenSky will continue to make loans, primarily for home improvement consumers.
Goldman bought GreenSky just last year for about $1.7 billion and is now selling for a fraction of that. While Goldman did not disclose the sale price, people familiar with the matter put it at about $500 million. The Wall Street Journal...
Goldman Sachs (GS) agreed to sell specialty lender GreenSky to a consortium of investors, an important and costly step in the Wall Street bank's ambitious goal of serving the mass market.
Goldman said it would sell the business to a consortium led by Sixth Street that also includes private-equity firm KKR & Co., KKR, Bayview Asset Management and credit-card company CardWorks. Bond giant Pacific Investment Management will buy a significant portion of GreenSky's existing loan balance, while CPP Investments will provide strategic financing.
GreenSky will continue to make loans, primarily for home improvement consumers.
Goldman bought GreenSky just last year for about $1.7 billion and is now selling for a fraction of that. While Goldman did not disclose the sale price, people familiar with the matter put it at about $500 million. The Wall Street Journal had previously reported that Sixth Street was expected to win the auction.