Goldman Sachs Announces Sale of GreenSky to Sixth Street-Led Consortium

NEW YORK, October 11, 2023 – The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it has entered into an agreement to sell the GreenSky platform and associated loan assets to a consortium of institutional investors led by Sixth Street (the “Consortium”). The transaction is expected to close in the first quarter of 2024, subject to standard closing conditions.

“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” said David Solomon, Chairman and CEO of Goldman Sachs. “While GreenSky is an attractive business, we are focused on advancing the strategy we laid out for our two core franchises. In Global Banking & Markets, we’ve improved our wallet share and are demonstrating strong growth in financing activities; and across our Asset & Wealth Management platform we are making very strong progress towards both our fundraising and management fee targets.” 
 
The transaction is expected to result in a $(0.19)¹  earnings per share impact on Goldman Sachs’ third quarter 2023 results. Until closing, Goldman Sachs will continue to operate the platform and record ongoing business results, including the impact of an agreement for the Consortium to purchase newly originated loans. 

The Consortium acquiring GreenSky is led by Sixth Street and also consists of funds and accounts managed by KKR, Bayview Asset Management, and CardWorks. The transaction includes significant support from PIMCO through an asset acquisition, as well as strategic financing from CPP Investments. 

“GreenSky accelerates business growth for its network of home improvement merchants by delivering innovative payment solutions at the point of sale, and we plan to continue the company’s legacy of driving growth through enhanced technology and great user experiences,” said Alan Waxman, Co-Founder and CEO of Sixth Street. “Our team, led by Sixth Street Co-Founder Michael Muscolino and Head of Asset Based Finance Michael Dryden, 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.”

Goldman Sachs & Co. LLC is serving as financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Goldman Sachs.

Wells Fargo Securities, LLC is serving as lead financial advisor to the Consortium for the transaction.  BofA Securities and Mizuho Americas are also serving as financial advisors and Simpson Thacher & Bartlett LLP and Alston & Bird LLP are serving as legal counsel.

[1] Reflects an increase in operating expenses related to the write-down of intangibles, a reduction in net revenues related to marks on the loan portfolio and an increase in taxes, largely offset by a release of loan reserves reflected in provision for credit losses.

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About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

About Sixth Street
Sixth Street is a global investment firm with over $74 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 500 team members including over 200 investment professionals operating around the world. For more information, visit www.sixthstreet.com.

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