Goldman Sachs has agreed to sell BNPL-based home improvement lender GreenSky to a a consortium of institutional investors led by Sixth Street. Terms of the deal were not disclosed but the sale will lead to a 19-cent-per-share hit to Goldman's third-quarter earnings.
The deal, set to close in the first quarter of 2024, includes the GreenSky technology platform and associated loan assets.
“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” says Goldman Sachs CEO David Solomon.
Goldman has been looking to offload GreenSky, which it bought in 2021 for around $2 billion, for several months as part of its retreat from the consumer market.
In August the bank sold its Personal Financial Management unit to Creative Planning. It has also hived off digital bank Marcus and put the Apple credit card business into a new Platform Solutions unit alongside the firm's transaction banking operations.
In January it reported that the Platform Solutions unit made a pre-tax loss of $1.2 billion in the first nine months of 2022.
Sixth Street is joined in the consortium by 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.