The Goldman Sachs Group, Inc. (NYSE:GS) has finalized the sale of GreenSky, its platform for home-improvement lending, to a consortium led by investment firm Sixth Street Partners and including KKR, Bayview Asset Management, and CardWorks.
GreenSky provides point-of-sale (POS) technology facilitating connections between home improvement contractors and consumers for loan origination.
Acquired by GS for $1.7 billion in 2022, GreenSky’s sale was announced in October 2023 as part of a significant business restructuring initiative.
David Solomon, chairman and CEO of Goldman, emphasized, “This transaction reflects our ongoing efforts to streamline our consumer business focus. While GreenSky presents attractive opportunities, our concentration lies in advancing the strategies outlined for our two core franchises.” Solomon highlighted progress in the Global Banking & Markets and Asset & Wealth Management segments.
In the fourth quarter of 2023, GS concluded the sale of a majority of the GreenSky installment loan portfolio and struck an agreement with General Motors (GM) to transition GM’s credit card program to another issuer chosen by GM.
With a renewed focus on its two primary businesses—Global Banking and Markets, and Asset and Wealth Management—Goldman Sachs aims to consolidate its position. In 2023, the company secured the top spot in worldwide announced and completed mergers and acquisitions (M&As), equity and equity-related offerings, and common stock offerings, providing it a competitive edge. Although investment banking (IB) revenues dipped in 2022 and 2023 due to subdued global M&A deal value and volumes, Goldman witnessed a promising uptick in M&A backlog in the fourth quarter of 2023.
Anticipating various initial public offerings in 2024, Goldman projects sustained growth in IB revenues supported by robust client engagement, digital transformation trends, and a healthy backlog.
Despite recent challenges, shares of Goldman Sachs have surged by 12.8% over the past six months, outpacing industry growth.
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