Goldman Sachs Group's sale of its consumer-lending unit GreenSky is entering the final stretch with groups featuring Apollo Global Management, Pagaya Technologies and Sixth Street working on what's poised to be their best and final offers, according to people with knowledge of the matter.
The bank has asked suitors to submit a third round of offers in early September, the people said, asking not to be identified because the talks are private.
Apollo has been partnering with Blackstone on a proposal, some of the people said. Sixth Street is working with a number of parties on a deal, another person said. Pagaya's collaborators include General Atlantic, some of the people said.
Spokespeople for Goldman, Apollo, Blackstone and Sixth Street declined to comment. Representatives for Pagaya and General Atlantic didn't respond to messages seeking comment. No final decisions have been made, and bidders could opt against proceeding with offers.
The auction is part of Goldman's broader pullback from consumer lending after the Wall Street giant's attempts to woo consumers proved costlier than expected. Chief Executive Officer David Solomon had planned to broaden the firm's reach beyond a traditional focus on ultrawealthy individuals. On Monday, it struck a deal to sell an investment-advisory business aimed at the mass-affluent market to wealth-management firm Creative Planning LLC.
New York-based Goldman can take a number of approaches to the GreenSky transaction, according to one of the people with knowledge of the matter. One option is to sell GreenSky and loans originated by the platform to a single buyer. Another is to sell GreenSky and the loans to different parties. In a third scenario, Goldman could sell GreenSky and retain the loans.
Goldman reached a deal to buy GreenSky for about $2.24 billion in 2021, a price that decreased before the transaction was completed. Last month, as it prepared to sell the unit, the firm said it booked a $504 million write-down on goodwill in the second quarter.
The Wall Street giant previously agreed to sell personal loans tied to its Marcus consumer unit to Varde Partners and Rithm Capital.
— With assistance from Matthew Monks, Michelle F. Davis and Gillian Tan
