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NewslettersTerm Sheet

Here are the leading bidders in Goldman’s sale of GreenSky

Jessica Mathews
By
Jessica Mathews
Jessica Mathews
Senior Writer
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Jessica Mathews
By
Jessica Mathews
Jessica Mathews
Senior Writer
Down Arrow Button Icon
August 18, 2023, 7:37 AM ET
David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York.
Goldman Sach's sale of Greensky is in its final innings.Michael Nagle—Bloomberg/Getty Images

As Goldman Sachs exits parts of the consumer banking business, it’s been inching closer to finding a buyer for GreenSky.

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Second-round bids for GreenSky were due earlier in August, or about two weeks ago, four banking and private equity sources told my colleague Luisa Beltran. In the running is a consortium of investors led by Sixth Street, which is trying to buy GreenSky, the people said. There’s also Apollo Global Management, which isn’t part of the Sixth Street investor group, that is also vying for the specialty lender, the story said.

Here’s more:

Goldman is weighing different options for GreenSky, the people said. It could sell the GreenSky platform and loan book to one party, or it could offload the platform to one party and sell the loan book to another. Or Goldman could sell the platform and keep the existing loan book. Goldman received different bids for the different the options and it’s unclear how the offers line up. Proposals came in at between $500 million to $1 billion, one of the bankers said, while others said the bids were half of what Goldman paid in 2022, they said. (The GreenSky acquisition was initially valued at $2.24 billion in September 2021 but dropped to $1.7 billion when the transaction closed the following March.)

It’s unlikely there will be a third round of bidding for GreenSky. “They need to finish,” one of the people said. 

“This is a super long, long process,” said one banker, who wasn’t involved in the auction.

Could the second time be the charm for Apollo to snap up GreenSky, the fintech founded in 2006 that helps consumers get home improvement loans?

The current sale of GreenSky gives Apollo another chance to buy GreenSky, which was up for sale in 2019. Late that year, Goldman made $7 a share, or about $1.3 billion cash offer to buy GreenSky, according to a regulatory filing. The process went dormant after Goldman refused to raise its bid and GreenSky ended up calling off the auction in August 2020, the filing said. In mid-2021, Goldman resumed talks to buy GreenSky and the discussions heated up after a private equity firm, identified in the filing as “Financial Sponsor D,” made an offer to buy the lender. The unnamed private equity firm, which the Wall Street Journal reported was Apollo, tried to preempt the process and then engaged in a bidding war with Goldman for GreenSky, according to the filing. Goldman Sachs ended up winning the process, agreeing to buy GreenSky for about $12.15 a share in September 2021, the filing said. It completed the acquisition in March 2022. Roughly one year later, in April, Goldman confirmed that it had put GreenSky up for sale.

You can read the full story here.

An important programming note…I wanted to say a quick word and thank Jackson Fordyce for his tireless efforts curating the Term Sheet deals section every single day since he joined us in January 2022. Jackson’s enthusiasm, attention to detail, and pure joy knows no bounds. It’s a difficult job keeping track of the opaque private markets, and he’s done so brilliantly day in and day out. This is his last day on the Term Sheet team, so please send him some love and gratitude. I hope you’ll also join me in welcoming Joseph Abrams to the Term Sheet deals section. As always, please continue to send deal news to termsheet@fortune.com!

Until Monday,

Jessica Mathews
Twitter: @jessicakmathews
Email: jessica.mathews@fortune.com
Submit a deal for the Term Sheet newsletter here.

Jackson Fordyce and Joseph Abrams curated the deals section of today’s newsletter.

VENTURE DEALS

- Viome Life Sciences, a Bellevue, Wash.-based at-home microbiome test provider, raised $86.5 million in Series C funding co-led by Khosla Ventures and Bold Capital. 

- ProjectDiscovery, a San Francisco-based cybersecurity company, raised $25 million in Series A funding. CRV led the round and was joined by Point72 Ventures, SignalFire, Rain Capital, Mango Capital, Accel, Lightspeed, and others. 

- Jinx, a Los Angeles, Calif.-based dog food brand, raised $17.85 million in Series B funding. The Merchant Club and Align Ventures led the round and were joined by AF Ventures, ERA Ventures, and Range Group.

- Visana Health, a Minneapolis, Minn.-based virtual-first comprehensive women’s health clinic, raised $10.1 million in seed funding. Flare Capital Partners and Frist Cressey Ventures co-led the round and were joined by InHealth Ventures, Oxeon Partners, Pixel Perfect Ventures, Venture Investors, and others. 

- Verdigris, a Mountain View, Calif.-based smart building management company, raised $10 million in funding. DCVC, Solea Energy, and others invested in the round. 

- Venteur, a Berkeley, Calif.-based digital health startup, raised $7.6 million in seed funding. GSR Ventures led the round and was joined by Headwater VC, Revelry Venture Partners, Houghton Street Ventures, Plug and Play, Techstars, CRCM Ventures, and others. 

- D’Amelio Brands, a Los Angeles-based brand and product growth platform, raised $5 million in funding from Fifth Growth Fund..

- Aircon, a Dallas-based air cargo shipping company, raised $3.3 million in seed funding led by Underscore VC. 

- Birdstop, a Concord, Calif.-based remote sensing company, raised $2.3 million in funding. Lerer Hippeau led the round and was joined by Anorak Ventures, Correlation Ventures, Data Tech Fund, Graph Ventures, Techstars, Timberline Holdings, and others. 

PRIVATE EQUITY

- Accel-KKR invested €60 million ($65.21 million) into Ocuco, a Dublin-based eye care software solutions provider. 

- CES Power, backed by Allied Industrial Partners, acquired Infinite Power, a Beltsville, Md.-based temporary mobile power and climate control solutions provider. Financial terms were not disclosed. 

- TPG Rise acquired a majority stake in A-Gas, a Bristol, U.K.-based refrigerant supply and lifecycle management company. Financial terms were not disclosed. 

- Truelink Capital acquired Flipp, an Etobicoke, Canada-based marketing technology platform. Financial terms were not disclosed.

- Wealth Enhancement Group acquired First Capital Advisors Group, a Little Silver, N.J.- and Blue Bell, Pa.-based investment advisor. Financial terms were not disclosed. 

OTHER

- BAE Systems acquired Ball Aerospace, a Westminster, Colo.-based spacecraft manufacturing company, for $5.6 billion. 

- Aldi’s U.S. unit agreed to acquire Southeastern Grocers, a Jacksonville, Fla.-based owner of Winn-Dixie and Harveys supermarket chains. Financial terms were not disclosed. 

- OpenAI acquired Global Illumination, a New York-based digital product company. Financial terms were not disclosed.

PEOPLE

- KKR, a New York-based investment firm, hired Charlie Gailliot as a cohead for the firm’s global climate strategy. Formerly, he was with Goldman Sachs.

This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers. Sign up to get it delivered free to your inbox.

About the Author
Jessica Mathews
By Jessica MathewsSenior Writer
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Jessica Mathews is a senior writer for Fortune covering transportation, defense tech, and Elon Musk’s companies.

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