Goldman Sachs (NYSE:GS) faces a significant writedown on its investment in GreenSky as it seeks buyers for the fintech lender, CNBC reported on Friday.
Its shares fell 1.5% to $314.88 shortly after the market opened.
The investment bank has been looking for a buyer for GreenSky, a home improvement lender, as it pulls back from the consumer finance market.
However, bids for the business are coming in well below what Goldman had hoped for, CNBC said, citing unnamed sources. Private equity firm KKR, Apollo Global Management (NYSE:APO), Sixth Street Partners, Warburg Pincus and Synchrony Bank were among the asset managers and lenders involved in the first round of bids, it added.
Under CEO David Solomon, Goldman acquired Greensky for $2.24 billion in September 2021.
A sale of the business could wipe out $500 million in goodwill tied to buying the lender, and the sale of loans could trigger other one-time accounting hits, the bank's president John Waldron told analysts at a June 1 conference, per the CNBC report.
“We’re pleased with the participation by bidders,” Goldman spokesman Tony Fratto said in a statement. “We’re in the middle of the process and we’ll learn more as we go forward.”
Contact the author at stephen.gunnion@proactiveinvestors.com