Sixth Street led investor group completes GreenSky acquisition; plus six PE-backed retirement services deals

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Sixth Street led investor group completes GreenSky acquisition; plus six PE-backed retirement services deals

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter. Today we are focusing on all things finance.

First up, we have the news that a Sixth Street-led consortium of investors has completed the acquisition of a lending platform for home improvement from Goldman Sachs.

Up next, Nordic Capital invested in a Folsom, California-based digital payments platform focused on the insurance industry,to join current investor Great Hill Partners.

And to wrap up, I will look at the latest trend of PE firms investing in retirement services with these six deals.

Home improvement

A Sixth Street-led investor group that includes KKR, Bayview Asset Management and CardWork has completed the previously announced acquisition of GreenSky from Goldman Sachs.

Based in Atlanta, GreenSky is a fintech company that provides home improvement financing.

Premium subscribers have access to more on this deal.

Digital Payments

Nordic Capital this week invested in One Inc, a Folsom, California-based digital payments platform focused on the insurance industry in North America.

One Inc is also backed by Great Hill Partners, which will retain an equal stake to Nordic Capital.

To learn more about what Nordic Capital said, please upgrade to the premium version of the Wire.

Saving for golden years

Private equity investors targeting the retirement sector say the industry offers significant tailwinds, thanks to advocacy on the part of the government and employers to encourage people to save for their “golden years.”

One in 10 low-income households had a retirement account balance in 2019, compared with one in five in 2007, according to a report from the US Government Accountability Office last year.

PE Hub has rounded up six recent deals in this sector.

That’s it for today. MK Flynn will be back with more on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

AlpInvest Partners has formed a $2.3 billion partnership with Northwestern Mutual Capital in which it is buying into a large portfolio of private equity fund stakes while at the same time supporting the company’s co-investment program, sources told Buyouts.

Goldman spies opportunity in climate credit: Goldman Sachs Asset Management's Ken Pontarelli talked delegates to NEXUS 2024 through the group's decision-making process when launching sustainable strategies. (New Private Markets)

Following an era of innovation, secondaries now enters an age of capitalization with new entrants joining the market, secondaries professionals told PEI Group’s NEXUS summit in Florida. (Seconaries Investor)

EQT Future, which closed at €3bn last week, shows how far the impact investing trend has come, and how far it has yet to go. (New Private Markets)

Logistics was always the prize for ESR, complexity the price: ESR’s sale of ARA Private Funds demonstrates the lengths the logistics powerhouse went to secure market share in the sector in Asia. (Private Equity Real Estate)

A GP’s motivation for doing a secondaries transaction is at the top of Manulife Investment Management’s list when evaluating GP-led opportunities in today’s market, Paul Sanabria, senior managing director and global co-head of secondaries at Manulife, tells Secondaries Investor’s Adam Le on the sidelines of PEI Group’s NEXUS summit 2024.

GoldenTree Asset Management, the New York-based credit asset manager behind GoldenTree structured products funds, has closed its first pure private credit fund, called simply the GoldenTree Private Credit Fund, on $1.35 billion of commitments. This is roughly 165 percent of the target of $800 million. (Private Debt Investor)

Alternative asset manager HarbourView Equity Partners has closed on a private securitization led by insurance vehicles and accounts managed by KKR. The $500 million financing is backed by a catalog of music royalties. (Private Debt Investor)

Three of PEI’s Women of Influence – Morningside's Tori Buffery, KKR's Saleena Goel and LGT's Martha Heitmann – share their outlook on the GP-led secondaries market. (Secondaries Investor)

They said it

“The third-party retirement administration sector is huge, with some observers estimating the total market potential at over $5 billion and encompassing over 800,000 plans. The secular demographic and regulatory tailwinds support strong market growth and with over 1,500 independent TPAs throughout the US, well-capitalized platforms are well positioned to accelerate market consolidation.”

— Max Rakhlin, a managing director at Lightyear Capital, on its investment in a retirement services focused company.