Aug 20 (Reuters) – PGIM has struck an agreement to buy roughly $3 billion of loans from home improvement lender GreenSky, the asset management arm of Prudential Financial said on Thursday.
Here are some more details:
• The three-year agreement comes as PGIM focuses on scaling its asset-backed financing platform, a segment from where traditional banks have pulled back.
• PGIM, which manages $1.5 trillion in assets across public and private asset classes, will buy the loans through a so-called forward flow agreement with GreenSky, where investors agree to purchase the loans before they are originated.
• “Home improvement lending continues to stand out as a compelling segment within consumer credit. Additionally, the aging housing stock is driving increased demand for critical home infrastructure and improvements,” said Oliver Nisenson, head of private asset-based finance at PGIM.
• The transaction follow PGIM’s commitment to provide $4 billion in funding for new land banking projects to Domain Real Estate Partners.
• Goldman Sachs had sold Atlanta, Georgia-based GreenSky and associated loans to a consortium led by investment firm Sixth Street Partners in 2024.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
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