Goldman Sachs offloads $1 billion of Marcus loans to Varde

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NEW YORK, July 13 (Reuters) – Goldman Sachs Group (GS.N) has sold $1 billion of personal loans from its consumer unit, Marcus, to alternative investment firm Varde Partners, a source familiar with the matter said on Thursday.

This was the second tranche of unsecured loans offloaded by Goldman after it disclosed earlier it had sold about $1 billion from the $4.5 billion loan portfolio in the first quarter.

The Wall Street giant booked a $470 million loss on the sale of some Marcus loans in the first quarter, which dragged down its earnings.

The bank also released $440 million from its reserves to soften the hit from its consumer loan portfolio.

In February it had announced its intentions to further sell down the portfolio.

Marcus was folded into the company’s merged asset and wealth management arm last year. The newly-formed Platform Solutions unit houses transaction banking, credit cards and a fintech unit, GreenSky purchased for $2.2 billion in 2021

Goldman has put GreenSky for sale.

The sale to Varde was reported by Bloomberg News earlier on Thursday, citing people with knowledge of the transaction, saying the loans were sold at a discount to their face value to Varde.

Goldman and Varde declined to comment.

Founded in 1993, Varde has invested $95 billion across both public and private credit markets.

Varde currently manages over $12 billion in assets with teams in North America, Europe, and Asia Pacific focused on corporate and traded credit, real estate, and financial services, it says on its website.

Image by: Pixabay

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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