Goldman to Buy Oaktree's Genesis for Fix-and-Flip Lending PushBy
Goldman Sachs Group Inc. purchased a real estate finance company from Oaktree Capital Management LP as the Wall Street firm pushes deeper into lending.
The bank bought Los Angeles-based Genesis Capital LLC, according to a statement Thursday. Terms weren’t disclosed. Since joining forces with Oaktree four years ago, the lender has made $2.5 billion in short-term loans.
Goldman Sachs is stepping up efforts to do more lending nearly a decade after its conversion into a bank allowed it to accept retail deposits. Co-Chief Operating Officer Harvey Schwartz outlined a plan last month to grow revenue by $5 billion in the next three years in part by relying on various lending activities. The bank launched an online lender last year that is expected to dole out $2 billion by year end.
"We are delighted to partner with the Genesis management team and help them scale," Anthony Arnold, a managing director who works in Goldman Sachs’s merchant banking division, said in the statement.
Genesis Capital offers bridge, construction and renovation loans of less than $100,000 to more than $10 million to developers who buy, renovate and sell single-family and multi-unit residential real estate, according to its website.