Prudential’s Asset Arm Targets $3 Billion Home Improvement Loan Portfolio
PGIM Credit agreed to acquire up to $3 billion of home improvement loans from GreenSky under a three-year forward flow arrangement. The asset manager will purchase future consumer loans originated by the Atlanta-based lender to borrowers with prime credit scores, provided the debt meets specified criteria. GreenSky, founded in 2006, partners with banks to finance residential upgrades including HVAC systems, windows, doors and basement projects.
Consumer spending on residential improvements reached $435 billion in 2025, up nearly 10 percent from the prior year and roughly 50 percent since 2020, according to Federal Reserve Bank of St. Louis data. Mortgage rates that climbed sharply beginning in 2022 have made moving more expensive, pushing homeowners to invest in their existing properties. PGIM Credit co-head Gabriel Rivera cited aging housing stock and longer homeowner tenure as drivers of sustained demand for renovation financing.
PGIM’s purchase reflects a broader shift toward asset-backed finance as banks retreat from direct consumer lending. Prudential CEO Andrew Sullivan identified asset-backed finance and direct lending as priority expansion areas during the company’s August earnings call. Goldman Sachs sold GreenSky in 2024 to a consortium led by Sixth Street, and the lender continues to originate loans through its bank partnerships.
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