Goldman Sachs cuts holdings in Charleston software business

Goldman Sachs was an early investor in Daniel Island-based software firm Benefitfocus Inc.

Goldman Sachs & Co. more than recouped its original investment in a Charleston software company - and then some - by selling some of its stake for $109.9 million this week.

Benefitfocus Inc. said Tuesday that the New York financial company sold more than 2.85 million shares of the Daniel Island-based firm for $38.50 each.

The divestment was announced earlier this month.

Investment funds affiliated with Goldman Sachs that have been the biggest stockholders of Benefitfocus since 2007, when it invested $106 million in the business.

The local technology company didn't receive any proceeds from this week's sale.

Goldman Sachs now owns about 33 percent of Benefitfocus. At its peak, Goldman Sachs owned about two-thirds. It sold more than 2.6 million shares for about $70 million when it took the company public in September.

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The tech firm makes software tools that enable workers to compare, enroll in and manage their benefits. Its customers include large employers and health insurance carriers.

Shares of Benefitfocus closed up 42 cents to $38.49 on Tuesday.

The Goldman Sachs sale was announced after the U.S. stock market had closed.