Key Takeaways
- • Goldman Sachs has emerged as the leading bidder to acquire Palmer Square Capital Management, a Kansas-based credit manager with $37 billion in assets under management, according to Bloomberg sources familiar with the matter.
- • Palmer Square's collateralized loan obligations (CLOs) platform represents approximately $27 billion of AUM, positioning the acquisition as a strategic move for Goldman to expand its footprint in a market that has grown to over $1.3 trillion from $325 billion over the past 15 years.
- • The transaction would enhance Goldman's alternatives platform by adding expertise in CLOs, opportunistic credit, and private credit, while providing Palmer Square's recurring fee revenues and publicly traded business development company to the asset manager.
- • Palmer Square was founded by Chris Long following the 2008 financial crisis and is led by the married couple Chris Long (chairman and CEO) and Angie Long (chief investment officer), who previously collaborated at JPMorgan on credit derivatives development.
- • No agreement has been finalized, and negotiations could still terminate without a deal; neither Goldman Sachs nor Palmer Square has commented on the discussions.
Summary
Goldman Sachs is pursuing an acquisition of Palmer Square Capital Management as part of a broader strategy to accelerate expansion in its asset management division. According to Bloomberg sources, Goldman has positioned itself as the leading bidder for the Kansas-based credit manager, valued at $37 billion in assets under management. The investment bank is in active negotiations with the firm, though no definitive agreement has been reached and discussions remain subject to potential termination.
Palmer Square has established itself as a significant player in the collateralized loan obligations market, with its CLO platform managing approximately $27 billion in assets, according to S&P Global Ratings. The strategic value of this acquisition reflects the dramatic expansion of the global CLO market, which has grown from approximately $325 billion fifteen years ago to more than $1.3 trillion currently. For Goldman, acquiring Palmer Square would substantially increase its scale and capabilities in CLOs—an area where its asset management operation maintains a smaller presence relative to major competitors.
The acquisition would extend Goldman's alternatives platform beyond CLO expertise to include opportunistic credit and private credit capabilities. Additionally, Palmer Square manages a publicly traded business development company, which would contribute steady recurring fee revenues to Goldman's asset management operation. Palmer Square was established by Chris Long in the aftermath of the 2008 financial crisis, initially targeting opportunities created by credit market dislocations. The firm is currently led by Chris Long as chairman and CEO, alongside Angie Long, who serves as chief investment officer. Both principals previously worked together at JPMorgan, where Angie Long contributed to the development of the bank's credit derivatives business.
Palmer Square has established itself as a significant player in the collateralized loan obligations market, with its CLO platform managing approximately $27 billion in assets, according to S&P Global Ratings. The strategic value of this acquisition reflects the dramatic expansion of the global CLO market, which has grown from approximately $325 billion fifteen years ago to more than $1.3 trillion currently. For Goldman, acquiring Palmer Square would substantially increase its scale and capabilities in CLOs—an area where its asset management operation maintains a smaller presence relative to major competitors.
The acquisition would extend Goldman's alternatives platform beyond CLO expertise to include opportunistic credit and private credit capabilities. Additionally, Palmer Square manages a publicly traded business development company, which would contribute steady recurring fee revenues to Goldman's asset management operation. Palmer Square was established by Chris Long in the aftermath of the 2008 financial crisis, initially targeting opportunities created by credit market dislocations. The firm is currently led by Chris Long as chairman and CEO, alongside Angie Long, who serves as chief investment officer. Both principals previously worked together at JPMorgan, where Angie Long contributed to the development of the bank's credit derivatives business.
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