Key Takeaways
- • Palmer Square Capital Management is exploring a potential sale of its $37bn credit management business, with advisers engaged and potential buyers already submitting offers under confidential discussions.
- • The firm's collateralised loan obligation (CLO) platform represents approximately $27bn of the $37bn total assets under management, reflecting the strategic importance of CLO operations to the business valuation.
- • Palmer Square has experienced rapid growth since founder Chris Long launched the firm in 2009 with $10m of personal capital, capitalizing on post-financial crisis opportunities and expanding into CLOs beginning in 2013.
- • The $1.3tn US CLO market has quadrupled in size over the past 15 years, providing established platforms like Palmer Square with significant recurring fee income and scale advantages that enhance business attractiveness to potential acquirers.
- • The firm is led by husband-and-wife team Chris Long (chairman and CEO) and Angie Long (chief investment officer), who bring deep credit market expertise from prior careers at JPMorgan, including development of the bank's credit derivatives business.
Summary
Palmer Square Capital Management, a Kansas-based credit investment firm, is in preliminary discussions regarding a potential sale of its $37bn credit management business. According to Bloomberg sources, the firm has engaged advisers to manage the sale process, and potential buyers have already submitted preliminary offers with a shortlist now under consideration. The firm has emphasized that these discussions remain confidential and may not ultimately result in a transaction.
The business has demonstrated substantial growth trajectory since its founding in 2009. Founder and chairman Chris Long launched Palmer Square in the aftermath of the 2008 financial crisis with approximately $10m of personal capital. His wife, Angie Long, joined the firm several years after inception and now serves as chief investment officer. The couple brings significant credit market credentials—Angie Long worked at JPMorgan where she contributed to the development of the bank's credit derivatives business and achieved managing director status by age 29, while Chris Long established his expertise through early career credit market involvement.
Palmer Square's current $37bn asset base reflects deliberate expansion into higher-margin businesses. The firm's collateralised loan obligation platform accounts for approximately $27bn of total assets under management, according to S&P Global Ratings. Beyond CLOs, Palmer Square manages opportunistic credit strategies, private credit investments, and operates a publicly traded business development company, diversifying its revenue streams and client base.
The strategic timing of a potential sale reflects favorable market dynamics in the CLO space. The US CLO market has expanded to more than $1.3tn, representing approximately four times its size 15 years ago. This growth has made established CLO platforms increasingly valuable to institutional buyers seeking recurring fee income and proven operational infrastructure. Palmer Square's scale and track record position it as an attractive acquisition target within this expanding asset class landscape.
The business has demonstrated substantial growth trajectory since its founding in 2009. Founder and chairman Chris Long launched Palmer Square in the aftermath of the 2008 financial crisis with approximately $10m of personal capital. His wife, Angie Long, joined the firm several years after inception and now serves as chief investment officer. The couple brings significant credit market credentials—Angie Long worked at JPMorgan where she contributed to the development of the bank's credit derivatives business and achieved managing director status by age 29, while Chris Long established his expertise through early career credit market involvement.
Palmer Square's current $37bn asset base reflects deliberate expansion into higher-margin businesses. The firm's collateralised loan obligation platform accounts for approximately $27bn of total assets under management, according to S&P Global Ratings. Beyond CLOs, Palmer Square manages opportunistic credit strategies, private credit investments, and operates a publicly traded business development company, diversifying its revenue streams and client base.
The strategic timing of a potential sale reflects favorable market dynamics in the CLO space. The US CLO market has expanded to more than $1.3tn, representing approximately four times its size 15 years ago. This growth has made established CLO platforms increasingly valuable to institutional buyers seeking recurring fee income and proven operational infrastructure. Palmer Square's scale and track record position it as an attractive acquisition target within this expanding asset class landscape.
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