Goldman Sachs in Talks to Acquire $37 Billion Credit Firm Palmer Square
Goldman Sachs Group Inc. is reportedly leading negotiations to acquire Kansas-based credit manager Palmer Square Capital Management, which oversees approximately $37 billion in assets. The firm specializes in collateralized loan obligations (CLOs), a segment of the corporate debt market that has seen significant growth over the past decade. If completed, this acquisition would bolster Goldman's position in CLO management and align with its broader strategy to expand its asset-management capabilities through strategic deals. Goldman CEO David Solomon recently emphasized the firm’s focus on filling gaps within its business by acquiring complementary assets and talent. Over the last year alone, Goldman has acquired several firms across different investment sectors. Palmer Square's strength lies in its $27 billion CLO platform, which could help Goldman catch up with industry leaders in this space. The U.S. CLO market has grown to over $1.3 trillion since 2008, and investors are drawn to the recurring fees these vehicles generate. Founded by Chris and Angie Long—former JPMorgan employees—the firm has become a major player through its focus on credit dislocations and innovative financial instruments.
Topics: Credit Firm Acquisition Goldman Sachs Palmer Square Capital Management