Goldman Sachs in advanced talks to buy Palmer Square, which has $37B in assets

Goldman Sachs is in advanced talks to buy Palmer Square Capital Management, a credit-focused firm that oversees roughly $37 billion in assets. The deal, if completed, would significantly expand Goldman’s footprint in one of the fastest-growing corners of structured finance: collateralized loan obligations. Palmer Square, founded in 2009 by Chris and Angie Long out of Kansas City, Missouri, has built its business around fixed income and credit investments, with CLOs forming the backbone of its strategy. Why CLOs, and why now CLOs are essentially bundles of corporate loans, sliced into tranches and sold to investors with varying appetites for risk and return. The US CLO market has more than quadrupled over the past 15 years, now exceeding $1.3 trillion in total size. CEO David Solomon has previously signaled the firm’s interest in targeted acquisitions within niche asset management verticals, specifically ones that complement Goldman’s existing credit platform. Palmer Square fits that description almost exactly. Goldman’s asset and wealth management division has been a growing priority under Solomon’s leadership. The firm has been trimming consumer-facing businesses and doubling down...