Goldman Sachs is currently in advanced negotiations to acquire Palmer Square Capital Management. The Kansas City-based credit firm manages approximately $37 billion in assets, focusing primarily on fixed income and credit investments.
The core of Palmer Square's business strategy involves collateralized loan obligations (CLOs). These financial instruments consist of corporate loan bundles divided into tranches, which are then sold to institutional investors.
The US CLO market has expanded significantly over the last 15 years, with its total size now surpassing $1.3 trillion. This acquisition would strengthen Goldman Sachs' position in the structured finance sector.
CEO David Solomon has prioritized the growth of the firm's asset and wealth management division. The strategy involves reducing consumer-facing operations to focus on areas that generate consistent, fee-based revenue.
Palmer Square was established in 2009 by Chris and Angie Long. While discussions are ongoing, no final agreement has been reached, and both parties have yet to issue formal statements regarding the potential transaction.
