Goldman Sachs Targets Palmer Square Capital Management

Goldman Sachs has emerged as the leading bidder to acquire Palmer Square Capital Management, a $37bn credit manager based in Kansas. The investment bank is looking to accelerate the expansion of its asset management business through this acquisition.

Palmer Square was founded by Chris and Angie Long after the global financial crisis, with an initial focus on opportunities created by dislocations in credit markets. The firm has since grown into one of the larger managers in the market, particularly in collateralised loan obligations (CLOs).

Palmer Square's CLO platform represents around $27bn of assets under management, according to S&P Global Ratings. An acquisition would give Goldman an opportunity to significantly increase its scale in CLOs, which have seen a rapid expansion over the past 15 years.