Goldman in Talks to Acquire Palmer Square Credit Manager

Goldman Sachs is in talks to acquire Palmer Square Capital Management, a credit firm overseeing about $37 billion, Bloomberg reported September 22. Goldman has emerged as the lead bidder, according to people familiar with the discussions.

The $37 billion figure refers to assets managed by Palmer Square, not the potential purchase price. The firms have not reached a final agreement, and the talks could still end without a deal, Bloomberg reported.

Founded in 2009, Palmer Square is led by Chris and Angie Long and focuses on corporate and structured credit. The firm says it manages about $37.1 billion and has a team of 32 investment professionals.

A central part of its business is managing collateralized loan obligations, or CLOs. These securities bundle loans to companies, then divide the resulting cash flows into bonds with different levels of risk. S&P Global Ratings says Palmer Square manages CLOs backed primarily by loans to speculative-grade companies.

A purchase would give Goldman a larger investment-management platform in corporate and structured credit. The firm could gain a team with experience selecting and overseeing loan portfolios, as well as relationships with investors in CLOs. The value of those additions would depend on deal terms and whether key staff and clients remain.

The talks fit Goldman’s broader push to expand its asset-management business through acquisitions. But without a disclosed price or agreement, investors cannot yet judge how much Goldman would pay or what returns the business might generate.

Goldman and Palmer Square did not immediately respond to requests for comment, according to MT Newswires. Investors will be watching for a formal announcement, the purchase price and details on how Palmer Square would operate if a deal is completed.