The acquisition would expand the bank's presence in collateralized loan obligations.
Goldman Sachs has emerged as the lead bidder to acquire Palmer Square Capital Management, a credit manager that oversees $37 billion, according to people with knowledge of the matter. The two sides have been working toward an agreement, though talks could still fall through.
Palmer Square, based in Mission Woods, Kansas, is led by Chairman and CEO Chris Long alongside Chief Investment Officer Angie Long. The firm's main asset is its platform for collateralized loan obligations, which accounts for about $27 billion of its total assets under management, according to S&P Global Ratings. Its operations also span private credit, opportunistic credit, and a publicly traded business development company.
The prospective takeover comes as Goldman seeks to build out its $4 trillion asset management division. Over the past year, the bank has acquired two specialized exchange-traded fund providers, a commercial real estate investor, and a venture capital firm to fill gaps across its product lineup.
We have gaps. We've been looking very, very carefully for places where there are things that can fill the gaps. Are we going to do some more? Probably. There's some other obvious gaps we have where if we can find the right things, we'd do them.
The transaction would give Goldman immediate scale in the US CLO market, which has expanded to more than $1.3 trillion over the past 15 years. A spokesperson for Goldman declined to comment on the negotiations, while representatives for Palmer Square did not respond to requests for comment.
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