Goldman Sachs is reportedly in discussions to acquire Palmer Square Capital Management, a credit firm with approximately $37 billion in assets under management. This potential acquisition follows Palmer Square's announcement on September 9, 2026, that its founders, Chris and Angie Long, were exploring a sale of the business. Palmer Square, based in Kansas, has grown significantly since its 2009 founding, largely due to its expertise in collateralized loan obligations (CLOs), where it manages about $27 billion of its total assets.
Palmer Square Capital Management, run by the husband-and-wife team Chris and Angie Long, has become a major issuer of CLOs, which involve packaging corporate loans into bonds. The firm's business model relies on earning management fees on assets and incentive fees on the equity tranches of these CLOs. The U.S. CLO market has expanded substantially, quadrupling in the last 15 years to over $1.3 trillion, providing a fertile ground for Palmer Square's growth and making it an attractive target for larger financial institutions like Goldman Sachs.
The potential sale highlights a trend of consolidation within the credit asset management sector, where scale in distribution and warehousing is highly valued. For Chris and Angie Long, selling the firm represents an opportunity to convert their private, fee-earning franchise into a significant cash payout, particularly at a time when loan demand is strong and their equity tranches are performing well. While discussions are reportedly in early stages and terms are not public, this move underscores the increasing strategic value of successful private credit platforms to major financial players.
