Goldman Sachs in Talks to Buy $37 Billion Credit Firm Palmer Square

• Goldman Sachs is looking to acquire Palmer Square, a credit manager with $37 billion in assets under management.
• The acquisition is part of Goldman's strategy to grow its asset management division, specifically in the CLO market.
• The US CLO market has quadrupled in the last 15 years, now exceeding $1.3 trillion, and is considered a durable asset class.
• Goldman aims to gain scale in areas like CLOs and active ETFs, where it currently lacks the same machine as competitors like Carlyle or Blackstone.

Goldman Sachs is the lead bidder to acquire Palmer Square, a credit manager overseeing $37 billion, as part of its strategy to expand its asset management business. The acquisition aims to fill gaps in Goldman's offerings, particularly in Collateralized Loan Obligations (CLOs), a growing and durable asset class. This move aligns with CEO David Solomon's stated goal of pursuing strategic, niche deals to bulk up the firm's asset manager.