LESLIE ERICKA T sold $620K of GS

Goldman Sachs (NYSE:GS) raised $11.7 billion for private equity, with $9.6 billion for its flagship fund and $1.6 billion for an Asia-focused fund. The firm aims to deploy the capital over 4-5 years, with investments already made in firms like Schellman and Numantec. Goldman's alternatives assets under supervision grew to $459 billion in Q2, with a target of $750 billion by 2030.

Goldman Sachs is reportedly the lead bidder to acquire Palmer Square Capital Management, a CLO manager overseeing $37 billion. The deal, if finalized, would expand Goldman's presence in alternative credit markets. CLOs offer potentially high returns but come with greater default risk. The global CLO market reached $1 trillion in 2021, with significant retail investor interest.

Goldman Sachs (GS) is in talks to acquire Palmer Square Capital Management, a credit-focused firm managing $37B in assets. The deal aligns with Goldman's strategy to expand its Asset & Wealth Management (AWM) franchise and increase fee-based revenues. Goldman's AWM segment saw a 15% revenue increase in H1 2026. Palmer Square's expertise could enhance Goldman's credit capabilities and recurring management fees.

Goldman Sachs appointed Simon Lyons as co-head of UK investment banking, an unusual lateral hire at partner level. Lyons brings experience from Ardea, PJT Partners, and UBS. The move may signal Goldman's strategy to strengthen its EMEA presence. Meanwhile, delays in AI-related IPOs like Anthropic and OpenAI may impact global equity capital markets, with investors cautious about market conditions.

JPMorgan Chase (JPM) shares fell 3% to $340.23 despite a $20B partnership with Qatar Investment Authority (QIA). Goldman Sachs (GS) dropped 1% to $948.60, and Bank of America (BAC) declined 2% to $56.63. The Financial Select Sector SPDR ETF (XLF) fell 2% to $54.84, reflecting broader bank sector weakness.

Retirees are shifting from bonds to the NEOS S&P 500 High Income ETF (SPYI), which offers a 12% annualized yield from S&P 500 covered-call premiums. SPYI has attracted $6.9 billion in assets but caps upside gains during rallies. Goldman Sachs agreed to acquire NEOS Investments for up to $2.25 billion, expected to close in Q1 2027. SPYI's yield is sourced mainly from return of capital, not earned income, and its performance lags the S&P 500 during bull markets.