Goldman Leads Bidding for $37 Billion Palmer Square, a CLO Powerhouse

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.

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Goldman Sachs is reportedly in talks to acquire Palmer Square Capital Management, a major issuer of collateralized loan obligations (CLOs) with $37bn in assets. Bloomberg sources note no decision has been made, and neither company commented. The deal would strengthen Goldman's position in the US CLO market, valued at over $1.3 trillion.

Goldman Sachs (GS) is in talks to acquire Palmer Square Capital Management, a credit-focused asset manager with $37B in assets, according to Bloomberg. The deal would bolster Goldman's asset management division, particularly in collateralized loan obligations (CLOs), where Palmer Square has a $27B platform. Goldman's CEO has indicated a focus on filling strategic gaps through acquisitions. GS stock fell 1.9% on the news.