Palmer Square weighs sale of $37bn credit management business

Palmer Square Capital Management, a Kansas-based credit investment firm established and led by husband-and-wife team Chris and Angie Long, is reportedly considering the sale of the business, according to Bloomberg citing unnamed sources. The firm has engaged advisers to oversee the process, with potential buyers submitting offers and a shortlist being evaluated, the sources revealed. However, these discussions remain confidential and may not culminate in a sale.

Founded by Chris Long in the aftermath of the 2008 financial crisis, using his own capital, Palmer Square has experienced rapid growth. Angie Long joined the firm several years later, contributing to the development of the company's credit derivatives business. In 2013, the company started managing collateralized loan obligations (CLOs).

Currently, Palmer Square oversees approximately $37bn in assets, with its CLO platform accounting for around $27bn, as per S&P Global Ratings. The firm's investment activities also span opportunistic credit, private credit, and a publicly traded business development company.

CLOs have gained significant importance in the global leveraged finance market, providing asset managers with recurring fee income. The US CLO market has expanded to over $1.3tn, four times its size 15 years ago, generating substantial scale for established platforms. The Longs are deeply immersed in the credit markets, meeting at Princeton University before joining JPMorgan.

Angie Long held a prominent role in developing the bank's credit derivatives business, rising to the position of managing director at 29. She is now Palmer Square's chief investment officer, while Chris Long serves as chairman and chief executive.