Chimera to acquire Palisades Group for $30M cash at closing

Chimera Investment announced that it has entered into a definitive agreement to acquire Palisades Group, a U.S.-based alternative asset manager specializing in residential real estate credit. Founded in 2012, Palisades manages and invests in residential real estate assets across a broad spectrum of credit products. Upon closing, Jack Macdowell, Jr., co-founder and Chief Investment Officer of Palisades, will become Chimera’s Chief Investment Officer. Under the terms of the agreement, Chimera will acquire Palisades for cash consideration of $30M at closing, plus an additional potential earnout of up to $20M over five years contingent upon achieving certain financial targets, with the option for Chimera to pay 50% of the earnout payments in common shares, aligning interests with those of Chimera’s shareholders. Chimera expects to close the transaction during the fourth quarter of 2024, subject to the satisfaction of customary closing conditions.