Chimera Investment Corporation (NYSE: CIM) has finalized its acquisition of Palisades Group, a U.S.-based alternative asset manager specializing in residential real estate credit. The acquisition was completed on December 2, 2024, with Jack MacDowell, Jr., the co-founder and chief investment officer of Palisades, assuming the role of Chimera's chief investment officer.
The cash consideration for the acquisition totaled $30 million at closing, with the potential for an additional earnout of up to $20 million over five years, subject to meeting specific financial targets. Notably, Chimera has the option to pay 50% of the earnout payments in common shares, aligning the interests of Palisades' stakeholders with those of Chimera's shareholders.
Houlihan Lokey acted as Chimera's exclusive financial advisor during the acquisition, while Hunton Andrews Kurth LLP provided legal counsel to Chimera. Mayer Brown LLP served as legal counsel to Palisades Group.
As a real estate investment trust (REIT), Chimera primarily focuses on investing in a diverse portfolio of real estate assets, including mortgage loans, agency RMBS, non-agency RMBS, agency CMBS, business purpose and investor loans, and other real estate assets.
The acquisition of Palisades Group marks a strategic move for Chimera Investment Corporation, expanding its capabilities and reinforcing its position in the real estate investment landscape. Today the company's shares have moved -0.7% to a price of $14.68. For the full picture, make sure to review Chimera Investment's 8-K report.
