Chimera To Buy Palisades For $30 Mln In Cash

(RTTNews) - Chimera Investment Corp. (CIM) announced on Thursday that it has inked a deal to acquire Palisades Group, an alternative asset manager focused on residential real estate credit, for $30 million in cash.

Chimera will also pay an additional potential earnout of up to $20 million over five years contingent upon achieving certain financial targets, with the option for Chimera to pay 50 percent of the earnout payments in shares.

The transaction, to be closed in the fourth quarter, is expected to be accretive to Chimera's earnings in 2025.

Phillip Kardis II, CEO of Chimera, said: "Complementing Chimera's permanent equity capital, this transaction is expected to broaden our residential credit reach to include managing assets for third parties and raising and investing private capital."

Post transaction, Jack Macdowell, Jr., Co-Founder and Chief Investment Officer of Palisades, will become Chimera's Chief Investment Officer.