C
himera Investment Corp has agreed to acquire Palisades Group, a US-based alternative asset manager specializing in residential real estate credit, for $30 million in cash and up to an additional $20 million over five years through an earnout. The deal may include payment of half the earnout in common shares. Established in 2012, Palisades oversees a portfolio of real estate loans and will be led by Jack Macdowell Jr., who will retain his role as Chief Investment Officer at Chimera after the acquisition's expected completion in Q4 2024.

    The purchase is expected to enhance Chimera's residential credit capacity and increase revenues in 2025, expanding its fee-based income sources and improving management of over $30 billion in notional loans and real estate assets. According to CEO Phillip J. Kardis II, the deal aligns Chimera's equity capital with a larger credit management system.

    Following the announcement, Chimera shares rose 0.81% to close at $16.19 on Thursday, and gained an additional 0.37% in after-hours trading, reaching $16.25.