OREANDA-NEWS. The Palisades Group today announced the completion of its management buyout of The Palisades Group, LLC (“Palisades”) from Banc of California, Inc.  The transaction makes Palisades an independent, SEC registered investment adviser and a leader in control-based credit management services and investment strategies in the whole loan, real estate and fixed income markets.

With $3.4 billion in notional amount of managed residential loans, real estate and fixed income securities, Palisades has built a strong reputation for its control-based credit management services and investment strategies among globally recognized institutions.  The management team led by Stephen Kirch, co-founder and CEO, and Jack Macdowell, co-founder and CIO, has worked together for many years and brings a unique blend of skills, expertise and relationships spanning all aspects of investment management and mortgage finance. The team’s successful and proven strategy combines fundamental bottom-up research with a granular loan level approach to default management, loss mitigation, vendor oversight and management of credit sensitive loans where performance can be influenced.  The firm utilizes robust and proprietary data combined with a software platform that analyzes real-time performance at both the loan and portfolio level to facilitate rapid response to market opportunities.

“We are excited to continue serving, and expanding our relationships with existing clients as well as pursuing new opportunities with asset managers, family offices, insurance companies, fund of funds, pensions, foundations and endowments,” said Stephen Kirch, Chief Executive Officer of Palisades.  “Our approach to asset management will remain consistent with the core set of principles upon which we founded Palisades including non-conflicted control-based credit management that offers clients full transparency into the most granular aspects of their investment portfolio.”

“I strongly believe Palisades is well positioned to offer a unique brand of high touch investment management that is not replicable by passive index strategies,” said Jack Macdowell, Chief Investment Officer of Palisades.  “In a prolonged period of low interest rates combined with a diminishing set of value investment opportunities, we think the ability to control outcomes, enhance asset values and minimize loss is the foundation for value creation and provides us the opportunity to generate superior non-correlated, risk-adjusted returns for our clients.”

Palisades offers a turn-key portfolio solution that spans the entire investment process, including:  asset sourcing, valuation modeling, trading, financing/securitizations, due diligence, transaction management, servicer and vendor oversight, asset management, loss mitigation and asset level and portfolio reporting.