Palisades Holdings I, LLC is owned by Stephen Kirch and Jack Macdowell, who currently serve as Palisades’ Chief Executive Officer and Chief Investment Officer, respectively.
"We are excited to announce this transaction for the sale of Palisades to its management team," said Steven Sugarman, Chairman and Chief Executive Officer of Banc of California.
"Palisades has been a great asset for Banc of California since our acquisition of the business and has created significant value for our shareholders. The sale of Palisades aligns with our goal to focus on commercial banking activities and to grow incremental spread and recurring fee-based revenues. This transaction will enhance the overall efficiency of our organization, enable us to participate in the future success of Palisades through a long-term earn-out, and sharpen management’s focus on the tremendous opportunities we are seeing in our commercial banking division."
Pursuant to the terms of the transaction, Banc of California will receive a mix of consideration that includes cash, a two-year promissory note, and an earn-out tied to the future success of Palisades.
The transaction is expected to close during the second quarter of 2016 and to be accretive to the Company’s 2016 earnings.
"This transaction positions Palisades as the leading independent credit manager overseeing portfolios of performing, re-performing and non-performing residential mortgage loans," said Stephen Kirch, Chief Executive Officer of Palisades.
"We have valued our strategic relationship with Banc of California and thank them for their role in the success of Palisades. We are excited by the future growth opportunities which lie ahead of us."
Palisades will continue to provide advisory and credit management services to Banc of California following the closing of the transaction.
