Chimera Investment (CIM) Acquisition presentation summary

Acquisition overview

• Acquiring Palisades Group and subsidiaries for approximately $50 million, with $30 million paid upfront in cash and a $20 million earnout contingent on financial targets, partially payable in common shares.

• Transaction funded with available cash and expected to close in Q4 2024, subject to customary conditions.

• Palisades' Chief Investment Officer will assume the same role post-acquisition, and Palisades' business units will be integrated.

Strategic rationale and expected benefits

• Acquisition expected to enhance investment performance, operational scale, and technology, while diversifying revenue streams.

• Combined entity will own, advise, or manage over $30 billion in notional loans and real estate assets.

• Adds 36 professionals with expertise in operational and loan risk management, strengthening investment and asset management capabilities.

• Provides a diversified, fee-based income source and opportunities for capital-light growth.

Palisades Group profile

• Founded in 2012 and based in Austin, Texas, Palisades specializes in residential credit products through Customized Solutions and Investment Advisory business lines.

• Manages $19.5 billion across 54,000 loans as of August 2024, offering turnkey solutions, asset management, and advisory services to institutional clients.