The Palisades Group

The Palisades Group, LLC operates as an alternative asset manager with a sharp focus on the global residential credit markets. Founded in 2012 by Stephen Kirch and Jack L. Macdowell, Jr., the firm is strategically positioned to invest in and actively manage real estate-backed loans throughout various business cycles. Macdowell, who now serves as Chief Investment Officer, brought extensive experience to the firm, having previously been the CIO at Carrington Capital Management, where he honed his expertise in investment strategies, quantitative analysis, and mortgage credit analytics. This background is foundational to Palisades' data-driven investment approach.

Headquartered in Austin, Texas, the firm's business model is bifurcated. One vertical provides sub-advisory services to large institutional clients such as private equity funds, banks, and insurance companies that require a turnkey solution to access the residential credit space. The other vertical involves managing its own discretionary capital vehicles, which are structured as closed-end, private equity-style funds primarily for institutional investors like family offices, foundations, and pension funds. Since its inception, Palisades has managed over $48.3 billion in loans and real estate. On December 2, 2024, the firm was acquired by Chimera Investment Corporation, a publicly traded REIT, a move that integrated Macdowell as Chimera's new CIO.

Palisades differentiates itself through a control-based credit management strategy, which employs a granular, loan-level approach to risk management and loss mitigation. This methodology leverages proprietary data and technology to influence the performance of credit-sensitive assets. The firm's investment strategy focuses on delivering stable income and capital appreciation with low volatility by identifying value in whole loans, real estate, and fixed-income markets. While initially focused on distressed assets following the financial crisis, the firm's strategy has evolved with market conditions to now include newly originated, performing loans, providing more predictable asset growth. Keywords: residential credit, asset management, real estate-backed loans, mortgage credit analytics, investment advisory, institutional investors, credit management, whole loan investing, structured finance, fixed income strategies, loss mitigation, quantitative analysis, portfolio management, real estate investment, alternative assets, loan acquisition, credit risk, financial services, Chimera Investment Corporation, Jack Macdowell, Stephen Kirch