Irvine, Calif.-based Bancof California Inc. ($8.24 billion) agreed to sell 100% of its membershipinterest in Los Angeles-based PalisadesGroup LLC to Palisades Holdings I LLC, according to a Form 8-K filedApril 6.
Palisades Holdings is wholly owned by Stephen Kirch and JackMacdowell, the current CEO and chief investment officer of Palisades Group, respectively.Kirch and Macdowell soldPalisades Group to Banc of California in September2013.
Under the deal terms, Banc of California will receive mixed considerationincluding cash, a two-year promissory note and an earn-out tied to the future successof Palisades Group.
The transaction is expected to close during the second quarterand is projected to be accretive to the company's 2016 earnings.
Following deal completion, Palisades Group will continue to provideadvisory and credit management services to Banc of California.