An investment firm focusing on the credit and related markets has completed its management buy-out from a West Coast-headquartered bank.

US credit-focused investment firm, The Palisades Group, has completed its management buy-out from Banc of California, making the former business an independent, SEC-registered business.

Palisades, founded in 2012, has $3.4 billion in notional amount of managed residential loans, real estate and fixed income securities. Its management team is led by Stephen Kirch, co-founder and chief executive, and Jack Macdowell, co-founder and chief investment officer.

The team makes use of bottom-up research with a case-by-case loan level approach to default management, loss mitigation, vendor oversight and management of credit sensitive loans where performance can be influenced.

In other recent developments, Banc of California appointed Cynthia Abercrombie to its board of directors.