Canyon has raised $620 million across three CLO equity funds to date
DALLAS, Aug. 11, 2022 /PRNewswire/ -- Canyon Partners ("Canyon"), a $25 billion global alternative asset manager, today announced the $230 million close of the Canyon CLO Fund III ("CLO Fund III" or "the fund"), a collateralized loan obligation ("CLO") equity fund. CLO Fund III is Canyon's third CLO equity fund and will be managed by Canyon CLO Advisors, Canyon's CLO investment advisory arm.
The fund primarily seeks to acquire majority equity positions in CLOs issued in the United States and Europe that are managed by Canyon CLO Advisors. The fund has the flexibility to issue EU risk-retention compliant CLOs, as well as opportunistically invest a portion of the capital directly in dislocated loans and CLO liability tranches. Canyon's CLO strategy is focused on stable, high-quality portfolios designed to generate excess returns through patient portfolio construction, active management and optimized asset and liability timing and execution.
"We see continued demand for CLO securities as investors seek to diversify their portfolios and mitigate risk in a rising rate environment," said Martin Downen, CLO Co-Head and Portfolio Manager at Canyon. "Canyon's strong track record of investing in corporate debt, paired with our long history of CLO issuance, positions us well to achieve targeted returns with lower risk profiles."
With the close of CLO Fund III, Canyon has raised an aggregate of approximately $620 million across three CLO funds. The firm's previous CLO funds were closed in 2015 and 2019.
"Canyon's CLO offerings are a natural extension to our credit-oriented product offerings and strategy," said Erik Miller, CLO Co-Head and Portfolio Manager at Canyon. "By leveraging the deep expertise of Canyon's broader investment team, we are able to take a diligent and informed approach to security selection, contributing to the performance of our CLO platform."
Canyon has actively issued securitized corporate credit vehicles since 2001. The firm's CLO strategy employs the full resources of the Canyon platform, including the research team, trading, legal and operations. Canyon currently manages 16 active CLOs and loan separate accounts, totaling more than $8 billion of assets under management.
About Canyon Partners, LLC
Founded and partner owned since 1990, Canyon employs a deep value, credit intensive approach across its investment platform. Canyon specializes in value-oriented special situation investments for endowments, foundations, pension funds, sovereign wealth funds, family offices and other institutional investors. The firm invests across a broad range of asset classes, including distressed loans, corporate bonds, convertible bonds, securitized assets, direct investments, real estate, arbitrage, and event-oriented equities.
For more information visit: www.canyonpartners.com.
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