#United States #Dallas #Canyon Partners #Investment Management #CLOs

Canyon Partners Takes Major Step in Finance with New CLO Closings

In an impressive move within the financial sector, Canyon Partners, a recognized global alternative investment manager, has closed two significant collateralized loan obligations (CLOs) in the US and Europe during the first quarter of 2025. This strategic achievement not only underscores Canyon's robust presence in the market but also elevates the firm's assets under management (AUM) to a staggering $27 billion.

The two newly closed CLOs, namely Canyon Euro CLO 2025-1 and Canyon CLO 2025-1, together amount to nearly $1 billion. Managed by Canyon's affiliate, Canyon CLO Advisors L.P., these CLOs reflect the firm’s long-standing expertise in managing compliant investment structures. This latest milestone brings Canyon's total CLO AUM to over $10.9 billion, with a total of 24 active CLOs under management.

Details of the New CLOs

The Canyon Euro CLO 2025-1, which is the firm's initial new issue CLO of the year, has an arrangement led by BofA Securities. It comprises a €425 million transaction featuring a 1.5-year non-call period and a 4.5-year reinvestment period.
On the other hand, Canyon CLO 2025-1 is a $500 million CLO structured by Barclays, characterized by a 2-year non-call period and a 5-year reinvestment period. Both CLOs have been carefully structured to align with European risk retention regulations, highlighting Canyon's commitment to compliance and investor security.

Growth and Strategic Positioning

Canyon's continuous effort in honing its investment strategy allowed it to initiate these two CLOs simultaneously across different continents. The firm's active management approach has proven advantageous, especially given the current tight CLO liability environment. Over the past year, Canyon has successfully refinanced and reset seven CLOs, attaining tighter weighted average debt costs, which typically enhances equity distributions.

Erik Miller, Partner, Co-Head, and Co-Portfolio Manager of Canyon’s CLO sector, voiced confidence in the firm's ability to seize new opportunities, saying, "We continue to enhance our global CLO platform to position Canyon to capitalize on a historically tight liability spread environment." This sentiment reflects Canyon's proactive posture towards market dynamics.

Strong Market Demand

The CLO market has seen strains and opportunities in today's economic climate, and Canyon's dual closings in Q1 signify robust market demand for such investment vehicles. In the preceding year, Canyon managed to issue three deals, raising over $1.5 billion across the US and European markets. Among those was Canyon Euro CLO 2023-1, a landmark CLO, which marked the largest clearing in the European market for nearly seven years.

Canyon's co-head and portfolio manager Martin Downen stated, "Our rigorous and patient approach has enabled us to launch two CLOs simultaneously across two continents that offer attractive return profiles for our investors." This highlights the team's adeptness in navigating complex financial landscapes and delivering on investor expectations.

About Canyon Partners, LLC

Founded in 1990, Canyon Partners LLC operates with a focus on deep value and credit intensive strategies across several financial landscapes, including public and private corporate credit and structured credit. The firm specializes in capturing excess returns, leveraging specialized expertise, comprehensive research capabilities, and a prowess in handling complex underwriting. With a portfolio that serves a wide array of global institutions, Canyon Partners continues to be a force in the alternative investment market.

For more information about Canyon Partners, you can visit their website at www.canyonpartners.com.