#United States #Dallas #Canyon Partners #CLO 2026-1 #CLO Equity Fund

Canyon Partners Secures First CLO of 2026: A $500 Million Milestone

On April 1, 2026, Canyon Partners, a leading global alternative investment manager with a substantial $30 billion under management, proudly announced the closure of the Canyon CLO 2026-1. This new collateralized loan obligation (CLO) represents a significant step in the firm’s strategy, coming in at a hefty $500 million. This transaction not only marks Canyon's first CLO issue of the year but also boosts its overall CLO platform to an impressive $12.2 billion, distributed across 28 active CLOs.

The management of Canyon CLO 2026-1 falls under the expertise of Canyon CLO Advisors L.P., an affiliate of Canyon Partners. The arrangement was facilitated by Citigroup Global Markets Inc. With a calculated structure consisting of a two-year non-call period alongside a five-year reinvestment period, this CLO is adeptly designed to conform to European risk retention regulations. Notably, it secured a weighted-average cost of debt (WACD) of S+154, with a particularly attractive S+120 spread for its triple-A tranche.

Erik Miller, Partner and Co-Head of Canyon's CLO business, commented, "The structure of this deal reflects our platform's flexibility to be nimble and capitalize on shorter-term dislocations, particularly in an environment marked by elevated volatility." This statement underscores the firm’s commitment to adapting quickly to market changes, leveraging its platform's capabilities to optimize investments during uncertain times.

The majority of the equity investment for Canyon CLO 2026-1 has been supplied by the Canyon CLO Equity Fund IV L.P., which successfully closed earlier this year, generating over $400 million in commitments. This figure not only surpassed the fund’s initial $300 million target but also established it as the largest CLO equity fund in Canyon Partners' history. Over 70% of previous investors from CLO Fund III demonstrated continued confidence by reinvesting in this latest fund. The diverse investor base includes significant entities such as pension funds, insurance companies, endowments, and foundations, highlighting the broad trust placed in Canyon’s management expertise.

Martin Downen, another Partner and Co-Head of Canyon's CLO business, remarked, "This deal highlights the continued support from our debt investor base and the deep trust we have built with our partners." He also emphasized, "Building on a strong year of activity across the platform in 2025, we remain committed to launching and managing high-quality CLOs by leveraging our experience alongside thoughtful portfolio construction and execution." This forward-looking strategy establishes Canyon Partners as a key player in the market, providing high-quality investment options to a discerning client base.

Since embarking on its inaugural CLO strategy in 2001, Canyon Partners has gained extensive experience, issuing and managing a total of 35 CLOs and CDOs across the globe. This rich history positions the firm as an industry leader in the alternative investment space.

About Canyon Partners

Canyon Partners, LLC, founded in 1990, employs a deep value, credit-intensive methodology, focusing on both public and private corporate credit, asset-backed credit, and real estate investments. The firm's strategy aims to capture excess returns available to investors who possess specialized expertise, robust research capabilities, and a keen understanding of the complexities inherent in such investments. Over the years, Canyon has developed a wide-ranging institutional client base globally, a testament to its successful investment strategies.

For additional details about their services and investment opportunities, please visit www.canyonpartners.com.