Canyon Partners Successfully Closes $500 Million CLO for 2026, Enhancing AUM to $13 Billion

Canyon Partners Closes its Third CLO of 2026 for $500 Million

Canyon Partners, a prominent global alternative investment manager with an impressive $30 billion under management, has recently completed the closing of its Canyon CLO 2026-2, which is valued at $500 million. This marks a significant milestone as it represents Canyon's third new issue CLO of the year and brings the total number of active CLOs managed by the firm to 30.

The financial structuring of Canyon CLO 2026-2 has been meticulously designed to ensure compliance with European risk retention regulations. Notably, the CLO has a non-call period extending for 2.2 years and a reinvestment period of 5.2 years. The transaction achieved a weighted-average cost of debt (WACD) of S+157, with a prominent triple-A tranche spread of S+123.

Erik Miller, a partner at Canyon and Co-Head of the CLO business, expressed enthusiasm about the attractive pricing during these challenging market conditions. He emphasized that the support from investors reflects a strong recognition of Canyon's CLO platform and the robust confidence in their management capabilities.

Canyon's focus has always been about cultivating resilient portfolios and pursuing transactions that yield long-term value for their investors. To this end, the equity for Canyon CLO 2026-2 has been fully funded by the Canyon CLO Equity Fund IV L.P., which secured over $400 million in commitments earlier in the fiscal year.

As it stands, Canyon's global CLO platform has raised its assets under management (AUM) to an impressive $13 billion. With a proven track record of success, Canyon continues to maintain strong momentum throughout 2026. To date, the firm has successfully refinanced or reset seven deals amounting to approximately $2.2 billion in debt capital, effectively lowering the weighted average cost of debt by an average of 55 basis points.

Since the launch of its first CLO strategy back in 2001, Canyon has successfully issued and managed a total of 37 CLOs and CDOs worldwide.

About Canyon Partners, LLC

Founded in 1990, Canyon Partners employs a deep value, credit-intensive investment strategy across public and private corporate credit, asset-backed credit, and real estate sectors. The firm prides itself on capturing excess returns available to well-informed investors through specialized expertise and thorough research capabilities. Canyon manages investments for a broad range of institutional clients around the globe. Those interested in learning more can visit the company's official website at www.canyonpartners.com.

In summary, Canyon’s successful closure of Canyon CLO 2026-2 further solidifies its established reputation as a leading player in the CLO market. The firm's continued focus on portfolio resilience and strategic transaction execution positions it well for future growth as it serves the evolving financial landscape.