Canyon Partners Announces $650M for US Real Estate Debt Strategy
May 17, 2021
LOS ANGELES, May 17, 2021 — Canyon Partners Real Estate LLC (“Canyon”) today announced the final close of Canyon Laurel Fund II (“CLF II” or the “Fund”), a US real estate debt vehicle with over $650M of assets across the fund and related co-investments. This marks Canyon’s largest US real estate debt vehicle to date and is a significant increase from the $530 million predecessor fund including related co-investments.
“The growth of our debt platform can be attributed to a combination of ongoing support and confidence from our existing partners as well as a growing market appreciation for our strategy and capabilities. We are proud to say that around 70% of our predecessor fund re-upped into the Canyon Laurel Fund II,” said Robin Potts, Canyon’s Co-Head of Real Estate. “The COVID-19 pandemic has created an even more compelling environment for real estate debt as lenders, owners, and developers have been faced with increasing liquidity needs, while Canyon’s positioning coming into the crisis allowed us to move quickly and capitalize on the growing opportunity set.”
CLF II’s investor base spans the US, Japan, Korea, and Australia, as well as a wide array of institutional profiles, including public and corporate pensions, endowments, financial institutions, and family offices. The Fund targets senior and subordinate debt investments in the top US markets spanning all major property types. Canyon has already deployed over 60% of the Fund’s capital across a combination of primary originations and secondary market purchases.
Canyon’s direct real estate investment arm, which manages a real estate portfolio today of over $6 billion of project capitalization, has doubled in size in the last few years under the leadership of Robin Potts and Maria Stamolis, who have been with the firm for 15 years and 14 years, respectively. In addition to the expansion of its debt platform, Canyon has been active in the equity space, announcing in 2020 a $375M investment from CalPERS for its Emerging Manager program (which Canyon has managed since 2012), hitting the hard cap in 2019 with a $500M fundraise for a newly structured joint venture partnership with global infrastructure firm AECOM (AECOM-Canyon Partners), as well as closing Qualified Opportunity Zone equity investments for residential projects in the last 2 years across over $500M of project capitalization.
About Canyon Partners Real Estate LLC
Founded in 1991, Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $27 billion in assets under management. Over the last ten years, Canyon has invested approximately $5.6 billion of debt and equity capital across over 200 transactions capitalizing approximately $15.1 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 29 years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts). For more information visit: www.canyonpartners.com