Canyon Partners Closes First CLO of 2026 for $500 Million
April 1, 2026
Transaction brings CLO platform to $12.2 billion in AUM across 28 active CLOs
DALLAS, April 1, 2026 /PRNewswire/ — Canyon Partners (“Canyon”), a $30 billion global alternative investment manager, today announced the closing of Canyon CLO 2026-1, a $500 million collateralized loan obligation (CLO). The deal marks Canyon’s first new issue CLO of the year and 28th active CLO. The CLO will be managed by Canyon’s affiliate, Canyon CLO Advisors L.P.
Canyon CLO 2026-1 was arranged by Citigroup Global Markets Inc. It has a 2-year non-call period and 5-year reinvestment period and was structured to comply with European risk retention regulations. The transaction achieved a weighted-average cost of debt (WACD) of S+154, with a triple-A tranche spread of S+120.
“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,” said Erik Miller, Partner and Co-Head of Canyon’s CLO business.
The majority equity for Canyon CLO 2026-1 will be funded by the Canyon CLO Equity Fund IV L.P., Canyon’s fourth CLO equity fund. The fund closed earlier this year with over $400 million in commitments, surpassing its $300 million target and making it the largest CLO equity fund in the firm’s history. More than 70% of investors from CLO Fund III returned for this latest fund, reflecting strong continued confidence in Canyon’s platform. The fund attracted interest from a broad, global investor base—including pension funds, insurance companies, endowments, foundations, registered investment advisors, and family offices.
“This deal highlights the continued support from our debt investor base and the deep trust we have built with our partners,” added Martin Downen, Partner and Co-Head of Canyon’s CLO business. “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.”
Since launching its first CLO strategy in 2001, Canyon has issued and managed 35 CLOs and CDOs globally.
About Canyon Partners, LLC
Founded in 1990, Canyon employs a deep value, credit intensive approach across public and private corporate credit, asset backed credit, and real estate. The firm seeks to capture excess returns available to those investors with specialized expertise, rigorous research capabilities, and the ability to underwrite complexity. Canyon invests on behalf of a broad range of institutions globally. For more information visit www.canyonpartners.com.
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Prosek Partners
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SOURCE Canyon Partners LLC