Canyon Partners Closes Two CLOs in the US and Europe in First Quarter of 2025
March 31, 2025
Latest deals bring the firm’s CLO AUM to over $10.9 billion
DALLAS – March 31, 2025 – Canyon Partners (“Canyon”), a global alternative investment manager with $27 billion in assets under management, today announced the closings of two CLOs (collateralized loan obligations). Together, Canyon Euro CLO 2025-1 and Canyon CLO 2025-1 total nearly $1 billion. These CLOs will be managed by Canyon’s affiliate, Canyon CLO Advisors L.P. Canyon has launched and managed 31 CLOs and CDOs since 2001.
Canyon Euro CLO 2025-1 was Canyon’s first new issue CLO of the year. Arranged by BofA Securities, the €425 million deal has a 1.5-year non-call period and 4.5-year reinvestment period. Canyon CLO 2025-1 is a $500 million deal which was arranged by Barclays. It has a 2-year non-call period and 5-year reinvestment period. Both deals were structured to comply with European risk retention regulations.
With these closings, Canyon is managing a total of over $10.9 billion in combined CLO AUM through 24 active CLOs. The majority equity for both deals will be funded by the Canyon CLO Fund IV L.P.
These CLOs build upon Canyon’s investing activity throughout 2024, during which time Canyon issued three deals in the US and Europe accounting for over $1.5 billion. Among the 2024 deals was Canyon Euro CLO 2023-1, the largest CLO to clear the European market in nearly seven years.
Canyon has also been capitalizing on the tight CLO liability environment by actively managing its existing CLO debt. In the last year, the platform has refinanced or reset a total of 7 CLOs to tighter weighted average debt costs, an outcome that typically results in greater equity distributions.
“We continue to enhance our global CLO platform to position Canyon to capitalize on a historically tight liability spread environment. By investing in our people and resources, we believe we have built a platform with the ability to deploy capital rapidly as opportunities arise,” said Erik Miller, Partner, Co-Head and Co-Portfolio Manager of Canyon’s CLO business. “Canyon has a proven track record of navigating complex environments and has experience launching CLOs across multiple decades and markets.”
“Our rigorous and patient approach has enabled us to launch two CLOs simultaneously across two continents that offer attractive return profiles for our investors,” said Martin Downen, Co-Head and Co-Portfolio Manager of Canyon’s CLO business. “We appreciate the strong support from our partners and look forward to actively managing these portfolios across this dynamic market.”
About Canyon Partners, LLC
Founded in 1990, Canyon employs a deep value, credit intensive approach across public and private corporate credit, structured credit, and direct real estate lending and investing. 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.
Media Contact
Kris Cole
Prosek Partners
Pro-Canyon@prosek.com