For partners with longer term investment horizons and no need for frequent liquidity, Canyon manages hybrid private equity style structures that seek to extract excess return premium. These closed-end structures employ the same team, research efforts, and value-oriented investment philosophy, but tend to feature more concentrated positions in illiquid or distressed assets than we could prudently take in an open-end structure.
As part of the Canyon platform, these closed-end strategies benefit from the broad menu of investment options and niche expertise that allows our investment team to operate in areas of the market where fewer buyers are present - whether due to disruption, complexity, and/or illiquidity. While much less diversified than our open-end strategies, these structures still generally include exposures across asset categories – whenever we can, we like to assemble portfolios of assets of varying stripes with different (and sometimes complementary) drivers of risk and return. A key element of our approach (whether in open- or closed-end structures) is to prioritize flexibility and avoid mandate constraints that can compromise our ability to optimize risk/reward.
Periodically, however, there are times when a specific dislocation in a single asset class or theme can become sufficiently scalable to warrant dedicated capital. During these episodes, Canyon may offer investors hybrid private equity style structures to capitalize on the disruption. These opportunistic strategies feature bespoke structures that take into accounts our sense of the liquidity profile of the underlying assets and the expected life of the opportunity.