As some investors call for alternative structures to drawdown funds that typically last 7 to 12 years, Canyon Partners has launched an evergreen strategy.
The multistrategy credit specialist founded in 1990 by Mitch Julis and Josh Friedman has trotted out the Canyon Evergreen Private Credit Fund, according to a regulatory filing. As is typical with these disclosures, there is little additional information.
A source familiar with the matter notes that the new fund is primarily targeting performing, income-oriented strategies across corporate, real estate, and asset-backed credit. It is designed to provide collateral diversification and rotate through investment themes, and aims to construct a diversified multistrategy private credit portfolio that can shift to the best areas of opportunity while providing investors with continued exposure, the source explains.
Canyon has launched several new funds in recent years. In May, it raised more than $1 billion for two collateralized loan obligations — the €550 million European CLO, Canyon Euro CLO 2023-1, and the $500 million CLO, Canyon CLO 2023-2, according to a press release. They are managed by affiliate Canyon CLO Advisors.
These are the fifth and sixth CLOs for Canyon CLO Fund III, which will fund the majority of equity for both, according to the press release. Canyon is now actively managing 21 CLOs totaling nearly $10 billion in combined CLO/par loan separate account assets under management.
In 2023, Canyon launched its first European CLO, according to a separate press release.
Institutional Investor previously reported that in 2022 the credit firm raised money for two versions of Canyon U.S. Real Estate Debt Fund III. Canyon Partners Real Estate is the real estate direct investing arm of Canyon. Over the years, it has invested about $7.6 billion of debt and equity capital across 268 transactions.
In May 2021, Canyon raised more than $650 million for Canyon Laurel Fund II, a U.S. real estate debt vehicle. Its predecessor fund had raised $530 million, according to an announcement.
Altogether, Canyon manages more than $24 billion, according to its website. It is best known for its multistrategy credit hedge fund, the Canyon Value Realization Fund. The fund is up more than 6 percent this year, says someone who has seen the results. It was up 10.35 percent in 2023, this person said.