Canyon Partners Closes $500 Million CLO, Lifts Platform to $12.1 Billion in AUM

New updates have been reported about Canyon Partners LLC (PC:CANYO)

Canyon Partners LLC has closed Canyon CLO 2025-3, a $500 million collateralized loan obligation that lifts its CLO assets under management to $12.1 billion across 27 active vehicles, reinforcing the firm’s position as a scaled global credit platform. The transaction, arranged by Jefferies and managed by affiliate Canyon CLO Advisors L.P., is Canyon’s fifth new-issue CLO in 2025 and contributed to approximately $2.4 billion of CLO AUM growth this year across three U.S. and two European deals. Structured with a two-year non-call and five-year reinvestment period, and compliant with European risk-retention rules, the CLO priced at a weighted-average cost of debt of S+158, with an oversubscribed AAA tranche at S+123—levels in line with the tightest current market prints—while majority equity capital is being provided by Canyon CLO Equity Fund IV L.P.

The deal caps a year of accelerated CLO activity for Canyon, which also refinanced or reset eight CLOs in 2025 representing about $3.2 billion of debt, locking in more favorable funding costs that may enhance future distributions to equity tranche investors and improve overall platform economics. Since 2001, Canyon has launched and managed 34 CLOs and CDOs, and recent league-table data highlight its positioning: Raymond James ranked the firm the number two equity-oriented collateral manager and ninth overall among 100 managers in the fourth quarter, while Nomura placed Canyon first for trading market value gains over the past 12 months. Canyon executives said the transaction demonstrates the firm’s ability to capitalize on tighter liability spreads through disciplined portfolio construction and timely execution, supporting its strategy to scale a global, deep-value, credit-focused platform that can deploy capital decisively across market cycles on behalf of institutional clients worldwide.