Canyon Partners has held a $230 million close of the Canyon CLO Fund III, a collateralized loan obligation (CLO) equity fund.
CLO Fund III is Canyon's third CLO equity fund and will be managed by Canyon CLO Advisors, Canyon's CLO investment advisory arm.
The fund primarily seeks to acquire majority equity positions in CLOs issued in the United States and Europe that are managed by Canyon CLO Advisors. The fund has the flexibility to issue E.U. risk-retention compliant CLOs, as well as opportunistically invest a portion of the capital directly in dislocated loans and CLO liability tranches. Canyon's CLO strategy is focused on stable, high-quality portfolios designed to generate excess returns through patient portfolio construction, active management and optimized asset and liability timing and execution.
"We see continued demand for CLO securities as investors seek to diversify their portfolios and mitigate risk in a rising rate environment," said Martin Downen,