Canyon Partners Real Estate raises its largest U.S. real estate debt vehicle

Canyon Partners Real Estate has completed a $650 million final close for its latest U.S. real estate debt vehicle, Canyon Laurel Fund II (CLF II).

This is the firm’s largest U.S. real estate debt vehicle to date, surpassing its $530 million predecessor fund. Robin Potts, co-head of real estate at Canyon, said the growth of the company’s debt platform can be attributed to a combination of ongoing support from existing partners, as well as a growing market appreciation for the strategy. Around 70 percent of investors from the predecessor fund re-upped into CLF II.

“The COVID-19 pandemic has created an even more compelling environment for real estate debt as lenders, owners and developers have been faced with increasing liquidity needs, while Canyon’s positioning coming into the crisis allowed us to move quickly and capitalize on the growing opportunity set,” said Potts.

The fund’s investor base spans the United States, Japan, Korea, and Australia and i