Deal brings CLO AUM to $12.1 billion across 27 active CLOs
DALLAS, Dec. 17, 2025 /PRNewswire/ — Canyon Partners (“Canyon”), a $29 billion global alternative investment manager, today announced the closing of Canyon CLO 2025-3, a $500 million CLO (collateralized loan obligation). The deal marks Canyon’s fifth new issue CLO this year and 27th active CLO, bringing the Firm’s CLO platform to $12.1 billion in AUM. The CLO will be managed by Canyon’s affiliate, Canyon CLO Advisors L.P.
Arranged by Jefferies, Canyon CLO 2025-3 has a two-year non-call period and 5-year reinvestment period. It was structured to comply with European risk retention regulations. The transaction achieved a weighted-average cost of debt (WACD) of S+158, in line with the tightest prints in the current market. The deal terms included an oversubscribed senior triple-A tranche spread of S+123 basis points. The majority equity for the deal will be funded by the Canyon CLO Equity Fund IV L.P.
Canyon’s CLO platform has continued significant acceleration in 2025, with three U.S. and two European new issue deals, accounting for approximately $2.4 billion in AUM growth. Also this year, Canyon refinanced or reset eight CLOs, representing approximately $3.2 billion of debt capital, executed at more favorable weighted average costs, which may support greater distributions to equity tranche investors. Since 2001, Canyon has launched and managed 34 CLOs and CDOs.
In the fourth quarter of 2025, Raymond James ranked Canyon as the number two equity-oriented collateral manager and ninth overall collateral manager out of 100 managers. In July, Nomura ranked Canyon first for trading market value gains over the last twelve months.
“In a year defined by momentum across the platform, closing this deal underscores our team’s ability to successfully navigate a market where tighter liability spreads reward thoughtful portfolio construction and timely execution,” said Erik Miller, Partner, Co-Head and Co-Portfolio Manager of Canyon’s CLO business. “Our continued activity reflects our deliberate approach to scaling the global platform, supported by Canyon’s deep investment resources and a strong positioning to deploy capital decisively when opportunities emerge.”
“This transaction is a testament to the strong support of our partners and our financing capabilities,” added Martin Downen, Co-Head and Co-Portfolio Manager of Canyon’s CLO business. “By leveraging the breadth of our investment team and maintaining disciplined portfolio management, we aim to deliver resilient collateral profiles and competitive returns through varying market cycles.”
About Canyon Partners, LLC
Founded in 1990, Canyon employs a deep value, credit intensive approach across public and private corporate credit, asset-backed credit, and real estate. The firm seeks to capture excess returns available to those investors with specialized expertise, rigorous research capabilities, and the ability to underwrite complexity. Canyon invests on behalf of a broad range of institutions globally. For more information visit www.canyonpartners.com.
Media Contact
Kris Cole
Prosek Partners
Pro-Canyon@prosek.com
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SOURCE Canyon Partners LLC
