Canyon Partners Locks in $1.2B for Third Real Estate Debt Strategy
Canyon Partners Real Estate LLC held the final close of its third real estate debt fund at approximately $1.2 billion, beating its $1 billion target. Canyon U.S. Real Estate Debt Fund III is the firm’s largest U.S. real estate debt fund to date, nearly doubling its $650 million predecessor fund.
CRED III targets a range of senior and subordinate, primary and secondary market real estate debt investments as well as real estate credit securities across the U.S. The fund invests opportunistically across property types with a focus on multifamily and other defensive asset classes that the firm believes are “benefitting from supply/demand imbalances and demographic tailwinds.”
Canyon Partner and CIO of real estate said 44% of the fund’s capital has already been deployed. “In today’s evolving economic landscape, including a ‘higher for longer’ interest rate environment, we see significant opportunities to provide flexible capital solutions to borrowers while creating attractive risk-adjusted returns for our investment partners,” he added.
The fund has attracted an investor base from the U.S., Asia, Middle East, Europe, and South America. Investors include sovereign wealth funds, public and corporate pensions, endowments, financial institutions, RIAs, and family offices.
Canyon’s direct real estate investment arm currently manages $4 billion across about $12.6 billion total capitalization of real estate assets.