Canyon Partners Real Estate LLC (“Canyon”) announced the final close of the Canyon US Real Estate Debt Fund III (together with related entities and accounts, “CRED III” or the “Fund”), a real estate credit investment strategy with approximately $1.2 billion of assets, surpassing its $1 billion fundraising target. CRED III represents Canyon’s largest US real estate debt Fund to date, nearly doubling its $650 million predecessor fund.
“The growth of our debt platform reflects the increasing recognition of our disciplined investment approach and our ability to deliver strong performance across market cycles,” said Robin Potts, Partner, and Canyon’s Chief Investment Officer of Real Estate. “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. We believe we are witnessing a generational opportunity for real estate debt investing and are thrilled with the portfolio we have been able to create in today’s environment, already deploying 44% of the Fund’s capital. The strong support from our global investor base underscores the continued confidence in our strategy and execution.”
The Fund targets a range of senior and subordinate, primary and secondary market real estate debt investments as well as real estate credit securities across the US. The Fund invests opportunistically across property types with a focus on multifamily and other defensive asset classes that are benefitting from supply/demand imbalances and demographic tailwinds.
Canyon’s direct real estate investment arm has been managing institutional capital since the 1990s, and currently manages $4 billion of investor capital across approximately $12.6 billion total capitalization of real estate assets.
Founded in 1991, Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $26 billion in assets under management. Over the last ten years, Canyon has invested approximately $5.2 billion of debt and equity capital across ~180 transactions capitalizing approximately $21.1 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 30+ years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts).
