Canyon Partners Closes $650M Investment Vehicle

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Canyon Partners Real Estate announced that it has closed its largest national real estate debt vehicle to date, which will take advantage of the changing environment created by the coronavirus crisis.

The investment arm of Los Angeles-based Canyon Partners said the $650 million fund, Canyon Laurel Fund II, will target senior and subordinate debt investments in the top U.S. markets. The fund’s investor base comes from the U.S., Japan, South Korea, and Australia, as well as public and corporate pensions.

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“We are proud to say that around 70 percent of our predecessor fund re-upped into the Canyon Laurel Fund II,” Robin Potts, Canyon’s co-head of real estate, said in a statement. “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.”

At Commercial Observer’s financing forum in December, Potts talked about the opportunities that surfaced with the changing debt landscape, and that she expects Canyon to continue buying mortgages and originating new construction loans. 

Canyon Partners Real Estate has doubled its real estate portfolio over the past few years to more than $6 billion.