Key Takeaways
- • Canyon Distressed Opportunity Fund III held its first closing in early November 2019 and had called 50% of capital commitments as of its September 2021 update.
- • Total net asset value, including uncalled commitments, was approximately $1.7 billion at the end of September 2021, according to the fund's September update reviewed by ValueWalk.
- • Fund managers report capital deployed across bankruptcy and liquidation situations, with substantial underlying business progress not yet reflected in market pricing.
- • The manager remains cautious despite the opportunity set, with the full article behind a login wall limiting further detail on the stated caveats.
Summary
The Canyon Distressed Opportunity Fund III held its first closing at the beginning of November 2019 and has so far called 50% of its capital commitments, according to a copy of the fund's September 2021 update reviewed by ValueWalk. Total net asset value, including uncalled capital commitments, stood at approximately $1.7 billion at the end of September.
In the update, fund managers said they have deployed capital across various bankruptcy and liquidation situations. They see the potential for strong returns across the portfolio, citing substantial progress in the underlying businesses that they believe is not yet reflected in market pricing.
The article indicates that the fund managers remain cautious despite these opportunities. The remainder of the commentary is available only to registered readers, so the full nature of those reservations cannot be confirmed from the available text.
The update fits within a broader body of Canyon Partners commentary from the same period. Other coverage in the publisher's archive has described the firm seeing more distressed opportunities amid rising interest rates and credit spreads, and has highlighted expectations for a return to more traditional distressed situations tied to software-sector issues and a looming maturity wall.
In the update, fund managers said they have deployed capital across various bankruptcy and liquidation situations. They see the potential for strong returns across the portfolio, citing substantial progress in the underlying businesses that they believe is not yet reflected in market pricing.
The article indicates that the fund managers remain cautious despite these opportunities. The remainder of the commentary is available only to registered readers, so the full nature of those reservations cannot be confirmed from the available text.
The update fits within a broader body of Canyon Partners commentary from the same period. Other coverage in the publisher's archive has described the firm seeing more distressed opportunities amid rising interest rates and credit spreads, and has highlighted expectations for a return to more traditional distressed situations tied to software-sector issues and a looming maturity wall.
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