The investment entails Dai-ichi Life Holdings injecting $255 million into Canyon Partners, acquiring a 19.9% ownership share.
The transaction marks a significant development, with all net proceeds from Dai-ichi’s investment being channeled back into Canyon’s operations. These funds will be retained on Canyon’s balance sheet and reinvested to support the development of new products and enhance the scalability of existing offerings. Additionally, Dai-ichi has committed to providing at least $1.3 billion of Limited Partner (LP) capital across several of Canyon’s commingled funds, further bolstering the partnership.
Notably, Canyon’s current management team, led by Co-Founders and Co-CEOs Josh Friedman and Mitch Julis, will remain at the helm of the company for at least five years, ensuring continuity and stability in leadership.
Under the terms of the agreement, Dai-ichi holds the option to increase its equity interest in Canyon to 51% by 2027 and potentially acquire full ownership by 2029. In such a scenario, Canyon’s management team will retain a significant portion of the incentive fees generated by its products, aligning their interests closely with those of the LPs.
Established in 1990 and headquartered in Dallas, Canyon Partners boasts assets under management totaling $24.4 billion, solidifying its position as a major player in the alternative investment landscape.
In a statement released by Joshua Friedman and Mitchell Julis said: “After over three decades in a rapidly evolving alternative investment landscape, Canyon was one of the few remaining independent credit firms. It was important to us to maintain that independence until we could identify a strategic partner that could bring skills, capital, and competitive edges of its own to further enhance Canyon’s position for the next several decades. Dai-ichi is an innovative firm with a history of savvy product development and successful investments in and partnerships with Japanese and non-Japanese companies alike. It is also a large institutional asset owner whose capital deployment goals are synergistic with Canyon’s product development initiatives.
“This transaction will enable us to double down on our alignment with current and future LPs, provide our LPs with a broader array of solutions and deal flow by tapping into Dai-ichi’s capital, increase our competitiveness relative to peers that have long enjoyed the benefits of external GP capital, and continue attracting top tier talent for decades to come. We’re excited to lead the firm through its next stage of evolution over the next five years and set up Canyon’s next generation leaders with an incredibly well-capitalized platform that is on its front foot.”
Takashi Iida, Managing Executive Officer, Group Head, Retirement, Savings and Asset Management Business of Dai-ichi Life Holdings, also commented, saying: “By leveraging Canyon’s leading capabilities in alternative asset management, and specifically its private debt experience, Dai-ichi will strengthen its overall business portfolio, provide higher absolute and risk-adjusted returns to stakeholders, and advance its capital efficiency objectives.”
He added: “Under the leadership of Mr. Friedman and Mr. Julis, Canyon has built excellent long-term investment track records across several asset categories, and we appreciate the firm’s leaders’ continued commitment to advancing the business.”
