Canyon Capital Advisors, LLC is an investment fund management firm based in Los Angeles. More specifically, the firm manages hedge funds, securitized asset funds and private equity funds. It only manages these funds and does not provide traditional asset management serves to individuals or any other institutional clients. If you are looking for an advisor to manage your personal portfolio, consider finding one with SmartAsset’s free financial advisor matching service.
Canyon Capital Advisors Background
Canyon Capital Advisors was founded back in 1994. This company is actually the successor to another firm, Canyon Capital Management, L.P. The firm is owned by Joshua S. Friedman and Mitchell R. Julis, though family limited partnerships and trusts. Friedman and Julis also co-founded the firm, and there are a numbr of partners on staff.
Canyon Capital Advisors Client Types and Minimum Account Sizes
Canyon Capital Advisors only advises its own funds. It does not advise any individual or institutional clients. Investors in Canyon's funds include individuals, trusts, pension plans, corporations and other public and private entities.
Canyon generally requires a minimum investment of $50 million in its funds.
Services Offered by Canyon Capital Advisors
The main service offered by Canyon is the ability to invest in its various funds. It does not offer individual investment management services or financial planning services.
Canyon Capital Advisors Investment Philosophy
The investment strategy offered at Canyon varies based on the fund you choose to invest in. Some of the strategies include:
- Flagship: investing across industries and asset classes, targeting a wide universe of mispriced securities
- Opportunistic and closed-end: hybrid private equity style seeking to extract excess return premium
- Real estate: investing in commercial real estate debt and equity
- River Canyon and CLOs: income-oriented credit strategies
Fees Under Canyon Capital Advisors
Generally investors in Canyon’s funds are charged an asset-based management fee and/or a performance-based fee. The asset-based fees generally fall between 1% and 2% each year. The performance-based fee is normally 20% of the yearly profit, subject to a loss carryforward adjustment and a “high water mark.”
What to Watch Out For
Canyon Capital Advisors has no disclosures on its SEC record.
The performance-based fees charged by Canyon represent a potential conflict of interest, as it could be an incentive for advisors to take more risks to get a higher return and, thus, a higher fee. However, the firm is a fiduciary, legally binding it to act in clients' best interests at all times.
Opening an Account With Canyon Capital Advisors
To invest with Canyon Capital Advisors, contact investor relations at (310) 272-1200.
All information is accurate as of the writing of this article.
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