More than 30 Years of Successful Investing
Founded in 1984, Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $22 billion of assets under management, including $6.0 billion of Onex' capital. Onex is guided by an ownership culture focused on achieving strong absolute growth, with an emphasis on capital preservation.
In private equity, we have built more than 85 operating businesses, completing about 515 acquisitions with a total value of approximately $61 billion. Onex has generated a gross multiple of capital invested of 2.8 times from its private equity activities since inception, resulting in a 28 percent gross IRR on realized, substantially realized and publicly traded investments. Our credit business has grown considerably since 2007, driven primarily by the success of our CLO platform. With an experienced management team, significant financial resources and no debt at the parent company, Onex is well-positioned to continue building our businesses.
Other Investors Capital
At September 30, 2015, Onex’ $6.0 billion of capital was primarily invested in or committed to its two private equity platforms – Onex Partners (for larger transactions) and ONCAP (for mid-market transactions) – and its credit platform, Onex Credit. One of Onex’ long-term goals is to grow its capital per share by 15 percent per year, and to have that growth reflected in its share price. For the nine months ended September 30, 2015, Onex’ capital per share increased by one percent in U.S. dollars (16 percent in Canadian dollars) and our share price fell by one percent in U.S. dollars (grew by 14 percent in Canadian dollars). For the 12 months ended September 30, 2015, Onex’ capital per share increased by three percent in U.S. dollars (23 percent in Canadian dollars) and our share price grew by 4 percent in U.S. dollars ( 24 percent in Canadian dollars). The growth in Onex’ capital was impacted by a meaningful portion of Onex’ capital being held in cash and near-cash items due to significant realizations in 2014. Year-to-date through November 11, 2015, Onex invested approximately $ 920 million of its cash through its private equity and credit platforms. Over the past five years, Onex’ capital per share increased by 12 percent per year in U.S. dollars (17 percent per year in Canadian dollars). Close
Onex manages $16.2 billion of invested and committed capital on behalf of investors from around the world. These investors include public and private pension funds, sovereign wealth funds, banks and insurance companies. One of Onex’ long-term goals is to grow its fee-generating capital by 10 percent per year. For the nine months ended September 30, 2015, fee-generating capital under management grew by 8 percent to $14.6 billion. For the 12 months ended September 30, 2015, fee-generating capital under management increased by 12 percent. The increase in fee-generating capital under management was primarily due to the completion of three CLOs by Onex Credit. Over the past five years, fee-generating capital under management increased by 13 percent per year. The management of other investors’ capital provides two significant benefits. First, Onex is entitled to receive a committed stream of annual management fees on $14.6 billion of assets under management. Second, Onex has the opportunity to share in its investors’ profits through the carried interest participation. Carried interest, if realized, can significantly enhance Onex’ investment returns. In 2014, combined management fees and carried interest received more than offset ongoing operating expenses. Given the amount of management fees and carried interest received to date, Onex expects to offset ongoing operating expenses in 2015. Today, Onex has run-rate management fees of approximately $ 130 million for the next 12 months. Close