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Assets Under Management (AUM)
Onex’ management of Other Investors' capital has grown significantly since Onex first began acquiring businesses in 1984. In its early years, Onex would primarily use its own capital to complete acquisitions and would include other investors in the acquired businesses to diversify risk, cultivate strategic relationships and facilitate larger acquisitions. The 1996 purchase of Celestica was the first acquisition structured with the other investors providing a carried interest to Onex. Onex thus began to share in the profits of its other investors.

Onex formalized its asset management business in 1999 when it raised its first fund, ONCAP L.P., for mid-market transactions. In 2003, the first Onex Partners fund was raised for larger transactions. While Onex expects to be the largest investor in each acquisition in order to invest its own capital, the establishment of Onex Partners and ONCAP enabled Onex to efficiently pursue a larger acquisition program. As of March 31, 2014, Onex had raised $11.5 billion of Limited Partners' capital through the Onex Partners and ONCAP Funds. In addition, Onex Credit Partners manages $3.1 billion of other investors' capital dedicated to debt investment strategies.

At March 31, 2014, Onex managed approximately $15.3 billion of other investors' capital, in addition to the approximately $5.7 billion of Onex capital. Included in the other investors' capital management by Onex is $3.5 billion of committed capital for Onex Partners IV.  In May 2014, Onex successfully completed fundraising for Onex Partners IV, reaching aggregate commitments of $5.15 billion and exceeding our target size of $4.5 billion. This includes Onex' commitment of $1.2 billion.  The management of other investors' capital provides two significant benefits to Onex: (i) Onex earns management fees on $13.8 billion of its other investors' assets under management and (ii) Onex has the opportunity to share in the profits of its other investors through the carried interest participation. This enables Onex to enhance the return on its investment.  In 2013, combined management fees and carried interest received offset ongoing operating expenses.  Onex expects to begin drawing management fees from Onex Partners IV in 2014.


Other Investors' Capital Under Management(1)

($ millions)

Total

Change

Fee Generating

Uncalled Commitments

Funds

Mar. 31, 2014(2)

Dec. 31, 2013(2)

in Total

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014(2)

Dec. 31, 2012(2)

Onex Partners(3) $11,228 $9,801 15%  $9,932 $8,464 $4,208 $2,720
ONCAP C$1,004 C$970 4%  C$865 C$837 C$389 C$389
Onex Credit Partners(4) $3,098 $2,744 13%   $3,098 $2,744 N/A N/A

(1) All data is presented at fair value.
(2) Includes committed amounts from the management of Onex and ONCAP and directors based on the assumption that all of the remaining limited partners’ commitments are invested.
(3) Includes $3.5 billion (December 31, 2013 - $1.9 billion) of committed capital from closings of Onex Partners IV up to March 31, 2014. In May 2014, Onex successfully completed fundraising for Onex Partners IV, reaching aggregate limited partners' commitments of $4.0 billion.
(4) Onex Credit Partners is jointly controlled by Onex. Capital under management of Onex Credit Partners represents 100 percent of the other investors' capital managed by Onex Credit Partners.