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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. Through September 30, 2014, Onex had raised $11.8 billion of Limited Partners' capital through a total of seven Onex Partners and ONCAP Funds.

At September 30, 2014, Onex managed approximately $14.1 billion of other investors' capital, in addition to  $5.9 billion of Onex' capital. Included in the other investors' capital management by Onex is $4.3 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 the target of $4.5 billion. This includes Onex' commitment of $1.2 billion and capital from institutional investors around the world.

In 2007, Onex acquired a 50 percent interest in an investment advisor focused on credit investing which, at that time, managed $300 million.  The business has grown considerably over the past seven years and Onex has increased its interest to 70 percent.  Today, Onex Credit Partners manages several investment strategies focused on a variety of event-driven, long/short, stressed and distressed opportunities including two closed-end funds listed on the Toronto Stock Exchange (TSX: OCS-UN and OSL-UN), as well as a collateralized loan obligation patform.  Through September 30, 2014, Onex Credit Partners had raised $4.4 billion of investor capital through its various strategies.

The management of other investors' capital provides two significant benefits to Onex: (i) Onex earns management fees on $13.0 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.  Given the amount of carried interest and management fees received to date, Onex expects to once again offset ongoing operating expenses in 2014.


Other Investors' Capital Under Management(1)

($ millions)

Total

Change

Fee Generating

Uncalled Commitments

Funds

Sept. 30, 2014(2)

Dec. 31, 2013(2)

in Total

Sept. 30, 2014

Dec. 31, 2013

Sept. 30, 2014(2)

Dec. 31, 2012(2)

   Onex Partners(3)

$9,436

$9,801

(4)% 

$8,474

$8,464

$4,986

$2,720

   ONCAP

C$866

C$970

(11)% 

C$746

C$837

C$291

C$389

   Onex Credit(4)

$3,908

$2,744

42%

  $3,908

$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. Onex Partners uncalled committed capital is shown net of amounts called for the October 2014 investment in York. ONCAP uncalled committed capital is shown net of amounts called for the October 2014 investment in Mavis Discount Tire.
(3) Includes $4.3 billion (December 31, 2013 – $1.9 billion) of committed capital from Onex Partners IV.
(4) Onex Credit is jointly controlled by Onex. Capital under management of Onex Credit represents 100 percent of the other investors’ capital managed by Onex Credit.