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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 ONCAP fund 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 December 31, 2014, Onex had raised $11.8 billion of limited partners' capital through a total of seven Onex Partners and ONCAP Funds.

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 over the years.  At December 31, 2014, Onex had a 70 percent ownership interest.  In January 2015, Onex acquired control of the investment advisor. Today, Onex Credit 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 December 31, 2014, Onex Credit Partners had raised $5.0 billion of investor capital through its various strategies.

At December 31, 2014, Onex managed approximately $14.7 billion of other investors' capital, in addition to  $6.0 billion of Onex' capital. Included in the other investors' capital management by Onex is $4.0 billion of committed capital for Onex Partners IV. 

The management of other investors' capital provides two significant benefits to Onex: (i) Onex earns management fees on $13.5 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 2014, combined management fees and carried interest received more than offset ongoing operating expenses.  Onex Partners, ONCAP and Onex Credit earned a total of $99 million in management and transaction fees in 2014 and expect to earn a total of $135 million in management and transaction fees in 2015.



Other Investors' Capital Under Management(1)

($ millions)

Total

Change

Fee Generating

Uncalled Commitments

Funds

Dec. 31, 2014(2)

Dec. 31, 2013(2)

in Total

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2014(2)

Dec. 31, 2013(2)

   Onex Partners(3)

$9,598

$9,801

(2)% 

$8,523

$8,464

$4,755

$2,720

   ONCAP

C$922

C$970

(5)% 

C$785

C$837

C$291

C$389

   Onex Credit(4)

$4,342

$2,744

58% 

  $4,342

$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 $4.0 billion (December 31, 2013 – $1.9 billion) of committed capital from Onex Partners IV.
(4) At December 31, 2014 and 2013, Onex Credit was jointly controlled by Onex. In January 2015, Onex obtained a controlling interest in Onex Credit.  Capital under management of Onex Credit represents 100 percent of the other investors’ capital managed by Onex Credit.