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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 December 31, 2013, Onex had raised $9.9 billion of Limited Partners' capital through the Onex Partners and ONCAP Funds. In addition, Onex Credit Partners manages $2.7 billion of other investors' capital dedicated to debt investment strategies.

At December 31, 2013, Onex managed approximately $13.5 billion of other investors' capital, in addition to the approximately $5.8 billion of Onex capital. Included in the other investors' capital management by Onex was $1.9 billion of committed capital for Onex Partners IV.  In February 2014, Onex raised an additional $600 million of limited partners' committed capital for Onex Partners IV.  The management of other investors' capital provides two significant benefits to Onex: (i) Onex earns management fees on $12.0 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.  Onex' management fees will be further enhanced once fees are called from Onex Partners IV.


Other Investors' Capital Under Management(1)

($ millions)

Total

Change

Fee Generating

Uncalled Commitments

Funds

Dec. 31, 2013(2)

Dec. 31, 2012(2)

in Total

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013(2)

Dec. 31, 2012(2)

Onex Partners(3) $9,801 $7,135 37%  $8,464 $6,087 $2,720 $1,193
ONCAP C$970 C$1,015 (4)%  C$837 C$872 C$389 C$405
Onex Credit Partners(4) $2,744 $1,826 50%   $2,744 $1,826 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 $1.9 billion of committed capital from closings of Onex Partners IV during the fourth quarter of 2013.
(4) Onex Credit Partners is jointly controlled by Onex. Capital under management of Onex Credit Partners represents 100% of the other investors' capital managed by Onex Credit Partners.