The management of other investors’ capital provides two significant benefits. First, Onex is entitled to receive a committed stream of annual management fees on $14.8 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 2015, combined management fees, carried interest and incentive fees received more than offset ongoing operating expenses. Onex Partners, ONCAP and Onex Credit earned a total of $141 million in management and transaction fees in 2015, and today Onex has run-rate management fees of approximately $130 million for the next 12 months.