Onex Credit Partners, LLC ("Onex Credit") is the credit investing platform of Onex, focused on credit-oriented investment strategies, such as event-driven, long/short, long only and market dislocation strategies. Key areas of focus include senior secured loans, high yield bonds and stressed / distressed corporate debt. The firm invests capital for bank, insurance company, foundation, fund of hedge fund and high-net-worth investors, and its products include separate accounts and closed-end funds. Onex Credit is an SEC Registered Investment Advisor and registered in the Canadian province of Ontario as a Portfolio Manager, in the provinces of Ontario, Quebec and Newfoundland and Labrador as an Investment Fund Manager, and in all the provinces and territories of Canada as an Exempt Market Dealer.
The Onex Credit team has over 30 full-time professionals with an average of about 20 years of experience that has generated attractive absolute and risk-adjusted returns that compare favorably with returns and volatility of benchmark indices including the Debt Opportunity Strategy’s 15-year track record.
As of March 31, 2016, the firm managed approximately $6.5 billion through several debt strategies. Upon closing of CLO-11, which priced in April, Onex Credit will manage approximately $7 billion. Each strategy has a differentiated return/risk objective and portfolio construction, as well as a focus on more actively traded positions through market cycles. These strategies are:
- Debt Opportunity Strategy: Opportunistic and event-driven focus on senior debt of companies that exhibit stress or are distressed, investing both long and short without the use of leverage.
- Credit Strategy Fund (OCS.UN): Closed-end Canadian retail fund listed on the TSX that follows a similar strategy to the Debt Opportunity Strategy.
- Senior Credit Strategy: Focused primarily on performing first-lien loans, with moderate exposure to event-driven situations, and utilizing modest leverage to enhance returns.
- Senior Credit Fund (OSL.UN): Closed-end Canadian retail fund listed on the TSX focused primarily on first-lien floating rate senior secured loans of non-investment grade North American issuers utilizing modest leverage.
- Senior Floating Income Strategy: Focused solely on performing first-lien loans with no exposure to stress/distressed situations and without the use of leverage.
- Collateralized Loan Obligation: Leveraged structured vehicle that holds a widely diversified collateral asset portfolio that is funded through the issuance of long-term debt in a series of rated tranches of secured notes and equity.