Onex has the potential to earn considerable carried interest from the third-party capital invested through its Funds. At June 30, 2011, there was approximately $20 million of unrealized carried interest allocable to Onex based on the public companies held at market value in Onex Partners I. In addition, Onex has the potential to earn a further $81 million of carried interest on its private businesses in the Onex Partners Funds based on the fair values determined at June 30, 2011. Ultimately, the carried interest received will depend upon the performance of each of the remaining operating companies and of each Fund as a whole.
The table below summarizes the potential gross carried interest
(1) that Onex would earn on both invested capital and on uncalled committed capital. The potential carried interest is presented for compound returns ranging from 15% to Onex' historical compound return on realized and publicly traded investments of 29%.
As at June 30, 2011
($ in millions) |
Invested(2)
|
Uncalled Capital(3)
|
Total
|
| 15% |
$308 |
$260 |
$568 |
| 20% |
$403 |
$382 |
$785 |
| 25% |
$511 |
$527 |
$1,038 |
| 29% |
$608 |
$661 |
$1,269 |
(1) Actual carried interest distributions paid to Onex in respect of third-party ONCAP investors are reduced by amounts payable to the ONCAP management team in respect of gains on Onex capital invested through ONCAP.
(2) Based on a holding period of up to five years.
(3) Based on a holding period of five years.