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Investing / Private Equity / Onex Partners / The Warranty Group text size [+][]
The Warranty Group
Industry: Insurance Provider
Investment date: November 2006
Acquired by: Onex Partners I, Onex Partners II
Investment: $498 million(1) /
$157 million from Onex
Status: Realized
Value Realized: $1.5 billion / $509 million
Gross IRR: 19%
Head office: Chicago, Illinois
(1) The investment is split almost equally between Onex Partners I and Onex Partners II.

The Warranty Group, Inc. was one of the world’s largest integrated underwriter and administrator of extended warranties on a wide variety of consumer goods, including automobiles, consumer electronics, medical devices, fitness equipment, power tools, appliances and home systems. The Warranty Group also provides credit insurance and other specialty insurance products. It operates with over 1,800 employees and with operations and offices in 30 countries. The Warranty Group was formerly a division of Aon Corporation.

Over the course of the eight-year investment, the Onex Group has received aggregate proceeds of $1.5 billion, resulting in a multiple of capital invested of approximately 3.1 times and a gross IRR of 19%.  Onex' share of the cumulative proceeds was $509 million, including carried interest of $51 million compared to its original investment of $157 million.