Return on Invested Capital
For more than 30 years, Onex' private equity investing has produced exceptional returns.
|As at |
June 30, 2016
($ in millions)
Total Realized and Unrealized Value(2)
Gross MOC Invested(3)
1984 - 2003
|$1,973 ||$4,858 ||2.5x ||27% ||N/A ||N/A |
2003 - 2006
|$1,472 ||$5,704 ||3.9x ||55% ||3.0x ||38% |
2006 - 2008
|$2,938 ||$7,088 ||2.4x ||18% ||2.0x ||14% |
2008 - 2014
|$4,223 ||$7,903 ||1.9x ||20% ||1.6x ||13% |
2014 - present
|$1,684 ||$1,929 ||1.1x ||12% ||1.0x ||0% |
|ONCAP I |
1999 - 2005
|$208 ||$851 ||4.1x ||43% ||3.1x ||33% |
|ONCAP II |
2005 - 2011
|$483 ||$1,798 ||3.7x ||30% ||2.6x ||22% |
|ONCAP III |
2011 - present
|$556 ||$1,138 ||2.0x ||28% ||1.6x ||18% |
All amounts denominated in currencies other than the operating currency of the Fund have been converted to the operating currency at the rate of exchange prevailing either in the month or the day the transaction took place. Unrealized Values of ONCAP investments denominated in U.S. dollars have been converted into Canadian dollars based on the June 30, 2016 exchange rate of U.S.$1.00 = C$1.2917. Unrealized Values denominated in euros and pounds sterling have been converted into U.S. dollars based on the June 30, 2016 exchange rate of €0.9013 = U.S.$1.00 and £0.7511 = U.S. $1.00, respectively. Foreign currency hedging gains and losses are excluded from the gross performance of the investments .
(1) Onex Capital Invested consists of amounts invested by Onex Corporation, the Fund and management of Onex and ONCAP.
(2) Realized Proceeds represent the sum of the net cash proceeds to Onex generated from dispositions, dividends and interest, without deducting taxes paid, interest on exchangeable debentures or compensation (including amounts paid to management pursuant to certain incentive compensation plans) paid by Onex, and are recorded on the dates of receipt. Realized Proceeds exclude carried interest, management fees and transaction fees earned by Onex Corporation.
Unrealized Value for non-public investments is fair value, which is initially based upon transaction price. Valuations are reviewed periodically utilizing available market data to determine if the Unrealized Value of these investments should be adjusted. Valuation methodologies include discounted cash flows and observations of the trading multiples of public companies considered comparable to the private companies being valued. The valuations take into consideration company-specific items, the lack of liquidity inherent in a non-public investment and the fact that comparable public companies are not identical to the companies being valued. Company-specific items are considered because, in the absence of a committed buyer and completion of due diligence procedures, there may be company-specific items that are not fully known that may affect value. A variety of additional factors are reviewed by management, including, but not limited to, financing and sales transactions with third parties, current operating performance and future expectations of the particular investment, changes in market outlook and the third-party financing environment. In determining changes to the fair value of investments, emphasis is placed on current company performance and market conditions.
For all publicly traded investments, Unrealized Value is based on the closing market prices as of June 30, 2016 less adjustments, if any, for regulatory and contractual sale restrictions.
There can be no assurance that the value of these unrealized investments will not decline. Actual realized returns on unrealized investments will depend on various factors, including future operating results, market conditions at the time of disposition (if any), all of which may differ from the assumptions and circumstances on which the current unrealized valuations are based. Accordingly, the actual realized returns (if any) on unrealized investments may differ materially from the returns indicated herein.
(3) Gross Multiple of Capital Invested is the ratio of Total Realized and Unrealized Value to Onex Capital Invested and excludes performance fees, management fees and transaction fees earned by Onex Corporation.
(4) Gross IRR is the compound annual internal rates of return, calculated on the basis of the actual timing of cash inflows and outflows, aggregated monthly, presented net of all investment-related expenses, and the Unrealized Value at June 30, 2016, and before carried interest, management fees and expenses, all of which in the aggregate, may be substantial.
(5) Net Multiple of Capital Invested shows the multiple of capital invested for third-party limited partners subject to carried interest and managment fees after the payment of carried interest, management fees and expenses. The calculation of Net Multiple of Capital Invested is based on cash inflows and outflows at the Fund level, and the unrealized value of net assets at June 30, 2016, and is not calculable for individual investments within each Fund.
(6) Net IRR is the return earned by third-party Limited Partners subject to carried interest and management fees in the Funds after payment of carried interest, management fees and expenses.