Credit

Onex Credit manages non-investment grade debt through its collateralized loan obligation, debt opportunity, direct lending, high yield, senior credit and senior floating credit strategies that invest across a broad range of non-investment grade debt products.

At September 30, 2017, the platform managed approximately $8.6 billion of assets across its various strategies, of which approximately $810 million is Onex capital.

 

Strategies

Our strategies include investments in leveraged loans and senior secured and unsecured high-yield bonds. Across the firm, we invest in a diversified portfolio of credits in various sectors and parts of the capital structure. We offer multiple strategies with varying degrees of risk and reward for our investor base.

Leveraged Loans

  • COLLATERALIZED LOAN OBLIGATIONS

    Collateralized Loan Obligations (CLO) are leveraged structured vehicles that hold a widely diversified asset portfolio funded through the issuance of long-term debt in a series of rated tranches of secured notes and equity. The CLO platform was launched in 2012 and has issued sixteen CLOs to date.

  • DIRECT LENDING PLATFORM

    The platform, which was announced in April 2016, will focus on providing credit to middle-market and larger private equity and corporate borrowers predominantly in the U.S., and selectively in Canada and Europe. The strategy invests the majority of its capital in senior secured loans of companies primarily in less cyclical and less capital intensive industries, with a focus on capital preservation. This platform employs a buy-and-hold approach to investing, with a goal of owning a diversified pool of investments. The credit lending platform is a natural extension of Onex Credit’s business and leverages the firm’s infrastructure and knowledge of the loan market.

  • SENIOR FLOATING INCOME STRATEGY

    Senior Floating Income Strategy is a long-only, unlevered strategy, focused on first-lien, senior secured loans.

  • SENIOR CREDIT STRATEGY

    Senior Credit Strategy is a long-only strategy, focused primarily on first-lien, senior secured loans employing low to no leverage.

Opportunistic Investments
High-Yield Bonds

  • DEBT OPPORTUNITY STRATEGY

    Debt Opportunity Strategy (DOS) has a track record dating back to 2001. The strategy invests on an unlevered basis primarily in non-investment grade companies with opportunistic and event-driven return potential. Through active portfolio management, DOS targets debt of companies the market perceives will exhibit stress, are distressed or we believe are mispriced due to market dislocations.

    The strategy looks for events or catalysts to drive value, and to invest in opportunities where Onex Credit believes the markets have mispriced an anticipated event or overreacted to company or sector-specific news, often creating market inefficiencies.

  • High Yield Strategy

    The High Yield Strategy (TSX: FAO) is a TSX-listed exchange-traded fund with an actively managed portfolio consisting of high-yield bonds and senior secured loans. The fund seeks to maximize long-term risk-adjusted total returns, delivered through cash distributions and capital appreciation, in a manner consistent with preservation of capital and prudent risk management by actively investing in fixed income securities.

 

Competitive Advantages

With a disciplined approach to investing and a focus on capital preservation, Onex Credit has earned investor confidence and grown rapidly. Our Credit platform benefits from a deep and seasoned team with experience investing across multiple market cycles and economic environments. As well, Onex Credit has access to vast industry expertise among Onex’ private equity professionals and enjoys a sharing of knowledge and experience between the two investment teams.

In addition, Onex Credit benefits from being part of a well-capitalized sponsor. Onex and the team are well-aligned as significant investors in its credit strategies.