Credit

Onex Credit invests primarily in non-investment grade debt through its collateralized loan obligations, private debt and other credit strategies. We practise value-oriented investing, employing a bottom-up, fundamental and structural analysis of the underlying borrowers. We seek to generate strong risk-adjusted and absolute returns across market cycles.

At September 30, 2019, the platform managed approximately $11.7 billion of assets across its various strategies, of which approximately $720 million is Onex shareholder 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. Our credit platform runs a variety of strategies that offer a broad risk/return profile for our investor base.

Leveraged Loans

  • COLLATERALIZED LOAN OBLIGATIONS

    Collateralized Loan Obligations (“CLOs”) 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. Onex launched its CLO platform in 2012 and has issued 20 CLOs as of September 30, 2019, of which three have been substantially realized.

  • PRIVATE LENDING

    This fund provides a pool of committed capital for investments in senior secured loans and other loan investments in private equity sponsor-owned portfolio companies and, selectively, other corporate borrowers. Private lending 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.