Onex Corp’s ONCAP raised a third fund, the TSX-listed investment firm, closed its third fund with $800 million Canadian committed. The fund will consist of $520 million in outside capital and $280 million that is being contributed from Onex. In June, ONCAP III completed its first transaction with the acquisition of Hopkins Manufacturing Corporation.
ONCAP Holds Final Close for $800 Million Fund
TORONTO, ONTARIO–(Sept. 29, 2011) -
All amounts in Canadian dollars unless otherwise stated
Onex Corporation (TSX:OCX) announced today the successful closing of ONCAP III, its third mid-market private equity fund. ONCAP raised $520 million of third-party capital, which exceeded its fundraising target and is an increase of 80% over the prior ONCAP fund. Onex has committed $280 million and continues to be ONCAP’s largest investor.
“We are delighted with the outcome of our fundraising efforts,” said Michael Lay, Managing Partner of ONCAP. “The support we have received from our longstanding partners and our new investors demonstrates great confidence in the ONCAP team.”
Consistent with ONCAP’s proven investment approach, this latest fund will seek to acquire small- and medium-sized businesses in Canada and the United States with equity investments of approximately $50 million to $100 million. To date, ONCAP has acquired 15 platform companies and completed 61 total acquisitions. It has earned a multiple of 4.3 times invested capital and a 43% gross rate of return on its realized investments.
“We are very proud of ONCAP’s performance, which has been consistently strong over many years,” commented Andrew Sheiner, a Managing Director of Onex. “ONCAP’s senior team, which has been together for more than a decade, remains focused on identifying attractive new opportunities with the support of the entire Onex organization.”
In June, ONCAP III completed its first transaction with the acquisition of Hopkins Manufacturing Corporation. Based in Kansas, Hopkins is a leading designer, manufacturer and marketer of proprietary branded products for the automotive aftermarket with a diverse range of more than 3,400 SKUs across seven primary product categories.
Onex is one of North America’s oldest and most successful investment firms committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, credit securities and real estate. In total, the company manages approximately US$14 billion, of which US$9 billion is third-party capital. As well, Onex invests its own capital directly and as a substantial limited partner in each of its Funds.
Onex’ businesses generate annual revenues of US$35 billion, have assets of US$39 billion and employ approximately 210,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website atwww.onex.com. The Company’s security filings can also be accessed at www.sedar.com.
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.