ONCAP, the mid-market private equity arm of Onex Corp, has secured almost $1.5 billion (US$1.1 billion) in the close of its fourth fund. ONCAP IV, raised in just over two months in a single closing, according to Onex Chairman and CEO Gerry Schwartz, took 83 percent more than its predecessor (2011). Led by Managing Partner Michael Lay, ONCAP has invested in 21 companies its 16-year history, and generated a gross return of 43 percent and a gross multiple of 5.2 times capital invested from realized and substantially realized investments. PE Hub Canada earlier this year reported about the launch of ONCAP IV, as well as the firm’s most recent platform investment, Tecta America.
Photo: Michael Lay, managing partner of ONCAP.
ONCAP Raises $1.1 Billion for ONCAP IV
Toronto, November 8, 2016 – Onex Corporation (“Onex”) (TSX: ONEX) today announced that ONCAP, its mid-market private equity platform, has raised $1.1 billion for ONCAP IV, its latest middle-market private equity fund. The firm had significant demand from both existing and new investors.
“Our team-based approach to investing and our strategy to partner with outstanding management teams has enabled us to build great companies and generate attractive returns,” said Michael Lay, Managing Partner of ONCAP. “We look forward to continuing to pursue this strategy for ONCAP IV and would like to thank our investors for their confidence in our team.”
“ONCAP has an enviable track record by any measure,” said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. “We are proud of the team’s success and the obvious investor support given ONCAP IV was raised in just over two months with a single closing.”
In its 16-year history, ONCAP has generated a gross IRR of 43% and a gross multiple of 5.2 times capital invested from realized and substantially realized investments. ONCAP has invested in 21 platform companies and completed more than 110 add-on acquisitions.
In addition to a meaningful commitment from the ONCAP and Onex teams, Onex is the largest LP in ONCAP IV with a $480 million commitment.
Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company had approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests alongside its fund investors and is the largest limited partner in each of its private equity funds.
Onex’ businesses had assets of $36 billion, generated annual revenues of $23 billion and employed approximately 145,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.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 forwardlooking 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.
For further information:
Director, Investor Relations
Photo courtesy of ONCAP