Onex : Credit Acquires Falcon Investment Advisors; Combined Platform Provides a Comprehensive Suite of Liquid and Private Credit Solutions
December 31, 2020 at 04:27 am EST
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Onex Corporation ('Onex') (TSX: ONEX) today announced that it has acquired Falcon Investment Advisors, LLC ('Falcon'), a leading U.S. private credit manager, to expand its established credit platform and solidify its market position in tradeable, opportunistic and private credit.
Falcon provides private credit financing solutions and has US$3.8 billion of assets under management as of September 30, 2020.
It employs an opportunistic approach to mezzanine and other direct lending investments for U.S. middle market companies. With this transaction, Onex Credit will have over $16 billion of alternative credit assets under management. Falcon complements Onex Credit with a seasoned investment team, exceptional sourcing capabilities, strong fundraising and performance track record, and a long-standing institutional client base. The combined platform merges Falcon's specialized private credit investing with the scale, global distribution and diverse investment and origination capabilities of Onex Credit and the broader Onex franchise. Falcon's senior management team and employees are all joining the new platform within Onex Credit, called 'Onex Falcon'. Current members of the Falcon investment team will continue to be responsible for the investments of existing and future funds, with the support of the Onex Credit platform and team. 'Falcon's experienced team has a long track record of delivering strong returns,' said Jason New, Co-CEO of Onex Credit. 'Sandeep Alva and his leadership and investment teams are fieldand cycle-tested. We have created a differentiated and scalable private credit platform to compete with the best in our markets.' Mr. Alva, Founder and Managing Partner of Falcon, said, 'Over the last 20 years, we have earned our reputation as a creative, flexible credit manager in the U.S. middle market. Onex greatly enhances Falcon's ability to develop a wider range of private credit portfolios, and thus fully leverage Falcon's origination and deal structuring resources.' 'We look forward to building upon our existing alternative credit investment capabilities alongside such high-caliber partners,' added Blair Fleming, Managing Director at Onex Credit. Mr. Fleming and several core members of the Onex private credit investment team are joining the Onex Falcon platform as the company looks to lever the strengths of each organization. Mr. Alva and Mr. Fleming will be Co-Business Heads reporting to Mr. New. Together, they will drive execution and strategy for the combined team.
About Onex Credit
Established in 2007, Onex Credit has grown its assets under management from approximately $300 million to over $16 billion, including the acquisition of Falcon. With offices in New York, New Jersey and London, Onex Credit's business is focused on non-investment grade credit markets including leveraged loans, CLO, direct lending, high yield, and opportunistic investing strategies.
Forward-Looking Statements This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as 'believes', 'expects', 'potential', 'anticipates', 'estimates', 'intends', 'plans' and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.
Onex Corporation, together with its subsidiaries, manages and invests capital in its private equity funds, private credit strategies and liquid strategies on behalf of shareholders, institutional investors, and high net worth clients. The Company operates in two segments: Investing and Asset management. Investing segment and Asset management. Investing segment engaged in the activity of investing Onexâ capital. Asset management segment comprises the asset management activities provided by Company to support its private equity and credit strategies, as well as its corporate functions. Its two primary businesses are Private Equity and Credit. In Private Equity, it raises funds from third-party investors, or limited partners, and invests them, along with its own investing capital, through the funds of its private equity platforms, Onex Partners and ONCAP. In Credit, it raises and invests capital across several private credit, public credit, and public equity strategies.
ONEX CORPORATION 
