TORONTO - Onex Corporation (TSX: ONEX) today announced its financial results for the first quarter ended March 31, 2022 and an update on matters following quarter-end.
'Onex had a solid start to the year. Our businesses continue to execute, and the fundamentals of our firm are strong. Despite a challenging backdrop, our portfolio is performing well, reflecting the diversification and resiliency of our investments overall,' said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. 'We remain focused on delivering on our plan to grow our asset management business and increase long-term value for shareholders.'
Onex' investing capital per fully diluted share grew 3% and 19%(6) in the three and twelve months ended March 31, 2022, respectively. As of March 31, 2022, Onex had approximately $8.2 billion of investing capital, or $92.94 (C$116.14) per fully diluted share(6).
During the first quarter of 2022, Onex' corporate investments generated a net gain of $82 million, which included a gross return of 2%(7) (2021 - 8%) on Onex' private equity investments.
Onex deployed approximately $230 million of capital through its private equity platforms during the first quarter, driven by the Onex Partners V investments in Resource Environmental Solutions and Tes Global and the ONCAP IV investment in Merrithew. In April, Onex deployed additional capital for the Onex Partners V investment in Analytic Partners.
Onex generated carried interest of $20 million in the first quarter of 2022 from its private equity and credit platforms, ending the quarter with total unrealized carried interest of $307 million.
As of March 31, 2022, Onex had third-party fee-generating assets under management ('FG AUM')(8) of approximately $33.7 billion, a 2% increase from December 31, 2021 and an increase of 8% over the last twelve months. Run-rate management fees(8) from this capital are $274 million.
Credit FG AUM, which includes private credit and public strategies, increased 3% in the quarter to $23.4 billion, largely driven by growth from the CLO platform.
Private Equity FG AUM increased 1% in the quarter to $10.3 billion, driven by a net gain on investments.
Onex had approximately $1.4 billion of cash and near-cash(9) as of March 31, 2022 (December 31, 2021 - $1.6 billion).
Onex repurchased 1,024,926 Subordinate Voting Shares in the first four months of 2022 for a total cost of $67 million (C$85 million), or at an average cost per share of $65.70 (C$82.90).
Onex is an investor and asset manager that invests capital on behalf of Onex shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Onex' two primary businesses are Private Equity and Credit. In Private Equity, we raise funds from third-party investors, or limited partners, and invest them, along with Onex' own investing capital, through the funds of our private equity platforms, Onex Partners and ONCAP. Similarly, in Credit, we raise and invest capital across several private credit, public credit and public equity strategies. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, insurance companies and family offices. In addition, through our private wealth platform, we service high net worth clients in Canada. In total, Onex has $49.2 billion in assets under management, of which $8.2 billion is Onex' own investing capital. With offices in Toronto, New York, New Jersey, Boston and London, Onex and its experienced management teams are collectively the largest investors across Onex' platforms.
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.
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