New Mexico commits $45m to Onex

The listed Toronto-based PE firm is targeting $4.5bn for its fourth fund. 

The Public Employees Retirement Association of New Mexico has approved a $45 million commitment to Onex Partners Fund IV, according to the agenda from the pension system’s board meeting Tuesday.

Canada-based Onex Corporation, a private equity firm listed on the Toronto Stock Exchange, set the fund's target at $4.5 billion. 

Earlier this year, the Maine Public Employees Retirement System committed $60 million to the fund.

Onex itself will invest about $1.2 billion to the fund. It made an equal-size general partner commitment to its prior fund, which closed on $4.7 billion, well above its $3.5 billion target, in 2009. PERA of New Mexico invested $25 million to Fund III in 2008.

Onex did not respond to a request for comment.

Onex has invested nearly $3.6 billion from its third fund, according it the firm’s website. The fund has generated a 1.1x return multiple and a net IRR of 7 percent. The fund’s nine large-scale portfolio companies include Tropicana Las Vegas Hotel and Casino and industrial products manufacturer Tomkins.

Onex also manages three ONCAP funds, which target medium-size North American private equity companies. The firm also invests in real estate and credit securities and manages about $16 billion of assets, of which $11 billion is third-party capital.

PERA of New Mexico had about $13 billion in assets under management as of 30 June. The system allocated $170 million for private equity investments this year, compared to the $140 million it allocated last year. The system’s recent commitments include $45 million to The Jordan Company’s Resolute Fund III in August and $35 million to Lime Rock Resources Fund III in July.