Onex nears target for Fund IV

The Toronto-based firm has raised $3.6bn toward its $4.5bn target.

Onex Corporation has raised $3.65 billion for its Onex Partners Fund IV, according to documents filed with the US Securities and Exchange Commission Thursday.

Fund IV has a $4.5 billion target and had raised about $3.07 billion as of January. The fund received a $50 million commitment from The Texas County & District Retirement System and a $45 million commitment from The Public Employees Retirement Association of New Mexico, Private Equity International reported. Other limited partners in Fund IV include the Alaska Permanent Fund, the Los Angeles County Employees’ Retirement Association and the Massachusetts Pension Reserves Investment Management Board, according to PEI’s Research and Analytics division.

Fund IV will include a general partner commitment of about $1.2 billion. Onex made an equal-size GP-commitment to its prior fund, which closed on $4.7 billion, above its $3.5 billion target, in 2009.

Onex was unavailable for comment at press time.

Fund III has generated a 1.1x return multiple and a net internal rate of return of 8 percent, according to the firm’s website. The fund has invested about $3.6 billion in large-scale companies, including aircraft leasing and management company BBAM and tradeshow company Emerald Expositions.

Last month, Onex promoted David Hirsch and Tawfiq Popatia to managing director in its London and Toronto offices, respectively. Hirsch joined Onex in 2003 in Toronto and moved to London in 2012 to focus on European investments, while Popatia joined in 2007 and led the $165 million BBAM investment, PEI reported.

Toronto-based Onex also manages three ONCAP funds, which invest in medium-size North American companies with an enterprise value of up to $500 million. The firm also makes investments through its Onex Real Estate Partners and Onex Credit Partners platforms.