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Onex sees record realizations in 2014

The firm is also drawing management fees on Onex Partners IV, according to its latest annual report

Toronto-based Onex Corporation saw a record number of realizations in 2014, according to the firm's latest annual report. The firm saw $6.1 billion in total proceeds for the year, Onex' share was $2.0 billion, including $171 million of carried interest.

The firm's latest vehicle – Onex Partners IV is also generating management fees, adding to overall assets under management. The fund closed on $5.2 billion in May, including a $1.2 billion commitment from Onex, beating the $4.2 billion target.  On top of that, Onex plans to increase its commitment to Onex Partners IV by $500 million to $1.7 billion. The increase will be effective in June 2015, bringing the fund size to $5.7 billion.

Onex has approximately $5 billion in dry powder from investors on hand, the report said.

“Having successfully built several of our businesses, we took advantage of ideal market conditions for realizing gains in 2014,” said Gerry Schwartz, chairman and chief executive officer of Onex. “While difficult, we also managed to find some unique investing opportunities late in the year as markets cooled.”

Those investing opportunities included York Risk Services Group, Mavis Discount Tire and Advanced Integration Technology, for a combined equity investment of $827 million. Two others – SIG Combibloc Group and Survitec Group, are expected to close in the first half of this year.  

In addition, Reuters reported late yesterday that Onex is exploring the sale of Sitel Worldwide Corp which could be the latest entrant into the billion-dollar valuation club. Sitel provides call center operations. Onex is working with Goldman Sachs on the exit. Onex took Sitel private in 2007 for $400 million.