Onex Corporation, the Canadian private equity firm listed on the Toronto Stock Exchange, has set a target of $4.5 billion for its latest fund, Onex Partners IV.
As a limited partner it the fund, Onex will commit $1.2 billion to Fund IV, the same amount it committed to Onex’s $4.7 billion Fund III. A 2009 vintage fund, Onex Partners III is nearly 90 percent invested and was generating a 1.1x return multiple and 4 percent net IRR as of 31 March, 2013, according to Onex’s website. The fund has eight existing portfolio companies.
Onex’s mid-market investing division ONCAP is investing its C$800 million (€576 million; $771 million) Fund III, of which C$252 million came from Onex.
“Including realisations and distributions of approximately $500 million, the value of Onex’s interest in Onex Partners’ and ONCAP’s private investments grew by 20 percent and 16 percent, respectively, in the six months ended June 30, 2013,” the firm said in a statement.
Onex announced its first acquisition of 2013 in May, acquiring tradeshow operator Emerald Expositions, formerly Nielsen Expositions, from parent company Nielsen Holdings for $950 million. Onex invested about $350 million of equity from its Fund III, of which $85 million came from Onex’s own share as a limited partner in the fund.
As of 30 June, the value of Onex’s unrealised carried interest was approximately $56 million from its publicly traded companies and $88 million from its private businesses.
Recent exits from the firm include ONCAP’s sale of BSN Sports in June, generating a 4.2x return multiple and net proceeds of $103 million to Onex, according to a statement.
Onex acquired four businesses in 2012, investing $1.4 billion, of which Onex’s share was $457 million. The firm‘s largest transaction was the buyout of US insurance brokerage services company USI last November, a deal valued at $2.3 billion.
Onex has generated a 29-year gross IRR of 28 percent and an average multiple of 2.9x, according to the firm.
The Toronto-based firm manages private equity, real estate and credit securities investments, managing approximately $16 billion of which $11 billion is third-party capital.