Onex seals US$1.6 billion continuation fund as it eyes expansion
Singapore’s GIC, Neuberger Berman, Apollo Global Management’s S3 and and StepStone Group are backing the fund
[NEW YORK] Onex collected US$1.6 billion for a deal that will let it hold on to three assets for longer as the firm prepares for its next round of fundraising.
Neuberger Berman, Apollo Global Management’s S3, Singapore’s GIC and StepStone Group are backing the so-called continuation fund, according to people with knowledge of the matter.
The deal shifts education technology company PowerSchool, insurance claims administrator Sedgwick and Fidelity Building Services Group out of older Onex funds and into the new vehicle, said the people, who asked not to be identified discussing private details.
Onex received approvals from limited partners for the manoeuvre, the people said. Jefferies Financial Group advised on the deal, they said.
Onex, StepStone and GIC did not respond to requests for comment. Neuberger Berman, Apollo and Jefferies declined to comment.
Toronto-based Onex is undergoing a period of change under the leadership of chief executive officer Bobby Le Blanc after founder Gerry Schwartz stepped down from the top spot in 2023.
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Onex is refocusing on its core areas of expertise – aerospace, insurance and business services – after its attempts to expand into other industries weighed on performance, the people said. The firm halted plans to raise US$8 billion for its sixth flagship fund in 2023.
Under private equity head Tawfiq Popatia, Onex is preparing to re-launch its sixth flagship fund this year and plans to collect US$3 billion for the vehicle, the people added.
Onex has paid out more than US$3 billion in distributions to investors in the last 12 months, the people said.
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Onex has used a continuation fund in the past. In 2023, it moved tax services and software firm Ryan LLC to a single-asset continuation vehicle and gathered about US$600 million to back it. BLOOMBERG
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