Onex has raised $5.72 billion for the buyout shop’s fifth flagship fund. The news comes after the publicly traded firm held an initial close of $5.2 billion for Onex Partners V in July as it pushes alongside its parallel vehicles toward a $6.5 billion target. Although the primary fund is being raised in New York, it would be the
largest buyout vehicle for a Canadian private equity firm since at least 2000, according to the PitchBook Platform.
The four largest PE funds raised by a Canadian PE firm all belong to Onex:
Founded in 1984 by CEO Gerry Schwartz, the firm traditionally makes buyout investments through its flagship vehicles in the B2B and financial services sectors.
The firm had an especially eventful 2Q, as it sold USI Insurance Services to KKR and Caisse de Depot et Placement du Quebec at an enterprise value of $4.3 billion in March, realizing a 3.4x multiple on the exit and earning a 34% IRR to go along with $563 million in net sale proceeds. The same month, the firm bought Parkdean Resorts, a UK operator of caravan vacation parks, for $1.65 billion.
In addition, Onex earned $135 million in net proceeds when it sold 15.7 million shares of window and door manufacturer JELD-WEN (NYSE: JELD) at $30.75 per share—up considerably from the company’s $23 per-share IPO price.