Onex raises $5.72bn for fifth fund after four months

unquote" team
15 August 2017

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Canada-based GP Onex has raised $5.72bn for its latest vehicle, Onex Partners V, after just four months on the road, according to publicly available documents.

The vehicle, which has a target of $6.5bn, was launched in April 2017 and held a first close on $5.2bn in July.

According to unquote" data, the fund will have management fees equalling 1.75% of total commitments up to $3bn and 1.5% of total commitments in excess of $3bn during the investment period. Following the investment period, the management fee will be 1% of net invested capital. It will also charge 20% in carried interest above an 8% hurdle.

Investors including the New Jersey Division of Investment, Public Employees Retirement Association of New Mexico and Texas County and District Retirement System have backed the fund, according to data from unquote" sister publication Mergermarket. The GP itself has committed $2bn to the fund, according to unquote" data.

Onex Partners V will primarily invest in North America with some exposure to the western European market. Its European investments will primarily focus on the consumer, supply chain management, logistics, aerospace, defence, industrial, business services, financial services, chemicals and healthcare sectors. In December 2016, the firm acquired UK holiday park operator Parkdean Resorts from Epiris and Alchemy Partners for £1.35bn, in a deal valuing the company at around 12.5x its 2015 EBITDA.

In total, 75% of the portfolio is expected to be allocated to buyout investments and the average transaction size will be between $200-750m, according to unquote" data.

For a detailed profile of Onex's funds, including LPs for its fifth vehicle, visit the dedicated page on unquote" data.