Q4 2024 Onex Corp Earnings Call Transcript
Key Points
- Onex Corp (ONEXF) had a solid fourth quarter, with significant progress across all platforms, particularly in private equity and credit.
- The private equity team successfully raised $1.5 billion in 2024 and returned over $3 billion of capital to investors, showcasing strong performance.
- The credit platform outperformed expectations, ranking as the number 7 issuer of global broadly syndicated CLOs and executing 30 transactions in 2024.
- Onex Corp (ONEXF) completed a substantial issuer bid, buying back 2.3 million shares, which is seen as a positive statement for shareholders.
- The company ended the year with strong liquidity, maintaining about $1.6 billion or 19% of investing capital, positioning it well for future opportunities.
- The US dollar return was below target for the year, although the five-year compound annual return was 13%.
- Returns in the private equity portfolio were impacted by unfavorable foreign exchange, resulting in a mark-to-market loss of about $60 million.
- Some healthcare and consumer companies within the portfolio faced challenging results, affecting overall returns.
- Onex Corp (ONEXF) reported a modest fee-related earnings (FRE) loss of $1 million for Q4, with some decline in existing management fees expected over the course of the year.
- The company does not expect to reach its goal of a breakeven run rate contribution for its PE platforms and public company costs in 2025.
Thank you for standing by, and welcome to Onex fourth quarter earnings results conference call. (Operator Instructions). As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Jill Homenuk, Shareholder Relations and Communications at Onex. Please go ahead.
Thank you. Good morning, everyone, and thanks for joining us. We're broadcasting this call on our website. Hosting the call today are Bobby Le Blanc, Onex's Chief Executive Officer; and Chris Govan, our Chief Financial Officer.
Earlier this morning, we issued our fourth quarter and full year 2024 press release, MD&A and consolidated financial statements, which are available on the Shareholders section of our website and have also been filed on SEDAR. A -- our supplemental information package is also available on our website.
As a reminder, all references to dollar amounts on this call are in US, unless otherwise stated. I
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
