Q3 2025 Onex Corp Earnings Call Transcript
Key Points
- Onex Corp (ONEXF) announced a transformational acquisition of Convex, which is expected to enhance long-term shareholder value.
- The company has formed a new strategic relationship with AIG, which includes a $2 billion commitment to Onex's private equity and credit funds, contributing an incremental $15 million to $20 million of fee-related earnings.
- Convex has demonstrated strong growth, with gross written premium increasing by 22% annually since 2022 and profitability improving steadily.
- Onex's credit segment continues to outperform expectations, with 22 CLO transactions priced through October, raising or extending $10.7 billion of fee-generating assets.
- The asset management segment generated earnings of $20 million in Q3, with private equity and credit increasing by approximately 22% and 18%, respectively, during the year.
- Onex's PE portfolio experienced mixed results, with gains mostly offset by losses in Onex Partners IV.
- The company's five-year CAGR on investing capital per share is 13%, which is below their target range.
- Onex's funding for the Convex acquisition could be affected by further PE realization and investment activities, creating uncertainty around liquidity.
- The acquisition of Convex will account for 42% of Onex's balance sheet, which could increase exposure to market cyclicality.
- Despite positive developments, Onex's total firm-wide fee-related earnings (FRE) was only $1 million for the quarter and year-to-date, indicating room for improvement.
Welcome to Onex's third quarter 2025 conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the conference over to Jill Homenuk, Managing Director, 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' Chief Executive Officer; and Chris Govan, our Chief Financial Officer.
Earlier this morning, we issued our third quarter 2025 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. Our supplemental information package is also available on our website.
As a reminder, all references to dollar amounts on this call are in U.S., unless otherwise stated. I must also point everyone to our webcast presentation for our usual
| 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
