Onex (ONEX) 2025 Scotiabank Financials Summit summary

Key strategic changes and organizational focus

• Refocused on areas with a proven right to compete, leading to business closures and asset sales for efficiency.

• Enhanced support function efficiency and prioritized key initiatives.

• Achieved strong fundraising across OP, OnCap, and Credit, with notable NAV growth.

• Increased transparency with KPIs and tied management compensation to performance.

• Added three new board members with relevant expertise for future growth.

Competitive advantages and business unit strengths

• Emphasizes a strong, investor-oriented culture built over decades.

• Focuses on mid-cap private equity, financial services, industrials (especially aerospace), and business services.

• Structured credit business (CLOs) has grown to a top global position, attracting external equity and improving ROE.

• OnCap and Credit units are scaling, with targeted sector focus to resonate with LPs.

Areas under evaluation and capital efficiency

• Aims to align business scale with cost structures and increase accountability for profitability.

• Structured credit is profitable; other credit products are nearing scale for accelerated earnings.

• Seeks to reduce capital intensity in asset management, lowering required balance sheet cash.

• Focused on closing the discount to NAV and improving market valuation of PE assets.