Onex (ONEX) Q3 2024 earnings summary

Executive summary

• Achieved solid Q3 performance with growth in investing capital per share, successful investment activity, and progress in fundraising and realizations across core areas.

• Launched a substantial issuer bid to repurchase up to C$400 million of Subordinate Voting Shares, leveraging strong liquidity and reflecting confidence in share value.

• Investing capital per share reached $113.37 (C$153.04), up 3% in Q3 and 9% over the last 12 months; five-year CAGR of 14%.

• Fee-generating assets under management totaled $34.1 billion, with $2.1 billion raised in Q3 and structured credit FGAUM up 22% year-to-date.

• Strategic capital allocation and disciplined resource deployment remain top priorities.

Financial highlights

• Q3 2024 net earnings were $127 million, up from $10 million in Q3 2023; diluted EPS was $1.68.

• Investing capital at quarter-end was $8.47 billion, with investing capital per share up 9% year-over-year.

• Distributable earnings for Q3 were $267 million, up from $45 million in Q3 2023.

• Private equity portfolio generated a $96 million net gain (2% return) in Q3; credit investments delivered a $29 million net gain (3% return).

• Cash and near-cash position stood at $1.6 billion to $1.8 billion, representing up to 22% of investing capital.

Outlook and guidance

• CLO market outlook remains strong, with expectations to remain a top 10 global issuer and continued fundraising momentum.

• Private equity fundraising for ONCAP V and Opportunities Fund to conclude by January, both exceeding $1 billion in commitments.

• Focus remains on disciplined expense management, value creation, and long-term compounding of investing capital.