Onex (ONEX) Q3 2025 earnings summary

Executive summary

• Announced the acquisition of a majority interest in Convex Group Limited and a new strategic partnership with AIG, both expected to be transformational for long-term shareholder value and asset management profitability.

• AIG will commit $2 billion to private equity and credit strategies and take a 9.9% equity stake, supporting incremental fee-related earnings and new collaboration opportunities.

• Investing capital per share reached $121.61 at Q3 2025, up 7% year-to-date and 8% over the last twelve months, with a five-year CAGR of 13%.

• Leadership changes include Megan McClellan as incoming CFO and Tawfiq Popatia as Head of Onex Partners.

• Strategic shift toward a capital-light model, focusing on concentrated investments in areas of deep expertise.

Financial highlights

• Net earnings for Q3 2025 were $39 million, with LTM net earnings at $434 million and net earnings per diluted share of $0.57 for Q3 2025.

• Investing segment earnings for Q3 2025 were $50 million; Asset Management segment earnings were $20 million, including $11 million in fee-related earnings.

• Fee-generating AUM reached $42 billion, up 23% LTM, with PE and Credit AUM up 22% and 18% year-to-date, respectively.

• $360 million in proceeds from recent PE realizations, with most exits at or above prior quarter marks.

• Unrealized carried interest balance rose to $360 million, up $74 million since December 31, 2024.

Outlook and guidance

• Convex acquisition and AIG partnership expected to accelerate asset management profitability and balance sheet efficiency, with transaction closing in 1H 2026.

• Expect to exit 2025 with a positive firm-wide run rate FRE of approximately $17 million, with further upside from AIG and Convex allocations.

• FRE run rate expected to reach $4 million+ per quarter by Q2 2026 as new capital becomes fully fee-paying.

• Fundraising for OP6 targeted for mid-2026, with Onex aiming to commit up to 10% per fund, supporting a capital-light approach.

• Onex Partners Opportunities Fund to acquire Integrated Specialty Coverages, closing expected this year.