Onex Seeks $1 Billion to Extend OneDigital Stake via Continuation Fund
Canadian private equity firm Onex Partners is aiming to raise approximately $1 billion through a single-asset continuation fund to maintain its minority ownership in OneDigital, an insurance brokerage and employer adviser. This strategic move allows Onex to extend its investment horizon in the asset despite having sold a majority stake to Stone Point Capital and the Canada Pension Plan Investment Board last year in a transaction valuing OneDigital at over $7 billion. Evercore Inc. is reportedly advising Onex on this deal. The initiative reflects a broader trend in the private equity sector, where firms are increasingly utilizing the booming secondaries market to manage portfolios amidst higher interest rates and economic uncertainty. Continuation vehicles enable asset managers to raise fresh capital from new investors while providing liquidity to existing partners. This follows Onex's recent success in raising $1.6 billion for a multi-asset continuation fund. The strategy aligns with CEO Bobby Le Blanc’s efforts to reshape the firm’s image by focusing more heavily on the insurance sector.
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Onex Seeks $1 Billion to Extend OneDigital Stake via Continuation Fund
Canadian private equity firm Onex Partners is aiming to raise approximately $1 billion through a single-asset continuation fund to maintain its minority ownership in OneDigital, an insurance brokerage and employer adviser. This strategic move allows Onex to extend its investment horizon in the asset despite having sold a majority stake to Stone Point Capital and the Canada Pension Plan Investment Board last year in a transaction valuing OneDigital at over $7 billion. Evercore Inc. is reportedly advising Onex on this deal. The initiative reflects a broader trend in the private equity sector, where firms are increasingly utilizing the booming secondaries market to manage portfolios amidst higher interest rates and economic uncertainty. Continuation vehicles enable asset managers to raise fresh capital from new investors while providing liquidity to existing partners. This follows Onex's recent success in raising $1.6 billion for a multi-asset continuation fund. The strategy aligns with CEO Bobby Le Blanc’s efforts to reshape the firm’s image by focusing more heavily on the insurance sector.
Financial Post