Onex Partners is seeking to raise US$1 billion to extend its minority ownership of insurance brokerage and employer adviser OneDigital, as more private asset firms tap the booming secondaries market.
Onex Seeks US$1 Billion for OneDigital Stake
Evercore Inc. is advising Onex on the single-asset continuation fund, according to people familiar with the matter, who asked not to be identified because the details are private. Representatives for Evercore and Onex did not respond to requests for comment.
Onex acquired a majority stake of OneDigital in 2020, selling most of it last year to Stone Point Capital and Canada Pension Plan Investment Board in a deal that valued the firm at more than US$7 billion.
Secondaries Market Boom
The secondaries market has boomed in recent years, as higher interest rates and economic uncertainty have kept private equity buyers on the sidelines. Last year, almost 90 per cent of secondaries volume led by private asset managers involved continuation vehicles, which let firms roll prized or hard-to-sell assets into new funds, according to Jefferies Financial Group Inc.
This strategy enables private asset firms to raise fresh capital from new investors and distribute cash to existing ones. While single-asset continuation vehicles accounted for the lion's share of such transactions last year, some firms, including Onex, roll multiple holdings into new funds.
Onex's Recent Continuation Fund
Last month, Onex said it had raised US$1.6 billion for a multi-asset continuation fund for three portfolio companies, including Fidelity Building Services Group, a major provider of HVAC and other building services, as well as claims management firm Sedgwick.
Toronto-based Onex has been leaning into insurance as chief executive Bobby Le Blanc works to reshape the firm's image.
