Onex (ONEX) Q3 2025 earnings summary

Executive summary

• Announced the acquisition of Convex and a strategic partnership with AIG, both expected to be transformational for long-term shareholder value and to accelerate asset management profitability and balance sheet efficiency.

• Convex has delivered strong growth and profitability, with a differentiated underwriting platform, no legacy liabilities, and a 25% CAGR in gross premium written and 18% average ROE over the last three years.

• AIG will commit $2 billion to private equity and credit funds, take a 9.9% equity stake, and open new collaboration opportunities.

• Strategic focus is shifting toward an asset-lighter model, with concentrated investments in areas of deep expertise and increased transparency.

• Leadership changes announced, with Megan McClellan to become CFO and Tawfiq Popatia confirmed as Head of Onex Partners.

Financial highlights

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

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

• Asset management segment generated $20 million in Q3 earnings, with $11 million from fee-related earnings; LTM asset management earnings were $99 million.

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

• 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 FRE run rate of approximately $17 million, before benefits from AIG's $2 billion allocation; incremental FRE from AIG's allocation estimated at $15–$20 million.

• FRE run rate expected to be fully realized by Q2 2026 as new capital becomes fee-paying.

• Fundraising for OP6 targeted for mid-2026, with Onex's commitment expected to be up to 10% per fund, reflecting a more capital-light approach.

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