Onex (ONEX) Q4 2024 earnings summary

Executive summary

• Investing capital per share increased 6% year-over-year to $113.70 (C$163.54), with a five-year CAGR of 13%.

• Private equity and credit platforms delivered solid performance, with private equity portfolio up 5% for the year and credit portfolio returning 9% in 2024.

• Over $3 billion of capital was returned to limited partners, including $1 billion to the company, more than double the prior year.

• Repurchased 5.7 million shares in 2024, reducing shares outstanding by 28% over five years; strong liquidity of $1.6 billion.

• $8.3 billion in investing capital and $35.2 billion in fee-generating assets under management at year-end.

Financial highlights

• Net earnings for 2024 were $303 million, with Q4 net earnings of ($2) million; diluted EPS for 2024 was $4.00.

• Distributable earnings reached $617 million for 2024, with $231 million in Q4.

• Fee-generating AUM grew 4% year-over-year to $35.2 billion, with structured credit FGAUM up 34%.

• Credit investments delivered a $16 million net gain (2% return) in Q4 and 9% for the year.

• Asset management fee-related earnings were $6 million in Q4 and $44 million from structured credit for the year.

Outlook and guidance

• Strong liquidity position of $1.6 billion supports continued share buybacks and investment in priority areas.

• Expecting continued strong FRE growth from credit in 2025, with run rate FRE targeted at $55 million.

• PE business FRE expected to be slightly positive in 2025, with some headwinds from realizations.

• Most new incremental capital in 2025 expected from the credit business.

• Final close for ONCAP V expected at end of Q1 2025.