Onex has raised $1.6bn for a continuation fund that allows the firm to retain three portfolio companies as it prepares to return to the fundraising market, according to a report by Bloomberg citing people familiar with the matter.
The transaction transfers PowerSchool, Sedgwick, and Fidelity Building Services Group from older Onex funds into the new vehicle. The continuation fund is backed by Neuberger Berman, Apollo Global Management’s S3 unit, Singapore’s GIC, and StepStone Group. Jefferies acted as adviser on the deal.
The fundraise comes as Onex Partners prepares to relaunch its sixth flagship fund later this year, targeting $3bn, after abandoning plans to raise $8bn in 2023. The firm has reportedly paid more than $3bn in distributions to investors over the past 12 months.
The Toronto-based firm is refocusing its private equity strategy under Chief Executive Bobby Le Blanc, who took over in 2023. The firm is concentrating on aerospace, insurance and business services, and has previously used a continuation fund, with a $600m single-asset vehicle raised in 2023 for tax and software group Ryan LLC.
