Private investment firm Onex is seeking to raise around $1bn for a single-asset continuation fund to extend its ownership horizon in insurance brokerage and benefits advisory firm OneDigital, according to a report by Bloomberg.
The Toronto-based investor, working with Evercore as adviser, is exploring the continuation vehicle as a way to maintain a minority stake in OneDigital following a partial exit last year. Onex had originally acquired a majority position in 2020 before selling down most of its holding in a transaction that valued the business at more than $7bn.
Continuation funds have become an increasingly prominent feature of private markets activity, driven by higher interest rates and a slower traditional exit environment, which has limited IPO and M&A opportunities. The structure allows private equity sponsors to transfer assets into new vehicles, raising fresh capital from incoming investors while providing liquidity to existing limited partners.
Industry data suggests continuation vehicles now account for the majority of secondaries activity, with single-asset structures representing a particularly active segment as managers seek to retain ownership of high-performing companies for longer periods.
Onex has been increasingly active in this segment. The firm recently closed a $1.6bn multi-asset continuation fund covering several holdings, including Fidelity Building Services Group and claims management business Sedgwick, as part of a broader strategy to optimise portfolio timing and returns.
The renewed focus on insurance-related assets also aligns with a strategic shift under CEO Bobby Le Blanc, who has positioned the sector as a core area of emphasis for the firm’s investment strategy.
