Onex Corp. has decided to offload its majority stake in Falcon Investment Advisors, a private credit firm it acquired less than four years ago. This move aligns with the Canadian asset manager’s strategy to cut costs and streamline operations under new CEO Bobby Le Blanc.
Under the new arrangement, Falcon will operate as an independent entity with its managing partners holding 80% of the firm. Onex will retain a 20% stake and maintain future carried interest participation. The decision to separate was driven by a lack of expected synergies and the misalignment of Falcon’s mezzanine debt business with Onex’s broader credit platform.
Onex had initially purchased Falcon in December 2020 to enhance its credit capabilities. However, the integration did not achieve the anticipated benefits. The separation has led to a reduction in Onex Credit’s assets under management by approximately $3 billion, leaving it with around $22 billion.
Additionally, Onex announced the successful fundraising of $820 million for its new short-term buyout fund, Onex Partners Opportunities Fund, with $400 million coming from the company itself. Despite this, Onex’s shares fell 0.3% to C$87.64 in Toronto, marking the eighth consecutive day of decline.
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