Key Takeaways
- • Onex has closed its second opportunistic structured credit fund at $500 million in capital commitments, targeting collateralized loan obligation (CLO) equity and debt investments globally.
- • The fund represents part of Onex's $32 billion credit business, which spans direct lending, CLOs, and other credit strategies across the firm's $56 billion in total assets under management.
- • Strong investor demand for the structured credit opportunities strategy reflects both the team's historical performance and market recognition of near-term credit opportunities, according to Ronnie Jaber, head of Onex Credit.
- • The capital raise underscores institutional appetite for opportunistic credit strategies at a time when credit market dislocations and potential defaults are expanding the deal pipeline for specialist managers.
Summary
Onex, the Toronto-based alternative asset manager, has successfully closed its Onex Structured Credit Opportunities Fund II at $500 million at final close, marking the second iteration of its opportunistic structured credit platform. The fund will deploy capital globally in CLO equity and debt tranches, targeting dislocations and opportunities within the structured credit markets.
The capital raise signals sustained institutional confidence in Onex's credit capabilities. Ronnie Jaber, head of Onex Credit, attributed the fund's strong fundraising to the team's demonstrated performance and differentiated investment approach, combined with favorable market conditions that continue to present opportunities in credit markets. The fund's successful close reflects broader institutional demand for specialized credit strategies from managers with proven execution track records.
The structured credit opportunities platform operates within a significantly larger credit franchise. Onex's $32 billion credit business encompasses multiple strategies including direct lending and CLO platforms, contributing to the firm's total $56 billion in assets under management across both equity and credit. This scale and diversification position the structured credit opportunities fund within a well-established infrastructure with substantial resources and deal-sourcing capabilities.
The timing of this fund close aligns with market conditions that have expanded opportunities in credit markets. Rising default rates and broader credit stress have created a larger pipeline of potential investments for opportunistic credit investors, driving institutional allocation to specialized managers capable of navigating complex structured credit environments.
The capital raise signals sustained institutional confidence in Onex's credit capabilities. Ronnie Jaber, head of Onex Credit, attributed the fund's strong fundraising to the team's demonstrated performance and differentiated investment approach, combined with favorable market conditions that continue to present opportunities in credit markets. The fund's successful close reflects broader institutional demand for specialized credit strategies from managers with proven execution track records.
The structured credit opportunities platform operates within a significantly larger credit franchise. Onex's $32 billion credit business encompasses multiple strategies including direct lending and CLO platforms, contributing to the firm's total $56 billion in assets under management across both equity and credit. This scale and diversification position the structured credit opportunities fund within a well-established infrastructure with substantial resources and deal-sourcing capabilities.
The timing of this fund close aligns with market conditions that have expanded opportunities in credit markets. Rising default rates and broader credit stress have created a larger pipeline of potential investments for opportunistic credit investors, driving institutional allocation to specialized managers capable of navigating complex structured credit environments.
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