Mr. Bobby Le Blanc reports

ONEX REPORTS FIRST QUARTER 2023 RESULTS

Onex Corp. has released its financial results for the first quarter ended March 31, 2023. On May 11, 2023, Bobby Le Blanc was appointed chief executive officer of Onex following shareholder approval of the MVS (multiple voting share) amendment proposal at the company's annual meeting.

All amounts are in United States dollars unless otherwise noted.

"We are moving forward with targeted initiatives to reinvigorate growth, drive positive outcomes for our partners and accelerate the value creation process," said Bobby Le Blanc, chief executive officer. "With nearly $8-billion of invested capital, a debt-free balance sheet and our entrepreneurial culture, we are well positioned to grow Onex's intrinsic value."

Fundraising

Onex has raised approximately $900-million in fee-generating capital across its credit and private equity platforms year-to-date. In April, 2023, Oncap V completed its second close, bringing total commitments to approximately $520-million, including $250-million from Onex.

As previously disclosed, current market conditions are contributing to lengthy and time-consuming fundraising processes for many private equity funds. Accordingly, the company has decided to pause fundraising for Onex Partners VI until the fundraising environment improves. Onex's other private equity and credit platforms are not impacted by this decision and continue to progress with their fundraising objectives.

"We are fortunate to have strong and diverse investment platforms across Onex," said Bobby Le Blanc. "The Onex Partners team will continue to focus on maximizing returns from its existing portfolio and investing capital in new opportunities."

Onex Partners V continues to perform strongly to date, with further upside potential through future growth, value creation and monetization opportunities. After closing out the investment period of Fund V, the team will continue to remain active creating value across the portfolio, and Onex will continue deploying capital across all its platforms, including Onex Partners.

Gluskin Sheff

In March, 2023, Onex announced its intention to wind-down the operations of Gluskin Sheff following an agreement with RBC Wealth Management Canada to expand distribution of Onex investment products through its network. In connection with the wind-down, a non-cash impairment charge of $171-million was recognized in the first quarter related to the write-down of property and equipment, goodwill, and intangible assets of Gluskin Sheff. A restructuring provision of $20-million was also recognized in the first quarter in connection with the planned transition and wind-down of the wealth management business.

Onex remains well positioned to expand the distribution of its unique alternative investment products in the private wealth channel, through its agreement with RBC Wealth Management and potential future partners.

Q1 highlights:

• Onex's investing capital per fully diluted share increased 4 per cent during the 12 months ended March 31, 2023, and decreased 1 per cent from Dec. 31, 2022. Onex had approximately $7.8-billion of investing capital, or $96.24 ($130.25 (Canadian)) per fully diluted share at March 31, 2023. In Canadian dollars, investing capital per fully diluted share increased 12 per cent during the 12 months ended March 31, 2023, reflecting the appreciation of the U.S. dollar.
• The value of Onex's private equity investments was essentially unchanged from the prior quarter (Q1 2022: 2-per-cent increase). Investments in credit strategies generated a net gain of $28-million, or a return of 4 per cent (Q1 2022: net loss of $13-million, or 2 per cent), which was primarily driven by an increase in the fair value of CLO (collateralized loan obligation) investments, consistent with a strengthening in the leveraged loan market.
• Carried interest declined by $53-million during the quarter, resulting in $220-million of unrealized carried interest at March 31, 2023, after also receiving $8-million of carried interest.
• Onex received $89-million in private equity distributions in the first quarter.
• As of March 31, 2023, Onex had $34.7-billion of third party fee-generating assets under management (FG AUM). Run-rate management fees from this capital were $260-million.
• Onex had approximately $1.1-billion of cash and near-cash as of March 31, 2023 (Dec. 31, 2022: $1.1-billion).

Webcast

Onex management will host a webcast to review Onex's first quarter 2023 results on Friday, May 12, 2023, at 11 a.m. ET. The webcast will be available in listen-only mode from the presentations and events section of Onex's website. A 90-day on-line replay will be available shortly following the completion of the event.

Additional information

The financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), including management's discussion and analysis of the results, are posted on Onex's website and are also available on SEDAR. A supplemental information package with additional information is available on Onex's website.

About Onex Corp.

Onex is an investor and asset manager that invests capital on behalf of Onex shareholders and clients across the globe. Formed in 1984, it has a long record of creating value for its clients and shareholders. Onex's two primary businesses are private equity and credit. In private equity, Onex raises funds from third party investors, or limited partners, and invests them, along with Onex's own investing capital, through the funds of its private equity platforms, Onex Partners and Oncap. Similarly, in credit, Onex raises and invests capital across several private credit, public credit and public equity strategies. The company's investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, insurance companies, and family offices. In total, Onex has $51.1-billion in assets under management, of which $7.8-billion is Onex's own investing capital. With offices in Toronto, New York, New Jersey, Boston and London, Onex and its experienced management teams are collectively the largest investors across Onex's platforms.

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