ONEX Corporation

to ONIC's fourth quarter and full year 2023 conference call and webcast. During the presentation, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Jill Hominick, Managing Director, Shareholder Relations and Communications at ONIX. Please go ahead.

Thank you. Good morning, everyone, and thanks for joining us. We're broadcasting this call on our website. Hosting the call today are Bobby LeBlanc, ONIX's Chief Executive Officer, and Chris Gevin, our Chief Financial Officer. Earlier this morning, we issued our fourth quarter and full year 2023 press release, MD&A, and consolidated financial statements, which are available on the shareholder section of our website and have also been filed on CDAR. Our supplemental information package is also available on our website. As a reminder, all references to dollar amounts on this call are in U.S. unless otherwise stated. I must also point everyone to our webcast presentation for our usual disclaimer and cautionary factors relating to any forward-looking statements contained in today's presentation and remarks. With that, I'll now turn the call over to Bobby.

Good morning, everyone. Honest delivered solid performance in 2023, driven by good investment results, positive deployment and realization activity, and continued progress on our strategic initiatives. We capped off the year with a strong quarter of investing gains, as investing capital per share returned 4% in Q4 and 11% for the year. With the leadership transition came a renewed determination by our team to accelerate decision-making and streamline execution. This includes a commitment to more disciplined expense management and a focus on profitability across all business lines. We entered 2024 with a solid operational foundation, a strong balance sheet, and a commitment to grow shareholder value. In private equity, we had a productive year as we focused on value creation within our operating companies and return of capital. Across PE, we deployed a total of $800 million in 2023 and realized a total of $1.7 billion for ONIX and our limited partners. The expected completion of the ASM sale would return about another $850 million to ONIX and our LPs. With the ONIX Partners 5 investment in Morrison Group and the pending accredited transaction, which we see is shareholder approval and is expected to close in Q2, we completed the initial investing period for OP5. Concurrently, we appointed Tawfiq Papatia and Nigel Wright, two of ONIX's most trusted and respected leaders, as co-heads of ONIX Partners. Their appointment allows me to focus more of my time on ensuring operational excellence and the execution of strategic initiatives. ONCAP had a very active year in 2023, completing investing for ONCAP 4 and securing the first two investments in ONCAP 5. The team also completed 11 add-on acquisitions for ONCAP operating companies, and its realization of Hopkins manufacturing delivered a gross MOIC of 5.1 times in U.S. dollars. Both OP5 and ONCAP4 delivered strong overall investment results last year. Fundraising for ONCAP5 is proceeding well, and we are making progress on a bridge fund for ONIX partners. We expect to have updates on both next quarter. Turning to credit, we raised over $2.8 billion of fee-generating AUM last year and earned a 24 percent return on ONIX's investing capital within credit. We issued seven new CLOs in 2023, five in the U.S. and two in Europe. CLOs continue to be a valuable part of our business, and the team is delivering excellent performance. This is reflected in our top quartile rankings for both portfolio risk and diversity metrics. We are making good progress with our ability to begin marketing our liquid and private products within the Canadian high net worth markets. We're optimistic that we'll see a slow rebuild of our FGAUM starting later in Q2 within this channel as we ramp up our marketing efforts with our distribution partners. As I mentioned at investor day, enhancing our marketing and fundraising expertise is a top priority. We were pleased to welcome Peter Brown as head of client and product solutions. Peter is an experienced leader with substantial experience in fundraising and the management of distribution teams. His experience will be important as we begin to broaden our fundraising efforts and take a more innovative approach to developing client solutions in areas where we have a right to compete. As I look ahead, my conviction and my commitment to our shareholders is to ensure all businesses operate profitably and contribute to growth and enterprise value. This helped drive some of the decisions we made last year particularly around more efficient expense management. We are already beginning to see the benefits of those decisions. I want to thank our shareholders again for your support of ONIX. Last year was transformational for our organization with several positive outcomes. We were pleased to begin to see that better reflected in our share price. However, it remains well below the intrinsic value of our business and our future potential. The team is working hard to deliver on our commitments and to drive long-term shareholder value. I'll now turn it over to Chris.