ONEX Corporation

Welcome to ONIX's second quarter 2024 conference call and webcast. During the presentation, all participants will be in listen-only mode. Afterwards, we will conduct a question and answer session with pre-qualified analysts. At that time, if you have a question, please press star 1 1 on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to Jill Homanoog, Managing Director of 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 Govan, our Chief Financial Officer. Earlier this morning, we issued our second quarter 2024 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. A 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. I want to first welcome Sarah Wechter to ONIX's Board of Directors. This morning, we announced Sarah as a new independent director and I'm very happy that she has joined us. Sarah is the Chief Human Resources Officer at Citigroup, where she is responsible for all talent management and employee relations programs. She's a recognized leader in effective and equitable compensation structures that are aligned with strategic objectives. Her experience supporting leaders and boards through transition periods will be a particular benefit to Onyx and me in the coming years. Now on to Q2 results. Overall, ONIX had a good second quarter with continued fundraising activity in priority areas and strong progress on realizations across ONCAP and ONIX partners. Our investing capital per share had a 3% return in Q2 driven by gains across our private equity platforms, including a strong contribution from ONCAP. Both OP and ONCAP saw incremental progress with fundraising. Including ONIX commitments, our ONIX Partners Opportunities Fund has now raised $820 million, while ONCAP 5 had reached commitments nearing $1 billion. Our PE teams are doing good work securing return on capital for our limited partners, which is a positive for our fundraising efforts. Last week, ONCAP completed the sale of Englobe, And recently, ONCAP 4 sold its investment in Wise Meter Solutions to a single asset continuation fund to be managed by ONCAP. This is ONCAP's first continuation vehicle and follows Onyx Partners' successful continuation fund for Ryan LLC last fall. These funds will continue to play an important role in our realization strategies, providing valuable ongoing fee and carry generation opportunities for Onyx. Through July, ONCAP has returned approximately $390 million to investors, or 15% of the value of ONCAP investments at the start of the year. The Onyx Partners team was also active in Q2. Onyx Partners IV entered into an agreement to sell approximately half of its shares in PowerSchool as part of a take-private transaction, which is expected to close in the third quarter. I am also pleased to report that the sale of ASM has met all required conditions and is expected to close by the end of this month. Combined, the two transactions represent an expected return of capital of approximately $1.6 billion to ONIX partners and approximately $530 million to ONIX. Turning to credit, our CLO platform has had a stellar year so far, raising or extending a total of $7 billion of fee-generating AUM through new issuances and resets of prior CLOs. In July, the team priced its 34th US CLO, which was the third largest broadly syndicated CLO this year, and its 10th European CLO, matching its largest CLO since inception. With deals priced or closed through July, we have well exceeded the growth we had targeted for all of 2024. The team is continuing to take advantage of opportunities to further grow the platform backed by strong investor demand for allocations across the entire capital structure. Moreover, this growth has been very capital efficient from an onyx balance sheet perspective. You've heard me say this before, but as we look to the future, we will continue to prioritize areas where we have a right to compete and win. Our teams in private equity have proven that they can persevere through industry cycles and continue to provide strong performance for investors. Ronnie and our credit team are showing what can be achieved when you build longstanding investor relationships based on proactive management, innovative client solutions, and high-performing portfolios that protect investor capital. Recently, we made the decision to separate Falcon from Onyx to operate as an independent entity from now on. While we believe in the team's ability to deliver investing success, the synergies across the remainder of our platforms did not materialize to the extent that the ONIX resources needed to support the business outweighed the benefits. We will continue to maintain a minority interest in Falcon, along with future carried interest participation. Chris will provide more details in his remarks. One of my commitments to Shareholders and Investors Day was to ensure we are disciplined in the use of our resources, particularly our balance sheet. Our balance sheet is a key differentiator, and we must use it wisely to drive increased shareholder value. Strategic alignment of our businesses and our balance sheet to our long-term objectives is my top priority, and you can expect to hear more from me on our plans in the coming quarters. Thank you for your continued support as we work towards building a stronger ONIX for all stakeholders. With that, I'll now turn it over to Chris.