ONEX Corporation

Thank you for standing by and welcome to ONIX third quarter 2024 earnings results conference call. At this time, all participants are in 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, Dylan Hominick. Managing Director of Shareholder Relations and Communications at Onyx. 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, Onyx's Chief Executive Officer, and Chris Govan, our Chief Financial Officer. Earlier this morning, we issued our third 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 US 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. ONIX had a solid third quarter with sustained progress on realizations, investing activity, and fundraising in our core areas. We continue to align our businesses to areas where we have the greatest right to compete, while benefiting from a strong balance sheet and a considerable liquidity position. This morning, we announced a substantial issuer bid, or SIV, While we've been very active with our NCIB, buying back nearly 4 million shares over the last 12 months, the SIB allows us to accelerate and expand our efforts while our shares continue to trade well below intrinsic value, and provides all shareholders an opportunity to participate in our buyback activity. Considering our pro forma cash position of over $1.8 billion, we are confident we can execute on the SIB while continuing to effectively invest in other areas we choose to prioritize. Strategic capital allocation was a key theme of my remarks at last year's Investor Day. To continue to grow and create value for ONIX and our stakeholders, we need to be smart and disciplined in how we use our capital. Turning to our businesses, Across our platforms, we are seeing good momentum and positive outcomes. Our structured credit business, led by Ronnie Jabber and supported by a talented and experienced team of credit professionals, has become a market leader. In 2024, the team has already completed 23 transactions, raising $5.6 billion of new fee-generating AUM and extending another $5 billion. Within structured credit, we have been consistently punching above our weight of slugging bigger and more established players. For the second consecutive year, we expect to be a top 10 global CLO issuer. The outlook for continued growth remains strong as the CLO market remains very attractive for managers like Onyx with experience and track records of successfully managing through cycles. Year to date, our team has increased our structured credit fee-generating AUM by 22%. This is an achievement that should not be overlooked by our shareholders. Looking at fee-generating AUM more broadly, we are also seeing positive momentum in our private equity businesses. ONCAP 5 now has over $1 billion in total commitments, and the Onyx Partners Opportunities Fund is approaching $1.2 billion including pending co-investment commitments. Both PE teams have been active with investing and realization activities. Onyx Partners recently closed its first investment for the Opportunities Fund, FishBlock, with another, Firesound, expected to close shortly. We continue to emphasize our priority sectors and investment pieces, and both transactions are prime examples of this. On realizations, Q3 saw the close of the ASM and Englobe sales and a partial realization of PowerSchool, which closed after quarter end. The PE industry continues to face challenges around realizations, so I'm particularly proud of what our teams were able to accomplish on this front. Year to date, we've returned over $2.7 billion of capital to limited partners, with Onyx's share being over $900 million. This is an accomplishment that speaks to the quality of the portfolio and our ability to deliver for our clients in all market environments. The strategic alignment of our businesses and balance sheet to our long-term objectives continues to be my top priority. Onyx will win through smart and disciplined decision making related to how we allocate our resources. We remain committed to delivering attractive returns for our investors and shareholders. With that, I'll now turn it over to Chris.