ONEX Corporation

Thank you for standing by and welcome to Onyx Fourth Quarter 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, please 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, 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 Gevin, our Chief Financial Officer. Earlier this morning, we issued our fourth quarter and full year 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. Our supplemental information package is also available on our website. As a reminder, all references to dollar amounts on this call are in the 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. Onyx had a solid fourth quarter, wrapping up a year of significant progress across all our platforms. Our private equity team delivered a meaningful return of invested capital to our investment partners, while also achieving fundraising success. Our credit platform had an excellent year, outperforming our expectations on capital raised while continuing to attract new investors with our consistently strong performance. We ended 2024 with the completion of our Substantial Issuer Bid, or SIB. We bought back 2.3 million shares under the bid, adding meaningfully to our overall buybacks for the year. While the amount tendered was below what we had originally allocated, we view this as a positive statement for shareholders. Like us, many see ongoing upside for share performance beyond the upper range of the $117 per share offered. Turning to our businesses, starting with private equity. In total, across our PE platforms, we raised $1.5 billion in 2024. This was accomplished through a broader range of initiatives, including strategic co-investment partnerships. The teams are working hard to expand our client base, which creates more opportunity for fundraising outside of traditional fund formats. 2024 was also a positive year for our PE teams in returning capital to our limited partners. OOP and ONCAP together returned over $3 billion of capital to investors, including $1 billion to ONIX. This was two and a half times more than what we achieved in 2023. a differentiated achievement and evidence of our ability to deliver positive realizations across multiple investments and vehicles. Onyx Partners has successfully completed fundraising for its Opportunities Fund, reaching total commitments, including affiliated vehicles, of $1.2 billion. Across OP5 and the Opportunities Fund, OP invested $1.2 billion of capital in 2024 across four companies all within our core areas of specialization. Three were owner-managed or complex carve-outs, and for all four, the team has differentiated value creation strategies. OnCap accounted for more than $500 million of the return of capital to investors. In fundraising, momentum for OnCap 5 remains positive, and we expect a final close at the end of Q1. The fund has already completed three investments, with a total of approximately $400 million invested. The pipeline for new investments is good, and the fund is off to a very good start. In total, the team has raised over $700 million of capital in 2024. Our credit team had another active quarter, capping off a banner year. For 2024, we ranked as the number seven issuer of global broadly syndicated CLOs. Overall, the team executed 30 transactions last year, raising or extending $13 million of fee-generating AUM, and they've already priced three transactions this year. We're confident the team will deliver another successful year in 2025, including substantial FRE growth. Across the broader credit platform, we're actively pursuing new opportunities to generate increased revenue. As an example, we recently closed on a $775 million tactical allocation commitment with a large institutional investor. These types of commitments leverage the full breadth of talent across our credit team and products and will contribute to the scale required to continue to grow fee-related earnings. In these instances, the incremental revenue is highly accretive to bottom line profitability. Overall, I feel good about what our teams achieved in 24 and how we are positioned to drive growth in 2025 and beyond. Over the last couple of years, our portfolios have weathered uncertain and sometimes challenging conditions, but I'm confident that the investments we have will drive long-term investing capital growth at returns consistent with our objectives. In the meantime, we're making the right operational decisions to optimize resources across the firm, and roll out a performance compensation structure that is aligned to shareholder interest. You will read more about this in our upcoming informational circular. Before turning over to Chris, I want to thank our team for their hard work and our shareholders for their continued support. Our objective is to be transparent and responsive in our engagement with you, and I appreciate your ongoing feedback. Our team is committed to driving more shareholder value in the years to come. Now I'll turn it over to Chris.