Transaction provides liquidity and rollover options to investors while supporting continued growth of three high-quality companies
Onex Partners today announced the successful closing of a $1.6 billion multi-asset continuation vehicle, which includes investments in Fidelity Building Services Group (“Fidelity”), PowerSchool and Sedgwick. The transaction transferred interests in the three companies from Onex Partners V, IV and III, respectively, into a newly formed vehicle led by a group of global institutional investors, including Neuberger, GIC, Apollo S3 and StepStone.
The transaction provided existing limited partners with the options to receive liquidity, roll their interests into the new vehicle or maintain their existing exposure, offering a flexible outcome tailored to investor preferences. The limited partner advisory committees of each of the three participating funds unanimously approved the transaction.
Onex Partners will continue to manage each investment in its capacity as general partner on behalf of existing and new partners. The vehicle includes investments in three market-leading companies: Fidelity, a provider of HVAC, building automation, emergency power, and energy solutions for commercial, industrial, mission critical and institutional markets; PowerSchool, a provider of mission critical, system-of-record software to the K-12 education market globally; and Sedgwick, a global provider of technology-enabled risk, benefits and claims administration solutions.
“This transaction reflects our continued focus on delivering creative, high-quality solutions for our limited partners,” said Zach Levitt, Managing Director at Onex Partners. “It provided investors with meaningful liquidity and optionality, while positioning three exceptional businesses for their next phase of growth with committed long-term capital.”
Frank Guglielmo, Managing Director at Neuberger, said, “We are impressed with the Onex Partners team and are excited to back them on this transaction. This investment aligns well with Neuberger’s continuation vehicle strategy that seeks to acquire market-leading, thematic, buyout portfolio companies with strong fundamentals and clear value creation initiatives.”
“Apollo S3 is focused on providing flexible capital solutions to support high-quality assets,” said Veena Isaac, Partner and Co-Head of Apollo S3. “This transaction represents an attractive opportunity to invest in a diversified portfolio with strong underlying performance, in partnership with Onex Partners.”
“StepStone is pleased to partner with Onex Partners to support these exciting companies in their next phase of growth,” said Ted Black, Managing Director. “This transaction reflects our shared commitment to supporting long-term value creation for high-quality businesses.”
The transaction builds on Onex Partners’ track record of selectively evaluating the large and fast-growing secondary market to deliver liquidity and flexibility to investors while continuing to support the growth of high-quality portfolio companies.
