ONEX establishes new distressed debt platform
TORONTO — Onex Corporation (TSX: OCX) announced today that it has established Onex Credit Partners, a credit-investing platform focused on generating attractive risk adjusted returns through the purchase of undervalued credit securities. This initiative underscores Onex’ commitment to grow its alternative asset management business through a focus on strategies that can benefit from Onex’ broad industry expertise and value oriented investing philosophy.
Onex Credit Partners will be led by Michael Gelblat and Stuart Kovensky, seasoned credit investing professionals and co-founders of GK Capital. Prior to founding GK Capital in 2005, Mr. Gelblat and Mr. Kovensky were co-managers of the Levco Debt Opportunity Fund. Together they have established an outstanding track record, experiencing only eight down months since inception in July 2001 and consistently outperforming benchmark indices. Onex has acquired a 50% interest in GK Capital, which has approximately $300 million of assets under management and has been renamed Onex Credit Partners. The firm will retain the entire GK Capital team. Additionally, Onex has committed $50 million to be invested in Onex Credit Partners’ strategies.
“This partnership provides Onex with an excellent opportunity to build a substantial credit investing platform,” said Andrew J. Sheiner, Managing Director of Onex. “Michael and Stuart are experienced, have a great track record and team, and apply the same kind of rigorous value analysis that has been a hallmark of Onex for 24 years.”
“We are very excited to become associated with a world-class company such as Onex, and to have access to its significant talent and resources,” said Michael Gelblat. “We share Onex’ investing philosophy and commitment to excellence,” added Stuart Kovensky, “and believe that there are significant synergies between the expertise of our team and Onex’ private equity professionals that will benefit the entire organization, and our investors.”
An immediate opportunity for Onex Credit Partners is a new initiative, focused on acquiring senior secured leveraged loans, to take advantage of the current dislocation in the credit markets. “There is a supply demand imbalance in the leveraged loan market that creates opportunities to purchase both new issue and existing credits at attractive risk-adjusted yields,” asserted Mr. Sheiner. “We believe that the timing is ideal to launch a new initiative focused on this market.”
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