Onex Corporation, a publicly listed Canadian alternative asset manager, is reducing its balance-sheet commitment to its latest private equity fund Onex Partner III by $500 million from $1 billion, cutting the final target for the fund to $4 billion from $4.5 billion.
“Onex’s decision to reduce its commitment to [the fund] reflects its conservative approach to managing its capital base,” according to an Onex statement. “However, the company has the right to increase its commitment to future transactions, on six months advanced notice to its limited partners, and anticipates doing so when appropriate.”
The fund reached the $3 billion mark at the end of December, Onex said in a statement.
Toronto Stock Exchange-traded Onex Corporation is the largest limited partner in the fund, which also includes US pensions The Massachusetts Pension Reserves Investment Management Board, which approved a $150 million commitment, and The New Mexico Public Employees Retirement Association, which committed $25 million.
Christopher Govan, a managing director with Onex, declined to comment.
Onex raised $3.5 billion for its second fund in 2005, and $1.7 billion for its debut fund in 2004. The firm split a $1.5 billion equity check with The Carlyle Group in 2007 to purchase General Motors’ Allison Transmission in a $5.6 billion deal.
Onex manages about $11 billion in assets under management.