Key Takeaways
- • Onex is raising approximately $1 billion for a single-asset continuation fund focused on OneDigital, an insurance brokerage and benefits advisory firm, to extend its ownership following a partial exit in 2025.
- • The Toronto-based firm originally acquired a majority stake in OneDigital in 2020 and sold down most holdings last year in a transaction valuing the company at over $7 billion, retaining a minority position.
- • Continuation funds have become a dominant strategy in private markets, now accounting for the majority of secondaries activity, as higher interest rates and limited traditional exit opportunities drive sponsors to retain high-performing assets longer.
- • Onex recently closed a $1.6 billion multi-asset continuation fund covering Fidelity Building Services Group and Sedgwick, demonstrating the firm's broader strategic shift toward continuation vehicles and insurance-sector focus.
- • The OneDigital fund aligns with CEO Bobby Le Blanc's strategic prioritization of insurance-related assets as a core investment emphasis for Onex.
Summary
Onex is pursuing a $1 billion single-asset continuation fund dedicated to OneDigital, an insurance brokerage and benefits advisory platform, according to Bloomberg. The structure allows the Toronto-based private investment firm to maintain its minority stake in the company while accessing fresh capital from new investors. Evercore is serving as adviser on the continuation vehicle exploration.
Onex's relationship with OneDigital spans six years. The firm acquired a majority position in the company in 2020, then executed a partial exit last year when it sold down most of its holdings in a transaction that valued OneDigital at over $7 billion. The continuation fund represents a mechanism to extend the firm's ownership horizon rather than pursue an immediate full exit.
Continuation vehicles have become increasingly prevalent in private markets as traditional exit avenues have contracted. Higher interest rates and constrained IPO and M&A markets have limited liquidity opportunities, prompting private equity sponsors to structure new investment vehicles that allow existing limited partners to receive liquidity while enabling managers to retain control of core assets. Industry data indicates continuation structures now represent the majority of secondaries market activity, with single-asset vehicles particularly active as managers seek extended ownership of strong-performing companies.
Onex has demonstrated significant commitment to this strategy beyond the OneDigital initiative. The firm recently closed a $1.6 billion multi-asset continuation fund encompassing several portfolio companies, including Fidelity Building Services Group and claims management business Sedgwick. This broader continuation fund activity reflects Onex's portfolio optimization strategy aimed at improving timing and return profiles across holdings.
The OneDigital continuation fund also reflects strategic priorities under CEO Bobby Le Blanc. Insurance and insurance-related assets have been positioned as a core investment sector for Onex's forward strategy, consistent with the firm's recent portfolio concentration in insurance-adjacent businesses through both direct ownership and continuation vehicles.
Onex's relationship with OneDigital spans six years. The firm acquired a majority position in the company in 2020, then executed a partial exit last year when it sold down most of its holdings in a transaction that valued OneDigital at over $7 billion. The continuation fund represents a mechanism to extend the firm's ownership horizon rather than pursue an immediate full exit.
Continuation vehicles have become increasingly prevalent in private markets as traditional exit avenues have contracted. Higher interest rates and constrained IPO and M&A markets have limited liquidity opportunities, prompting private equity sponsors to structure new investment vehicles that allow existing limited partners to receive liquidity while enabling managers to retain control of core assets. Industry data indicates continuation structures now represent the majority of secondaries market activity, with single-asset vehicles particularly active as managers seek extended ownership of strong-performing companies.
Onex has demonstrated significant commitment to this strategy beyond the OneDigital initiative. The firm recently closed a $1.6 billion multi-asset continuation fund encompassing several portfolio companies, including Fidelity Building Services Group and claims management business Sedgwick. This broader continuation fund activity reflects Onex's portfolio optimization strategy aimed at improving timing and return profiles across holdings.
The OneDigital continuation fund also reflects strategic priorities under CEO Bobby Le Blanc. Insurance and insurance-related assets have been positioned as a core investment sector for Onex's forward strategy, consistent with the firm's recent portfolio concentration in insurance-adjacent businesses through both direct ownership and continuation vehicles.
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