Gluskin Sheff expands alternative investment offering with new Onex Falcon Direct Lending Fund
TORONTO, Oct. 01, 2021 (GLOBE NEWSWIRE) — Gluskin Sheff + Associates Inc. (“Gluskin Sheff”), the wealth management platform of Onex Corporation (“Onex”) (TSX: ONEX), today announced the launch of the Onex Falcon Direct Lending Fund* (“the Fund”), a differentiated credit offering focused on principal preservation and downside protection via directly originated senior secured loan investments.1 This new offering gives Canadian accredited individual investors access to an asset class favoured by institutions and family offices.
The Fund will invest in private, high-value senior secured loans to lower middle market companies in North America, as well as selectively in Europe and non-North American companies. The Fund targets to deliver a 9-10%2 net return, including an expected cash distribution of 8%3 paid quarterly.
“As investor needs continue to evolve, we are proud to be part of Onex, which enables us to offer Gluskin Sheff clients access to creative and unique alternative investment solutions,” said Jeff Moody, President and CEO of Gluskin Sheff. “Backed by an industry leader with a long-term record of success in this space, the Onex Falcon Direct Lending Fund provides our clients with an exciting alternative offering to help further diversify their portfolios, which is especially attractive in the current low interest rate environment.”
The Fund’s manager, Onex Falcon, is led by a team of more than 30 investment professionals and has a track record that extends over 20 years. The Fund’s approach combines creative and flexible investment structures with the benefit of the Onex platform’s broad sourcing of transactions.
“Our team has a long-standing track record of creating value for our investors, placing an emphasis on capital preservation and achieving strong risk adjusted returns through credit cycles,” said Eric Rogoff, Managing Director and Sector Head for Onex Falcon. “We are committed to and proud of our accomplishments in delivering outcomes that are tailored for investors seeking to enhance the returns of their portfolios through the alternative credit market.”
Accredited investors in the Fund may benefit from:
- quarterly subscriptions
- regular income distributions, if desired
- diversification from public market investments
Based in the U.S. and acquired by Onex in December 2020, Onex Falcon is a private credit asset manager with more than two decades of experience which offers specialized solutions to borrower clients primarily in the U.S and Canada.
Accredited investors who are interested in learning more about the Fund or other Gluskin Sheff offerings are encouraged to visit: www.gluskinsheff.com.
About Gluskin Sheff:
Since 1984, Gluskin Sheff has served the wealth management needs of high-net-worth individuals, families and institutions across Canada and the U.S. through unwavering attention to client service coupled with proprietary investment solutions, including public equities, fixed income & credit alternatives and private credit. Based in Toronto, Gluskin Sheff manages approximately $8 billion in assets (as of June 30, 2021) and was acquired by Onex in 2019. For more information on Gluskin Sheff, please visit: www.gluskinsheff.com.
For Further Information:
Leah Commisso, Director, Corporate Communications
*The Fund is organized as an open-ended unincorporated investment trust.
1 Only “Accredited Investors” (as defined under Canadian securities laws) who are sophisticated investors may subscribe for units of the Fund. Prospective investors should read the offering memorandum of the Fund prior to subscribing for units of the Fund.
2 For the quarters immediately following the Fund’s launch, yield may fall below target levels as the Onex Falcon Direct Lending Fund ramps-up. Net IRR reflects the Gross IRR of all Limited Partners not affiliated with the General Partner investing as of the initial closing of each fund reduced by management fees, carried interest and other expenses. Return Targets are presented only for comparative purposes and as a guideline to assist prospective investors in evaluating the investment strategy of an investment vehicle and its implicit risk/reward ratio. Targeted returns are subjective determinations made by Onex Falcon based on a variety of factors that Onex Falcon considers relevant, such as the historical performance of an investment vehicle’s anticipated investments, prior performance of similar vehicles and strategies, volatility measures, risk tolerance, leverage and market conditions. Targeted returns do not reflect either actual past performance or a guarantee of future performance. There can be no assurance that the return target will be met, or met over any particular time horizon. Prospective investors are encouraged to conduct their own due diligence and ask questions in understanding the risk/rewards associated with an investment in the Fund prior to subscribing for units in the Fund.
3 Cash distributions may fall below target levels. Targeted cash distributions do not reflect either actual past performance or a guarantee of future performance. There can be no assurance that the target cash distributions will be met, or met over any particular time horizon. Prospective investors are encouraged to conduct their own due diligence and ask questions in understanding the risk/rewards associated with an investment in any strategy. Fund distributions will be automatically reinvested; however, clients may elect to receive their distributions in cash.