Onex Reports Mixed Q1 2026: Convex Shines, Private Equity and Credit Under Pressure
Event summary
- Onex reported Q1 2026 net earnings of $129 million, down from $168 million in Q1 2025.
- Convex, a newly acquired subsidiary, contributed $143 million to Onex's segment results.
- Onex Partners closed a $1.6 billion multi-asset continuation vehicle, generating $317 million in proceeds.
- Private equity investments generated net gains of $32 million, while credit strategies saw a net loss of $27 million.
- Investing capital per share declined 2% from year-end 2025 due to the dilutive impact of issuing 7.5 million Subordinate Voting Shares to AIG.
The big picture
Onex's Q1 2026 results highlight the strategic importance of Convex, which contributed significantly to segment earnings. However, the company faces challenges in its private equity and credit portfolios due to market volatility. The $1.6 billion continuation fund and the sale of Emerald Holding Inc. demonstrate Onex's focus on realizing gains and managing its asset base. The broader industry context includes rising interest rates and macroeconomic volatility, which are affecting investment portfolios across the sector.
What we're watching
- Convex Integration
- How Onex will integrate Convex's operations and whether it can sustain its strong performance metrics.
- Credit Market Volatility
- The impact of credit market volatility on Onex's structured credit portfolio and its ability to manage unrealized mark-to-market losses.
- Private Equity Realizations
- The pace at which Onex can realize gains from its private equity investments, particularly in light of the recent $1.6 billion continuation fund.
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