TORONTO, June 3 Onex Corp's credit wing
plans to triple its assets under management to $10 billion by
the end of 2017 from last year, driven by rapid expansion of
collateralized loan obligations (CLO) in the United States and
Europe, the head of the unit said on Tuesday.
Speaking at an investor presentation in Toronto, Onex Credit
Partners Chief Executive Officer Michael Gelblat said the 2017
AUM growth target was up from the target of $5 billion it gave
AUM was at $3.3 billion at the end of 2013, compared with
$1.5 billion at the end of 2011, and has grown ahead of the
company's expectations, he said.
"We did this almost entirely through the very successful
build out of our CLO business," said Gelblat. "There's no doubt
that the market has generally been receptive to CLO issuance
over the past two years."
Collateralized loan obligations are debt-backed securities
that pool together loan payments and divide them up into
The company plans to continue to expand its U.S. CLO business
and expects to launch a European CLO platform this year.
Gelblat said credit is going to become a proportionally
larger part of Onex, which is better known as a private equity
The company's shares rose 35 Canadian cents to C$67.63.
(Reporting by Cameron French; Editing by Lisa Shumaker)