Onex Announces Transformational Investment and New Strategic Relationship to Drive Enterprise Growth and Shareholder Value

Executive Summary

• On ex and AIG agreed to jointly acquire Convex Group Limited for an enterprise value of ≈ $7 billion, with On ex taking a 63% stake and AIG a 35% stake; the remaining interest stays with Convex’s management team.
• AIG will purchase a 9.9% equity position in On ex for roughly $0.6 billion and commit $2 billion of new fee‑generating assets to On ex’s private‑equity and credit strategies over the next three years.
• The transaction is financed by a mix of cash, debt, rollover equity, and AIG’s subscription proceeds; it is expected to close in H1 2026 and will make Convex account for ≈ 42% of On ex’s investing capital.

Key Details

• Acquisition Structure:
• On ex to acquire 63% of Convex for ~$3.8 billion (including a $0.7 bn rollover of its existing interest).
• AIG to acquire 35% of Convex; the balance remains with Convex’s management team.
• Valuation Metrics: Convex valued at $7 billion equity, representing 1.9× Q3‑2025 tangible book value.
• Financing Mix (On ex side):
• $0.7 bn rollover of existing Convex interest.
• $1.5 bn cash from On ex’s balance sheet/pending asset sales.
• $1.0 bn debt secured against existing private‑equity and credit assets.
• $0.6 bn equity proceeds from AIG’s subscription for On ex shares.
• AIG Investment in On ex:
• Purchase of 9.9% subordinate voting shares for ≈ $0.6 billion (with a three‑year lock‑up, standstill provisions, and board nomination rights).
• Commitment of $2 billion of new assets under management to On ex’s private‑equity and credit strategies over three years.
• Strategic Rationale & Expected Impact:
• Convex projected $6 bn gross premium written in 2025, with 25% CAGR over the prior three years and 18% ROE average.
• Post‑transaction, Convex will represent ≈ 42% of On ex’s investing capital, becoming a key driver of future shareholder value.
• Closing Timeline: Expected in the first half of 2026, subject to customary regulatory approvals.
• Advisors: Goldman Sachs (lead financial adviser); Latham & Watkins and Torys (legal advisers).

Notable Quotes

“Today’s announcement is a logical and foundational step forward for Onex… bolstering our position in the insurance sector, accelerating profitability of our asset‑management business and facilitating future growth.” – Bobby Le Blanc, CEO, On ex

“We are building a strategic relationship with an outstanding team… AIG will also benefit from preferred access to Onex’s world‑class investment funds.” – Peter Zaffino, Chairman & CEO, AIG

Materiality Assessment: Material – Positive (significant acquisition and strategic partnership that materially alters the capital structure and growth trajectory of both On ex and Convex).