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

Core Insights - Onex Corporation announced a transformational investment and strategic relationship with AIG to enhance growth and enterprise value creation [1][5] - The acquisition of Convex, a leading specialty property and casualty (re)insurer, is valued at $7 billion, with Onex acquiring a 63% stake and AIG holding 35% [2][5] - AIG will also invest approximately $0.6 billion for a 9.9% interest in Onex' subordinate voting shares and commit $2 billion to Onex-managed strategies over three years [4][5] Transaction Overview - Onex and AIG will jointly acquire Convex, with Onex owning approximately 63% and AIG 35% post-acquisition [2][5] - The acquisition values Convex at a $7 billion equity valuation, which is 1.9 times its Q3 2025 tangible book value [2] Company Background - Convex was founded in 2019 and has rapidly grown into a significant player in the specialty property and casualty insurance market, with expected gross premium written of up to $6 billion in 2025 [3][6] - The management team of Convex will retain a significant economic interest, ensuring alignment with Onex and AIG [3] Financial Considerations - Onex will finance the acquisition through a combination of cash, debt financing, and proceeds from AIG's subscription, totaling approximately $3.8 billion for the 63% stake in Convex [9] - The transaction is expected to close in the first half of 2026, subject to regulatory approvals [10] Strategic Implications - The partnership with AIG is expected to enhance Onex' fee-related earnings and provide preferred access to AIG's investment funds [5][8] - Following the acquisition, Convex is projected to account for 42% of Onex' investing capital, contributing significantly to future shareholder value creation [10]