Onex’s Schwartz Says He Sees Opportunities in Distressed Credit

(Bloomberg) — Onex Corp., Canada’s largest buyout firm, says it has no need to sell assets and will use its cash to pursue more deals as the pandemic creates opportunities.

Chairman and Chief Executive Officer Gerry Schwartz outlined the potential for bargains in credit and private equity during the company’s first quarter earnings call Friday.

Schwartz held up his firm’s agreement to buy U.K.-based Independent Clinical Services Ltd. last month as an example of a deal that could provide a “runway” for expansion, including further acquisitions.

“Other new opportunities in private equity are likely to come to us in more distressed situations,” Schwartz said.

Within the “highly volatile” credit markets, Schwartz said he sees possibilities in areas including collateralized loan obligations, or CLOs.

“One of the credit opportunities that we may be able to take advantage of in the near future is the difficulty some less well-capitalized managers will have

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