Onex Corp. is losing one of the executives who led the private equity firm's very profitable transformation into a business based on managing money for others, rather than just doing deals on its own.
Andrew Sheiner, a managing director at Onex , is stepping down after 17 years at the firm to pursue a new private equity venture.
Mr. Sheiner played a huge role in the evolution of Onex, the firm founded by Gerry Schwartz. Mr. Sheiner, along with managing director Seth Mersky, led the creation of the Onex Partners structure, which saw Onex raise money from other investors to create buyout funds. He also led the building of Onex Credit Partners and Onex Real Estate Partners, ventures that invest in bonds and property. On top of that he looked after raising funds for Onex and relations with the investors in Onex's buyout funds.
The result of his work was a much steadier stream of profits from investment management fees, a switch from Onex's earlier structure where it had to sell investments to bring in cash.
In a letter to investors, Mr. Sheiner said that he is "keen to pursue a new opportunity in the next stage of my career."
According to an internal announcement, he "plans to develop a Core Private Equity platform targeting lower returns than traditional private equity through longer term and less volatile investments, in a different fee structure. After much discussion, it was decided that the pursuit of this initiative within Onex was impractical due to conflicts with our Onex Partners and ONCAP platforms."