Onex Group’s $960 Million Majority Investment in OneDigital

Fried Frank acted as counsel to Onex Corporation and its affiliated funds (Onex Group) in its majority investment in OneDigital. Ropes & Gray advised New Mountain Capital and OneDigital on the deal.

New Mountain Capital LLC (New Mountain), the former majority shareholder, and OneDigital employees will roll a significant portion of their existing investments into the transaction.

The transaction values OneDigital at US$2.65 billion. The new equity investment of approximately US$960 million will be made by the Onex Group, including Onex Partners V. Upon closing, Onex Group and employees of OneDigital will own approximately 83% of the company.

OneDigital is a leading US provider of employee benefits insurance brokerage and retirement consulting services.

Onex Corporation is an investment manager founded in 1984. The firm manages capital on behalf of Onex shareholders, institutional investors and high net worth clients around the world. As of June 30, 2020, Onex had approximately US$36 billion of assets under management.

Fried Frank advised Onex with Daniel J. Bursky (Picture) and David L. Shaw and included corporate partner Mark Hayek; antitrust and competition partners Nathaniel L. Asker and Tobias Caspary; executive compensation & ERISA partner Jeffrey Ross; intellectual property and technology partner Jason L. Greenberg; litigation partner Joshua D. Roth; tax partner Alan S. Kaden; corporate special counsel David M. McDonald and Michael Schneider; executive compensation & ERISA special counsel Andrea L. Pollak; corporate associates Hardin C. Cox III, Allison N. First, Thomas Lee, Axel Magnusson, Mehar Najeeb, Rati Ranga, and Joanna D. Rosenberg; antitrust and competition associates Annalie Grogan and George L. Wolfe; executive compensation & ERISA associates Tyler Forni and Ashley Rose Haden; litigation associate Patrick J. Albergo; tax associates Ryan L. Conley and Karen Li; and executive compensation & ERISA law clerk Nirupa Persaud.

The Ropes & Gray team that represented New Mountain Capital and OneDigital was led by M&A and private equity partner John Sorkin and private equity associate Andrew Silver, and included tax partner Adam Greenwood, finance partner Arek Maczka, and employment, executive compensation & benefits partner Alexandra Alperovich, IP transactions partner Violetta Kokolus (all of New York), asset management partner James Thomas (Boston), antitrust partner Jonathan Klarfeld (Washington), and health care partner Jennifer Romig (Chicago). The team also included private equity associates Douglas Giannantonio, Monica McKinnonand Holt Baker, finance associates Jessica Subler and Jeffrey Lang (all of New York), litigation & enforcement counsel Deidre Johnson (Boston) and Lee Gayer (New York), mergers & acquisitions associate Caitlin Wilcox (New York), tax, employment & benefits associate Erin Mathewanss (New York), tax associate Michael Shulman (New York), employment, executive compensation & benefits counsel Stephanie Bruce (Boston), employment, executive compensation & benefits associates Yu Chen Xue (Boston) and Christa Sanchez (New York), corporate associate Konrad Thallner (New York), asset management counsel Michael Jurasic (Boston), asset management associate Christopher Labosky (Boston), health care associate John Saran (Chicago), and litigation & enforcement associates Zachary Goodwin and Derek Yee (both of Boston).

Involved fees earner: Douglas Giannantonio – Cravath Swaine & Moore; Patrick Albergo – Fried Frank Harris Shriver & Jacobson; Nathaniel Asker – Fried Frank Harris Shriver & Jacobson; Daniel Bursky – Fried Frank Harris Shriver & Jacobson; Tobias Caspary – Fried Frank Harris Shriver & Jacobson; Ryan Conley – Fried Frank Harris Shriver & Jacobson; Hardin Cox III – Fried Frank Harris Shriver & Jacobson; Allison First – Fried Frank Harris Shriver & Jacobson; Tyler Forni – Fried Frank Harris Shriver & Jacobson; Jason Greenberg – Fried Frank Harris Shriver & Jacobson; Annalie Grogan – Fried Frank Harris Shriver & Jacobson; Ashley Rose Haden – Fried Frank Harris Shriver & Jacobson; Mark Hayek – Fried Frank Harris Shriver & Jacobson; Alan Kaden – Fried Frank Harris Shriver & Jacobson; Thomas Lee – Fried Frank Harris Shriver & Jacobson; Karen Li – Fried Frank Harris Shriver & Jacobson; Axel Magnusson – Fried Frank Harris Shriver & Jacobson; David McDonald – Fried Frank Harris Shriver & Jacobson; Mehar Najeeb – Fried Frank Harris Shriver & Jacobson; Andrea Pollak – Fried Frank Harris Shriver & Jacobson; Rati Ranga – Fried Frank Harris Shriver & Jacobson; Joanna Rosenberg – Fried Frank Harris Shriver & Jacobson; Jeffrey Ross – Fried Frank Harris Shriver & Jacobson; Joshua Roth – Fried Frank Harris Shriver & Jacobson; Michael Schneider – Fried Frank Harris Shriver & Jacobson; David Shaw – Fried Frank Harris Shriver & Jacobson; George Wolfe – Fried Frank Harris Shriver & Jacobson; Alexandra Alperovich – Ropes & Gray; Holt Baker – Ropes & Gray; Stephanie Bruce – Ropes & Gray; Lee Gayer – Ropes & Gray; Zachary Goodwin – Ropes & Gray; Adam Greenwood – Ropes & Gray; Deidre Johnson – Ropes & Gray; Michael Jurasic – Ropes & Gray; Jonathan Klarfeld – Ropes & Gray; Violetta Kokolus – Ropes & Gray; Christopher Labosky – Ropes & Gray; Jeffrey Lang – Ropes & Gray; Arek Maczka – Ropes & Gray; Erin Mathews – Ropes & Gray; Monica McKinnon – Ropes & Gray; Jennifer Romig – Ropes & Gray; Christa Sanchez – Ropes & Gray; John Saran – Ropes & Gray; Michael Shulman – Ropes & Gray; Andrew Silver – Ropes & Gray; John Sorkin – Ropes & Gray; Jessica Subler – Ropes & Gray; Konrad Thallner – Ropes & Gray; James Thomas – Ropes & Gray; Caitlin Wilcox – Ropes & Gray; Yu Chen Xue – Ropes & Gray; Derek Yee – Ropes & Gray;

Law Firms: Cravath Swaine & Moore; Fried Frank Harris Shriver & Jacobson; Ropes & Gray;

Clients: New Mountain Capital; OneDigital; Onex Corporation;

Author: Ambrogio Visconti