Key Takeaways
- Onex Canada Asset Management increased its position in First Advantage by 240,978 shares, raising the position value by $3.1 million.
- The transaction represents a 0.5% change in 13F reportable assets under management.
- First Advantage now accounts for 1.5% of Onex Canada’s 13F AUM, which places it outside the fund’s top five holdings.
- The company delivered strong Q3 results, with revenue of $409.2 million and net income of $2.6 million.
- Onex Canada’s decision to raise its stake in First Advantage suggests a bullish outlook towards the company.
Introduction to Onex Canada’s Investment
Onex Canada Asset Management Inc. has disclosed a significant investment in First Advantage, a leading provider of human capital screening and compliance solutions. According to a filing with the Securities and Exchange Commission dated November 14, 2025, Onex Canada increased its position in First Advantage by 240,978 shares in the third quarter, raising the position value by $3,060,597 as of September 30, 2025. This transaction represents a 0.5% change in 13F reportable assets under management, and First Advantage now accounts for 1.5% of Onex Canada’s 13F AUM.
Company Overview and Performance
First Advantage offers technology-driven solutions for employment background screening, verifications, compliance, and safety, including criminal background checks, drug screening, identity verification, and post-onboarding monitoring. The company serves a global client base comprising large enterprises, mid-sized firms, and small businesses, with a focus on recruiting, human resources, risk, and compliance professionals. First Advantage delivered strong Q3 results, with revenue of $409.2 million, an increase over the prior year’s $199.1 million, and net income of $2.6 million compared to a net loss of $8.9 million in the prior year. The company’s established market presence and diversified customer base underpin its competitive position in the specialty business services sector.
Investment Analysis and Outlook
Onex Canada’s decision to raise its stake in First Advantage from 531,169 in Q2 to 772,147 in Q3 suggests that the investment firm has a bullish outlook towards the company. The perspective is warranted given First Advantage’s strong Q3 results and its position as a leading provider of human capital screening and compliance solutions. Although the company lowered the top end of its 2025 fully year guidance from $1.6 billion to $1.57 billion, which could have contributed to its share price decline, the company looks like it’s set to deliver solid performance over time. Given its share price drop, now may be a good time to consider buying the stock.
Market and Industry Context
The specialty business services sector is a growing industry, and First Advantage is well-positioned to capitalize on this trend. The company’s scalable platform and broad suite of services enable clients to efficiently manage workforce risk and regulatory requirements across multiple industries. Onex Canada’s investment in First Advantage is a vote of confidence in the company’s ability to deliver strong performance and growth in the future. As the company continues to execute on its strategy and deliver solid results, it is likely to attract more investors and increase its market presence.
Conclusion and Final Thoughts
In conclusion, Onex Canada Asset Management’s investment in First Advantage is a significant development for the company and the specialty business services sector. With its strong Q3 results and established market presence, First Advantage is well-positioned for growth and success in the future. Onex Canada’s decision to raise its stake in the company suggests a bullish outlook, and given the company’s share price drop, now may be a good time to consider buying the stock. As the company continues to execute on its strategy and deliver solid results, it is likely to attract more investors and increase its market presence.