Key Takeaways
- Onex Canada Asset Management increased its stake 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, placing it outside the fund’s top five holdings.
- The company’s stock price has declined by 27.14% over the past year, underperforming the S&P 500 by 41.92 percentage points.
- Onex Canada’s purchase of First Advantage shares may have been prompted by the stock’s downward trajectory and the company’s strong Q3 results.
Introduction to Onex Canada Asset Management’s Investment
Onex Canada Asset Management Inc. has disclosed a significant increase in its stake 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, the investment firm added 240,978 shares of First Advantage to its portfolio, 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, bringing the total holding to 772,147 shares valued at $11.88 million.
Company Overview and Performance
First Advantage offers technology-driven solutions for employment background screening, verifications, compliance, and safety, serving a global client base comprising large enterprises, mid-sized firms, and small businesses. The company operates a scalable platform that enables clients to efficiently manage workforce risk and regulatory requirements across multiple industries. Despite its strong market presence and diversified customer base, First Advantage’s stock price has declined by 27.14% over the past year, underperforming the S&P 500 by 41.92 percentage points. However, the company’s Q3 results showed a significant increase in revenue, with $409.2 million in revenue, up from $199.1 million in the prior year, and a net income of $2.6 million, compared to a net loss of $8.9 million in the prior year.
Onex Canada’s Investment Strategy
Onex Canada’s decision to raise its stake in First Advantage suggests that the investment firm has a bullish outlook towards the company. The purchase of additional shares may have been prompted by the stock’s downward trajectory, which could present a buying opportunity. With a strong Q3 performance and a solid market presence, First Advantage appears to be a promising investment opportunity. Onex Canada’s top holdings include NYSE: AON, NYSE: APO, NASDAQ: MSFT, NASDAQ: NVDA, and NASDAQ: GOOGL, but First Advantage now accounts for 1.5% of the fund’s 13F AUM, placing it outside the top five holdings.
Industry and Market Trends
The specialty business services sector, in which First Advantage operates, is a growing industry category focused on providing specialized support services to businesses. The company’s scalable platform and human capital screening solutions are designed to help organizations efficiently manage workforce risk and regulatory requirements. With a broad suite of services and a diversified customer base, First Advantage is well-positioned to capitalize on industry trends and continue to deliver solid performance over time.
Investment Opportunities and Risks
Onex Canada’s investment in First Advantage highlights the potential opportunities and risks associated with investing in the stock. While the company’s strong Q3 results and solid market presence are positive indicators, the stock’s downward trajectory and underperformance compared to the S&P 500 are concerns. However, for investors looking to capitalize on the company’s potential, now may be a good time to consider buying the stock. It is essential to conduct thorough research and consider multiple perspectives before making any investment decisions.
Conclusion and Final Thoughts
In conclusion, Onex Canada Asset Management’s purchase of First Advantage shares is a significant investment opportunity that highlights the company’s potential for growth and solid performance. With a strong Q3 performance, a scalable platform, and a diversified customer base, First Advantage is well-positioned to capitalize on industry trends and deliver returns for investors. While the stock’s downward trajectory and underperformance compared to the S&P 500 are concerns, the company’s solid market presence and potential for long-term growth make it an attractive investment opportunity for those looking to capitalize on the specialty business services sector.