Gerry Schwartz will step down as chief executive officer of Onex Corp., the Canadian private equity firm he’s managed for nearly 40 years, after shareholders agreed to extend his voting control until 2026.

Investors backed the firm’s succession plan at the annual meeting Thursday by allowing Schwartz to hang on to the special rights attached to his multiple-voting shares for three more years. That paves the way for President Bobby Le Blanc to replace the founder as CEO. Schwartz will remain chairman.

“Onex is on a certain path to a one-share, one-vote structure,” Schwartz told shareholders. The share rose 1.1 per cent to $61 in Toronto.

Le Blanc, who was promoted to president in 2020, is taking control at a critical moment for the firm as it struggles with fundraising for its sixth flagship fund and lackluster returns. Buyout firms are contending with one of the most difficult investment climates since the 2008 global financial crisis, as higher interest rates make financing deals more expensive.

“It’s a true honor to have the opportunity to lead this team,” Le Blanc said.