Nov. 12 (Bloomberg) -- Onex Corp. Chief Executive Officer Gerry Schwartz said ``very difficult'' credit markets may not improve before 2010.

``My own gut feeling is that it's going to last a few years,'' Schwartz, 66, said on a conference call today. ``The momentum is still downwards, and I can't see any reason why there would be any real pullout from where we are, at least anything short of the next 18 months. I hope I'm wrong.''

The collapse of the U.S. subprime-mortgage market has roiled credit markets globally, leaving companies unable to get funding from banks to finance deals. Announced takeovers in the first nine months of the year were valued at $2.37 trillion, a reduction from the record $3.29 trillion a year earlier, according to data compiled by Bloomberg.

Toronto-based Onex, Canada's biggest publicly traded buyout firm, has had to delay the closing of a new $4.5 billion buyout fund, Onex Partners III. Schwartz said today that a March 31 target might not be met. About $3.5 billion will come from outside investors such as pension funds.

Onex today reported a third-quarter profit of C$38 million ($30.8 million) on higher profit in its electronics and health- care units.

Net income amounted to 30 cents a share, compared with a net loss of C$77 million, or 60 cents, a year earlier, Onex said. Revenue rose 17 percent to C$7.1 billion.

Onex rose 56 cents, or 2.8 percent, to C$20.25 in Toronto Stock Exchange trading. The shares have fallen 42 percent this year.

To contact the reporter on this story: Frederic Tomesco in Montreal tomesco@bloomberg.net.

Last Updated: November 12, 2008 18:28 EST