The Funds' primary objectives are to invest in a diversified portfolio of private mid-market UK and European businesses, aiming to provide investors with long term capital appreciation in line with a gross IRR in excess of 25% and a gross multiple of 3x.
Oakley Capital (Bermuda) Limited, a Bermudian company, has been appointed as Manager to the Company. The Manager has appointed Oakley Capital Limited as Investment Adviser to the Manager.
Chairman's Statement - Interim 2016
I am pleased to report that the six months ending 30 June 2016 has been a period of solid progress and growth for the Company. The strong performance of the Funds’ portfolio companies and weakening of Sterling since 31 December 2015 contributed to a net asset value (“NAV”) per share increase of 15p since 31 December 2015 and 33p since 30 June 2015.
In June 2016, Time Out Group plc (“Time Out Group”) was floated, raising £90 million (gross). As a result of the IPO, the Company transferred its co-investments in Time Out Markets and Flypay to Time Out Group which, together with its direct investment in Time Out Group, valued the Company’s direct holding at £47.2m million at the IPO price. The Company has further, indirect, exposure to Time Out Group through its investment in Oakley Capital Private Equity L.P. (“Fund I”).
In the post balance sheet period, Oakley Capital Private Equity II (“Fund II”) announced it had reached agreement to sell a controlling stake in Parship Elite Group, one of its portfolio companies, at a 3.6x money multiple, including the value of its retained interest. The sale is expected to return cash proceeds of approximately €44 million to the Company.
The Company has a capital commitment of €188 million to Fund I of which 95% had been called at 30 June 2016, making Fund I fully invested. During the first half of 2016, Fund I’s fully owned subsidiary, Broadstone Holdco (Bermuda) Limited, sold its investment in Broadstone Finance Limited (“Broadstone”). The proceeds were receivable as at 30 June 2016.
The Company has a capital commitment of €200 million to Fund II, of which 57% had been called at 30 June 2016. At the date of this statement, 65% of commitments have been called and 91% of commitments have been deployed, making Fund II also essentially fully invested.
The Company also made a capital commitment of €250 million to Fund III during the six month period, of which 3% had been called at 30 June 2016. Fund III had no investments as at 30 June 2016.
- Christopher Wetherhill, Chairman