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Oakley Capital Investments Limited

Overview

Oakley Capital Investments Limited, an AIM listed company, seeks to provide investors with long term capital appreciation, through its investment in the Oakley Capital Private Equity (“OCPE”) Funds and through co-investment opportunities.

OCPE comprises three mid-market private equity funds with over €1.5 billion of commitments, investing primarily in Western Europe. OCPE’s first fund was raised in 2007 and is an upper quartile performer for its vintage. Fund II was raised in 2013 and deployed capital rapidly such that the fund is now essentially fully invested, with one full exit and one partial exit to date.

The focus is on entrepreneurial led businesses that support and strategic input in order to reach their potential. The origination model has consistently delivered a flow of attractive primary investment prospects, often outside of mainstream sales processes.

  • Direct manager, London-listed
  • Investment focus: Western Europe
  • Deal focus: BO/GC
  • Market cap: £335.3m (30 June 2017)

Key financials

Investment Adviser Overview

Oakley’s investment style is characterised by its ability to empathise with entrepreneurs and ambitious managers, combined with its analytical and operational experience. Oakley seeks to make investments in companies with enterprise value of approximately €60 – €300 million and secure a controlling position in the target company. The Oakley networks and wider ecosystem attract a range of entrepreneurs and managers to the broader group. It believes it has developed a respected reputation and brand among business owners that are otherwise not attracted to the standard auction-led private equity market. These relationships are carefully cultivated to deliver differentiated deal flow, limiting Oakley's reliance on intermediaries and auctions. Oakley rarely participates in intermediated deals or active M&A auction processes unless it has a compelling competitive advantage.

 

Market commentary

Chairman's Statement - Interim Results 2017

 Overview

I am pleased to report that the six months ending 30 June 2017 has been a period of progress for the Company. The underlying portfolio companies have continued to perform strongly, with an 11% increase in fair value from 31 December 2016 on a like-for-like basis. This, however, was offset by the dilution from the treasury share sale, giving rise to an unchanged NAV per share of £2.31.

During the first half of 2017, Oakley Fund III completed three acquisitions with invested cost totalling €174.1 million: €104.3 million for Casa/atHome, this is after refinancing of €32.0 million: €25.2 million for Plesk: and €44.6 million for TechInsights. Post period end, two further acquisitions were completed: in July 2017, Schülerhilfe, with an invested cost of €85.9 million, and in August 2017, AMOS, with an invested cost of €16.9 million. The Oakley Fund III investments follow on from Oakley’s previous success in the TMT and education sectors, as well as building on experience and expertise in online marketing-led businesses.

In January 2017, the Company sold 15 million treasury shares for consideration of £23.3 million. The Company subsequently cancelled the remaining 2.1 million shares still held in treasury bringing the balance of treasury shares to nil. The Board is now of the view that the Company will not in future sell stock from treasury or issue new shares at discounts to NAV.

In April 2017, the sale of Host Europe Group was completed, returning proceeds of €42.3 million (£36.2 million) to Oakley Fund II, representing a gross money multiple of 2.1x and gross IRR of 40%. The Company received proceeds of €14.6 million (£12.0 million) from this transaction.

In June 2017, the Company acquired the majority of Oakley Fund I’s stake in Inspired(previously referred to as Educas), a global group of premium private schools. The Board will continue its investment in the development and expansion of the business.

- Christopher Wetherhill, Chairman

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