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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: £335.9m (30 December 2016)

Key financials

Investment Adviser Overview

OCL’s investment style is characterised by its ability to empathise with entrepreneurs and ambitious managers, combined with its analytical and operational experience. OCL seeks to make investments in companies with enterprise value of approximately €60 – €300 million and secure a controlling position in the target company. The OCL 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 OCL’s reliance on intermediaries and auctions. OCL rarely participates in intermediated deals or active M&A auction processes unless it has a compelling competitive advantage.

 

Market commentary

Chairman's Statement - Full Year Results 2016

 

Overview

I am pleased to report that the Company has performed well in 2016. There has been a 30% increase (on a like-for-like basis) in the fair values of the portfolio companies held by the Oakley Funds, reflecting strong underlying growth. This, together with the favourable impact on the Company of weaker Sterling, has resulted in an increase in the NAV per share year-on-year of 16%.

In June 2016, Time Out Group plc ("Time Out") successfully listed on the AIM of the London Stock Exchange, generating net proceeds of £59 million after fees and debt repayment. Following the listing, the Company has a direct interest in Time Out representing 24.0% of Time Out's issued share capital, and an indirect interest through Fund I of a further 22.7%.

In October 2016, Parship Elite Group was partially sold to ProSiebenSat.1 Media SE ("ProSieben"). The Company received proceeds of €43.3 million (£38.9 million) from this transaction. The Fund generated a gross money multiple and IRR of 3.6x and 145% respectively, from the realisation and from its retained interest.

In December 2016, Fund II reached an agreement with Cinven (the majority shareholder of Host Europe Group ("HEG")) to sell HEG to GoDaddy Inc. HEG was Oakley's third investment in the hosting space and demonstrates its expertise in the TMT sector, which it continues to build upon.

Fund III announced its first investment in December 2016, acquiring a number of European real estate consumer websites including Casa.it in Italy and atHome.lu in Luxembourg. This will build on Oakley's experience in the digital consumer sector through its previous investments in Facile, Parship Elite Group and Verivox. This transaction completed in January 2017.

- Christopher Wetherhill, Chairman

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