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24 Jan 2024 07:00
24 January 2024
Oakley Capital Investments Limited
Trading update for the year ended 31 December 2023
Oakley Capital Investments Limited1 ("OCI" or the "Company") today announces its trading update for the year ended 31 December 2023. OCI is a listed investment company providing consistent, long-term returns in excess of the FTSE All-Share Index by investing in funds managed by Oakley Capital2?("Oakley").
The Oakley Funds3 invest primarily in unquoted, profitable, pan-European businesses with recurring revenues, and across four focus sectors. Oakley's origination capabilities combined with proven value creation drivers help management teams accelerate growth and produce consistently superior returns for investors. ?
Highlights for the year ended 31 December 2023
? | Net Asset Value ("NAV") per share of 684 pence and NAV of £1,207 million |
? | Total NAV return per share, including dividends, of 4% (+27 pence) |
? | Total shareholder return of 18% |
? | Investments of £175 million and share of proceeds of £266 million |
? | Year-end cash and available debt of £382 million |
? | Outstanding commitments of £1,017 million |
NAV growth
The Company's unaudited NAV as at 31 December 2023 was £1,207 million, which represents a NAV per share of 684 pence, based on portfolio valuations at year-end. The total NAV per share return including dividends was 4% (+27 pence) since 31 December 2022 and 1% (+8 pence) since 30 September 2023. Of the realised and unrealised portfolio uplift in the year, 65% of the increase was driven by EBITDA growth, and 35% as a result of multiple expansion. The largest contributions came from IU Group, which expanded enrolments 33% to 125,000 students during the year; North Sails, which generated revenue and profit growth led by the sails, masts and apparel business, ahead of target; and online property portal idealista, which posted strong results across its core markets in Southern Europe.
Portfolio company performance
In 2023, the underlying companies in OCI's portfolio continued to trade well in an uncertain macroeconomic environment, thanks to their resilient, asset-light business models, usually with strong disruptive market positions and predictable, recurring cash flows. Companies across all of Oakley's four sectors, Technology, Consumer, Education and Business Services, contributed to valuation gains.
Proceeds
OCI's look-through share of proceeds from exits and refinancings during the year totalled £266 million, consisting of:
? | Realisations - £240 million - IU Group exit at gross return of 85% IRR |
? | Refinancings - £26 million - idealista and Cegid completed debt refinancings |
Investments
OCI made a total look-through investment of £175 million which included:
? | New platform deals - £50 million - Thomas's London Day Schools, Liberty Dental Group and WebCentral |
? | Reinvestment - £66 million - IU Group, benefitting from the next phase of the company's growth, focused on leveraging AI and internationalisation |
? | Follow-on investments - £35 million - in addition to vLex's acquisition of Fastcase and 7NXT's acquisition of 7Mind, 22 bolt-on acquisitions were completed by portfolio companies |
? | Venture investments - £24 million - investments in Oakley Touring Venture Fund and PROfounders III portfolio companies. |
Post balance-sheet events
? | Further new platform deals - up to c. £100 million - investments in Alerce and Steer Automotive Group. Both transactions are expected to complete within 1H 2024. |
Cash & commitments
OCI's total liquidity as at 31 December 2023 was £382 million, comprising £207 million of cash on the balance sheet and £175 million in undrawn credit facilities. OCI made a total commitment of $100 million in Oakley Touring Venture Fund, which focuses on AI-powered software companies, and ?190 million in Origin II, taking the total outstanding commitments to the Oakley Funds to £1,017 million as at 31 December 2023. This will be deployed into new investments over the next five years. The Board closely monitors anticipated fund drawdowns and projected liquidity and will continue its long-term commitment to share buybacks when appropriate.
The Company expects to report its audited annual results for 2023 on 14 March 2024.
- ends -
For further information please contact:
Oakley Capital Limited
+44 20 7766 6900
Steven Tredget
Greenbrook Communications Limited
+44 20 7952 2000
Rob White / Michael Russell
Liberum Capital Limited (Financial Adviser & Broker)
+44 20 3100 2000
Chris Clarke / Darren Vickers / Owen Matthews
Notes:
LEI Number: 213800KW6MZUK12CQ815
1 About Oakley Capital Investments Limited ("OCI")
OCI is a Specialist Fund Segment ("SFS") traded investment vehicle that aims to provide shareholders with consistent long-term capital growth in excess of the FTSE All-Share Index by providing liquid access to private equity returns through investment in the Oakley Funds.
A video introduction to OCI is available at https://oakleycapitalinvestments.com/videos/. The contents of the OCI website are not incorporated into, and do not form part of, this announcement.
2 Oakley Capital, the Investment Adviser
Founded in 2002, Oakley Capital Limited has demonstrated the repeated ability to source attractive growth assets at attractive prices. To do this it relies on its sector and regional expertise, its ability to tackle transaction complexity and its deal generating entrepreneur network.
3 The Oakley Funds
Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III, Oakley Capital IV, Oakley Capital V, Oakley Capital Origin Fund and Oakley Capital Origin II, are unlisted lower-mid to mid-market private equity funds that aim to provide investors with significant long-term capital appreciation. The investment strategy of the Funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement. The Oakley family of funds also includes Oakley PROfounders Fund III and Oakley Touring Venture Fund, which are venture capital funds focused on investments in entrepreneur-led, disruptive, technology led companies.
For more information on the Oakley Fund strategies in which OCI invests, please click here.
Important information
Specialist Fund Segment securities are not admitted to the Official List of the Financial Conduct Authority. Therefore, the Company has not been required to satisfy the eligibility criteria for admission to listing on the Official List and is not required to comply with the Financial Conduct Authority's Listing Rules.
The Specialist Fund Segment is intended for institutional, professional, professionally advised and knowledgeable investors who understand, or who have been advised of, the potential risk from investing in companies admitted to the Specialist Fund Segment.
This announcement may include "forward-looking statements". These forward-looking statements are statements regarding the Company's objectives, intentions, beliefs or current expectations with respect to, amongst other things, the Company's financial position, business strategy, results of operations, liquidity, prospects and growth. Forward-looking statements are subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly the Company's actual future financial results, operational performance and achievements may differ materially from those expressed in, or implied by, the statements. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements, which speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the Company's expectations with regard to them or any change in events, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
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