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26 Jan 2022 07:00
26 January 2022
Oakley Capital Investments Limited
Trading update for the year ended 31 December 2021
Strong earnings and realisations drive significant NAV uplift
Oakley Capital Investments Limited ("OCI" or the "Company") today announces a trading update for the 12 months ended 31 December 2021. OCI is a listed investment company providing consistent, long-term returns in excess of the FTSE All-Share Index by investing in the funds managed by Oakley Capital ("Oakley"), thereby capturing the outperformance of a leading private equity manager.
The Oakley Funds invest primarily in unquoted, pan-European businesses across three sectors: Technology, Consumer and Education. Oakley leverages its unique business founder network to source attractive investment opportunities and then applies proven value creation strategies to accelerate sustainable growth.
Highlights for the year ended 31 December 2021
● | Net Asset Value ("NAV") per share of 538 pence |
● | Total NAV return per share of 35% |
● | Total shareholder return of 48% |
● | Investments of £137 million and share of proceeds of £121 million |
● | Year-end cash of £163 million |
● | Outstanding commitments of £404 million. Post year-end, OCI announces an initial €400 million (£336 million)1 commitment to Fund V |
● | Buy-back and cancellation of 2 million shares |
NAV growth
The Company's unaudited NAV as at 31 December 2021 was £961 million, which represents a NAV per share of 538 pence, based on portfolio company valuations at year-end. The total NAV per share return including dividends was 35% (+140 pence) since 31 December 2020 and 21% (+95 pence) since 30 June 2021. During the year, 76% of the increase in the portfolio's value was driven by EBITDA growth and 24% by multiple expansion including realisations. The largest contributions were from IU Group which continued to see strong growth in student enrolments during the period, and TechInsights whose sale has been agreed at a c.125%1 premium to the June book value.
Portfolio company performance
In 2021 the Oakley Funds continued to benefit from their investment focus on technology-enabled businesses. While some companies were impacted by COVID-related restrictions, the wider portfolio enjoyed strong earnings growth, benefiting from accelerating long-term trends such as the increasing adoption of digital solutions by businesses and consumers, and growing demand for quality, accessible education.
Proceeds
OCI's look-through share of proceeds from exits, refinancings and debt repayments during the period amounted to £121 million, consisting of:
● | Realisations - £38 million - this includes the exit of ACE Education (2.1x Gross MM), the partial sale of Daisy Group's stake in the Digital Wholesale Solutions division and the repayment of debt by Daisy Group. Post period-end the exit of TechInsights is expected to generate a gross money multiple of c.18.7x, with OCI's share of proceeds c.£58 million1 |
● | Refinancings - £83 million - IU Group, Contabo and 7NXT all completed refinancings, demonstrating the quality of their recent earnings growth |
Investments
During the period, OCI's Investment Adviser, Oakley Capital, continued to originate proprietary opportunities for its Funds across its focus sectors. OCI made a total look-through investment of £137 million attributable to:
● | New investments - £106 million - comprising idealista, Dexters and ICP Education in Fund IV; and ECOMMERCE ONE, Seedtag, and a reinvestment in ACE Education in the Origin Fund. Fund IV's reinvestment in TechInsights is expected to complete post period-end |
● | Follow on investments - £31 million - comprising Windstar Medical in Fund IV; Grupo Primavera and Globe-Trotter in Fund III; and North Sails (Fund II and direct investment) |
OCI also completed the buy-back and cancellation of two million shares at an average price of 354 pence per share during the period, resulting in a NAV uplift of c.1 pence.
Cash & Commitments
● | Balance sheet - OCI had cash on the balance sheet of £163 million at 31 December 2021, representing 17% of NAV, and no debt |
● | New fund commitment - OCI announces an initial €400 million commitment (£336 million)1 to Fund V, the successor to Oakley Capital Fund IV, which is effectively c.75% invested |
● | Total outstanding commitments - at the year-end outstanding Oakley Fund commitments were £404 million, which increases to £740 million when including the initial commitment to Fund V announced post year-end. This will be deployed in new Fund investments over the next five years, funded with existing balance sheet cash as well as expected proceeds from future realisations |
The Company expects to report its audited annual results for 2021 on 10 March 2022.
- ends -
For further information please contact:
Oakley Capital Limited
+44 20 7766 6900
Steven Tredget, Investor Relations
Greenbrook Communications Limited
+44 20 7952 2000
Alex Jones / Michael Russell
Liberum Capital Limited (Financial Adviser & Broker)
+44 20 3100 2000
Chris Clarke / Darren Vickers / Owen Matthews
Notes:
This announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
LEI Number: 213800KW6MZUK12CQ815
1 Based on FX rates (USD:EUR 0.89; EUR:GBP 0.84) as at 25 January 2022.
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.
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.
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 and Oakley Capital Origin Fund 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.
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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