Oakley Capital Investments Limited Trading update for the year ended 31 December 2022 (7505N)

TIDMOCI

RNS Number : 7505N

Oakley Capital Investments Limited

25 January 2023

25 January 2023

Oakley Capital Investments Limited

Trading update for the year ended 31 December 2022

Oakley Capital Investments Limited (1) ("OCI" or the "Company") today announces its trading update for the year ended 31 December 2022. OCI is a listed investment company aiming to provide consistent, long-term returns in excess of the FTSE All-Share Index by investing in the funds managed by Oakley Capital (2) ("Oakley").

The Oakley Funds (3) invest primarily in unquoted, pan-European businesses across three sectors: Technology, Consumer and Education. Oakley's origination capabilities combined with proven value creation drivers generate sustainable growth and consistently superior returns for investors.

Highlights for the year ended 31 December 2022

   --    Net Asset Value ("NAV") per share of 662 pence and NAV of GBP1,167 million 
   --    Total NAV return per share of 24% (+128 pence) 
   --    Investments of GBP269 million and share of proceeds of GBP244 million 
   --    Year-end cash and available debt of GBP210 million 
   --    Outstanding commitments of GBP929 million 
   --    Buy-back and cancellation of 2.2 million shares 

NAV growth

The Company's unaudited NAV as at 31 December 2022 was GBP1,167 million, which represents a NAV per share of 662 pence, based on portfolio valuations at year-end. The total NAV per share return including dividends was 24% (+128 pence) since 31 December 2021 and 1% (+9 pence) since 30 September 2022. Of the realised and unrealised portfolio value uplift in the year, 65% of the increase was driven by EBITDA growth, and 35% as a result of multiple expansion driven primarily by exits. The largest contributions came from IU Group which enjoyed further strong growth in enrolments, reaching 100,000 students during the year, Contabo, whose sale was agreed in June at a 105% premium to its carrying value, and the valuation uplift in Grupo Primavera following its strategic combination with Cegid.

Portfolio company performance

In 2022, OCI's underlying portfolio of asset-light, tech-enabled businesses continued to perform well and deliver earnings growth despite the macroeconomic environment, supported by Oakley Capital's active management. Looking ahead, the combination of disruptive business models targeting long-term megatrends, including the shift online for businesses and consumers, and global demand for quality education, is expected to continue delivering resilient trading in 2023.

Proceeds

OCI's look-through share of proceeds from exits and refinancings during the year amounted to GBP244 million. This consisted of:

 
 --   Realisations - GBP234 million - five exits, including Contabo, TechInsights, Facile, Wishcard 
       and Seedtag (partial exit) at an average 5x gross money multiple and an average premium to 
       carrying value of c.70% 
 --   Refinancings - GBP10 million - both Wishcard and Idealista completed refinancings, demonstrating 
       the quality of their earnings growth 
 

Investments

During the year, Oakley Capital continued to originate proprietary opportunities for its Funds across its focus sectors. OCI made a total look-through investment of GBP269 million attributable to:

 
 --   New investments - GBP214 million - comprising Affinitas and the reinvestment in TechInsights 
       in Fund IV; Phenna Group & CTS, and reinvestments in Contabo and Facile in Fund V; and vLex 
       and Vice Golf in the Origin Fund 
 --   Follow-on investments - GBP55 million - including Grupo Primavera (now part of Cegid) and 
       Alessi in Fund III, TechInsights' acquisition of Strategy Analytics in Fund IV, and Time Out 
       and North Sails direct investments 
 

OCI also completed the buy-back and cancellation of 2.2 million shares at an average price of 407 pence per share during the year, resulting in a NAV uplift of 2 pence. The OCI Board remains committed to its share buyback programme.

Cash & Commitments

 
 --   Liquid resources - OCI's total liquidity as at 31 December 2022 was GBP210 million, comprising 
       GBP110 million of cash on the balance sheet and a GBP100 million credit facility 
 --   Total outstanding commitments - OCI's recent EUR30 million commitment to Oakley Capital PROfounders 
       Fund III took its total outstanding commitments to the Oakley Funds to GBP929 million as at 
       31 December 2022. This will be deployed into new investments over the next five years. 
 

The Company expects to report its audited annual results for 2022 on 9 March 2023.

- ends -

For further information please contact:

Oakley Capital Limited

[phone]

Steven Tredget

Greenbrook Communications Limited

[phone]

Rob White / Michael Russell

Liberum Capital Limited (Financial Adviser & Broker)

[phone]

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 Origin Fund and Oakley Capital Private Equity V 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 PROfounders funds, which are venture capital funds focused on investments in entrepreneur-led, private businesses across Europe.

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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