Oakley Capital Investments Limited Trading update for the 6 months ended 30 June 2023 (1710H)

TIDMOCI

RNS Number : 1710H

Oakley Capital Investments Limited

26 July 2023

26 July 2023

Oakley Capital Investments Limited

Trading update for the Six Months ended 30 June 2023

Oakley Capital Investments Limited(1) ("OCI" or the "Company") today announces its half year trading update for the six months ended 30 June 2023. 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(2) ("Oakley"), thereby capturing the outperformance of a leading private equity manager.

The Oakley Funds(3) invest primarily in unquoted, profitable, pan-European businesses with recurring revenues, and across four sectors: Technology, Consumer, Education and Business Services(4) . Oakley's origination capabilities combined with proven value creation drivers help management teams accelerate growth and produce consistently superior returns for investors.

Resilient NAV and strengthened balance sheet

Highlights for the period

   --      Net Asset Value ("NAV") per share of 663 pence and NAV of GBP1,169 million 
   --      Total NAV return per share, including dividends, of 0.5% since 31 December 2022 (+3 pence) 
   --      Total shareholder return of 5.3% 
   --      Additional investments made of GBP96 million and share of proceeds of GBP240 million 
   --      Net cash of GBP248 million 
   --      Undrawn revolving credit facility extended and increased to GBP175 million post-period end 

NAV growth

The Company's unaudited NAV, based on a revaluation of all portfolio companies as at 30 June 2023, was GBP1,169 million, which represents a NAV per share of 663 pence. The total NAV per share return, including dividends, was 0.5% (+3 pence) since 31 December 2022. The total return includes 17 pence of valuation gains in the underlying portfolio companies less 15 pence of foreign exchange impact, due to the 3% movement in EUR:GBP. The modest increase in asset value reflects the Company's cautious approach to trading outlook and valuation multiples, and the fact that half of the NAV was not subject to change in the period. This results from approximately 50% of the asset value being held in cash, or underlying investments that were valued based upon a transaction within the last 12 months.

Portfolio company outlook

OCI's underlying portfolio of tech-enabled businesses are expected to continue to deliver robust trading performances in the challenging macroeconomic environment as customers continue to shift spending online, switch to SaaS solutions and invest in education, thereby underpinning NAV and demonstrating the enduring power of the long-term megatrends that Oakley invests behind.

Transactions

During the period, OCI's look-through share of proceeds from realisations was GBP240 million and it made look-through investments of GBP96 million. The most significant contribution to both was the Fund III disposal and Fund V reinvestment in IU Group, the largest and fastest growing university in Germany, and a global leader in education technology. Additionally, the Oakley Funds made further investments with the acquisition of Fastcase, a legal intelligence business which has been combined with Oakley portfolio company vLex; an investment in premium schools group Thomas's London Day Schools; and a bolt-on acquisition to Affinitas Education, XIC, a single-site school based in Spain.

Cash & commitments

OCI had net cash of GBP248 million as at 30 June 2023. Post period end, OCI renewed and expanded its revolving credit facility, raising total committed lending to GBP175 million for a two-year term. As at 26 July 2023, the facility was undrawn.

On 30 June 2023 OCI made a US $100 million commitment to the Oakley Touring Venture Fund, a strategy established to invest in proven next generation enterprise software companies powered by generative AI. Total outstanding Oakley Fund commitments, including this, at the period end were GBP893 million which are expected to be drawn over the next 5 years.

For more information on the Oakley Fund strategies in which OCI invests, please click here.

OCI's latest quarterly factsheet can be accessed here .

The Company expects to report its unaudited interim results for the six months to 30 June 2023 on 14 September 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 V and Oakley Capital Origin Fund and 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.

(4) Business Services

Business Services is a newly classified Oakley sector, which reflects the Investment Adviser's growing track record in information platforms and Testing, Inspection, Certification, and Compliance ("TICC") . These investments were previously categorised under Technology.

For more information on Business Services and the other Oakley focus sectors, 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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July 26, 2023 02:00 ET (06:00 GMT)