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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Oakley Capital Investments Limited | OCI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 1.50 | 0.32% | 475.50 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 475.50 | 475.50 | 475.50 | 474.00 |
| Industry Sector |
|---|
| EQUITY INVESTMENT INSTRUMENTS |
| Top Posts |
|---|
Posted at 24/4/2024 11:33 by 1968jon Sorry, this is going to be a bit long....I think you could go mad hoping for a narrowing of the discount. I think I just have to trust the Oakley process. There are reasons (not all of them daft) why most PE trusts have historically traded at a discount. Let's just say for fun that 3-10 years ago those discounts were high teens to early/mid twenties percent. Then a whole bunch of stuff happened in the last 3 years that scared some people witless about private markets - Woodford was arguably a starting point but a lot happened post him. Discounts on many trusts moved out to mid 30s to high 40s percent. Fair? Who cares. Anyway, valuations are still not trusted by enough people. I give you this headline from a press round up today..."UK banks are leaving themselves open to ‘severe, unexpected losses’ by failing to properly measure how exposed they are to the $8tn (£6.44tn) private equity industry, the Bank of England has warned." From the grauniad but it is everywhere. I know that the large global wealth managers are still shovelling the very wealthy into PE hand-over fist but suggest to the average punter who can't write a six or seven figure ticket that they should have some PE trusts in their SIPP and see where it gets you. (Notwithstanding that you can't buy OCI on some platforms and most small wealth managers/IFAs can't access trusts at all) I think there are a few pertinent facts. I know that many investors in good UK PE firms are currently able to trade in the secondary market at ranges from a discount of 15% of NAV upto NAV depending on fund. I have no insight on OCI itself in that regard but if you trust the portfolio you'd have to believe they were at least in that range. I think their published increase in NAV from March'23 - to March'24 is hugely interesting - about 4.4%. After divs they've underperformed the FTSE, never mind the nearly 30% return from the S&P Far from being discouraged, I think it is remarkably conservative and might give people confidence that the valuations are realistic. |
Posted at 22/3/2024 13:15 by 888icb IC Article yesterday:“ This PE company has trebled your money and is still a bargain It continues to deliver strong shareholder returns from a portfolio that offers defensive characteristics and benefits from structural market growth Simon Thompson Net asset value per share up from 662p to 684p 17 per cent of book value in cash Private equity investment company Oakley Capital Investments (OCI:465p) delivered a net asset value (NAV) total return of 4 per cent last year, but there should be no complaints from investors who enjoyed an 18 per cent total shareholder return (TSR). It takes the five-year annualised TSR to 24 per cent, during which time those who bought in when I announced my 2016 Bargain Shares Portfolio have trebled their money. Oakley’s portfolio is focused on three core market segments – technology (23 per cent of portfolio), education (21 per cent) and digital consumer (42 per cent) – which delivered 14 per cent organic growth in cash profit, a key driver behind the valuation uplift. It highlights the portfolio’s ability to sustain growth rates even during challenging economic conditions. The fact that two-thirds of portfolio companies operate a subscription-based or recurring revenue business model means that they are far less exposed to short-term falls in customer demand. The majority of Oakley’s investments also have defensive characteristics, benefit from strong structural market growth, and have asset-light business models and high cash conversion rates. Importantly, portfolio companies’ leverage ratios (4.2 times cash profit to net debt) are well below the private sector industry average (six to seven times), and last year’s average entry multiple on new investments (12.4 times cash profit to enterprise valuation) was 24 per cent below the portfolio average. So, as investee companies mature, they benefit from multiple expansion and organic-growth-drive |
Posted at 14/3/2024 09:20 by davebowler The Board continues to work towards the resolution and value maximisation of OCI's two direct investments of Time Out and North Sails. Developments in 2023 included: the receipt of an in-specie dividend of Time Out shares from the ongoing closure of Fund I which rationalised OCI's Time Out holdings in a single direct stake, giving greater autonomy over the holding; and converting OCI's outstanding North Sails loans and accrued interest into preferred equity. This was done alongside a wider organisational and capital restructure of the North Sails Group which improves OCI's overall security, creates an incentive for redemption and helps simplify the North Sails' capital structure, enhancing the attraction of the business to future investors. Time Out recently publicly reported strong half year results while North Sails delivered another record year for 2023. |
Posted at 02/3/2024 22:39 by mrscruff MACD is a technical, its just a short term momentum showing the direction of the share price. Traders use it to trade. I would ignore it if you are an investor because the long term-trend is upwards and healthy... its just a little volatile. I would not trade it as it could shake you out of OCI that is clearly the best value private equity in Europe. If it drops 4-5% buy some more. |
Posted at 02/2/2024 14:40 by davebowler HTtps://citywire.com |
Posted at 02/1/2024 12:16 by davebowler Oakley Capital Investments Ltd on Friday said its direct shareholding in London-based publisher and food markets operator Time Out Group PLC has increased as a result of a transfer of shares.The Bermuda-based firm, which provides access to private equity investments of Oakley funds, said Fund I has transferred its shares in Time Out in-specie to its investors.As a result, OCI's direct stake in Time Out has risen to 38.06% from 19.97%. This represents a total of 5.8% of OCI's net asset value at September 30, it said. |
Posted at 03/11/2023 15:19 by misterd1 I thought I would further expand on my post above as I'm certain many people will get this wrongResolution 8 is a special resolution requiring 75 per cent. of the shares voted to be in favour in order for the Company to discontinue as currently constituted. The Board does not support this course of action as the Board considers the continuation of the Company to be in the best interests of the Company and its Shareholders as a whole and accordingly, unanimously recommends that Shareholders vote AGAINST the Resolution. The Board believes the Company is well placed to continue generating attractive total returns for its investors and the rationale for recommending Shareholders vote in favour of the continuation is set out below. |
Posted at 26/10/2023 07:42 by somerset lad I'm not totally sceptical of the NAV (I own OCI), but the exit values argument is sometimes overstated because of mix / selection issues (if I sold my best performing stocks over the last year, I could claim my portfolio has doubled, but the market marks on the rest of the portfolio would show that's nonsense) and transfers within the Oakley family of funds (which don't provide a market-based validation of the number). Overall, my point on the 1% contribution from debt is that if you're going to ask investors to trust your marks, you need to be, and be seen to be, robust and rigorous in the numbers you put out and that involves not using doubtful methodologies (if they did - I don't know how they got to the 1%) and being quick to answer comprehensively any challenge that is made to your methodology.The questions I asked in advance of the webinar (to give them time to prepare an answer) that weren't answered on the webinar or subsequently were: "Can you tell us a bit more about leverage in your portfolio companies? I see UK public markets getting very nervous about listed companies with leverage of more than 2 times, reducing multiples in companies like Strix and, in more extreme examples like Synthomer, forcing deeply discounted equity raises. On the other hand, some other private equity companies are maintaining their marks at higher leverage than OCI. Why are your valuations holding up at leverage of 4.0 times? Is the debt held at individual portfolio company level with no recourse? Is the debt priced at a margin over base / Euribor? In broad terms what margins are you paying? Are the banks happy with leverage at 4.0 x EBITDA? Is the typical margin over base / Euribor changing evolving over time and if so how? You say in your interims “only 1% of realised returns across all our investments have been driven by debt”. How have you calculated the 1% figure? How are you accounting for the fact that debt at the investee company level allows the funds to spread their equity over more investments? Do you mean to imply that investee companies could operate without any debt and the impact on OCI would be marginal and, if so, why not de-risk the portfolio and operate that way?” |
Posted at 25/9/2023 12:18 by biggest bill Here are more details of the article from Investors Chronicle.A bargain private equity stock on a 32% discount. It is priced below book value even though its investments are delivering robust growth • £240mn cash inflow from education sector disposal • Net asset value (NAV) flat at £1.17bn (663p) • Net cash of £248mn • 32 per cent share price discount to NAV The astute investment team at Oakley Capital Investments (OC The disposal of its stake in IU Group, the largest and fastest growing university in Germany, realised £240mn in look-through proceeds and delivered an eye-watering 76 per cent internal rate of return (IRR) on Oakley’s investment. The company has reinvested £66mn into IU Group to benefit from the next phase of its growth and made £16mn of other new investments in the education sector, too. These include a £14mn investment in Thomas Day Schools, a top-rated group of co-educational independent schools in England, and a £2mn investment to fund a bolt-on acquisition for investee company Affinit The education sector is likely to be an important driver of Oakley’s future returns. That’s because only 4 per cent of the 11,000 bilingual international schools have been consolidated to date in what is a huge $3.5tn market. Oakley’s other education-themed exposures include Prep Bright Stars, a UK nursery company, and Schülerhilfe, a tutoring business in Austria and Germany. The investment in IU Group had already been revalued up 85 per cent in last year's accounts, so didn't impact NAV in the interim accounts. However, the hefty cash flow on the realisation explains why Oakley held net cash of £248mn at the half-year-end, a sum representing a fifth of NAV of £1,17bn (663p). The relatively flat first-half NAV performance partly reflects the fact that foreign currency headwinds held back NAV by 15p a share, a sum that was offset a 2.6 per cent NAV uplift from portfolio gains. Also, cash and transactions in the past 12 months account for half of book value, so those investmen Structural drivers of NAV growth Oakley’s ability to back the right type of company across three core market segments – technology, education and digital consumer – and shrewdly make exits to bank handsome gains should not be underestimated. The average portfolio company delivered 21 per cent growth in cash profit year on year and house broker Liberum Capital notes that several companies are well positioned to benefit from digital megatrends. For instance, business software and cloud-based management solutions group Cegid was combined with Iberia-focused Grupo Primavera in 2022 and offers exposure to the data supercycle. Also, majority of Oakley’s investments have defensive characteristics, benefit from strong structural market growth, asset-light business models and high cash conversion rates. In addition, more than two-thirds of portfolio companies operate a subscription-based model or recurring revenue business model. It means that they are less exposed to short-term falls in customer demand, a point worth noting in the prevailing economic environment as Oakley’s investee companies are likely to continue delivering profit growth to positively impact valuations. Unwarranted share price discount These dynamics help explain why Liberum is predicting a £202mn unrealised portfolio gain in this year’s annual accounts to deliver 16 per cent growth in NAV to £1.35bn (767p). On this basis, the shares are rated on a 41 per cent discount to year-end NAV estimates, implying a nine percentage point widening of the current share price discount and one that is already six percentage points wider than the average of Oakley’s direct equity peer group. The level of discount is unwarranted given Oakley’s impressive track record. In fact, Oakley has delivered 22 per cent annualised growth in NAV on a total return basis over the past five years and outperformed all AIC investment companies, too. So, having included the shares, at 146.5p, in my 2016 Bargain Shares Portfolio, and banked 31.5p a share of dividends, the potential for further valuation uplifts warrants a narrowing of the hefty discount to NAV. Buy. |
Posted at 25/8/2023 14:51 by davebowler 18 August 2023Steven Tredget says private investors are replacing wealth firms on its shareholder register, although he notes individual wealth managers have snapped up its shares on a wide discount. Oakley Capital Investments (OCI ) says interest in his trust from retail investors has grown exponentially since the onset of the Covid-19 pandemic. Steven Tredget, a partner at Oakley Capital responsible for the investment company that invests in its funds, told Citywire that in 2020, 3% of OCI’s share register was retail investors. That number has now grown five-fold to 15%. Tredget, a partner at OCI’s manager Oakley Capital, noted that this money was replacing investment from wealth managers who are often restricted from holding investment trusts an closed-end funds. ‘There’s greater interest from private investors going into private equity (PE) for the first time,’ he said. ‘We’ve also noticed wealth managers, who are prohibited from buying our trust for their clients, are buying the trust in their personal portfolios.’ The £812m trust currently trades at a 31% discount to its net asset value (NAV) – a level which is not unusual for private equity trusts in the current uncertain environment. Numis Securities recently said that OCI’s price represented ‘exceptional value’. According to the Association of Investment Companies, 14 out of 17 private equity investment companies traded at double-digit discounts in June. Wealth managers were historically major buyers of listed private equity funds but have cooled on the sector since many funds ran into trouble during the financial crisis. More recently, consolidation among wealth managers has also made it harder for all but the largest trusts to find a place in the centralised portfolios of these bigger firms. ‘Icing on the cake’ Like other private equity managers, Tredget believes current pricing is ‘inefficient&# ‘We’ve had earnings growth in our companies. The discount is a complete red herring, and a distortion of the situation,’ he said. ‘There’s a lack of trust in PE company valuations, and there’s a low expectation of future returns. But the discount provides an icing on the cake for investors.’ He added that more than 60% of the consumer-facing, media and education companies in the portfolio have ‘had some kind of pricing event within the past 12 months’. In its interim results OCI, which acts as an effective shop window to private equity manager Oakley Capital, revealed that it had invested $100m (£79m) in an artificial intelligence (AI) venture fund launched by its parent company. The update for the first half of 2023 also revealed that its £1.1bn portfolio had generated an underlying investment return of 0.5% with 2.5p per share of dividends included. Those fairly modest returns should be viewed in the context of a 158% total return for shareholders in the five years to 17 August. That is triple the 49% gain for the MSCI World index, according to Morningstar data. ‘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,’ OCI said in a trading update. ‘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.’ ‘It’s hard to explain listed PE’ Tredget added that wealth managers have a ‘hard time’ buying investment trusts more generally. ‘It’s hard to explain listed PE to investors, especially with the discount factor,’ he said. ‘There’s this view that PE is elitist and inaccessible, and the perception of vultures of old. The likes of Woodford and Chrysalis (CHRY ) have also impacted the industry.’ Tredget does not, however, believe that a share buyback policy is the best way to close OCI’s discount. ‘We only do a buyback when we think it’s the best way to deploy capital,’ he said. He did acknowledge that it is often a good way for a trust to signify its confidence in its net asset value. |
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