Oakley Capital Investments Share Discussion Threads

[elsa7878] 23/6/2022 19:44

OCI has no debt and had cash on the balance sheet of GBP180 million at 31 March 2022

[essentialinvestor] 23/6/2022 10:57

Good to see another disposal, expected to see more disposal activity in H2 '21.

[riverman77] 23/6/2022 08:55

I don't think that is net cash though as they also hold debt - it is available cash. I think you can only strip out net cash from the NAV. Very impressive progress though.

[donald pond] 23/6/2022 08:52

Elsa, you beat me too it but we both get to same result. I think they have been making a few deployments too. The one thing I wasn't certain about is whether the £200m available is cash or partly a facility.

[donald pond] 23/6/2022 08:51

My quick calculation is that if we assume NAV unchanged other than last 2 disposals, it is now 594p/1.06bn of which around 110p/£200m is cash.So take the cash out and the share price is 255 VS 484 assets equals a discount of around 47%. Now, if the concern is that NAV is overpriced that surely cuts both ways: being cash rich in this environment means OCI can pick up bargains.

[elsa7878] 23/6/2022 08:48

Quick calc so please correct me. NAV was 571p plus 23p uplift from recent sales = 594p - value of sales was £53m and £22m net = 42p NET NAV = 552p CASH 200m = 112p. NAV of investments = 440p Shareprice 362p - cash 112p = 250p investment value. 250/440 = 44% discount.

[davebowler] 23/6/2022 08:43

Liberum-Oakley Capital Fund III has agreed to sell its stake in Facile to Silver Lake. OCI will receive £53m from the transaction, representing a 23% premium to the March 2022 carrying value. The sale will add 6p per share or 1% to NAV.Facile is Italy's largest online price comparison platform. Oakley initially invested in Facile through Fund II in September 2014. Facile was sold to EQT in 2018, generating a 51% IRR and a 3.7x multiple for Fund II. As part of the transaction, Fund III invested €80m alongside EQT for a 21% stake. The business has grown EBITDA by more than 20% pa on average over the last four years. During the period of the investment, Facile has expanded its product offering and the business now has a base of over four million monthly unique urers. Following the sale, OCI's estimated cash available for deployment will be £200m (c.19% of NAV) following the transaction. Liberum viewRepeat plays in different geographies have been a key investment theme for Oakley. The investment in Facile followed the successful investment in Verivox (14.9x multiple for Fund I), a German price comparison business. The exit of the stake in Facile follows swiftly on from the disposal of Contabo at a 105% premium to book value. Together, the sales have added 4% to NAV, resulting in a pro-forma YTD NAV total return of 10%. The sales again underline OCI's prudent approach to valuations (14x EV/EBITDA multiple) and the potential NAV growth from realisations.In the recent Q1 trading update, the company was clearly confident on expected realisation activity this year given the sizeable commitment to Fund V. Oakley's portfolio is relatively mature and offers scope for further exit activity. Over 40% of the portfolio (excluding direct investments) at March 2022 had a hold period of over three years and the average hold period for exited investments is 3.6 years. During the holding period, the valuation multiple tends to remain relatively close to the acquisition multiple. Consequently, exits have generally been materially above book value  The exit premium to book value has risen notably in recent years. We estimate an average increase since the beginning of 2018 of almost 60%. 

[rik shaw] 23/6/2022 07:30

Disposal at c.23% premium to the 31 March 2022 carrying value, an uplift of c.6 pence per share to the Company's NAV hTtps://uk.advfn.com/stock-market/london/oakley-capital-investments-OCI/share-news/Oakley-Capital-Investments-Limited-Oakley-Capital/88430095

[se81] 21/6/2022 17:56

but the buyback is still active? can't see a communication re it ending?

[kenmitch] 21/6/2022 16:52

Perhaps because they now realise those buybacks were a waste of money with the discount widening after them? So why repeat the mistake?

[se81] 21/6/2022 16:21

Now at a 35% discount? Is there any reason why the share buyback isn't operating now when shares were previously purchased at much higher levels (and at a lesser discount)?

[davebowler] 13/6/2022 09:14

More private equity tips (continues from previous page) In addition to those, Numis added in a note last week: hTTps://citywire.com/investment-trust-insider/news/trust-watch-don-t-let-woodford-put-you-off-private-equity-is-a-bargain/a2389638 Extract ............................. Oakley Capital Investments (OCI) on a 33% discount: ‘The bulk of OCI’s portfolio is performing well and delivering strong revenue and earnings growth. We believe this should support the outlook for returns going forward and that the headwind of multiple contraction may be somewhat insulated by a relatively low valuation multiple (14x). ‘In particular, we believe it has some interesting education assets, such as IU Group, and technology businesses, whilst some other assets look like an eclectic mix, this partly reflects the approach of backing a range of successful entrepreneurs. The performance of North Sails and Time Out remain key to near-term returns and we can see some improvement from a low base. We believe sales or reductions in exposure to these assets would likely be positive for sentiment.’

[someuwin] 10/6/2022 11:59

Analyst interview | Investment Companies Q&A with Mark Thomas on Oakley Capital Investments (OCI) | How OCI delivered impressive market and peer-beating 19% NAV CAGR growth 2017-21 Oakley Capital Investments Limited (OCI) is the topic of conversation when Mark Thomas Analyst at Hardman & Co joins DirectorsTalk Interviews. After having attended the Capital Markets Day Mark wrote a research note entitled ‘Capital Markets Day 2022 – let the sun shine’. We caught up with Mark to discuss the report and his findings. Mark explains the reason for the note title, the theme of the day, an overview of the group and explains what he discovered in terms of Oakley Capital’s education investments, technology investments and its digital consumer investments. Listen to the interview here: How Oakley Capital Investments delivered impressive market and peer-beating 19% NAV CAGR growth 2017-21 on Vimeo https://vimeo.com/717787614?embedded=true&source=vimeo_logo&owner=34865145

[makinbuks] 09/6/2022 11:12

Donald, I agree with you, an interesting asset class. I haven't invested and slightly regret not participating in earlier IPO's in the space. I don't like the premiums offered now and fear rising interest rates are going to hurt the business model assumptions. Not sure either how wage inflation can be passed on through the pricing

[makinbuks] 09/6/2022 11:09

BB and Rambutan, I agree with you. I love the fact that companies like OCI offer PI's access to the sort of deals KKR and others do for the benefit of institutions. I would also point out that OCI's stated USP is their understanding of, and access to, entrepreneurs and what they want/need from a backer. KKR and the like don't typically enter at that level but follow on when the business case has been established. Their forte, as you point out, is to scale up the growth opportunity, so its a perfect fit.

[donald pond] 09/6/2022 06:41

It's slightly off topic but when you comment about rolling out data centres I think some of the specialist digital infrastructure funds a worth a look. I own DGI9, but CORD and there's a Gravis open ended one are both alternatives. They are an interesting asset class because once you have something like a data centre, you have a reliable income stream but it is also much cheaper to add capacity to an existing one than start a new one from scratch, so the capital growth avenue exists too.

[rambutan2] 08/6/2022 23:10

Makinbuks, OCI have taken £22m CASH out of the deal. At the 31/12/21 Y/E nav, Contabo was valued at £13.7m. KKR are no soft touch at the negotiation table. They have every incentive in getting as good a deal as possible for their LPs and ultimately for themselves. Contabo will have been bought with the expectation of a long runway of growth ahead. And with the £37m OCI put back in they can ride on the coat tails of a very high quality and big pocketed fund. I don't imagine rolling out data centres is a cheap business and KKR will be able to turbocharge the process. hTtps://media.kkr.com/news-details/?news_id=6e034e18-6db9-4f06-b777-6ebda65de47d&type=1

[biggest bill] 08/6/2022 21:43

KKR obviously feel the new valuation is good value because they have paid it. KKR have a pretty good record at making money from private equity and are no mugs.

[makinbuks] 08/6/2022 18:56

Oakley Fund 4 sells to Oakley fund 5. OK KKR have invested alongside them this time but its just churn within the PE market. Doesn't prove the valuation one way or the other in my view. Never the less it can only be positive for OCI

[1968jon] 08/6/2022 11:53

Steeplejack, with the yellow strip showing 398/403, Numis have more than 100,000 shares on offer at 398.1 Deffo punters buying through their broker at that level but clearly there is the equivalent seller. Classic OCI price action.

[steeplejack] 08/6/2022 11:37

Lot of buys being logged by ADVFN as sales.Stock available for purchase in 398s.

[biggest bill] 08/6/2022 09:46

With this transaction, Oakley has shown how conservatively they value their companies. Hopefully, the discount should now start to shrink from the current ridiculous level.