Oackey Capital - Investment Strategy

The investment strategy of Oakley Capital Private Equity L.P. (“OCPE”) is to focus primarily on private mid-market UK and European businesses, thereby leveraging the previous investment experience of Oakley Capital Limited (the “Investment Adviser”) with the objective of delivering long term capital appreciation within OCPE in line with a gross IRR in excess of 25% per annum and a blended gross multiple of three times.

OCPE’s focus will be on equity investments of approximately £20 to £100 million per transaction that enable it to secure a controlling position in the target company. It will seek to invest in companies that have achieved, or have the potential to achieve, a critical scale in their industry or sector, creating a sustainable earnings stream which should command a premium.

It is the objective of OCPE to build a well-diversified portfolio of investments primarily in buyouts but also which may include some limited exposure to later stage development capital investments. It is not foreseen that OCPE will invest in early-stage companies or those with unproven technologies. OCPE may also consider investing in public or listed securities, markets or situations from which OCPE may obtain a strategic or financial advantage with a view to selling such investment within 36 months.

Such investments in or listed securities, markets or situations will be limited to no more than 15% of the public or listed securities in any target company except where such acquisition forms part of a takeover offer.

OCPE intends to adhere to a strict set of procedures when implementing its investment strategy. These procedures emphasise:

Concentration on a select number of investments;
In depth analysis of the industry sector and the company prior to acquisition;
Focus on cash flow stability and growth prospects; and
A hands-on, value creating approach to ownership.

The overriding philosophy behind each investment will be to achieve capital appreciation through EBITDA growth, primarily driven by revenue increases, achieved both organically and by acquisition. Typically, the Investment Adviser would expect portfolio companies to double EBITDA within three to five years after investment.