Strategic report / Oakley Capital portfolio
Cash and liquidity profile
Focus on capital allocation
- Cash and available credit: In 2025, OCI refinanced its credit arrangements, replacing the existing facility with a new five-year borrowing facility totalling £325 million, enhancing financial flexibility and liquidity. At 30 June 2026, OCI had cash and available credit of £155 million (FY 2025: £191 million), comprising £81 million of cash (FY 2025: £95 million) and £74 million of undrawn credit facilities (FY 2025: £96 million). Subsequent to the period-end, the Company exercised the £75 million accordion under its existing facility, following Board and lender approval.
- The Board’s approach to capital management is focused on maximising long-term shareholder value while maintaining prudent levels of liquidity and balance sheet flexibility. Its priorities are to ensure OCI can meet its fund commitments, support attractive investment opportunities, facilitate realisations and return capital where doing so is expected to enhance shareholder value. Given the current discount to NAV, share buybacks remain an important component of this approach, alongside consideration of other capital allocation and liquidity initiatives.
- On 8 January 2026, OCI completed its 2025 buyback programme, having acquired and cancelled c.9.7 million shares for an aggregate consideration of £50 million, increasing NAV per share by 11 pence over the life of the programme. The 2026 share buyback programme, launched on 9 January 2026 with a minimum commitment of £20 million, resulted in the acquisition and cancellation of c.1.9 million shares for an aggregate consideration of £9.4 million as at 30 June 2026, increasing NAV per share by 3 pence during the period.
Proceeds from future realisations
- As the funds progress through their life cycle, the staggered profile of the Oakley Funds’ investments is expected to generate regular and ongoing cash proceeds for OCI. Looking across the portfolio, while Fund VI and Origin II are in their investment phases, Fund V is at the end of its investment phase and is now focused on generating value across its portfolio. Fund IV and Origin I are within their realisation phase and are expected to generate significant proceeds over the short to medium term.
- Taken together, this staggered maturity profile means OCI is exposed simultaneously to new investment opportunities, ongoing value creation and a growing pool of more mature investments. While the timing of exits cannot be predicted, this provides confidence in the potential for increased realisation activity as more of the portfolio progresses through the ownership cycle.
OCI is able to commit more to the funds than its immediate liquidity: When a new fund is launched, there are initial net cash outflows during the investment stage as portfolio companies are acquired. Later, as refinancings and exits are made, there are inflows back to OCI as it receives cash proceeds from these realisations. This creates a cash flow j‑curve for each fund – outflows followed by inflows. As there are multiple Oakley Funds, launched at different times, there is overlap between cash inflows from older funds selling and refinancing assets and cash outflows from the newer funds buying assets, which creates a steadier cash flow stream for OCI. This allows OCI’s total commitments to exceed the immediate liquidity it has access to.
Sources of liquidity
This chart represents OCI’s available sources of liquidity to fund its Outstanding commitments, which at the period-end amounted to £940 million. Of the Outstanding commitments, c.£300 million are not anticipated to be drawn, reflecting the drawdown profile of historic funds. Available fund sources refer to the realisable and accessible resources OCI can draw upon to meet its Outstanding commitments. These include the value of OCI’s investments in the Oakley Funds and Direct Investments at period-end, cash and undrawn credit facilities. Subsequent to the period-end, the Company exercised the £75 million accordion agreed under the existing facility terms, with Board and lender approval, increasing the facility limit accordingly.
The Board and Investment Adviser also continue to assess a range of initiatives aimed at enhancing liquidity, with a focus on delivering long-term value for shareholders.
Capital calls will be funded mainly through proceeds from future realisations, cash and available credit. Robust cash flow forecasts are modelled and stress tested to support capital allocation decisions designed to optimise shareholder returns.
OCI available fund sources
Outstanding commitments as at 30 June 2026
Fund | 30 June 2026 | 31 December 2025 | |||
|---|---|---|---|---|---|
OCI commitment €m | Outstanding €m | Outstanding £m2 | Outstanding £m | ||
| Fund III | 325.8 | 27.7 | 23.9 | 24.2 | |
| Fund IV | 400.0 | 82.6 | 71.2 | 79.0 | |
| Fund V | 800.0 | 364.1 | 313.7 | 317.6 | |
| Fund VI | 500.0 | 443.3 | 381.9 | 386.7 | |
North Sails CV3 | 68.3 | – | – | – | |
Origin I | 129.3 | 14.9 | 12.8 | 14.7 | |
Origin II | 190.0 | 121.6 | 104.8 | 128.4 | |
Touring3 | 100.7 | 20.1 | 17.4 | 25.6 | |
PROfounders III | 30.0 | 16.5 | 14.2 | 16.0 | |
Outstanding commitments £m | 939.8 | 992.1 | |||
Outstanding commitments as a % of NAV | 73% | 80% | |||
Cash and available credit £m | 154.5 | 191.2 | |||
Net Outstanding commitments £m | 785.3 | 800.9 | |||
Net Outstanding commitments as a % of NAV | 61% | 65% | |||
1. Note that expectations regarding amounts to be called are based on projections and as such are subject to volatility due to market shifts and unforeseen events. Actual results may vary from these projections. Expected uncalled commitments do not include potentially recallable capital.
2. Converted to GBP at 30 June 2026 FX rate EUR:GBP 0.8616.
3. USD amounts converted to EUR and GBP at 30 June 2026 FX rates, USD:EUR 0.8757 and USD:GBP 0.7545.
Please note that these tables may contain rounding differences.