A strengthening platform

Oakley Capital continues to invest in its people, capabilities and infrastructure as it harnesses AI and broadens its presence in Europe. It is also attracting leaders from diverse fields who bring specialist investment, operational, entrepreneurial and technological expertise.

The ability to attract individuals of this calibre is an endorsement of Oakley’s culture, investment proposition and long-term prospects. It also reflects the development of a broad and increasingly institutional organisation supported by a highly experienced team.

A differentiated investment model

A significant competitive advantage lies in Oakley Capital’s ability to identify ambitious founders, source investments outside contested auction processes and work alongside management teams over extended ownership periods. Its model is based not simply on acquiring businesses, but on helping entrepreneurs realise the potential of their companies. I invite you to read the Business model section, which contains important insights into how this approach works in practice.

A well-positioned portfolio

On a value-weighted basis, OCI’s portfolio remains relatively young. However, several investments are now entering the stage at which established operational improvements begin to translate more visibly into earnings growth, valuation uplifts and, when market conditions permit, realisation opportunities.

The timing of individual exits cannot be known or accurately predicted, particularly given market conditions at present. Nevertheless, the Board believes that a greater proportion of the portfolio should move into this more mature phase over the next 12 to 18 months, positioning it to deliver additional value in the coming years.

We believe the portfolio is well positioned for the changes AI is bringing. It has relatively limited exposure to businesses that are at risk of being displaced by AI, while many companies within it stand to benefit from the enhanced productivity, growth and new opportunities that AI can unlock. Oakley’s approach reflects both sides of that equation: remaining alert to disruption while capturing the upside, both by deploying AI across the existing portfolio and through targeted investment in AI-native businesses via the Oakley Touring Fund.

Capital allocation

The Board and Investment Adviser continue to assess a range of initiatives intended to enhance shareholder value and improve balance sheet strength. This includes evaluating potential transactions involving selected OCI fund interests. The Board will pursue such opportunities only where it believes that the terms and strategic benefits are in the interests of shareholders.

Since the latest buyback programme began on 9 January 2026, OCI acquired and cancelled c.1.9 million shares for an aggregate £9.4 million. This generated a NAV per share gain of 3 pence as at 30 June 2026.

Direct Investments

As shareholders know, Direct Investments are not a part of OCI’s ongoing investment strategy. Work is progressing on a potential simplification of the ownership and capital structure of North Sails, OCI’s largest remaining Direct Investment, targeting a reduction in the exposure to the asset, while retaining participation in the future development of the business. The Company will provide further information as and when appropriate. Additionally, the North Sails warrant (£3 million fair value as of 30 June 2026) was exercised following the period-end.

Governance

At the Company’s Annual General Meeting in June, all resolutions were passed. However, the Board recognises that some shareholders voted against the re-election of Peter Dubens, founder and managing partner of Oakley Capital, as a Director. We acknowledge the outcome and take the views expressed by these shareholders seriously.

The Board strongly believes that Peter’s continued role as a Director is in shareholders’ best interests. His formal participation ensures that the Board benefits directly from the perspective, insight and accountability that come with his position as founder and Managing Partner of Oakley Capital, while reinforcing the long-term commitment and alignment between Oakley and OCI. His deep knowledge of the Oakley platform and its strategy would be difficult to replicate. The Board recognises the potential for conflicts arising from Peter’s dual roles and has well-established procedures to identify and manage these appropriately. The Board understands ongoing shareholder concern regarding the potential for conflicts arising from Peter’s dual roles and has long-established procedures to identify and manage these appropriately.

We will continue to engage with shareholders to understand their views fully and ensure that OCI’s governance arrangements serve their interests.

Board priorities

The Board’s immediate priorities are maintaining balance sheet strength and sufficient liquidity to meet OCI’s commitments; supporting the delivery of realisations; and addressing the NAV discount.

Work is underway on a number of initiatives to support these priorities and enhance shareholder value. These include strengthening investor communications and marketing, increasing shareholder engagement, reviewing capital allocation, and evaluating opportunities to increase balance sheet flexibility, including potential secondary-market solutions. I expect to be able to say more about these initiatives as our work progresses.

Over the coming months, I will continue meeting with shareholders to discuss OCI’s positioning, strategic direction and governance. I welcome this dialogue and believe shareholder perspectives will be valuable as the Board considers these important matters.

Outlook

OCI continues to provide investors with direct access to an exceptional portfolio of founder-led businesses, managed by one of Europe’s leading private equity managers in Oakley Capital. The Board believes that OCI’s proposition remains attractive to both existing and prospective investors, and we will continue to ensure that its strengths are well understood.

The broader market remains challenging and the Board is not complacent. However, the quality of Oakley Capital’s team, the continued strength of its investment strategy and the increasing maturity of the portfolio mean that we remain confident in its prospects.