Principal Risks and Uncertainties

During H1 2026, OCI’s principal risks remained broadly consistent with those disclosed at year end. The period reinforced the importance of liquidity discipline, realisation timing, valuation evidence and capital allocation in a listed private equity market where discounts remained above their historical average and investor focus on cash conversion increased. The underlying portfolio continued to deliver growth, with NAV of £1,289 million, NAV per share of 782 pence and a six-month Total NAV Return per share of 6%. At the period-end, outstanding commitments were £940 million, with Total Liquidity of £155 million, comprising £81 million of cash and £74 million of undrawn facilities. During the period, OCI's look-through investment in the Oakley Funds totalled £43 million.

The Board, supported by the Audit & Risk Committee, continued to monitor these risks through scenario analysis, regular reviews of liquidity and commitments, downside cash flow analysis, scrutiny of expected realisations, assessment of portfolio performance and access to available facilities. This included consideration of the relationship between the Company’s discount to NAV, buyback activity, commitment funding and the timing of expected distributions, with the objective of operating within OCI’s risk appetite, and preserving balance-sheet flexibility, while continuing to support long-term NAV growth.

Considering Provision 34 of the AIC Code, the Board continued to develop its assessment of the material controls supporting liquidity, valuation, capital allocation and reporting. In parallel, the Board considered emerging portfolio risks, including AI and technology disruption, on an individual asset basis. Given the diversification of the portfolio across different sectors, the exposure to AI redundancy is limited; rather, selected assets are expected to benefit from AI-enabled growth and productivity opportunities. The software portion of the portfolio represents c.25% of NAV, making AI relevant to valuation, competitive positioning and future value creation.