Oakley Capital Investments Limited ("OCI" or the "Company") is pleased to announce its quarterly trading update for the three months ended 30 September 2022.
OCI is a listed investment company aiming to provide consistent, long-term returns in excess of the FTSE All-Share Index by investing in the funds managed by Oakley Capital ("Oakley").
The Oakley Funds invest primarily in unquoted, pan-European businesses across three sectors: Technology, Consumer and Education. Oakley's origination capabilities combined with proven value creation drivers generate sustainable growth and consistently superior returns for investors.
Net Asset Value (NAV)
655p
per share
Total NAV return per share
+4%
since 30 June 2022
New investments
£46m
during the period
Net Asset Value
£1,155m
Total NAV return per share
+22%
since 31 December 2021
Share of cash proceeds
c.£153m
expected post period end
The Company's unaudited NAV, based on a revaluation of all portfolio companies at 30 September 2022, was £1,155 million, which represents a NAV per share of 655 pence. The total NAV per share return was 4% (+25 pence) since 30 June 2022, and an increase of 22% (+119 pence) since year-end. In the three months to 30 September 2022, 76% of the increase in the portfolio's value was driven by EBITDA growth, and 24% by multiple expansion largely as a result of recent transactions. The 25 pence total return includes 12 pence of valuation gains, 11 pence of foreign exchange movements with share buybacks adding 2 pence.
Despite the considerable, ongoing macro uncertainty, OCI's underlying portfolio of tech-enabled companies continued to deliver earnings growth, supported by long-term megatrends such as the shift to online for businesses and consumers, and global demand for quality education.
In the period, the Origin Fund acquired vLex, a cloud-based legal information platform.
During the period, OCI made new investments of £46 million which were largely attributable to look-through fund investments including: the acquisition of vLex, a cloud-based legal information platform; an additional investment in Grupo Primavera as part of its strategic combination with Cegid, a leading provider of cloud-based management solutions; and bolt-on acquisitions by portfolio companies that were completed during the period. These include TechInsights' acquisition of Strategy Analytics and further schools acquired by K12 education platform Affinitas.
During the quarter, Oakley agreed the partial sale of Seedtag at a significant premium to its carrying value as at 30 June 2022. This transaction is due to complete later this year.
OCI had cash on the balance sheet of £49 million at 30 September 2022, comprising 4% of NAV. The Company anticipates c.£153 million of cash proceeds from transactions announced to date, which are expected to complete post period-end. In addition, OCI has access to a revolving credit facility of £100 million. Total outstanding Oakley Fund commitments as at 30 September 2022 were £979 million. They will mostly be deployed into new investments over the next five years, funded with existing balance sheet cash as well as expected proceeds from exits announced during the period and future realisations.
During the period, Oakley Capital signed and announced the acquisition of Phenna Group and CTS Group to create a leading testing, inspection, certification and compliance (TICC) platform. Oakley also announced the reinvestment in Facile alongside private equity investor Silver Lake. These transactions are expected to complete in Q4 and OCI's total look-through investment from these acquisitions is expected to total c.£115 million.
Post period-end, Oakley Capital announced it completed the sale of part of its stake in Wishcard, retaining a residual shareholding in the business. OCI's share of cash proceeds from this transaction will be £37 million.
