Oakley Capital Investments Limited

Earnings Release • Jan 27, 2021

National Storage Mechanism | Additional information

RNS Number : 9830M

Oakley Capital Investments Limited

27 January 2021

27 January 2021

Oakley Capital Investments Limited

Trading update for the year ended 31 December 2020

Portfolio strength delivers sustainable growth

Oakley Capital Investments Limited1 ("OCI" or the "Company"), a listed investment company providing investors access to the Oakley Funds2, today announces a trading update for the year ended 31 December 2020.

Highlights for the year

●	Net Asset Value ("NAV") per share of 403 pence
●	Total NAV return per share of 18% since 31 December 2019
●	The Company invested £152 million and received proceeds of £341 million
●	Year-end cash of £223 million
●	Outstanding Oakley Fund commitments of £534 million, including the Origin Fund commitment
●	Total Origin Fund commitment of £116 million
●	Buy-back and cancellation of 18 million shares

NAV growth

The Company's unaudited NAV at 31 December 2020 was £728 million, which represents a NAV per share of 403 pence, based on portfolio company valuations at the year-end. The total NAV per share return including dividends is 18% (+62 pence) since 31 December 2019 and 14% (+49 pence) since 30 June 2020.

Portfolio company performance

12 of the 17 investee companies deliver their products or services digitally, as a result the portfolio continues to benefit from the adoption of consumer and business technology solutions, which accelerated in 2020. The portfolio companies can be separated into three COVID-19 impact categories based on a full year of trading to 31 December 2020, with three companies moving from category 2 to category 1 since 30 June 2020:

1.	Expectations met or exceeded - 10 companies - 44% of NAV* Business Service Software, Web Hosting, Online Consumer platforms and Education Technology businesses, each grew EBITDA at or above pre-COVID expectations
2.	Modest impact - 4 companies - 14% of NAV* Telecoms and Education businesses that experienced some disruption to their expected financial performance, with new business wins or enrolments impeded due to social restrictions
3.	Significant impact - 3 companies - 13% of NAV* Physical footprint and direct-to-consumer businesses whose operations suffered material disruption as a result of repeated Europe-wide lockdowns.

* Percentages shown are OCI's look-through exposure to the portfolio companies via the Funds and direct equity investments. 

Proceeds

Despite market disruption in 2020, there has been a continued high level of activity within the Oakley Funds. During the period, OCI's share of proceeds from exits and refinancings amounted to c.£341 million, consisting of:

●	Realisations - £264 million - the exit of WebPros, Casa, Inspired and the partial realisation of atHome generating an average gross money multiple of 3.3x
●	Refinancings - £37 million - the refinancing of Career Partner Group, Wishcard Technologies and Facile
●	Direct debt repayment - £40 million - the repayment of Time Out loans and fund facilities

Investments

In the 12 months to 31 December 2020, the Investment Adviser3 continued to originate proprietary opportunities for the Oakley Funds, within its focus sectors. During the period, OCI made a total look-through investment of c.£152 million, attributable to:

●	Platform investments - £90 million - the acquisitions of WebPros (Fund IV), Globe-Trotter, 7NXT and WindStar Medical
●	Follow on investments - £21 million - bolt-ons to Ocean Technologies Group and Ekon, and further indirect fund investments into North Sails and Time Out
●	Direct investments - £41 million - including equity participation in Time Out's refinancing and an increase in the debt investment provided to North Sails

During the period, OCI also completed the buy-back and cancellation of 18 million shares at an average price of 230 pence per share, resulting in a NAV uplift of 12.6 pence.

Cash & Commitments

●	Balance sheet - OCI has no leverage and had cash on the balance sheet of £223 million at 31 December 2020, comprising 31% of NAV. This cash level is significantly higher than the long-term average due to the quantum of realisations in the period
●	Recent commitments - OCI's total commitment to the Oakley Capital Origin Fund, which closed in January 2021, was €129 (£116) million. This latest Oakley Fund will apply Oakley's proven investment strategy to companies in the lower mid-market segment
●	Total outstanding commitments - outstanding Oakley Fund commitments are £534 million. These will be deployed into new investments over a five-year period

Post-balance sheet events

●	Partial sale - Oakley Capital Fund II portfolio company, Daisy Group, reached an agreement to sell its stake in the Digital Wholesale Solutions division. OCI's share of proceeds will be c.£22 million
●	Acquisition - Oakley Capital Fund IV has agreed to make a minority investment in idealista, the leading online real estate classifieds platform in Southern Europe. OCI's contribution via Fund IV will be c.£43 million

The Company expects to report its audited annual results for 2020 on Thursday 11 March 2021.

- ends -

For further information please contact:

Oakley Capital Limited

+44 20 7766 6900

Steven Tredget, Investor Relations

Greenbrook Communications Limited

+44 20 7952 2000

Alex Jones / Michael Russell / James Williams

Liberum Capital Limited (Financial Adviser & Broker)

+44 20 3100 2000

Gillian Martin / Owen Matthews

Notes:

This announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019

LEI Number: 213800KW6MZUK12CQ815

1 About Oakley Capital Investments Limited ("OCI")

OCI is a Specialist Fund Segment ("SFS") traded investment vehicle that aims to provide shareholders with consistent long-term capital growth in excess of the FTSE All-Share Index by providing liquid access to private equity returns through investment in the Oakley Funds2.

An introduction to OCI video is available at https://oakleycapitalinvestments.com/videos/

2 The Oakley Funds

Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III, Oakley Capital IV and Oakley Capital Origin Fund are unlisted lower-mid to mid-market private equity funds with the aim of providing investors with significant long-term capital appreciation. The investment strategy of the Funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement.

3The Investment Adviser

Founded in 2002, Oakley Capital Limited has demonstrated the repeated ability to source attractive growth assets at attractive prices. To do this it relies on its sector and regional expertise, its ability to tackle transaction complexity and its deal generating entrepreneur network.

Important information

Specialist Fund Segment securities are not admitted to the Official List of the Financial Conduct Authority. Therefore the Company has not been required to satisfy the eligibility criteria for admission to listing on the Official List and is not required to comply with the Financial Conduct Authority's Listing Rules.

The Specialist Fund Segment is intended for institutional, professional, professionally advised and knowledgeable investors who understand, or who have been advised of, the potential risk from investing in companies admitted to the Specialist Fund Segment.

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