Oakley Capital Investments (OCI) H1 2024 earnings summary

Executive summary

• NAV per share reached 708p (GBP 7.08), with total NAV of £1,249m as of June 2024, reflecting a 4% NAV return per share and a 5-year CAGR of 18%.

• Underlying portfolio of private European founder-led businesses delivered strong growth in asset value, supported by active investment and realization activity.

• Six new deals were signed in the last six months, with two portfolio company exits agreed post-period, highlighting continued investment and realization activity.

• The portfolio is diversified across technology, education, digital consumer, and business services, with balanced geographic exposure and increasing UK presence.

• Active investment period with several new deals signed and realisation opportunities identified.

Financial highlights

• NAV per share increased by GBP 0.26 to GBP 7.08, with total NAV reaching GBP 1.25 billion as of June 2024.

• Total NAV return was 4% for the half-year (5.6% before FX impact); 8% total return over the last 12 months (9% pre-FX).

• Average organic EBITDA growth across the portfolio was 14% year-over-year.

• Portfolio companies' average net debt to EBITDA contracted to 3.9x; average valuation multiple remained at 16.4x EV/EBITDA.

• Key NAV growth drivers included IU Group (+8p), Phenna (+7p), Dexters (+6p), and Cegid (+5p); negative drivers included TechInsights and Vice Golf.

Outlook and guidance

• Expectation of continued upward pressure on organic earnings growth, driven by structural trends and value creation strategies.

• Anticipation of at least one or two more realizations in the next 6-12 months, supporting liquidity.

• Pipeline for new deals is at record levels, with a focus on technology and cybersecurity sectors.

• Board aims to move to a full premium listing, enhancing access for retail and institutional investors.

• Measures in place to target NAV discount and support shareholder value.