Oakley Capital Investments Reports 7.1% NAV Growth and Main Market Admission in Interim Results

Oakley Capital Investments posts 7.1% NAV return and steps up to the Main Market

Oakley Capital Investments (OCI) has delivered a tidy first half of 2025. Net Asset Value (NAV) per share rose to 742 pence, good for a 7.1% total NAV return per share (+49 pence) including dividends. Total shareholder return was 2.7% as the share price discount persisted, but management leaned into buybacks at an average 33% discount to NAV, which added 6 pence to NAV per share.

There’s a lot going on here: a standout exit agreed in a sluggish M&A market, double-digit earnings growth across the portfolio, the dividend cancelled in favour of buybacks, a beefed-up credit facility, and a move to the London Stock Exchange’s Main Market with FTSE 250 inclusion slated for 22 September 2025. Let’s unpack what matters for retail investors.

Key numbers from OCI’s interim results

NAV per share	742 pence
Total NAV return per share	7.1% (+49 pence)
NAV	£1,275 million
Total shareholder return	2.7%
Look-through investments	£54 million
Look-through proceeds	£6 million
Outstanding Oakley Fund commitments	£1,070 million
Liquidity (cash + undrawn facilities)	£257 million (£108 million cash; £149 million undrawn)
Share buybacks	c.£21.4 million (c.4.5 million shares cancelled)

What drove the NAV: exit uplift, earnings growth and a buyback tailwind

OCI’s NAV growth was broad-based, but a few items did the heavy lifting:

• Exit uplift: the agreed sale of legaltech platform vLex added +30 pence. Importantly, it was struck at a substantial premium to prior carrying value – a clear positive for Oakley’s valuation discipline.
• Portfolio trading: Bright Stars (+6 pence), TechInsights (+6 pence), Phenna Group (+5 pence) and North Sails (+5 pence) all contributed on the back of higher earnings.
• FX tailwind: foreign exchange added +9 pence, largely from a 3% EUR:GBP move.
• Buybacks: purchases at an average 33% discount to NAV added +6 pence.
• Offset: Time Out’s public share price decline shaved -25 pence from NAV per share.

Translation: underlying company performance was solid, Oakley booked a big win with vLex, and the Board is using the discount to drive per-share value. Time Out remains a swing factor.

Portfolio health check: solid growth, premium valuations, manageable leverage

Across the portfolio, organic last‑twelve‑months (LTM) EBITDA growth came in at 13% (FY2024: 15%). The average valuation multiple sits at 16.3x EV/EBITDA (enterprise value to earnings), broadly unchanged, and average net debt/EBITDA is 4.2x (FY2024: 4.1x).

My take: growth is doing the heavy lifting in a market where multiples are steady and leverage is typical for private equity but worth monitoring. The mix helped too – demand was resilient in mandatory testing and inspection (Phenna’s TICC services), data and information plays tied to the AI boom (TechInsights), and private early years and K12 education.

Oakley’s buy-and-build playbook remains busy. There were 41 add-on acquisitions in the period, including a transformational deal for cyber services firm I‑TRACING to scale in the US and Europe.

Deal activity: selective investing and a marquee exit

Investments completed

• New platforms (Origin II): c.£5 million into Infravadis (German underground infrastructure) and c.£8 million into JBMC (Italian financial services consultancy).
• Follow-ons: £32 million, notably £18 million into Bridewell (UK cyber), combining with Fund V’s I‑TRACING; and £4 million into Fornasetti via Iconic BrandCo.
• Venture: £9 million into Oakley Touring Venture Fund and PROfounders Fund III names including Wingspan and Blinq.

Announced post period-end (subject to completion)

• G3 (Fund VI) – c.£18 million: a global strategic advisory company.
• Brevo (Fund VI) – c.£22 million: a leading customer engagement software platform, where Oakley has exclusivity.

Proceeds and exits

OCI’s look-through proceeds were £6 million in the period (from Dexters refinancing). The agreed sale of vLex to Clio values vLex at $1 billion and is expected to complete in H2 2025. OCI anticipates look-through proceeds of c.£30 million, excluding an underlying look-through share in Clio worth c.£40 million. In a subdued M&A market, that is a quality marker for the portfolio.

Direct holdings: North Sails shines, Time Out drags

Direct investments aren’t part of OCI’s ongoing strategy, but there are two legacy names. North Sails had a strong period and contributed one of the largest NAV uplifts, helped by integrating two synergistic sailmaking acquisitions. That’s tangible value creation.

Time Out is mixed: Markets is growing with a strong pipeline and an ambition to double EBITDA over two years, but the Media division remains turbulent, leading to group operating losses and a strategic review. It knocked 25 pence off NAV per share. Sensibly, the Board is reviewing options to realise value.

Capital allocation: dividend cancelled, buybacks increased, liquidity strengthened

OCI has cancelled its dividend from 2025 onward, after paying a final dividend for FY2024 on 25 April 2025. Instead, the Board is returning capital via buybacks to capture the discount to NAV. The buyback programme was upsized to £50 million for 2025, with c.£21.4 million spent by 30 June (c.4.5 million shares cancelled).

On firepower, OCI refinanced with a new five-year £325 million facility (+£100 million). Liquidity at period end was £257 million, comprising £108 million cash and £149 million in undrawn facilities. Outstanding commitments to Oakley Funds total £1,070 million, including a new €500 million commitment to Fund VI, with c.£300 million not expected to be drawn. In practice, that’s a multi-year deployment runway while maintaining flexibility.

Main Market move and FTSE 250 entry: why it matters

OCI’s transfer to the LSE Main Market completed post period-end, with FTSE 250 inclusion effective 22 September 2025. This should improve visibility, index demand and institutional access. If it helps shrink the discount to NAV, buybacks plus indexation could be a helpful double act for shareholders.

Outlook: cautious macro, resilient pipeline

The Board remains confident despite macro uncertainty. Europe’s private equity activity is holding up, and founder-led businesses continue to attract capital. OCI expects shareholder returns to be supported by:

• Increased NAV growth from a portfolio with a weighted average hold of three years and ongoing value creation.
• A differentiated pipeline across Technology, Education, Consumer and Business Services.
• Active buybacks and the Main Market move aiding liquidity and access.

What I’m watching next

• Completion of the vLex sale and timing of the c.£30 million proceeds (plus the look-through Clio stake worth c.£40 million).
• Any progress on Time Out’s strategic review and path to realise value.
• Deployment pace into Fund VI versus liquidity – commitments are large but spread over five years.
• Portfolio leverage and valuation multiple trends (net debt/EBITDA 4.2x; EV/EBITDA 16.3x) as rates and markets evolve.
• Whether FTSE 250 inclusion narrows the discount, making buybacks less accretive but improving TSR.

Bottom line: quality signals with a clear plan to narrow the discount

This is a constructive update. A 7.1% NAV return per share with clear contributors, a marquee exit agreed at a premium, and disciplined buybacks at a material discount are all positives. The dividend cancellation will irk income seekers, but the maths of buying in shares at a 33% discount is hard to argue with.

Risks remain – notably Time Out’s volatility and the need to keep deployment balanced against liquidity – but the Main Market step-up and FTSE 250 entry could broaden the shareholder base. If the discount tightens and earnings momentum holds, OCI has the ingredients to keep compounding from here.