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.
