Oakley Capital Investments has provided a trading update for the 12 months ended 31 December 2015. The company says that its NAV per share (unaudited) is expected to be in the range of £1.98 – £2.00, which represents an increase of approximately 9% on the end of June 2015 figure. Oakley Capital Investments invests alongside other clients of the investment manager (Oakley Capital) in funds run by the manager. Oakley Capital Investments has investments in both Fund I and Fund II and has made a commitment to invest €250m in Fund III.
The Company, through its investment in Fund I, has an indirect interest in each of Fund I’s portfolio companies representing 65.5% of Fund I’s total commitments; and through its investment in Fund II, an indirect interest in each of Fund II’s portfolio companies representing 38.1% of Fund II’s total commitments. The overall increase in fair value across both Fund portfolios on a like-for-like basis during the period is 31%, which the company says was driven by strong portfolio company performances in Fund II. They say that as at 31st December 2015, they expect the gross realised and unrealised returns to be 37% and 53% IRR and 2.2x and 1.6x money multiple for Fund I and Fund II’s portfolios respectively.
The managers say that the Oakley Funds have deployed €148m during 2015 and Oakley Capital Investments invested £77m through its co-investment programme, which was facilitated by the £130m Placing in March 2015. They also say that exits returned €63m to the Company with a fund IRR of 64%.
In terms of the individual funds, the managers say that Fund I is fully invested and at the year end has just three portfolio companies remaining. They say that the performance of the fund (launched in 2007) has been extremely strong with a realised IRR of 46% and gross money multiple of 3.5x. In June 2015, Fund I disposed its controlling stake in Verivox to ProSieben, generating a gross money multiple of 14.5x and an IRR of 68%. Total proceeds of €56.3m were distributed to Fund investors, including €36.8m to the Oakley Capital Investments.
Looking at Fund II, the managers say that this is now 73% invested across nine portfolio companies. They say that the portfolio of Fund II, which closed in December 2014, is still relatively young but has nonetheless seen an increase in its value to an IRR of 53% and gross money multiple of 1.6x (realised and unrealised). The fund has made a total of nine investments, of which one has already been realised. 2015 saw new commitments made to Damovo II Sarl (enterprise information communication technology services – they’re seeking to replicate the success of Daisy through a European roll-up strategy led by the founder of Daisy, Matthew Riley), Parship GmbH (online dating business and the leading online matchmaker in Germany – the second player in the market, Elite Partner, was also acquired in an off market transaction which the managers say consolidates Parship’s market position), Daisy Group (UK supplier of unified business communications and IT services and solutions – the acquisition of Phoenix by Daisy provided an opportunity for Oakley to participate in its next strategic phase as a minority investor alongside the founder and chairman, Matthew Riley), and Verivox (online price comparison in Germany).
Fund II has also had an exit from intergenia, the fund’s first investment. This was sold to Host Europe, the market leader, representing a gross money multiple of 1.4x and IRR of 47% for Fund II in under 12 months. Proceeds of €20.4m were distributed to the Oakley Capital Investments. In addition, facile, the Italian price comparison website acquired in 2013, was able to refinance its debt during the summer (the managers say that this is due thanks to strong trading and cash generation), returning 20% of invested capital to the Fund, including €5.2m to Oakley Capital Investments.
Oakley Capital Investments posts NAV growth of approximately 9% during H2 2015 : OCL