Oakley Capital Investments (OCI) delivered a 6.0% total NAV return in the first half of 2026, with underlying earnings growth across its portfolio accounting for the bulk of the increase in value.
NAV per share stood at 782p at 30 June 2026, with total NAV of £1.29bn. Excluding adverse currency movements, the NAV return was 6.5%. However, the share price moved in the opposite direction, producing a total shareholder return of -16% over the period, although this was slightly better than the -18% weighted average return from the listed private equity sector (the Iran war and the impact on inflation and interest rate expectations have been a significant factor as have the continued concerns about the impact of AI disruption on various software businesses).
The underlying portfolio continued to grow, with weighted average organic EBITDA increasing by 9% over the latest 12 months. Around 80% of the uplift in portfolio value came from earnings growth and only 20% from valuation multiple expansion. The average portfolio valuation multiple was broadly unchanged at 16.4x EBITDA, compared with 16.3x at the end of 2025.
The largest contributors to NAV were Phenna Group, which added 13p per share; North Sails, which added 9p; and TechInsights, which contributed 8p. AI-powered cybersecurity business Exaforce added a further 5p following a $125m Series B funding round that more than doubled its valuation.
OCI invested £43m on a look-through basis during the six months, including £19m in new platform investments and £24m in follow-on funding. A further three investments – Graphwise, XTEL and GLAS – are expected to require around £108m of capital when they complete during the second half of the year.
Realisations remained relatively subdued. OCI received £10m of look-through proceeds during the period, including £6m following a refinancing of North Sails. However, the board said it expects potential proceeds from further portfolio realisations over the near to medium term.
The company had £155m of liquidity at the period end, comprising £81m of cash and £74m of undrawn credit facilities. Outstanding commitments were £940m, although around £300m of these are not expected to be called. Since the period end, OCI has also exercised a £75m accordion facility.
OCI continued to use its wide share-price discount to repurchase stock. It spent £9.4m buying back and cancelling around 1.9m shares by the end of June, adding 3p to NAV per share, as part of a commitment to repurchase at least £20m of shares during 2026.
Chair Christopher Samuel acknowledged that OCI’s share price had failed to reflect the progress being made within the portfolio and said tackling the discount remained a priority. The board is working on a number of initiatives aimed at improving shareholder value and strengthening the balance sheet, with further details expected in the coming months.
Over the longer term, OCI has generated an annualised NAV return of 15% over 10 years, while its share-price total return over that period is 344%.
Matthew Read, senior analyst at QuotedData, said: “OCI’s results reflect a more common theme being seen elsewhere that the underlying businesses continue to make progress and deliver earnings growth – around 80% of the portfolio’ uplift came from earnings growth rather than higher valuation multiples – but this is not being reflected in the share price.
Low realisations continue to be an issue – proceeds were light in the first half and turning investments into cash at or above carrying value remains the best way to demonstrate that portfolio valuations are valid. However, there are grounds for optimism with the board flagging potential realisations and promising further measures to address the discount.
In the meantime, buying back shares at these levels is highly accretive and an obvious use of spare capital. If Oakley can combine continued earnings growth with a healthier flow of exits, it ought to become increasingly difficult for the market to justify the current gap between OCI’s share price and NAV.”
