Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Oakley Capital Investments. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
A new version of this profile is available. View Latest
Overview

Oakley Capital Investments (OCI) is an AIM listed investment company and is one of the few remaining directly investing listed private equity funds. It makes the majority of its investments through the Oakley Capital Funds, but on a case by case basis has latitude to invest directly in equity or debt in the portfolio companies.

Oakley Capital aims to deliver long term capital appreciation by backing business operators to grow their companies in three main sectors: Consumer, Education and TMT. The team typically target majority stakes in profitable companies with an EBITDA range of £10m to £50m. They are often the first institutional capital in a business, helping proven entrepreneurs professionalise their companies and achieve the next leg of growth.

The basic ethos of backing proven operators, introduced through Oakley Capital’s extended network, has a different feel to a traditional LBO (leveraged buyout) private equity strategy. Certainly, the way Oakley source investments, in complex transactions often without having to participate in auctions (26 of 27 investments have been primary deals), means they are not usually competing with other private equity players.

In 90% of cases the management/business owners they back remain with their companies for the life of the investment, whereas the average for the private equity industry is c. 50%. Many of these business owners invest their subsequent returns with Oakley. To date they have committed over €80m to the Oakley Funds. Overall, the portfolio currently represents investments in eleven growth opportunities. In the recent trading update, the company reported that average EBITDA growth from the portfolio had been 39% for 2018, considerably faster than wider listed equity indices.

Over ten years, OCI has been the third best performer of the remaining listed private equity funds (i.e. excluding Electra) on a NAV total return basis, according to data from Numis. Over this period, the company has delivered NAV total returns of 172% against Numis’ average for the LPE peer group of 102%, representing strong outperformance over the longer term. Returns of 46% over the past three years have also been good in absolute terms and relative to the FTSE All Share over the same period.

In 2016 the board introduced a dividend, paying 4.5p per year, equivalent to a yield on the current share price of 2.3%. In the last financial year (to 31st December 2018), the company received gross interest income of £6.8m, against which the dividend cost around £9.2m. As such, the dividend can be seen to be 74% covered by current income.

A material discount has not always been a feature of OCI. However, the discount reached historically wide levels in 2016; the shares trading 40% below NAV. Recognising that the discount may be down to other factors, the board have focused on closing the discount and have undertaken a number of initiatives, including a commitment to never issues shares at a discount to NAV, greater disclosure of the economics of the company and the performance of the underlying portfolio companies, investor meetings and capital markets days, and retaining a share buy-back policy. We understand they are also reviewing the AIM listing. At the current time, the shares trade on 33% discount to the 281p NAV per share, which remains considerably wider than listed private equity peers.

Continue to Portfolio

Fund History

11 Mar 2022 Results analysis: Oakley Capital Investments
OCI’s annual results provide more colour on the exceptionally strong NAV performance in 2021...
02 Mar 2022 Spread 'em!
We explore how much dispersion in returns of stocks drive the differing fortunes of trusts…
02 Feb 2022 Getting in on the act: Private markets
Private markets could be the next big opportunity for investors…
27 Jan 2022 Flash update: Oakley Capital Investments
OCI reports very strong NAV growth, up 21% (or 95p per share) since 30 June…
12 Jan 2022 Bargain hunt
We survey the discount opportunities in the market and update on the performance of our Discounted Opportunities Portfolio…
30 Dec 2021 Great expectations
As the last of the mince pies wilts in the fridge, topped with a generous helping of stilton, the Kepler Trust Intelligence team stick a finger in the air and point toward their top picks for the year ahead…
14 Dec 2021 Fund Analysis
OCI’s historic NAV potentially belies progress made by its underlying companies...
03 Nov 2021 Don't fear the reaper
With market direction hard to call, we consider the case for taking a long-term view in the investment trust sector…
23 Sep 2021 Even better than the real thing
We explain private equity and examine why tweaks to listed private equity trusts give the sector an advantage over the direct route...
15 Sep 2021 Bargains galore
We review our discounted opportunities portfolio, with one constituent rallying more than 30% in just two months…
10 Sep 2021 Results analysis: Oakley Capital Investments
OCI provides more detail on the drivers behind its strong NAV performance and repeatable investment process...
04 Aug 2021 60/40 and other dinosaurs
A simple practical step to take your portfolio from the 1990s into the 2020s...
14 Jul 2021 Grade inflation
We look at how our discounted opportunities portfolio has done in the first half of the year and update on the performance of our long-term rated funds…
29 Jun 2021 Fund Analysis
OCI’s capital markets day provided valuable insight into opportunity...
19 May 2021 The complexity premium
We examine the idea that extra returns can be obtained from buying investments which are perceived to be more complex by most investors...
14 Apr 2021 Wide Boys
We review our portfolio of chonky discounts as one star performer hits its target…
17 Mar 2021 Results analysis: Oakley Capital Investments
The results for the year ending 31/12/2020 reaffirm that OCI offers exposure to resilient growth businesses...
28 Jan 2021 Trading update: Oakley Capital Investments
OCI reports a strong NAV, up an impressive 14% since 30 June 2020…
06 Jan 2021 This time next year Rodney...
We review the performance of the team’s ‘top picks’ for 2020 – including some proper plonkers – and place our bets for the year ahead…
23 Dec 2020 Flash update: Oakley Capital Investments
OCI’s NAV announcement next month will update investors on what is a potentially high growth portfolio...
05 Nov 2020 The haves and have nots
With listed private equity trust discounts widening, are investors mistakenly assuming that underlying portfolios will perform worse than public market indices?...
07 Oct 2020 Flash update: Oakley Capital Investments
Oakley Capital (OCI) trades on a 28% discount despite the majority of its portfolio companies showing resilience to COVID...
22 Jul 2020 A game of four quarters
Seven trusts, two quarters. Are our team still happy with their trust picks for 2020?
15 Jul 2020 Fund Analysis
OCI, trading on a historically wide discount, is approaching an important NAV update/capital markets event...
03 Jun 2020 Price is what you pay, value is what you get
The listed private equity sector has seen discounts widen markedly, but does this present an opportunity?
25 Mar 2020 Of mice and men
Our ‘best laid plans’ have somewhat ‘gang aglay’ since the KTI team put forward its best ideas for 2020 in early January…
18 Mar 2020 Their darkest hour?
We update our shortlist of discount opportunities...
12 Mar 2020 Results analysis: Oakley Capital Investments
Oakley Capital Investments (OCI) released a strong set of results this morning, delivering shareholder returns of 56% over the year to Dec 31, 2019...
14 Nov 2019 Fund Analysis
OCI is a focused private equity trust, trading on a 29% discount…
13 Nov 2019 The parallel worlds of listed private equity
Some private equity trusts are on an average premium of 18%, whilst others trade on discounts of 15%. Are we missing something!?
01 May 2019 Sweet or sour?
Three months in, we check up on our list of discount opportunities...
26 Mar 2019 Fund Analysis
Aiming for long term capital appreciation through investments in Oakley Capital Private Equity Limited Partnerships.
View all

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.