Oakley Capital Investments (OCI)

Oakley Capital Investments (LON:OCI) are one of a select group of private equity managers who have a listed fund (Oakley Capital Investments, or OCI) as a cornerstone investor of their limited partner (LP) funds. OCI has been a strong performer amongst its listed peers (see Performance), and is now the leader of the LPE peer group in NAV terms over the five years to 31/12/2022.

Oakley tends to target companies which are digitally disruptive, are founder-led, get an increasing proportion of their revenues from a subscription or recurring revenue base, and finally, that the team believe are exposed to a clear or enduring megatrend. OCI’s portfolio consists of 26 underlying companies, most of which are invested through Oakley funds, with a roughly even split across the three industry sectors.

Over time, and reflecting new commitments to different Oakley funds which target different deal sizes, the number of companies within OCI’s portfolio has increased. That said, it still has a relatively highly-concentrated exposure to the top ten companies, at 79%, as we illustrate in the Portfolio section.

Underpinning NAV growth in recent years has been the strong earnings’ growth across the portfolio. This impressive growth trajectory is enabled by the focus on digital businesses, which have been able to transcend many issues which traditional business models have had to contend with, such as rises in inflation or supply chain issues. OCI has an adjusted commitment cover of 29%, which is relatively thin compared to the wider LPE peer group. The current discount to NAV is c. 30%.