Oakley Capital Investments H1 Earnings Call Highlights

Key Points

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• Strong first-half performance: OCI’s NAV rose to £1.29 billion, or 782 pence per share, delivering a 6% total NAV return. Portfolio companies generated 56 pence per share of unrealized gains, primarily through earnings growth.

• Key portfolio growth: Phenna, North Sails and TechInsights were the largest contributors, adding 30 pence per share combined, while organic EBITDA growth across the portfolio reached 9%. Exaforce also doubled its valuation following a $125 million financing round.

• Liquidity and discount remain priorities: OCI had about £230 million of liquid resources and potential exits or refinancings could return up to £200 million, though timing risks remain. The company continued share buybacks amid a 33% discount to NAV, well above its long-run average of roughly 20%.

Oakley Capital Investments (LON:OCI) reported net asset value of £1.29 billion, or 782 pence per share, at June 30, 2026, as the listed private-equity investor generated a 6% total NAV return in the first half. Over the past decade, OCI said its total NAV return compound annual growth rate was 15%, matching its annualized shareholder return despite a persistent discount to NAV.

NAV per share increased from 738 pence at the start of the year. Steven Tredget, a Partner at Oakley Capital, said underlying portfolio performance was the principal driver, contributing 56 pence per share of unrealized gains. About 80% of those gains came from earnings growth, while the remainder reflected multiple expansion in a limited number of assets.

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Realized investment losses reduced NAV by 5 pence per share, reflecting a refinancing gain offset by fund expenses, while foreign-exchange movements reduced it by 4 pence. OCI’s share repurchases added 3 pence per share, Tredget said, as shares were acquired and cancelled at a substantial discount to NAV.

Portfolio contributors and operating trends

Business services became OCI’s largest sector, supported by investment activity and growth at companies including Phenna and TechInsights. Technology remained the second-largest sector, including investments made through the Touring venture strategy.

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The largest first-half NAV contributors were Phenna, North Sails and TechInsights, which together added 30 pence per share:

• Phenna contributed 13 pence per share, supported by organic growth and acquisition activity. The business signed 15 acquisitions year to date, bringing its total during Oakley’s ownership to 71, and has grown from £50 million of EBITDA at entry to more than £200 million.

• North Sails added 9 pence per share as its sailmaking business performed well in mass and premium segments. Tredget said apparel operations continued to transition toward a clearer operating focus and sustainable profitable growth.

• TechInsights added 8 pence per share, helped by subscription-revenue growth, customer renewals and a stronger semiconductor market. The company also signed the acquisition of Synergy Research Group.

Exaforce, an agentic cybersecurity company held through the Touring Fund, was the fourth-largest contributor, according to Tredget. The company completed a $125 million financing round at double the valuation at which Oakley invested a year earlier.

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Portfolio value reductions were concentrated in Cegid, IU Group and PLG. Cegid declined by 4 pence per share as its valuation reflected lower software-sector multiples. IU Group faced softer consumer enrollment in Germany amid affordability pressures, while PLG was affected by weak demand and integration issues following a period of acquisitions.

OCI reported average weighted organic EBITDA growth of 9%, while growth including acquisitions was closer to 17% to 18%. Net debt to EBITDA across the portfolio stood at 4.4 times, and the average portfolio valuation was 16.4 times enterprise value to EBITDA.

Touring Fund targets AI-native businesses

Samir Kumar, Senior Partner at Touring Capital, said the Touring Fund, launched in 2023, invests primarily in Series A and Series B AI-native B2B enterprise software companies. He said the strategy focuses on “vertical systems of action,” physical AI and next-generation AI infrastructure.

Kumar cited CuspAI, a Cambridge-based company using artificial intelligence in materials science, as an example. Touring invested in its seed round at an €89 million post-money valuation, and CuspAI subsequently completed a Series B financing at a €2.6 billion valuation, he said. Kumar also said Touring had recorded eight portfolio markups and one early exit, SafeBase.

Elsewhere, Oakley highlighted AI initiatives in the broader portfolio. Hosting.com launched an AI customer-service solution that handles at least half of customer interactions, receives a higher satisfaction rating than the human-led solution, and has generated annual cost savings of $3 million, according to Tredget.

New investments and liquidity outlook

Oakley outlined several recent or signed investments: French vertical ERP provider GroupsnF; loan-administration provider GLAS; knowledge graph technology company Graphwise; and XTEL, a vertical software platform for consumer-goods companies managing trade promotions with retailers.

Tredget said three of the four investments were founder-led and half were sourced outside auction processes. He added that Oakley had assessed more than 4,000 opportunities over the previous 12 months, had 50 deals in its near-term pipeline and had submitted a non-binding offer for one opportunity.

At June 30, OCI had £940 million of outstanding commitments across Oakley funds, including £382 million for Oakley Capital VI, £340 million for Fund V and £105 million for Origin Fund II. The company said it expected annual drawdowns of £150 million to £200 million based on historical experience and had approximately £230 million of liquid resources following the exercise of a facility accordion.

Management said four companies had entered sale processes or were expected to do so, while two or three portfolio refinancing opportunities could emerge during the next six months. Potential exits and refinancings could return up to £200 million to OCI, though the company cautioned that timing and execution risks remained. OCI is also evaluating a possible sale of a strip of existing fund commitments in the secondary market.

The company repurchased £9.4 million of shares through June and £13 million year to date, generating 4 pence of NAV accretion. Addressing OCI’s 33% share-price discount to NAV, Tredget said the long-run average discount was about 20% and argued that continued NAV growth, realizations, buybacks, liquidity improvements and efforts to reduce exposure to direct holdings could support a rerating.

About Oakley Capital Investments (LON:OCI)

Oakley Capital Investments (“OCI”) is a Specialist Fund Segment listed investment vehicle that provides shareholders with consistent long-term returns in excess of the FTSE All-Share by providing exposure to private equity returns, where value can be created through market growth, consolidation and performance improvement.Through its investments in the Oakley Capital Funds, OCI enables shareholders to share in the growth and performance of a portfolio of European-based companies across Technology, Consumer, Education and Business Services sectors.

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