Oakley Capital reports positive Q1 NAV per-share return

(Sharecast News) - Oakley Capital Investments reported a 2.7% total net asset value return per share in the first quarter on Wednesday, although its share price fell sharply amid a wider sell-off in listed private equity and investment trusts. The FTSE 250 investment company said unaudited net asset value stood at £1.26bn at 31 March, equivalent to 758p per share. NAV per share rose by 20p from the end of December, or 17p excluding foreign exchange effects, and was up 53p, or 7.5%, over the 12 months to the end of March.

Oakley said the largest contributors to the first-quarter NAV return were North Sails, which added 7p per share, TechInsights, which added 6p, Exaforce, which added 5p, and Bright Stars, which added 4p.

The firm said its underlying portfolio companies delivered strong trading during the period, with earnings growth accounting for about 70% of the NAV return and multiple accretion for the remaining 30%.

Performance was mainly driven by more mature companies that had benefited from a period of Oakley ownership and held strong positions in their markets.

Oakley said the portfolio had held up well despite significant uncertainty, including conflict in the Middle East.

Preliminary analysis indicated that exposure to the region was minimal and that the impact from higher fuel costs was unlikely to be material.

The investment adviser said it remained confident in OCI's diversified portfolio of more than 40 companies, many of which benefit from recurring revenues and asset-light business models.

It said the companies should continue to perform well and remain able to pass on price increases, as they had during previous periods of high inflation.

It also said management teams' growing use of artificial intelligence was expected to improve productivity and support further value creation, while the outlook for the exit pipeline remained promising.

Despite the NAV increase, OCI recorded a total shareholder return of minus 18% in the quarter as its discount to NAV widened to 38%.

The company said the decline came amid a broader market reaction to geopolitical uncertainty and a sell-off in the private credit and software sectors, in line with pressure across listed private equity companies and the wider investment trust sector.

At the period end, the average discount for the listed private equity sector was 32%.

OCI's average three-month discount was 29% and its 12-month average discount was 28%, compared with sector averages of 26% and 28%, respectively.

The company said it invested £28m during the quarter, including in Groupe Senef, a French provider of cloud vertical software solutions, and Athena Racing, the British America's Cup team and sailing franchise.

Its look-through share of proceeds from exits and refinancings totalled £2m.

OCI also began its minimum £20m share buyback programme for 2026, completing £2.8m of buybacks during the quarter, which enhanced NAV per share by 0.8p.

Total outstanding commitments stood at £972m at the end of March, of which about £300m was not expected to be called.

The remaining commitments were expected to be invested over the next five years.

Oakley said total liquidity at 31 March was £180m, comprising £108m of cash and £72m of undrawn credit facilities.

The company said it expected to report its first-half 2026 trading update on 30 July.

At 0942 BST, shares in Oakley Capital Investments were up 0.43% at 478.03p.

Reporting by Josh White for Sharecast.com.

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