Oakley Capital Investments (LON:OCI) reported net asset value (NAV) growth for 2025 amid what management described as a challenging macro backdrop and a muted private equity exit environment, while highlighting strong shareholder returns, continued portfolio earnings growth, and an increased focus on applying artificial intelligence across the portfolio.
2025 results and NAV bridge
As of Dec. 31, 2025, OCI’s NAV per share was 738 pence, representing total NAV of £1.2 billion. The company delivered a 6% total NAV return for the year and a 13% five-year NAV CAGR, with management noting the annual return was below target and historic levels.
OCI also reported a 15% total shareholder return in 2025, supported by the share price rising alongside the exit of vLex, the move to the main list, and inclusion in the FTSE 250, though management noted some gains were later given up amid a recent market sell-off.
In its NAV movement commentary, OCI cited:
- £0.22 per share of realized and unrealized portfolio valuation net gains, which management said would have been £0.53 without the decline in Time Out shares.
- £0.11 contribution from FX as the euro strengthened against the pound, while U.S. dollar exposure weighed as the dollar weakened.
- £0.11 benefit from share buybacks, reflecting the accretive impact of a £50 million capital return executed at a 28% discount to NAV.
Portfolio positioning, sector mix, and operating metrics
OCI described the portfolio as diversified across Oakley’s four focus areas. By sector at year-end 2025, management reported:
- Business services as the largest sector at £486 million, reflecting new deals and growth in platforms such as Phenna.
- Technology at £374 million, including recently acquired Brevo and Paraty.
- Consumer at £293 million, supported by North’s performance and the addition of James Perse.
- Education at £273 million.
Management said country exposure is opportunity-led and sector-led rather than a macro call, with notable exposure to the UK and German-speaking markets and a growing opportunity set in Spain, France, and Italy.
Across the 39 portfolio companies held at year-end, OCI reported average organic last-twelve-month (LTM) weighted EBITDA growth of 11%, while growth including M&A was “closer to 20%.” Net debt-to-EBITDA across the portfolio was 4.1x, which management characterized as conservative, and the portfolio was valued at an average 16.3x EV/EBITDA.
In the Q&A, Tredget said the softer 11% EBITDA growth rate reflected three factors: market headwinds and “a miss in expectations” (about half of the impact), planned investment for growth (about 30%), and mix (about 20%), noting that in some business services platforms, accretive M&A is a key driver of returns.
Key portfolio contributors and detractors
Management highlighted the largest look-through holdings as Cegid, North Sails, IU Group, and Phenna Group. Updates included continued demand for Cegid’s business software, Phenna’s double-digit organic revenue growth and acquisition activity, and IU’s performance amid softer new student enrollments in Germany, alongside investment in its AI tutor technology, which management said processed about 1.1 million student messages in December.
OCI outlined key NAV drivers during 2025. The four biggest contributors—Clio (previously known as Felix), Phenna, TechInsights, and Bright Stars—contributed a combined £0.78 to NAV per share. Management said:
- Clio added £0.30 to NAV, driven by a July sale at 3x prior book value, with the company benefiting from AI-enabled products and customer adoption.
- Phenna contributed £0.23 to NAV.
- TechInsights added £0.13 on continued subscription growth and strong renewals, helped by a more buoyant semiconductor market tied to AI and data center demand.
- Bright Stars contributed 9 pence, with EBITDA up 24% due to price increases, margin improvement, and growth in government funding.
On the negative side, management said Time Out’s share price decline represented a 32 pence drag on NAV in 2025. OCI also cited declines in Steer Automotive Group (down 6 pence), ACE (down £0.05), and Contabo (down £0.05), with commentary ranging from softer auto repair volumes to enrollment headwinds and operational issues at Contabo, which management said have since been addressed.
Direct holdings: North Sails and Time Out
Because parts of North Sails and Time Out sit on OCI’s balance sheet, management provided additional detail. North was the fourth biggest NAV contributor, up 8 pence, and ended 2025 with revenue growth ahead of budget. Management said a group-wide focus for 2026 is growing EBITDA by 15%-20% through product portfolio optimization, manufacturing expansion, and structural cost reduction, while noting an expectation there may be an opportunity to “rightsize” OCI’s exposure to North Sails in the year ahead.
On Time Out, management said the media industry faced challenges in 2025 that resulted in low EBITDA, despite growth in the market division. OCI participated in a December equity placing and extended OCI’s loan to the company, which management said significantly increased the interest rate payable. Management also pointed to expectations that the market division alone could exceed £50 million of EBITDA in the next couple of years, while noting Time Out’s market capitalization was cited as £43 million and the holding was “less than 2% of NAV.”
Investment activity, AI strategy, and capital allocation
OCI said Oakley deployed capital steadily in 2025, making 10 platform investments (all in founder-led businesses) and supporting more than 80 add-on acquisitions across portfolio companies. Management highlighted Fund VI’s first investment (G3), technology deal Paraty, and consumer investment Nox, and also referenced realizations including the sale of the stake in atHome and vLex.
Oakley Managing Partner Arthur Mornington devoted a substantial portion of the call to AI, describing it as a “new industrial revolution” and emphasizing both portfolio diversification and active implementation. He said Oakley has formed an AI Lab to drive AI thought leadership, support due diligence, and deploy operational improvements across portfolio companies, including AI audits, proofs of concept, and talent upskilling. Mornington also discussed Turing Capital as part of OCI shareholder exposure, describing it as targeting Series B and C companies integrating AI for industry-specific problems, and cited examples including Numa, CuspAI, and Netradyne.
On capital allocation, management said OCI has discontinued dividends in favor of buybacks and has bought back and canceled 10.5 million shares since the program launch in March 2025, returning £52 million to shareholders. The buyback program continues in 2026, with management citing a minimum of £18 million remaining under the announced authority. The company also reiterated fund commitments, including a €500 million commitment to Fund VI, and said it has a resolution in place to manage direct investments, “especially North Sails.”
Looking at liquidity, OCI reported £992 million of outstanding commitments at Dec. 31, 2025, alongside £191 million of liquidity from cash and credit facilities, and said refinancings expected in the next six months and realizations targeted over the next 12 months are expected to generate inflows equivalent to another year of capital calls, though not guaranteed.
In the Q&A, management said the deal pipeline remains “very strong,” while Mornington indicated a potential deceleration of deployment in the larger fund after faster investment activity in 2025, with continued deal flow expected in the smaller Origin fund. On realizations, management said it had identified at least four companies in the realization phase and Mornington said he had “good line of sight” to between three and five position realizations over the next 12 months, while cautioning that outcomes depend on execution and market conditions.
OCI also provided upcoming dates, including an April 29 Q1 NAV update and a May 13 Capital Markets Day.
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.
