Oakley holds first close on Fund III – Exclusive

The firm has amassed more than €500m for its latest vehicle, which has a hard-cap of €750m.

Oakley Capital has held a first close on its third private equity fund, Private Equity International has learned.

The firm has amassed more than €500 million for Oakley Capital Private Equity III, according to a source with knowledge of the matter.

Oakley declined to comment on fundraising.

The fund, which launched earlier this year with a hard-cap of €750 million, was seeded with a €250 million commitment from Oakley Capital Investment Limited (OCIL), the London-listed vehicle created to invest in Oakley Capital funds, as reported by PEI.

Its predecessor, the 2013-vintage Oakley Capital Private Equity II, closed above its €500 million target on €524 million in December 2014. Investments in the fund’s portfolio include Hamburg-based EliteMedianet, the owner of online dating company ElitePartner, ICT service provider Damovo, and US sail-making business North Sails.

As at 31st December 2015, Oakley Capital Limited, the investment advisor to OCIL, estimates the gross realised and unrealised returns of Fund I to be 2.2x with a 37 percent IRR, and for Fund II to be 1.6x with an IRR of 53 percent, according to a trading update released in February.

Oakley Capital funds deployed €148 million during 2015, acquiring four portfolio companies through Fund II. OCIL also made co-investments and loans alongside the Oakley Capital funds of £77 million (€101 million; $110 million).

Oakley is the latest UK-headquartered firm to make significant headway with its fundraising despite market uncertainty in the wake of the Brexit referendum. London-headquartered IK Investment Partners, which invests across Europe, is closing in on a €1 billion first close for its eighth flagship fund, which is targeting €1.6 billion, while CBPE Capital has raised £400 million for its latest offering, just £25 million shy of its target, as reported by PEI.