Oakley returning to market with Fund III

In a trading update Oakley Capital Investments said it has made a €250m commitment to the vehicle, which will have a hard-cap of €750m.

Oakley Capital is preparing to return to market with its third private equity fund, which will have a hard-cap of €750 million, Private Equity International has learned.

Oakley Capital Investments Limited (OCIL), the London-listed vehicle created to invest in the Oakley Capital funds, has made a €250 million commitment to the vehicle, according to a trading update for the 12 months ended 31 December 2015 and released on Friday.

It is understood that the fund, which will be substantially larger than its predecessor, is set to officially launch imminently.

Oakley declined to comment on fundraising.

Oakley Capital Private Equity II, a 2013-vintage vehicle which closed above its €500 million target on €524 million in December 2014, is now 73 percent invested across nine portfolio companies, one of which – German web hosting company Intergenia – was sold to Host Europe Group in a deal generating a 1.4x return and an internal rate of return of 47 percent.

Fund I had three portfolio companies remaining at the end of 2015. During the year the fund exited its controlling stake in Verivox to ProSieben in a deal generating a gross money multiple of 14.5x and a 68 percent IRR. The fund has a realised IRR of 46 percent and gross money multiple of 3.5x.

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).

“We continue to see a dynamic pipeline of attractive investment opportunities which should enable the funds and the company to maintain their deployment record,” Peter Dubens, founder and managing partner of the Oakley Capital Group, said in the trading update.

As at 31st December, 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.