12 December 2019
Oakley Capital Investments Limited
Oakley agrees sale of WebPros to CVC Fund VII and follow-on investment
· Proceeds: OCI's share of proceeds is approximately £110 million - a 92% premium to the 30 June 2019 interim carrying value
· NAV increase: The sale results in an uplift of 26 pence per share - an 8.2% increase in the total NAV per share at 30 June 2019
· Returns: The WebPros exit generates a gross return on investment of 6.7x MM, c.140% IRR
· Follow-on investment: Fund IV to invest $200 million alongside CVC Fund VII; OCI's share of this investment is expected to be £43 million
Oakley Capital Investments Limited1 (the "Company" or "OCI") is pleased to announce that Oakley Capital Private Equity III2 ("Fund III") and other co-investors have reached an agreement to sell their stakes in WebPros Group ("WebPros"), a leading provider of web hosting automation software, to CVC Fund VII. The transaction is subject to customary regulatory approvals.
In addition, Oakley Capital IV ("Fund IV") will invest $200 million alongside CVC Fund VII as a minority partner to benefit from long-term growth opportunities and new product developments. OCI's share of Fund IV's investment is expected to be approximately £43 million (USD:GBP 1.32).
Fund III originally invested in WebPros in 2017 and subsequently completed six acquisitions to create a product portfolio that addresses the full end-to-end customer lifecycle for shared hosting providers. The group now employs over 450 people across four continents and supports customers across the globe.
The sale to CVC Fund VII will generate a gross return on investment of 6.7x MM and c.140% IRR to Fund III, including previous distributions. OCI's share of the proceeds will be approximately £110 million (USD:GBP 1.32) following this transaction, which represents an uplift of 26 pence per share to the Company's NAV at 30 June 2019.
Fund IV's investment in WebPros provides an opportunity for Oakley to continue its partnership with the management team and co-investors, and to benefit from the significant long-term growth potential in WebPros, through its extensive product roadmap. CVC Capital Partners brings a complementary skillset and deep relevant expertise to support the strategic vision of the business.
Peter Dubens, Managing Partner of Oakley Capital, commented:
"The success of WebPros to date is the result of many features typical of an Oakley investment. A partnership with entrepreneurs we have backed before, a buy-and-build strategy which tackled a high degree of complexity and a sector in which we have deep experience. We would like to thank the team for all their hard work in bringing the group together and look forward to supporting the business in its next phase of growth alongside CVC."
Leif Lindbäck, Senior Managing Director at CVC Capital Partners, added:
"CVC has a proven track record of teaming up with entrepreneurs and like-minded investors to support and build better businesses. WebPros brings critical automation and security tools to hosting providers, web agencies and their customers. We look forward to partnering with Oakley Capital and working closely with the management team to continue building the leading global SaaS hosting platform for server management."
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For further information please contact:
Oakley Capital Investments Limited
+44 20 7766 6900
Steven Tredget, Investor Relations
Greenbrook Communications Ltd
+44 20 7952 2000
Alex Jones / Matthew Goodman / Gina Bell
Liberum Capital Limited (Financial Adviser & Broker to OCI)
+44 20 3100 2000
Gillian Martin / Owen Matthews
Maitland/AMO for CVC Capital Partners
+44 20 7379 5151
Alasdair Lennon
Notes:
LEI Number: 213800KW6MZUK12CQ815
1 About Oakley Capital Investments Limited ("OCI")
OCI is a Specialist Fund Segment ("SFS") traded investment vehicle, which provides access to the Oakley Funds2. It is a liquid vehicle that aims to provide capital growth and dividends to investors.
2 The Oakley Funds
Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III and Oakley Capital IV, are unlisted focused mid-market private equity funds with the aim of providing investors with significant long-term capital appreciation. The investment strategy of the funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement.
The Investment Adviser
Founded in 2002, Oakley Capital Limited has demonstrated the repeated ability to source attractive growth assets at attractive prices. To do this it relies on its sector and regional expertise, its ability to tackle transaction complexity and its deal generating entrepreneur network.
Important information
Specialist Fund Segment securities are not admitted to the Official List of the Financial Conduct Authority. Therefore the Company has not been required to satisfy the eligibility criteria for admission to listing on the Official List and is not required to comply with the Financial Conduct Authority's Listing Rules. The London Stock Exchange has not examined or approved the contents of the Prospectus.
The Specialist Fund Segment is intended for institutional, professional, professionally advised and knowledgeable investors who understand, or who have been advised of, the potential risk from investing in companies admitted to the Specialist Fund Segment.
About CVC Capital Partners
CVC is a leading private equity and investment advisory firm. Founded in 1981, CVC today has a network of 24 offices and over 500 employees throughout Europe, Asia and the US. To date, CVC has secured commitments of over US$129 billion from some of the world's leading institutional investors across its private equity and credit strategies. In total, CVC currently manages approximately US$83 billion of assets. Today, funds managed or advised by CVC are invested in 73 companies worldwide, employing over 300,000 people in numerous countries. Together, these companies have combined annual sales of approximately US$100 billion. For further information about CVC please visit: www.cvc.com.
