Sale of the DWS division of the Daisy Group

7 January 2021

Oakley Capital Investments Limited

Oakley Capital Investments Limited¹ ("OCI" or the "Company") is pleased to announce that Oakley Capital Fund II² ("Fund II") portfolio company, Daisy Group ("Daisy" or "the Group"), has reached an agreement to sell its stake in the Digital Wholesale Solutions ("DWS") division. The transaction is subject to regulatory approval.

OCI's share of proceeds will be c.£22 million following this transaction, which represents a c.33% premium to the 30 June 2020 interim carrying value of OCI's investment in Daisy (via Fund II and a direct loan), an uplift of c.5 pence per share to the Company's NAV.

Part of the proceeds will repay in full OCI's outstanding c.£17 million direct loan to the Group.

Note that the above figures only relate to OCI's share of the investment in Daisy.

OCI's liquid resources available for future deployment (including this transaction) are estimated to be £240 million.

Further details on the transaction can be found in the below announcement from Oakley Capital. 

The sale of the Digital Wholesale Solutions division of the Daisy Group to Inflexion

Oakley Capital Fund II ("Fund II") portfolio company, Daisy ("Daisy" or "the Group"), has reached an agreement to sell its stake in the Digital Wholesale Solutions ("DWS") division to Inflexion Private Equity Partners, a U.K. based buyout and growth capital investor, with Fund II exiting its stake in DWS in full. Fund II will retain a c.10% stake in Daisy following the sale.

Fund II invested in Daisy in July 2015 following the Group's acquisition of Phoenix IT Group to create the first converged IT and unified communications company in the UK small and medium businesses market. Oakley originally invested in the business via Oakley Capital Private Equity L.P. ("Fund I") in 2008 and has maintained a close relationship with the founder, Matthew Riley, since the successful exit of Fund I's investment in 2014.

Daisy is a leading provider of tailored IT, communications and cloud services to corporate customers of all sizes, and is organised into four main divisions based upon the size of the end customer: Small and Medium Businesses (customers with up to 250 employees), Digital Wholesale Solutions (customers with up to 250 employees), Daisy Corporate Services (customers with 250+ employees) and Allvotec (customers with 2000+ employees).

The sale of the DWS division to Inflexion, combined with the retained stake in Daisy, takes the gross return on investment to date to 1.6x MM for Fund II. Completion is subject to regulatory approval.

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For further information please contact:

Oakley Capital Limited

+44 20 7766 6900

Steven Tredget, Investor Relations

Greenbrook Communications Limited

+44 20 7952 2000

Alex Jones / James Williams

Liberum Capital Limited (Financial Adviser & Broker)

+44 20 3100 2000

Gillian Martin / Owen Matthews

Notes:

LEI Number: 213800KW6MZUK12CQ815

¹ About Oakley Capital Investments Limited ("OCI")

OCI is a Specialist Fund Segment ("SFS") traded investment vehicle that aims to provide shareholders with consistent long-term capital growth in excess of the FTSE All-Share Index by providing liquid access to private equity returns through investment in the Oakley Funds².

A video introduction to OCI is available at https://oakleycapitalinvestments.com/videos/

² The Oakley Funds

Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III, Oakley Capital IV and Oakley Capital Origin Fund are unlisted lower-mid to mid-market private equity funds that aim to provide 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.

Oakley Capital, 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 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.