Partner Steven Tredget explains how the private equity firm’s hands-on investing approach has continued to deliver strong returns in tough markets
When set against a difficult year for public equity markets, Oakley Capital Investments’ (OCI) returns this year look all the more impressive. OCI is a specialist fund segment listed investment trust. It provides listed, liquid access to private equity manager Oakley Capital’s portfolio of high-growth, mid-market assets in the technology, consumer, and education sectors. As the firm’s partner Steven Tredget explains, that’s thanks to a hands-on approach working alongside the entrepreneurial companies it invests in, and a unique model for deal origination that helps it find high potential investment opportunities at the right price.
While shares in the investment company – which have delivered a total return of 142% in the last five years – can be bought easily – “democratising private equity” as Mr Tredget puts it – myths surrounding the private equity sector’s practices mean some investors may be missing out on the sector’s many advantages, not least a growing tendency for fast growing companies to choose to remain privately owned.
00:00 Intro
00:30 Introduces Oakley Capital #OCI
02:01 Challenging some of the unfair myths around private equity, and what investors who shun the sector are missing out on
11:55 How working closely with investee companies as a hand-on investor helps generate returns ahead of public market benchmarks
14:42 Describes the three sectors which the company targets for investment – digital consumer, technology, and education – and gives examples of investee companies
19:01 How Oakley backs established, profitable companies, which mean returns are driven by EBITDA growth rather than leverage or revaluation, and through a combination of growth and value investment styles
23:34 How Oakley backs established, profitable companies, which mean returns are driven by EBITDA growth rather than leverage or revaluation, and through a combination of growth and value investment styles
27:47 The advantages of investing in private equity through Oakley Capital Investments, and why investors should be investing in private equity on the basis of NAV growth rather than discount to NAV.
