In brief : Oakley Capital Investments (OCI) announced on 28 October 2026 the sale of a portion of its commitments in Oakley funds to Carlyle AlpInvest for £257m, representing a 5.75% discount to their carrying value. On the same day, its own shares traded at approximately 38% below NAV. A real-world case to understand what the secondary market reveals about portfolio value and how a trust manages its commitments.

Oakley Capital Investments is a London-listed trust that invests in the private equity funds of Oakley Capital, its investment adviser. At 30 September 2026, its NAV reached £1,294m, or 791 pence per share, up 6.7% over twelve months, including dividends and share buybacks.

On 28 October 2026, OCI announced the sale of a portion of its stakes in Oakley funds IV, V, and VI, and in the Origin and Origin II funds. These positions were carried in its books at €313m (£272m) as of 31 March 2026. The price achieved was €295m (£257m), representing a 5.75% discount. The primary buyer is Carlyle AlpInvest, a secondary market specialist, directly for £177m and via an Oakley-managed vehicle funded with Anchor Capital for £95m.

The buyers also assume approximately €281m (£244m) of unfunded commitments, meaning capital that OCI had committed to provide to these funds. Half of the price will be paid upon completion, expected in November 2026, with the remainder paid in three tranches over three years. OCI stated that its available cash would increase to approximately £327m and its outstanding commitments would be covered 0.48 times, compared to 0.21 times previously.

Following the transaction, the board added £20m to its share buyback programme for 2027, bringing it to £40m. Its chairman, Christopher Samuel, viewed the transaction as “a third-party validation of OCI’s NAV” and “the first of a series of strategic initiatives” designed to support demand for its shares.

The secondary market serves as a test here. A specialized buyer, having reviewed the holdings, agreed to pay approximately 94% of their book value. At the same time, the stock market valued OCI’s shares at around 62% of their NAV. The gap between these two pricing levels for comparable assets is at the heart of the debate regarding discounts on private equity trusts.

The transaction also addresses a balance sheet management objective. A trust investing in funds commits to providing capital over several years. When these commitments significantly exceed available cash, the market can become concerned. By transferring these commitments to the buyer, OCI reduces this future requirement and improves its coverage ratio.

Two points of caution remain. Half of the purchase price is deferred over three years, representing a receivable rather than immediate cash. Furthermore, since Oakley advises OCI, the sale constitutes a related-party transaction governed by listing rules: it was conducted by independent directors, with directors affiliated with Oakley abstaining from the vote. A single divestment does not guarantee that the discount will structurally narrow.

Secondary market :
The market where existing interests in unlisted funds change hands before the end of the fund’s life.

Deferred payment :
A portion of the price paid later, in several tranches. It appears on the balance sheet as a receivable.

Commitment coverage :
Available cash and credit lines, expressed as a ratio of the capital still committed to funds.

Related-party transaction :
An operation between the trust and a closely aligned entity, here its adviser. It must be approved by independent directors.

Sources : Oakley Capital Investments, partial asset sale and Q3 2026 trading update, 28 October 2026

AVERTISSEMENT
This article is for educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not a reliable indicator of future results.