Buy & build
Notably, buy & build strategies have contributed to value-accretive growth and multiple expansion. For instance, between 2009 and 2014, Daisy, an SME telecoms business, completed twenty bolt-on acquisitions, with an average entry EBITDA multiple of 5x and exit multiple of 11x, and a gross return of 38x capital invested. Similarly, intergenia, a web-hosting business, completed five acquisitions between 2012 and 2015 at 4-5x, and exiting at 10x of run-rate EBITDA, realising a gross return of 2.5x capital invested. Over 50% of our portfolio has undertaken some form of M & A under Oakley’s ownership.
Oakley has the expertise and resources to help investee companies transform their operations and exploit a changing environment. Our entrepreneurial heritage and ethos means we have the appetite and ability to provide informed and creative input to the strategic growth of our portfolio companies.
Oakley has a track record of buying businesses from founders and entrepreneurs, preparing the business for institutional ownership, and then selling to a corporate or private equity buyer. It transitions businesses by improving management, reporting and corporate governance practices. This has contributed to a positive multiple arbitrage from across realised Fund I and II investments. Oakley has also done many carve outs to create new stand alone businesses.