Oakley Capital invests GBP25 million in private education portfolio

Oakley Capital Investments Ltd on Tuesday announced it has reaffirmed its commitment to its K12 investments portfolio, including international school operator Affinitas Group LLP.

 

The Pembroke, Bermuda-headquartered private equity firm offers exposure to the education, technology, consumer and business service sectors through its funds that are managed.

 

OCI revealed that Oakley Capital Fund IV has consented to partially unwind its stake in the K12 portfolio ranging from kindergarten to high schools. Oakley Capital will dispose of its majority share at an approximate 6% premium over the carrying value at June 30, while funds controlled by it will hold a minority stake.

 

Consequently, OCI anticipates to receive about GBP25 million of look-through proceeds and a 3 pence per share uplift to its net asset value at June 30, which stood at 742p per share.

 

The transaction calls for Oakley Capital and two third-party investors to infuse new money in K12, with OCI expecting a GBP25 million indirect contribution through Fund VI.

 

Affinitas is a network of 20 European and American international schools established by Oakley in 2022. Oakley also announced on Tuesday that it has hired Thomas Rajzbaum as the new chief executive of its education business.

 

"Before joining Affinitas, Thomas was an EQT Group Partner, a global investment group, where he built the French office for its infrastructure funds and orchestrated its Education sector strategy throughout Europe," Oakley said.

 

The private equity group is anticipating the new K12 commitment to support a growth of Affinitas, which it claims has "a strong pipeline of new schools wanting to join the group".

 

Peter Dubens, Managing Partner at Oakley, explained this was the company's "eighth education investment and our thirteenth year in the K12 sector, which we remain very positive about as one of the most appealing in the industry".

 

OCI shares fell 0.4% to 560.00 pence at midday on Tuesday in London, and have increased by 11% over the last 12 months.