Why We Backed Osney Capital I LP

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At Thema, we focus on identifying exceptional first-time and emerging fund managers who are uniquely positioned to drive outperformance.

We believe outperformance typically stems from three core areas:

1) a vertically focused fund addressing a market with early signs that point to potential outsized returns, whether through a niche vertical specialisation or a very specific geographic focus,

2) a hard-to-replicate value-add proposition that generates tangible returns for us as an LP, and

3) defensible sourcing channels, driven by deep domain expertise and a network of individuals obsessed with their market.

Our recent commitment to Osney Capital I LP illustrates this approach. The fund concentrates solely on the cybersecurity vertical and targets seed-stage UK businesses.

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An Undervalued Segment in a Growing Market

The UK cybersecurity sector has experienced consistent growth, with total sector revenues recently reaching £13.2 billion, reflecting a 12% year-on-year increase.

Yet, seed-stage cybersecurity ventures in the UK remain attractively undervalued relative to peers in the US and Israel. Osney Capital’s strategy capitalises on this valuation arbitrage, securing meaningful early-stage ownership before valuations realign in later investment rounds.

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Deep Roots in the UK Cyber Ecosystem

We believe Osney has several areas which provide them with an edge, the primary being the deep relationships they’ve cultivated within the UK’s national cyber ecosystem - relationships that typically take several years to establish.

These connections include strategic partnerships, access to government-backed initiatives, and strong ties with senior security executives across multiple industries, particularly within the financial sector.

This extensive network allows Osney to identify and secure investment opportunities ahead of other investors, positioning the firm as the “go-to” early-stage cybersecurity fund in a market still predominantly invested in by generalists in the UK.

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Institutional Backing and Momentum

Osney Capital surpassed its £50m target at the first close. The fund is supported by the British Business Bank’s Enterprise Capital Funds programme, a programme with which the Thema team is highly familiar, particularly given that Sam, our CIO, worked on this programme for ~7 years. Additionally, the fund benefits from accreditation by the National Security Strategic Investment Fund.

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Our conviction in Osney Capital’s potential to outperform is driven by several key factors:

Specialised focus in an evergreen market:

Global demand for cyber solutions is rising, driven by increasingly complex threats. There is a clear gap in the UK market for an early-stage specialist fund, where valuations remain attractive.

Operational Expertise and Access to Exclusive CISO Network:

‍The team’s background, along with their extensive network of CISOs, gives us confidence that Osney can effectively support portfolio companies as they scale and secure follow-on funding from leading VC firms in later rounds.

LP Construction and Unique Waterfall Structure:

‍Osney’s fund structure provides amplified returns for private investors through the BBB’s ECF programme’s unique waterfall, increasing private investor profits by ~1.5x. 

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Strategic Structuring and a Platform for Outperformance

This waterfall, combined with enhanced co-investment opportunities for private investors and accreditation by the National Security Strategic Investment Fund, which can accelerate portfolio companies’ access to public sector contracts, offers a clear advantage.

Osney Capital’s combination of sector specialisation, defensible sourcing channels, operational depth, and unique waterfall structure positions them well to outperform. We are excited to support Osney Capital Fund I and wider Osney Capital on their fund management journey.

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