Riverstone Credit Opportunities Income

LN: RCOI

$77.4m market cap

$0.85 last close

Riverstone Credit Opportunities Income’s (RCOI’s) objective is to generate stable current income and growth of net asset value by investing in a diversified portfolio of senior secured loans to mid-market energy infrastructure and infrastructure service focused companies across conventional and low carbon/renewable energy sources. There is a focus on US companies, but RCOI invests across end markets to provide synergies and hedges to enhance portfolio stability.

Investment summary

Riverstone Credit Opportunities Income (RCOI) is a closed-end fund that invests in mid-market energy company credit mostly via direct loans. Broadly across the sector, the lending includes infrastructure and infrastructure services across conventional and recently renewable energy sources. Energy lending is a specialist niche and RCOI benefits from being part of Riverstone, a leading energy-focused US investment company that has raised $41bn in capital since 2000. The average RCOI loan YTM is 12.5% and despite the pandemic and low oil prices, there have been no portfolio losses. The NAV has been resilient (12% total return since IPO in May 2019), but energy sector and oil price concerns, coupled with low share liquidity, have led to a 20% NAV discount and a dividend of 8.3%.

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