Riverstone Credit Opportunities Income (LSE: RCOI)

Currency in USD

Last close As at 06/02/2023

USD0.94

0.01 (1.08%)

Market capitalisation

USD85m

RCOI’s objective is to generate stable current income and growth in NAV by investing in a diversified portfolio of senior secured loans to mid-market entities predominantly engaged in building infrastructure and providing infrastructure services to generate, transport, store and distribute both renewable and conventional sources of energy, as well as those focused on the pathway toward transformation of the global energy sector from fossil-based to zero carbon. There is a focus on US companies, but RCOI invests across end-markets to provide synergies and hedges to enhance portfolio stability.

Equity Analyst

Pedro Fonseca

Pedro Fonseca

Analyst, Financials

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 1.9 13.3 5.3
Relative (2.4) 4.7 4.8
52 week high/low US$0.9/US$0.8

Overview

Riverstone Credit Opportunities Income (RCOI) is a closed-end fund that invests in mid-market energy company credit mostly via direct loans. This is a niche sector of low loan to value (LTV), delayed draw loans of relatively short duration, often employed as bridge loans by the borrowers. RCOI can invest broadly across the sector but has been repositioning towards entities building infrastructure and providing infrastructure services as well as those focused on the energy transition to zero carbon. Asset quality has been holding up well and the last three loan realisations had gross IRRs of 14–21%, while management sees a good pipeline. We note the fully funded 8.5% dividend yield and the 16% NAV discount. RCOI started a share buyback programme in July, because the board believes the shares do not reflect the portfolio value and high-performing strategy.

Thematics

Investment Companies

Vietnamese equities: Due a comeback?

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Investment Companies

The case for US capital markets

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free