Riverstone Credit Opportunities NAV rises as managed wind-down advances

Riverstone Credit Opportunities Income Plc (LSE: RCOI) has reported a modest increase in net asset value and another sizeable return of capital as it continues its managed wind-down.

The investment company ended June 2026 with net asset value, or NAV, of $33.12 million, equivalent to 89.69 cents per share. NAV is the value of an investment company's assets after deducting its liabilities.

The key question for shareholders is no longer how quickly the portfolio can grow. It is how much cash can be recovered from the final three investments, and how quickly that money can be returned.

You can read the original company announcement for the complete interim financial statements.

Riverstone Credit Opportunities' key figures

Metric	30 June 2026	Previous comparative
Net asset value	$33.12 million	$43.81 million at 31 December 2025
NAV per share	$0.90	$0.89 at 31 December 2025
Share price	$0.75	$0.71 at 31 December 2025
Market capitalisation	$27.61 million	$34.84 million at 31 December 2025
Total comprehensive income	$0.9 million	Loss of $0.9 million in H1 2025
Earnings per share	2.25 cents	Loss of 1.35 cents in H1 2025
Distribution relating to the period	2.11 cents per share	1.58 cents per share in H1 2025
Capital returned since wind-down began	$50.6 million	$39.8 million at 31 December 2025

The decline in total NAV is mainly a feature of the wind-down rather than an ordinary investment loss. Riverstone redeemed 12,134,802 shares in March at $0.89 each, returning $10.83 million to shareholders.

That redemption represented roughly 25% of the shares then in issue. Riverstone now has 36,931,359 ordinary shares remaining.

Since adopting its wind-down policy in May 2024, the company has redeemed approximately 59% of its ordinary shares and returned $50.6 million through three compulsory redemptions.

NAV per share remains resilient

Although the company's total net assets fell as cash was returned, NAV per share edged up from 89.29 cents at the end of December to 89.69 cents at 30 June.

Riverstone also moved back into profit. Total comprehensive income was $963,000, compared with a $917,000 loss in the first half of 2025.

This year's result included $1.34 million of investment income and a $248,000 increase in the fair value of investments. Total expenses were $657,000, including $40,000 of liquidation expenses.

The company reported earnings of 2.25 cents per share, reversing the previous year's loss of 1.35 cents.

Since its launch in May 2019, Riverstone says it has delivered a NAV total return of 36.5% and paid 43.7 cents per share in dividends.

For background on the process so far, see my earlier review of Riverstone Credit Opportunities' wind-down progress and realisation returns.

What happened to shareholder distributions?

Riverstone paid distributions totalling 1.86 cents per share during the first half. This covered 1.11 cents relating to the final quarter of 2025 and 0.75 cents for the first quarter of 2026.

The board has since approved another 0.25 cents per share for the quarter ended 30 June. It is due to be paid on 18 September 2026 to shareholders on the register on 21 August.

That takes distributions relating to the six-month period to 2.11 cents per share, up from 1.58 cents one year earlier.

Shareholders should distinguish these income distributions from compulsory redemptions. A distribution pays cash while leaving the number of shares held unchanged. A compulsory redemption returns capital by cancelling a proportion of each investor's shares.

Three investments remain

One investment, Caliber, was successfully realised during the first half. Its senior secured first-lien loan was repaid in January, with the remaining escrow proceeds received in June.

A first-lien loan generally ranks ahead of junior creditors against specified assets if a borrower cannot repay.

Riverstone's remaining portfolio is concentrated in three companies:

Investment	Amount committed or invested	Share of overall commitments
Geostore Holdings, formerly Harland & Wolff	$10.8 million	33.0%
Seawolf Water Resources	$8.3 million	25.2%
Hoover Circular Solutions	$13.7 million	41.8%

Hoover Circular Solutions is now the largest position. Its loan is due in November 2026 and was made at an estimated all-in yield to maturity of 10.6%.

Seawolf's loan entered forbearance during the period. Forbearance means the lender temporarily agrees not to enforce its full contractual rights. Management expects repayment during the second half of 2026, but that outcome is not guaranteed. Riverstone also owns preferred and ordinary equity in the business, which could take longer to realise.

Geostore is linked to the former Harland & Wolff assets. Riverstone received approximately $0.5 million during the first half and expects a final distribution of around $1.2 million in total from the Navantia transaction during 2026. It also retains an interest of approximately 14.8% in Geostore Holdings.

The discount offers potential, but not certainty

Riverstone's shares closed June at $0.75 against NAV of approximately $0.90 per share. That represents a discount of roughly 16%.

In simple terms, the market valued the company below the stated value of its net assets. That could prove favourable if the remaining investments are realised close to their carrying values and cash is returned without excessive delay or cost.

However, the discount also reflects genuine uncertainty. All investments are classified as Level 3 assets, meaning their valuations rely on significant unobservable inputs rather than quoted market prices.

The company warns that final realisation values may differ significantly from the most recent valuations. A 3% discount for lack of liquidity would reduce the portfolio's fair value by an estimated $963,000.

Investors can follow future announcements and company information through the Riverstone Credit Opportunities Income Plc share page.

Why the accounts are not prepared on a going concern basis

The financial statements have been prepared on a basis other than going concern because Riverstone is deliberately winding down and returning capital.

This wording can sound alarming, but here it reflects the company's revised purpose rather than a statement that it cannot meet near-term bills. The directors said the company and its special purpose vehicles had approximately $2.8 million of cash and cash equivalents available at the date of the report, sufficient to meet near-term liabilities.

Riverstone has recognised a $293,000 provision for liquidation costs. The board said moving away from the going concern basis did not cause material changes to investment valuations.

What RCOI shareholders should watch next

Riverstone intends, on a best-efforts basis, to realise and return all portfolio proceeds by the first quarter of 2027. That timetable is an aim rather than a guarantee, particularly because equity holdings could take longer than the remaining loans to sell.

The interim figures show steady progress: NAV per share has held up, earnings have recovered and 59% of the original shares have now been redeemed since the wind-down began.

The remaining task is more concentrated. Outcomes at Hoover, Seawolf and Geostore will have an increasingly large influence on the final amount and timing of shareholder returns. Further compulsory redemptions, distributions or other capital returns will depend on those realisations and the board's chosen method of returning cash.