Riverstone Credit Opportunities FY2025: Wind-down on track, more cash back to shareholders
Riverstone Credit Opportunities Income PLC (RCOI) is now firmly in managed wind-down mode, and 2025 showed solid progress: three realisations, ongoing cash returns, and a clearer runway to the finish. There was a modest dip in NAV per share, but strong exit metrics helped offset the drag from Harland & Wolff. Here’s what stood out – and why it matters if you own the shares or are eyeing the discount.
Note: All figures are in US dollars unless stated.
Key numbers investors care about
| 2025 | 2024 | |
|---|---|---|
| NAV | $43.81m | $62.55m |
| NAV per share | $0.89 | $0.92 |
| Market capitalisation (31 Dec) | $34.84m | $51.80m |
| Share price (31 Dec) | $0.71 | $0.76 |
| Total comprehensive income/(loss) | $0.11m | $(4.74)m |
| Distributions with respect to year | 4.19 cents | 4.72 cents |
At year-end, the shares traded around a 20% discount to NAV ($0.71 vs $0.89).
Wind-down execution: cash back and fewer holdings
- Since adopting the Wind-Down Investment Policy (May 2024), RCOI has redeemed about 46% of its Ordinary Shares, returning approximately $39.8 million via two compulsory redemptions.
- Distributions of 4.19 cents per share were approved for 2025, including 1.11 cents for Q4 (record date 6 March 2026; payment 27 March 2026).
- Unencumbered cash equivalents stood at approximately $12.4 million as at 24 February 2026.
- Weighted average remaining loan tenor is around one year; the Board aims to realise and return proceeds by the second half of 2027, with liquidation expected in the first half of 2027.
Why it matters: for wind-down investors, pace and pricing of exits drive total returns. RCOI is shrinking the portfolio, distributing income, and using share redemptions to return capital without reinvesting.
Realisations and returns: where value was created
2025 exits at attractive IRRs and MOICs
- Streamline Innovations (first lien green term loan): realised at 20% gross IRR, 15% net IRR; 1.33x gross MOIC, 1.25x net MOIC (18 July 2025).
- Max Energy Industrial Holdings US LLC (sustainability-linked term loan): realised at 19% gross IRR, 15% net IRR; 1.49x gross MOIC, 1.39x net MOIC (11 September 2025).
- Harland & Wolff: $3.5 million cash received (12 May 2025) from the Navantia transaction; c.$1.2 million further distribution to RCOI is expected during 2026.
Post year-end
- Caliber Midstream senior secured first lien repaid, delivering $0.9 million cash (7 January 2026).
Context check: Since IPO (May 2019), RCOI has executed 25 direct and two secondary investments, realising 23 at a gross realised amount of $256.2 million with an average gross IRR of 17.6% (net IRR 13.8%) and gross MOIC of 1.21x (net 1.14x). That’s a respectable credit track record.
What’s left in the portfolio?
As at 31 December 2025, four positions remained, with most of the carrying value concentrated in two names (approximately 80% of residual value). Post Caliber’s repayment in January 2026, that’s down to three.
- Geostore Holdings (formerly Harland & Wolff) – RCOI has $11.3 million invested and holds c.14.8% in Geostore Holdings LP via the Infrastrata/Islandmagee gas storage asset. This position drove the valuation reduction and the small reported loss for the year.
- Seawolf Water Resources – secondary investment in a stapled bundle (loan plus preferred and common). Total commitment now $8.4 million; loan due March 2026.
- Hoover Circular Solutions – sustainability-linked first lien term loan; $13.7 million invested; due November 2026.
- Caliber Midstream – $0.6 million remaining at year-end, since repaid in January 2026.
Why it matters: concentration cuts both ways. It speeds up decision-making and realisations, but puts more weight on outcomes at Hoover and Seawolf, and on the final Geostore/Harland proceeds.
Income, costs and dividends: what flowed through
- Investment income was $4.16 million, down from $5.65 million as the book shrank.
- Ongoing charges ratio rose to 3.07% (2024: 2.35%) on a smaller average NAV of $48.1 million. Total expenses were $1.48 million.
- Distributions with respect to 2025 totalled 4.19 cents per share. Since inception, RCOI has delivered a NAV total return of 33.6% and paid 41.9 cents of income.
My take: as assets run off, expense ratios tend to look higher. The absolute cost base should keep falling with the portfolio, but the percentage may remain elevated. The crucial offset is timely realisations at or above carrying value.
Positives, pressure points and the discount
What’s working
- Execution: Three 2025 realisations with strong IRRs and MOICs; Caliber repaid soon after year-end.
- Cash returns: 46% of shares redeemed since adopting the wind-down; ongoing quarterly distributions.
- Liquidity and runway: ~one-year average loan tenor and ~$12.4 million of cash equivalents provide flexibility.
What to watch
- NAV progression: NAV per share edged down to $0.89 (from $0.92) primarily due to Harland & Wolff. Further Geostore/Islandmagee cash in 2026 (c.$1.2 million expected to RCOI) will help.
- Concentration risk: Two names make up around 80% of residual carrying value.
- Cost leakage: Ongoing charges at 3.07% on a shrinking NAV require disciplined overhead control.
Discount lens: a roughly 20% year-end discount gives a potential cushion if realisations continue near or above book. In wind-down vehicles, discount narrowing can become a material part of total return, but it hinges on clean exits and steady distributions.
Timeline and catalysts
- Near term: further Harland & Wolff/Geostore distribution expected in 2026; Seawolf loan due March 2026.
- Medium term: Hoover CS loan maturity in November 2026; Board targets portfolio realisation by H2 2027 and liquidation in H1 2027.
- Cash events: additional redemptions or distributions as assets are realised; Board retains flexibility across dividends, tender offers, compulsory redemptions and buybacks.
Josh’s bottom line
This is a competent year of wind-down execution. Realisation metrics were strong, cash is building, and the share count is shrinking. The flip side is familiar: a modest NAV drift, elevated headline charges on a smaller base, and a concentrated end-game. If the team keeps exiting around carrying values, the current discount offers a sensible margin for patient investors focused on cash back rather than growth.
In short: steady hands on the tiller. The next few realisations will do most of the talking.
