In this note, we review what RECI brings to investors, specifically noting i) a near 10% dividend yield, significantly covered by recurring interest income and which has been maintained through multiple macro crises, ii) diversification of investors’ portfolios with an equity with low correlation to overall markets, iii) an experienced debt manager bringing competitive advantages in deal origination and risk management, iv) a diversified portfolio with proven downside resilience created by Cheyne’s actions, and v) liquid access to an attractive illiquid asset class. There are risks (e.g. French macro conditions), but RECI has a proven track record of resilience.
