RM investor briefing highlighted solid progress on the portfolio’s liquidation. A further tender offer (c£15m, c23% of NAV or 32% Mkt Cap) is expected in Q4’25, following the imminent repayment of the largest loan. Additional tenders are expected in the second halves of 2026 & 27. A review of valuation marks (wgt. av. 86.6) highlights a degree of caution from the manager regarding recovery rates. RMII currently trades at a c22% discount to NAV, adjusting for the forthcoming tender offer (at NAV) implies that rump portfolio is being valued on a 30% discount. In our opinion, the market is taking a conservative view on the portfolio’s likely recovery rate. As clarity around realisation process improves (especially Beinbauer), our expectation is for the discount to tighten.
