RKW’s manager is bullish for 2026. The portfolio is becoming increasingly mature. The average holding period is 3.0 years, versus a target holding period of three to five years. Investees representing c.13% of NAV are in realisation mode. A further c.24% is invested in companies where a catalyst is expected in 2026. Around c.23% of investees are expected to report significantly enhanced profitability during 2026 (combined exposure: 60% of NAV). SCM’s view is that RKW’s management has built a track record of delivering on their strategy and generating investor returns. UK SME corporate activity slowed in H2 2025 as the market paused ahead of the Budget. We expect RKW’s 2026 performance to benefit from portfolio maturity and a degree of transactional catch-up from 2025. RKW trades at a modest premium to NAV. Our expectation is for this rating to be maintained during 2026.
