Riverstone Credit Opportunities Income - Termination of coverage

Edison Investment Research is terminating coverage on Riverstone Credit Opportunities Income (RCOI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Riverstone Credit Opportunities Income - Continues to deliver an 8–10% dividend yield

Riverstone Credit Opportunities Income (RCOI) reported an FY23 NAV total return (TR) of 6.0%, with continued steady income from its fully invested portfolio, though with some headwinds from the valuation of warrants. RCOI paid three quarterly dividends of 2.0 US cents per share for 9M23, and is therefore on track to deliver at least the lower bound of its targeted dividend yield of 8–10% on its IPO price of US$1.00. At the current 18.2% discount to NAV, RCOI’s last 12-month dividend translates i

Riverstone Credit Opportunities Income - Continues to benefit from healthy yields

Riverstone Credit Opportunities Income (RCOI) reported an H123 NAV total return (TR) of 4.1%, with all loan investments in its portfolio performing to plan (also with respect to key sustainability performance indicators embedded in the loan terms). In June 2023, RCOI participated in the refinancing of the Streamline Innovations loan, which allowed it to realise a gross internal rate of return (IRR) of 23.6% and multiple on invested capital (MOIC) of 1.29x on the original US$13.8m loan (after a h

Riverstone Credit Opportunities Income - High yield on the energy transition

Riverstone Credit Opportunities Income (RCOI) posted a healthy NAV total return (TR) of 14.5% in FY22, benefiting from rising base rates, as well as seven full exits (realised at an IRR of 14.3–32.5%) and six new investments resulting in the recognition of call premiums (exits) and upfront fees (investments). RCOI’s focus on short-duration lending allowed it to swiftly rebalance its portfolio to energy-transition focused investments. The process is now complete, with over 95% of the end-2022 por

Riverstone Credit Opportunities Income - Resilient and premium margins niche

Riverstone Credit Opportunities Income (RCOI) is a closed-end fund that invests in mid-market energy company credit mostly via direct loans. This is a niche sector of low loan to value (LTV), delayed draw loans of relatively short duration, often employed as bridge loans by the borrowers. RCOI can invest broadly across the sector but has been repositioning towards entities building infrastructure and providing infrastructure services as well as those focused on the energy transition to zero carb

Riverstone Credit Opportunities Income - ESG repositioning continues

Riverstone Credit Opportunities Income (RCOI) is a closed-end fund that invests in mid-market energy company credit mostly via direct loans. This is a niche sector of low loan to value (LTV), delayed draw loans of relatively short duration, often employed as bridge loans by the borrowers. RCOI can invest broadly across the sector but has been repositioning towards entities building infrastructure and providing infrastructure services as well as those focused on energy transition to zero carbon.

Riverstone Credit Opportunities Income - Attractive returns with greater sustainability focus

Although it can invest in credit across the mid-market energy sector, Riverstone Credit Opportunities Income (RCOI) has been repositioning its portfolio towards renewable as well as conventional sources, with a primary focus on infrastructure assets. It continues to focus on its niche market of low LTV, delayed draw loans of relatively short duration, often employed as bridge loans by the borrowers. These yields remain good (portfolio H121 YTM is c 13%), portfolio losses have largely been avoide

Gym Group - The power of marginal gains

Gym Group has accompanied confirmation of FY23 profit resilience and continued buoyancy (like-for-like revenue up 12% in the first two months of 2024) with a clear commitment ‘to accelerate, not reinvent the wheel.’ The latter is telling with new senior management endorsing Gym Group’s sweet spot as a low-cost operator in the long-term growth market of health and fitness. Its confidence in material scope for enhanced pricing and member acquisition and retention is complemented by expansion targe

Avacta Group - AACR update

As pre-announced, Avacta has presented the results of the 3-weekly P1 Arm 1 study of its AVA6000 lead clinical asset, based on the pre|CISION™ drug development platform at the American Association for Cancer Research's annual general meeting. The update does not cover progress on the ongoing 2-weekly dosing study which is underway, and Avacta confirmed current guidance on timing including being on track to begin the dose expansion study in 2H24. There are compelling updates on the progress repor

Strong trading and investing for growth

Year-end trading update