Riverstone Credit Opportunities Income (RCOI ) has decided to wind down 

Faced with the prospect of its assets falling below £40m ($50m) when shareholders withdraw some or all of their capital on 22 May, the company has proposed a managed wind-down to return investors’ money over a two-year period as its green and sustainability linked loans mature.

In a stock exchange notice, RCOI’s board said that even if more than $50m in assets remained following the realisation opportunity, it would still be in shareholders’ best interests to close the fund as its fixed costs would become too burdensome for remaining investors.

Cash will be returned to shareholders through dividends, tender offers, mandatory redemptions and share buybacks.

Chair Reuben Jeffrey III said the board made its decision after consulting fund manager Riverstone Investment Group, sub-manager Breakwall Capital and ‘significant shareholders’.

Top shareholders include ND Capital Investments, Newton and Mirabella Financial Services, with respective stakes of 11%, 10% and 10%, according to Refinitiv data.

Discount hunting activists Almitas and Metage also hold 9% and 7%.

The shares have traded below net asset value (NAV) for much of its five years since launch in May 2019 and currently stand at 90 cents, a 15% discount to NAV of 106 cents.

An end of March quarterly update showed that since flotation the dollar-denominated fund delivered a total underlying return of 43.2%, including dividends, but the shares generated only 33% due to the discount.

Fund manager Jamie Brodsky told Citywire in February that were there to be an early wind up, Riverstone could walk out with its head held high and reputation intact.