Investment Strategies

Real Assets:
Infrastructure
& Real Estate

RiverRock’s infrastructure equity strategy targets smaller infrastructure Public-Private Partnership projects that are already in operation and located in the Western part of the Eurozone. We focus on the most defensive segment of the infrastructure market (“Super Core”) and exploit a niche strategy in terms of deal size while the broader market moves towards larger investments with higher risk profiles.

Please Contact - [email protected]

RiverRock Senior Loan Fund II (“RSLF2”)

9 Year Term 2023 Fundraising

  • RiverRock Senior Loan Fund II (“RSLF2”) is a joint venture between RiverRock and ING Bank. For every ING origination, we overlay a second opinion via our own credit selection process. Meanwhile, ING’s focus on Club Deals ensures lower leverage, stronger covenants and higher returns for LPs.
  • We invest in floating-rate loans only. LPs benefit from rising Euribor, which has helped double return to the 8-10% range (Euribor + 450-550bps). Current weighted average return is 9.10%.
  • ING has 70 deal originators spread across Europe, dwarfing other credit funds and making our deployment speed fast, predictable, and constant.
  • Thus, our final portfolio will result in best-in-class diversification with 100 loans. Typical borrowers have €375m sales, €75m EBITDA and are rated BB-.
  • Amortized-cost accounting avoids M2M volatility. For predecessor fund RSLF1, valuations have ranged between 100-100.50% throughout.
  • Every quarter, we provide LPs with three separate reports. The first covers new investments and portfolio updates, the second provides a comprehensive quarterly rundown on every loan’s performance and outlook, and the third reports on ESG.

RiverRock Brownfield Investment Fund (“RBIF”)

15 Year term Expected 2025

  • RiverRock Brownfield Infrastructure Fund (“RBIF”) is euro-focused infrastructure equity fund targeting assets in the eurozone generating Euro-denominated cash flows
  • To mitigate against risk, the fund targets contractual government-backed cash flows, capturing yields overlooked by other infrastructure funds
  • The fund has a ticket size ranging anywhere between €1-30m, with a particular focus on Small cap companies
  • Infrastructure assets with public counterparties such as PPPs or other government- backed contracts
  • Cash flows largely independent of asset performance, which limits demand and market risk
  • Infrastructure projects already built and operating, which limits construction risk

RiverRock Direct Lending Opportunities Fund (“RDLO”)

Open-ended 2020

  • RiverRock Direct Lending Opportunities Fund (“RDLO” or “the Fund”) is an asset-based lending strategy that provides Investors with highly liquid credit exposure at an attractive return pick-up compared to similar short duration alternatives.
  • RDLO invests in receivables and receivables backed instruments payable by sovereign and comparable credit quality entities located in the eurozone area.
  • Investors benefit from the intrinsic low volatility and stable returns that makes the asset class an attractive value-addition to Investors’ portfolios by targeting short duration, self-liquidating receivables.
  • RDLO leverages on RiverRock long-lasting experience in the receivables financing space. Since 2016, RiverRock Group has successfully financed and collected receivables for €1.6bn in various European countries.
  • The aim of the Fund is to deliver superior returns compared to similar short duration instruments in the range of Euribor + 3-4% per annum1

RiverRock Absolute Return Alternative Credit Fund (“ARAC”)

Open-ended 2023

  • RiverRock Absolute Return Alternative Credit Fund (“ARAC” or “the Fund”) is a partnership between RiverRock European Capital Partners LLP and its subsidiaries (“RiverRock”) and CFE.
  • The strategy is to invest primarily in corporate’s private debt of public and private companies operating in essential sectors or major infrastructure projects which are crucial for the development of a country’s economy, therefore minimizing credit risk while targeting areas with limited access to capital markets.
  • ARAC not only continues the strategy of the Debt Opportunities Plus Fund (“DOPF”), a fund managed by CFE with a successful track record proven over 19 years, but also adds an ESG overlay (Article 8 of the SFDR).
  • ARAC will primarily invest in key sectors of developing market economies whereby the debtor may be backed by sovereign guarantees and/or is partially or fully owned by the State. ARAC will also opportunistically invest in developed markets when corporate debtors offer attractive returns on a risk-adjusted basis.
  • The underlying investment assets are a combination of credit instruments with different durations to enhance the portfolio returns and satisfy the liquidity needs of the Fund.
  • The Fund targets returns of 6M Euribor + 8.0% per annum1 (net of fees) with low correlation to the market and prioritization of the conservation of capital under all circumstances with an additional 5% first-loss protection.

UK PCP Claims

3-Year Notes 2024

The Investment Opportunity

  • The FCA has announced the introduction of a Redress Scheme in relation to motor finance claims that included undisclosed commissions. The FCA has indicated that the Scheme will be introduced in May 2025 and implemented by December 2025.
  • UK-regulated law firm, specialized in the Personal Contract Purchase (“PCP”) market, offers consumers the management and processing of the claim vis-à-vis the lenders in exchange of a success fee, however they need funding for the acquisition and processing of the claims.

Risk Mitigants

  • The Senior Notes have security over the underlying claims which must be eligible under the FCA Redress Scheme with additional substitution clause.
  • RiverRock via its HoldCo CFE Finance Group acts as Portfolio Manager and aligns its interest to Investors by investing along in the opportunity and taking a significant exposure in the Junior Notes.

Target Return

  • The strategy aims to deliver uncorrelated Senior returns of 15% per annum1 net of fees through Senior Notes. The Senior Notes benefit from a first-loss protection (of up to 20%) of the total issuance thanks to the issuance of Junior Notes.