RiverNorth Capital & Income Fund, Inc.

The fund generates returns by opportunistically allocating capital across discounted closed-end funds, business development companies, and special purpose acquisition companies (SPACs). The manager's core strategy focuses on capturing the spread between market price and net asset value (NAV) when discounts widen beyond historical norms, then exiting as the discount narrows. This is supplemented by income from underlying portfolio distributions and, in the case of SPAC positions, the yield earned on trust accounts plus potential upside from merger announcements.

Patrick Galley serves as Chief Investment Officer of RiverNorth Capital Management, with Brian Schmucker and Stephen O'Neill named as co-portfolio managers on the Capital & Income Fund. The three operate as part of a broader investment team at the adviser, which has specialized in closed-end fund and specialty finance strategies since the firm's founding in 2000. Galley has been with RiverNorth since its inception and built the institutional research infrastructure that underpins the discount-capture methodology.

Yes, the Capital & Income Fund's public disclosures confirm it may hold positions in other RiverNorth-managed interval funds and tender-offer vehicles. This is disclosed in SEC filings and governed by compliance procedures under the Investment Company Act of 1940, including oversight by the fund's independent board of trustees and adherence to cross-investment limits and fee-waiver agreements designed to prevent double-charging.

As a publicly traded closed-end fund, shares are listed on the New York Stock Exchange (NYSE) under the ticker RIV and trade throughout the day at market-determined prices. Investors enter and exit by buying or selling shares on the secondary market, rather than redeeming with the fund itself. This means the exit price is governed by market demand rather than NAV, a feature that can introduce meaningful discounts or premiums to underlying asset value depending on sector sentiment.

The fund operates a managed distribution policy, paying quarterly distributions that are intended to provide a steady income stream to shareholders. The distributions are funded from net investment income earned on underlying portfolio holdings and from realized capital gains. Because the policy targets a consistent quarterly amount, a portion of any given distribution may represent a return of capital in periods when income and gains fall short, a detail the fund discloses in its Section 19(a) notices.

The strategy historically performs best during periods of elevated volatility and dislocated credit markets, when closed-end fund discounts widen to extremes and SPAC trust discounts offer elevated yields. Mean-reversion trades — buying at wide discounts and selling at normal or premium levels — account for a meaningful portion of returns. Conversely, extended periods of tight discounts and low volatility compress the opportunity set, reducing the alpha potential of the discount-capture model.

The fund accesses fixed-income exposure primarily through allocations to credit-focused closed-end funds and business development companies that hold portfolios of leveraged loans, high-yield bonds, and structured credit. Rather than purchasing individual bonds directly, the manager exploits pricing inefficiencies in the investment-company wrapper, capturing both the underlying credit carry and the discount-narrowing trade. This indirect approach gives the fund diversified credit exposure without the operational complexity of a direct origination platform.