Investment Policy

Robust stewardship of a diversified European portfolio

The Company’s investment policy is to invest predominantly in debt instruments issued by companies domiciled, or with material operations, in Western Europe across various industries. The Company’s investments are focused on the senior secured obligations of such companies, but investments are also made across the capital structure of such companies.

The Company pursues its investment policy by investing all of its assets, save for a working capital balance, in CVC Credit Partners Performing Credit SCA SICAV-RAIF – Compartment 1 – European Credit Opportunities Fund (the “Investment Vehicle”).

The investment policy of the Investment Vehicle is subject to the following limits (the “Investment Limits”):

• A minimum of 50% of the Investment Vehicle’s gross assets will be invested in senior secured obligations (which, for the purposes of this Investment Limit will include cash and cash equivalents). 
• A minimum of 60% of the Investment Vehicle’s gross assets will be invested in obligations of companies/borrowers domiciled, or with material operations, in Western Europe.
• A maximum of 7.5% of the Investment Vehicle’s gross assets will be invested at any given time in obligations of a single borrower subject to a single exception at any one time permitting investment of up to 15% in order to participate in a loan to a single borrower, provided the exposure is sold down to a maximum of 7.5% within 12 months of acquisition.
• A maximum of 20% of the Investment Vehicle’s gross assets will be invested in collateralised loan obligation securities. 
• A maximum of 25% of the Investment Vehicle’s gross assets will be invested in CVC Capital Portfolio Company debt obligations calculated as invested cost as a percentage of the Investment Vehicle’s gross assets.

The Investment Vehicle is permitted to borrow up to an amount equal to 100% of the net asset value of the Investment Vehicle at the time of borrowing (the Borrowing Limit).

Objective and/or policy changes

The investment objective and investment policy of the Investment Vehicle are consistent with the investment objective and investment policy of CVCIG. In the event that changes are made to CVCIG’s investment objective or investment policy or of the investment (including the Investment Limits and/or the Borrowing Limit), the Directors will seek shareholder approval for changes which are either (a) material in their own right or (b) when viewed as a whole, together with previous non-material changes, constitute a material change from the published investment objective or policy of the Company.

Borrowing Limit

CVCIG may borrow up to 15% of the NAV of the Company for the sole purpose of purchasing or redeeming its own shares otherwise than pursuant to Contractual Quarterly Tenders.