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Proven dynamic strategy to deliver cash yield and capital gains

CVC Income & Growth Limited (CVCIG) is an LSE listed, closed-ended investment company, limited by shares, which aims to provide investors with regular income returns and capital appreciation through a diversified portfolio of predominantly senior secured loans and other sub-investment grade corporate credit investments.

The appointed investment manager for CVCIG is the credit investment platform of the CVC group.

CVCIG’s (the Company’s) underlying Investment Vehicle, CVC European Credit Opportunities S.à r.l, has a 14-year track record and a proven dynamic strategy. It makes investments across approximately 40 to 60 companies based on detailed fundamental analysis of the operations and market position of each company and its capital structure. Investing through the underlying Investment Vehicle, the Company has generated strong income returns in an environment where the underlying central bank base interest rates were at or around zero.

CVCIG invests directly into the Investment Vehicle through Preferred Equity Certificates (PECs) called Series 4 and 5, issued by the Investment Vehicle. Series 4 and 5 PECs are denominated in Euro and Sterling respectively, which is reflected in CVCIG euro and sterling share classes. Through this structure (below), we offer investors exposure to CVC Credit’s principal European Credit Opportunities Investment Vehicle.

The Investment Vehicle Manager invests in the debt of larger companies and in companies with a minimum EBITDA of €50 million or equivalent at the time of investment. This is based on the view that the debt of larger companies offers several differentiating characteristics relative to the broader market:

Based on the market opportunity, the Investment Vehicle Manager invests in a range of different credit investments across the capital structure of target companies (including, but not limited to, senior secured, second lien and mezzanine loans and senior secured, unsecured and subordinated bonds).

Investments are sourced in both the primary and secondary markets, using the networks of the Investment Vehicle Manager and, in certain circumstances, the broader CVC group. This access to dealflow is facilitated by the contacts and relationships of CVC’s leadership team and investment professionals, as well as the strong positioning of the group in the European leveraged finance markets. Each investment generally falls into one of two categories:

Performing Credit

Performing credit opportunities with an emphasis on cash income. This typically involves investments in senior secured loans and bonds sourced from the primary market, with higher liquidity and lower volatility that offer relative value opportunities.

Credit Opportunities

Timely credit opportunities across the capital structure with a focus on capital gain as well as cash income. The opportunities will often be stressed and diversified investments and/or non-performing, but with the clear potential for some form of recovery and capital gains over time.

The Investment Vehicle Manager analyses the risk of credit loss for each investment on the basis it will be held to maturity but takes an active approach to the sale of investments once the investment thesis has been realised.

An investment in CVC Income & Growth Limited (the Company) is not appropriate for all investors and is not intended to be a complete investment programme. The Company is designed as a long-term investment and not as a trading vehicle. Investing in the Company involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or even all of your investment. Therefore, before investing you should carefully consider the risks that you assume when you invest in the Company’s shares. Investors should consider the Company’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Company. Please read the prospectus carefully before investing. Click here for further information on the risk factors regarding an investment in the Company.