Net Asset Value and Monthly Commentary

Chenavari Capital Solutions Limited

20 November 2014

Net Asset Value Per Share and Monthly Commentary

Chenavari Capital Solutions Limited announced the following unaudited, estimated net asset value per share as at 31 October 2014:

Ordinary Share: GBP 0.9939

The Company's factsheet for October contains the following disclosure, including reference to consideration of raising additional capital:

Monthly Comments

Market commentary

October signalled the return to volatility for a market that had become increasingly complacent after years of central bank induced tranquillity. The sell-off was reminiscent of the turbulence of summer 2011 and 2012 with global equity markets and risk assets trading off as investors fled to the safe havens of US treasuries and bunds. European equities were hit harder, with EuroStoxx down more than 10% mid-month, and closed the month in the red while US markets rebounded strongly to finish the month up. Credit mirrored equities, with iTraxx Main 18bps wider at the height of the sell-off, reminding investors that correlations tend to increase sharply when the market is moving downwards.

The reason behind this nervousness can be summed up by a general concern that global growth might not be delivered after central banks have burned through almost all of their dry powder. Policies are beginning to diverge as the Federal Reserve ends its asset purchase programme, while in Europe the ECB unveiled details of its covered bond and ABS purchase schemes, and in Japan the BoJ surprised the markets with new aggressive easing measures. Data remains poor in Europe with German Industrial Production notably bad and core Europe looks increasingly likely to fall into another recession unless the ECB's rumoured QE programme becomes a reality in the near future. It should also be noted that the ECB released its long awaited Asset Quality Review in October. The results had largely been correctly predicted by the market with only a handful of less systemically important institutions showing capital shortfalls that need attention. That this hurdle has been passed should allow banks in Europe to refocus on the optimisation of their balance sheets.

Investment Outlook

The investment pipeline has filled up considerably over the last few weeks as bank issuers target transaction closes before the year end. There are currently seven regulatory capital transactions under consideration across multiple assets classes (SME loans, corporate loans, leasing) and jurisdictions all with terms that are within the current portfolios risk/return profile. This rush of deals is hopefully a sign of things to come now that banks have completed the time consuming AQR process.

Given the above, as well as the capital already committed to a transaction in execution (£5m), the Company is likely to be fully invested and will not have sufficient capital to close the current pipeline of transactions, even taking into account the inevitable transaction delays or the potential for terms to be unattractive to the Company. As a result, to fund further transactions in the pipeline the Company is considering whether to raise additional capital, subject to AIFMD requirements, through an offering of shares before the end of the year.

As of 31st October 2014 the indicative internal rate of portfolio return, calculated on the invested capital of the Company, is approximately 11.5%. Please note that this indicative internal rate of portfolio return is dependent on the underlying ""base case"" asset assumptions that are made by the Investment Advisor. These include, but are not limited to, predictions of default, prepayment, recovery, amortisation, interest rates, asset spread, portfolio replenishment and issuer optional redemptions.

Monthly activity

The Company closed an investment in a portfolio of Spanish real estate exposure (secured loans and residential properties) which was divested by a Spanish bank. The portfolio has been purchased at a significant discount to par and under our base cash flow scenario offers double digit unlevered returns. In addition a secondary regulatory capital transaction that we built a position in below par has been called and will settle next month.

The Company generated performance this month from the aforementioned called position, book carry and a positive MTM on the Portuguese position. The Company's NAV is up 1.52% for the month and the NAV is 99.39 net of fees and expenses.

The latest fact sheet in relation to the Company is available at:

http://www.chenavaricapitalsolutions.com/documents/

Enquiries:

Kirstie McLaren

Chenavari Investment Managers

Email: Investor-relations@chenavari.com

Telephone: +44 20 7259 3600