Statement re Primary Transaction

12 March 2015

Chenavari Capital Solutions Limited (the "Company")

Primary investment

The Company announces its eighth primary regulatory capital investment.

Primary transaction

The Company has today invested £14 million in a thick first loss tranche providing exposure to a revolving £1.9 billion portfolio of large corporate loans originated by a UK corporate and investment bank (the "Bank"). The majority of the corporate borrowers in the portfolio are large UK companies, and over 60% of borrowers in the initial pool are either FTSE 100 or FTSE 250 listed entities. Each of the borrowers is rated at least BB+ according to the Bank's internal credit rating scale. The portfolio will revolve over a 5 year period, after which point there will be a bullet amortisation.

The Investment Advisor has re-underwritten each name in the initial portfolio, and has worked closely with the Bank to determine sector limits which will minimise concentration risks. The purchased exposure benefits from robust downside protection due to (i) a high detachment point, which is approximately 1.85 times the regulatory capital amount the bank is required to hold against the portfolio, and (ii) a stop-replenishment trigger if defaults reach a certain level.

The purpose of the transaction is to manage risk weighted assets ("RWAs") and optimise capital of the Bank, and is the second capital-motivated transaction to be executed by the Bank following the financial crisis.

The transaction will be funded by way of subscription by the Company of instruments issued by the acquiring SPV, which will in turn purchase the Credit Linked Note.

Upon acquisition, the transaction represents approximately 11% of the Company's net asset value. Following the above transaction, the Company is now approximately 94% invested (based on the Company's net asset value as at 31 January 2015).

Enquiries:

Kirstie McLaren

Chenavari Investment Managers

Email: Investor-relations@chenavari.com

Telephone: +44 20 7259 3600