Statement re Primary Transaction

19 February 2015

Chenavari Capital Solutions Limited (the "Company")

Primary Investment

The Company announces its seventh primary investment.

Primary transaction

The Company has today invested £5.1 million, representing part of the subordinated interest in a bilateral transaction that provides exposure to a portfolio of prime UK residential mortgage loans. The total original principal outstanding of the portfolio is ca. £150 million.

The rationale of the transaction for the selling bank is to dispose of a non-core asset and assist its deleveraging process.

The portfolio comprises prime and buy-to-let mortgage loans backed by residential properties located primarily in central London. The borrowers are affluent or high net worth and the mortgage loans are characterised by a low weighted average current loan-to-value and minimal arrears.

The Investment Advisor has re-underwritten the portfolio and priced the investment to a strong double digit return with robust downside protection. The transaction benefits from attractive limited recourse bank financing that allows us to monetize the purchase price discount over a short period of time as well as receive excess spread.

The transaction will be funded by way of subscription by the Company of instruments issued by the acquiring SPV which will pay the net cash flows received by the SPV.

The servicing of the portfolio will be transferred to the Investment Advisor's chosen partner-servicer in the UK for residential mortgages, with whom it has an existing and long-standing relationship.

Upon acquisition, the transaction represents approximately 4% of the Company's net asset value. Following the above transaction the Company is now approximately 80% invested (based on the Company's net asset value as at 31 December 2014).

Enquiries:

Kirstie McLaren

Chenavari Investment Managers

Email: Investor-relations@chenavari.com

Telephone: +44 20 7259 3600