CVC Income & Growth : Half-Yearly Financial Report 2022

CVC INCOME &

GROWTH

LIMITED

(FORMERLY KNOWN AS CVC CREDIT PARTNERS EUROPEAN OPPORTUNITIES LIMITED)

HALF YEARLY

FINANCIAL

REPORT

30 June 2022

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WHY INVEST IN CVC INCOME & GROWTH?

Generating income and growing your capital

CVC Income & Growth Limited (the "Company") aims to provide shareholders with income and capital upside by focusing on opportunities within global leveraged finance markets, with a focus on European issuers.

CVC Credit Partners Investment Management Limited (the "Investment Vehicle Manager") has a strong track record in investing in these asset classes, which provides the Company's investors with stability and an opportunity to benefit from rising interest rates through the largely floating rate nature of the underlying investments. The key features of the Company are its ability to provide attractive, risk-adjusted returns which includes a reliable income stream, with the opportunity for enhancement of capital. The Company also offers investors additional liquidity opportunities through its tender mechanism.

What we offer

Reliable income	Strong track record
The Company seeks to generate high cash income via a stable	The Company has a proven, long-term track record and, since
and attractive dividend, as well as offering the potential for	the Company's listing in 2013, has achieved a net average
capital appreciation. The Company currently distributes	total return per annum of 3.44%1 and 4.16%1 per Euro share
quarterly dividends to shareholders based on a target of 5p /	and Sterling share respectively.
5c per GBP and EUR share respectively per annum.

Liquidity

In addition to the daily liquidity offered by the stock market, the Company offers shareholders alternative liquidity via a share tender mechanism. Refer to the Company's latest tender circular, available on the Company's website ig.cvc.com, for the detailed terms and conditions of the tender mechanism.

Interest rate protection

The Company, via Compartment A of CVC European Credit Opportunities S.à r.l. (the "Investment Vehicle"), invests mainly in loans, which are typically floating rate instruments, which offer investors an opportunity to benefit from a rising interest rate environment. We continue to believe that floating rate assets are preferable to fixed rate due to the recently witnessed increase in inflation rates and the continued expectation of further central bank interest rate rises.

Capital preservation

The Company's focus is on downside protection and capital preservation. The Investment Vehicle invests primarily in senior secured loans at the top of the capital structure, increasing the chance of strong recoveries in the event of a rise in defaults. The portfolio typically comprises around 100 positions in large companies diversified by geography and sector across the UK, continental Europe and the US. The Investment Vehicle's default rate is lower than the market.

Stability

Offering more security and less volatility than equity markets, the Company offers investors a way of accessing the wholesale corporate credit markets, typically an asset class dominated by institutional investors. Since its establishment in 1998, the Credit Suisse Leveraged Loan Index, which represents the closest index analogy to the underlying portfolio, has only had one down year, demonstrating the stability of the asset class.

Risk-adjusted returns

The Company targets attractive risk-adjusted returns for its shareholders and has a medium-term(3-5 years) average annualised target total return of 8% per annum. The Company seeks to allocate and reallocate capital to a mix of performing senior secured loans and to issuers where the Investment Vehicle Manager perceives there to be a market-driven mispricing opportunity based on fundamental credit assessment and technical market factors. The Investment Vehicle Manager seeks relative value opportunities, meaning it is able to simultaneously target a reliable income stream while maintaining the potential to generate capital upside for shareholders.

Part of the CVC Credit platform

The Investment Vehicle is managed by CVC Credit Partners, a leading global investment management firm with over $33.5 billion in AUM across performing credit and private credit strategies2, allowing shareholders the opportunity to gain exposure to institutional-quality credit investments. CVC Credit Partners is part of the CVC platform, a world leader in private equity and credit investment with $139.2 billion of AUM, $181.1 billion of funds committed and a global network of 25 local offices.3

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WHY INVEST IN CVC INCOME & GROWTH? (CONTINUED)

What we offer (continued)

Environmental, Social and Governance ("ESG")

The Company has identified the growing importance of responsible investment and integrating ESG into the investment process. CVC Credit Partners, which manages the Investment Vehicle, is a member of the Principles for Responsible Investment (PRI). The PRI advocates6 for the incorporation of financially material ESG factors into investment decision- making, consistent with the time frame of the obligation as well as encouraging active ownership from investors to encourage high standards of investee companies.

This year has seen continued progress in the development of the Company's approach to ESG. On 24 January 2022, the Company established an ESG Committee to oversee the Company's ESG disclosures and the ESG policies and processes adopted by the Investment Vehicle Manager to enable the integration of ESG factors into the investment process.

The Company's ESG Committee has actively engaged with the Investment Vehicle Manager to better understand and monitor ESG-related risks and opportunities and keep under review the Investment Vehicle Manager's ESG policies, processes and practices. It has played an active role in working with the Investment Vehicle Manager to collaborate with ESG data providers and industry bodies (such as European Leverage Finance Association (ELFA) and the Association of Investment Companies (AIC)) to fully utilise the ESG due diligence tools at its disposal prior to investment.

As part of its ESG disclosure obligations, the Company has been a formal supporter of the Task Force for Climate Related Financial Disclosures ("TCFD") recommendations since 2018 and expects the companies in which the Investment Vehicle Manager invests to make TCFD disclosures. The ESG Committee closely follows regulatory and legislative developments in the area of Sustainability and ESG to ensure that the Company is disclosing the required ESG metrics and targets.

In executing its investment strategy, the Investment Vehicle utilises leverage and its borrowings, as a percentage of the Investment Vehicle's NAV, as at 30 June 2022 this stood at 33.30% (31 December 2021: 30.29%). The Investment Vehicle Manager is entitled to receive a management fee4 and a performance fee5.

• - from inception to 30 June 2022

2- all amounts as at 31 March 2022. Commitment figure used for pooled-closed end funds and Separately Managed Accounts in ramping phase. Includes warehouse and drawn leverage facility figures for certain investment vehicles managed by CVC Credit. Underlying figures not in U.S. Dollars are converted using a spot rate as at 31 March 2022. Includes Managed Funds, Securitization Vehicles, Listed Vehicles, Separately Managed Accounts and CLOs managed by CVC Credit Partners Investment Management Limited, CVC Credit Partners LLC, CVC Credit Partners European Investment Fund Management Limited, CVC Credit Partners European CLO Management LLP and CVC Credit Partners U.S. CLO Management LLC, on a discretionary and non-discretionary basis.

• - All amounts as at 31 March 2022 for both CVC Capital and CVC Credit.

• The Investment Vehicle management fee is 0.90%, which reduces by a further 5 basis points each time the Investment Vehicle's NAV exceeds €500m, €750m and €1bn respectively, to a minimum of 0.75% per annum.
  5 Refer to pages 12 and 13 of the Company's latest prospectus (https://ig.cvc.com/media/1316/2019-03-29-prospectus.pdf) for detail on the basis of the Investment Vehicle performance fee.
  6 - PRI (2019). Fiduciary Duty in the 21st Century - Executive summary. Available at: https://www.unpri.org/pri-blog/the-final-chapter-of-fiduciary-duty-in-the-21st-century/5048.article

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CONTENTS

Financial Highlights and Performance Summary	5
Half Yearly Board Report -
- Chairman's Statement	7
- Investment Vehicle Manager's Report	9
- Executive Report	14
Directors' Statement of Responsibilities	24
Independent Review Report	25
Condensed Statement of Comprehensive Income	27
Condensed Statement of Financial Position	28
Condensed Statement of Changes in Net Assets	29
Condensed Statement of Cash Flows	30
Notes to the Condensed Financial Statements	31
Supplemental Financial Information	48
Company Information	51

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FINANCIAL HIGHLIGHTS AND PERFORMANCE SUMMARY

Euro Share Class

Sterling Share Class

NAV total return1	NAV total return1
30 June 2022: (9.74)%	30 June 2022: (9.14)%
(31 December 2021: 11.41%)	(31 December 2021: 12.17%)
Dividend Yield2	Dividend Yield2
30 June 2022: 5.99%	30 June 2022: 5.46%
(31 December 2021: 5.00%)	(31 December 2021: 4.57%)
Discount3	Discount3
30 June 2022: 7.56%	30 June 2022: 6.66%
(31 December 2021: 7.46%)	(31 December 2021: 5.95%)
Share price4,5	Share price4,5
30 June 2022: €0.8350	30 June 2022: £0.9160
(31 December 2021: €0.9500)	(31 December 2021: £1.0400)
NAV per share	NAV per share
30 June 2022: €0.9033	30 June 2022: £0.9814
(31 December 2021: €1.0266)	(31 December 2021: £1.1058)

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