CVC Income & Growth : Half-Yearly Financial Report 2023

CVC INCOME &

GROWTH

LIMITED

HALF YEARLY

FINANCIAL

REPORT

30 June 2023

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WHY INVEST IN CVC INCOME & GROWTH LIMITED?

Generating income and growing your capital

CVC Income & Growth Limited (the "Company") aims to provide shareholders with income and capital upside from a diversified portfolio of predominantly sub-investment grade European corporate debt instruments. The Company's investment policy is to invest predominantly in debt instruments issued by companies domiciled in, or with material operations in Western Europe across various industries. The Company has given effect to its investment policy by subscribing for Preferred Equity Certificates, (the "PECs"), Series 4 and 5 of Compartment A of CVC European Credit Opportunities S.à r.l. (the "Investment Vehicle ").

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 regular cash income via	The Company has a proven, long-term track record and, since the
a stable and attractive dividend, as well as offering the	Company's listing in 2013, has achieved a net average total return
potential for capital appreciation. The Company	per annum of 4.28%1 and 5.04%1 per Euro share and Sterling share
currently distributes quarterly dividends to shareholders	respectively.
based on a target of 7c and 7.5p per Euro share and
Sterling 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 (https://ig.cvc.com), for the detailed terms and conditions of the tender mechanism.

Interest rate protection

The Company, via Compartment A of 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.

Capital preservation	Stability
The Company's focus is on downside protection and	Offering more security and less volatility than equity markets, the
capital preservation. The Investment Vehicle invests	Company offers investors a way of accessing the wholesale
primarily in senior secured loans at the top of the capital	corporate credit markets, typically an asset class dominated by
structure, increasing the chance of strong recoveries in	institutional investors. Since its establishment in 1998, the Credit
the event of a rise in defaults. The portfolio typically	Suisse Leveraged Loan Index, which represents the closest index
comprises around 90 to 100 positions in large companies	analogy to the underlying portfolio, has only had one down year,
diversified by geography and sector predominantly in	demonstrating the stability of the asset class.
Western Europe as well as the US.
Risk-adjusted returns	Part of the CVC Credit platform
The Company targets attractive risk-adjusted returns for	The Investment Vehicle is managed by CVC Credit Partners
its shareholders and has a medium-term(3-5 years)	Investment Management Limited, a leading global investment
average annualised target total return of 8% per annum.	management firm with over $41.2 billion in AUM across
The Company seeks to allocate and reallocate capital to	performing credit and private credit strategies2, allowing
a mix of performing senior secured loans and to issuers	shareholders the opportunity to gain exposure to institutional-
where the Investment Vehicle Manager perceives there	quality credit investments. CVC Credit Partners Investment
to be a market-driven mispricing opportunity based on	Management Limited is part of the CVC platform, a world leader
fundamental credit assessment and technical market	in private equity and credit investment with $152.6 billion of
factors. The Investment Vehicle Manager seeks relative	AUM, $195.5 billion of funds committed and a global network of
value opportunities, meaning it is able to simultaneously	25 local offices.3
target a reliable income stream while maintaining the
potential to generate capital upside for shareholders.	On 17 February 2023, the Company announced that it was notified
	by the Investment Vehicle that the Investment Vehicle Manager
	had waived its future right to receive an Investment Vehicle
	performance fee, such waiver took effect from 1st January 2023.
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WHY INVEST IN CVC INCOME & GROWTH LIMITED? (CONTINUED)

What we offer (continued)

Environmental, Social and Governance ("ESG") Considerations

The Company has recognised the growing importance of responsible investment and integrating ESG considerations into the investment process.

In 2022, the Company established an ESG Committee to oversee the ESG strategy adopted by the Investment Vehicle Manager to enable the integration of ESG factors into the investment process and to oversee the Company's ESG disclosures.

The ESG Committee closely follows regulatory and legislative developments in the area of Sustainability and ESG to ensure that the Company is continually working towards improvements in disclosure of relevant ESG metrics and targets for the benefit of investors.

The Investment Vehicle utilises leverage in executing its investment strategy. As at 30 June 2023, the Investment Vehicle's borrowings (including short term repo financing) as a percentage of its NAV stood at 33.62% (31 December 2022: 36.64%).

• From inception to 31 March 2023, being the latest available information.

• All amounts as at 31 March 2023, being the latest available information. 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 entities. Underlying figures not in U.S. Dollars are converted using a spot rate as at 31 March 2023. 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.
  3 All amounts as at 31 March 2023, being the latest available information for both CVC Capital and CVC Credit entities.

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CONTENTS

Financial Highlights and Performance Summary	2
Half Yearly Board Report -
- Chairman's Statement	8
- Investment Vehicle Manager's Report	10
- Executive Report	15
Directors' Statement of Responsibilities	25
Independent Review Report	26
Condensed Statement of Comprehensive Income	28
Condensed Statement of Financial Position	29
Condensed Statement of Changes in Net Assets	30
Condensed Statement of Cash Flows	31
Notes to the Condensed Financial Statements	32
Supplemental Financial Information	50
Company Information	53

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FINANCIAL HIGHLIGHTS AND PERFORMANCE SUMMARY

For the period under review, the NAV total return of 11.21% (Euro) and 11.53% (Sterling) were above the Company's medium-term average annualised total return target of +8%.

Euro Share ClassSterling Share Class

NAV total return1	NAV total return1
30 June 2023: 11.21%	30 June 2023: 11.53%
(31 December 2022: -8.31%)	(31 December 2022: -6.75%)
Dividend Yield2	Dividend Yield2
30 June 2023: 7.23%	30 June 2023: 7.50%
(31 December 2022: 6.40%)	(31 December 2022: 5.71%)
Dividend Coverage ratio3	Dividend Coverage ratio3
30 June 2023: 1.39	30 June 2023: 1.44
(31 December 2022:1.41)	(31 December 2022:1.47)
Share price5,6	Share price5,6
30 June 2023: €0.8650	30 June 2023: £0.9500
(31 December 2022: €0.8200)	(31 December 2022: £0.9200)
NAV per share	NAV per share
30 June 2023: €0.9537	30 June 2023: £1.0470
(31 December 2022: €0.8902)	(31 December 2022: £0.9796)
Share price to NAV	Share price to NAV
discount4	discount4
30 June 2023: 9.30%	30 June 2023: 9.27%
(31 December 2022: 7.88%)	(31 December 2022: 6.08%)

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