Half-year Report

RNS Number : 4904R

CVC Credit Partners European OpsLtd

21 September 2017

FOR IMMEDIATE RELEASE

RELEASED BY BNP PARIBAS SECURITIES SERVICES S.C.A., JERSEY BRANCH

HALF-YEARLY RESULTS ANNOUNCEMENT

THE BOARD OF DIRECTORS OF CVC CREDIT PARTNERS EUROPEAN OPPORTUNITIES LIMITED ANNOUNCE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

The information contained within this announcement constitutes inside information.

HALF YEARLY BOARD report

financial highlights, performance summary and dividend history

Financial highlights

Sale of treasury shares

During the six months ended 30 June 2017, CVC Credit Partners European Opportunities Limited (the "Company") completed the following sale of Sterling ordinary shares (the "Sterling Shares") out of treasury.

Settlement date	Sterling Shares
6 March 2017	650,000
8 March 2017	250,000
6 April 2017	500,000
10 April 2017	250,000
18 April 2017	250,000
20 April 2017	250,000
8 May 2017	200,000
19 May 2017	350,000

Contractual quarterly tenders

During the six months ended 30 June 2017, the Company completed the following contractual quarterly tenders. On the settlement date the tendered shares were transferred to the Company's name and held in treasury.

Settlement date	Euro ordinary shares (the "Euro Shares") tendered	Sterling Shares tendered
13 February 2017	6,270,498	7,972,725
15 May 2017	5,543,631	6,965,625

Number of shares in issue as at 30 June 2017:

117,147,455 Euro Shares¹ (31 December 2016: 128,961,584 Euro Shares¹)

202,610,969 Sterling Shares² (31 December 2016: 214,849,319 Sterling Shares²)

Market capitalisation as at 30 June 2017:

Euro Share class: €127,690,726 (31 December 2016: €132,830,432)

Sterling Share class: £228,545,173 (31 December 2016: £220,220,552)

Performance summary

	As at 30 June 2017	As at 31 December 2016
Net Asset Value per Euro Share	€1.0954	€1.0541
Euro Share price (bid market)³	€1.0900	€1.0300
Euro Share Net Asset Value total return⁴	6.36%	9.29%

Net Asset Value per Sterling Share	£1.1178	£1.0696
Sterling Share price (bid market) ³	£1.1280	£1.0250
Sterling Share Net Asset Value total return⁴	6.92%	9.80%

Period highs and lows

	Six months ended 30 June 2017	Six months ended 30 June 2017	Year ended 31 December 2016	Year ended 31 December 2016
	High	Low	High	Low
Net Asset Value per Euro Share	€1.0954	€1.0560	€1.0541	€0.9788
Euro Share price (bid market)⁵	€1.1200	€1.0080	€1.0300	€0.9400
Net Asset Value per Sterling Share	£1.1178	£1.0720	£1.0696	£0.9875
Sterling Share price (bid market) ⁵	£1.1400	£1.0200	£1.0375	£0.9525

Dividend history

	Ex-dividend date	Payment date
Euro - €0.025 per Euro Share	04/02/2016	26/02/2016
Sterling - £0.025 per Sterling Share	04/02/2016	26/02/2016

Euro - €0.025 per Euro Share	14/07/2016	05/08/2016
Sterling - £0.025 per Sterling Share	14/07/2016	05/08/2016

Euro - €0.0125 per Euro Share	03/11/2016	25/11/2016
Sterling - £0.0125 per Sterling Share	03/11/2016	25/11/2016

Euro - €0.0125 per Euro Share	02/02/2017	24/02/2017
Sterling - £0.0125 per Sterling Share	02/02/2017	24/02/2017

Euro - €0.0125 per Euro Share	04/05/2017	26/05/2017
Sterling - £0.0125 per Sterling Share	04/05/2017	26/05/2017

Please refer to note 14 for further information subsequent to the reporting period.

¹ - Excludes 110,001,299 (31 December 2016: 98,187,170) Euro Shares held as treasury shares

² - Excludes 70,239,838 (31 December 2016: 58,001,488) Sterling Shares held as treasury shares

³ - Source: Bloomberg

⁴ - Sources: BNPP, Bloomberg. NAV total return is net of issue costs and includes dividends. Any dividends received by a shareholder are assumed to have been reinvested in the Company's assets (for NAV total return).

⁵ - Source: Bloomberg

chairman's statement

Introduction

I am pleased to present to you the interim financial statements of the Company for the six month period ended 30 June 2017.

Performance and Market Conditions

The Company's Euro and Sterling Ordinary shares have returned 6.36% and 6.92% respectively on an absolute return basis for the period under review. This represents a creditable outcome and is ahead of the indices that the Board reviews in order to calibrate performance of the Investment Vehicle Manager. Much of this outperformance has been driven by the credit opportunities portion of the Investment Vehicle's portfolio, reflecting asset allocation decisions by the Investment Vehicle Manager during 2016 and early 2017. The performing credit portion of the portfolio has delivered a positive, but less significant contribution to overall performance, which is unsurprising given the ongoing tightness in primary and secondary markets, continuing a theme that has been at play for a number of financial periods. The Board does not expect market conditions in our chosen markets to change materially in the period up to 31 December 2017, although we continue to closely monitor geopolitical developments in the UK and US as sources of potential unexpected market risk events. The Investment Vehicle Manager's Report presented elsewhere provides more detail as to performance during the period.

Corporate Activities

The Company's performance over the period and in the prior period has drawn the attention of new and existing investors, which has resulted in a placing of treasury shares at the period end amounting to approximately €100million. The Board expects to continue to issue treasury shares to investors as demand and market conditions indicate, whilst continuing to operate the Company's quarterly tender programme under the revised terms which were approved by shareholders at the Company's Annual General Meeting.

Dividend payments

As previously announced on 19 May 2017, the directors have resolved to increase the Company's dividend target to 5.5 pence/cents per share, payable quarterly, and that target revision was implemented in respect of the Company's dividends payable during Q3 of 2017. The Board expects to continue to meet this dividend target for at least the next 12 month period, which is as far as the Board forecasts future dividend payments.

Other Matters

As always, I would like to thank my fellow directors, the portfolio management team at CVC Credit Partners, our advisors and investment bankers for their support and wise counsel, and would also like to extend thanks to all of our shareholders for your continuing commitment to the Company.

Richard Michael Boléat

Chairman

21 September 2017

executive sUMMARY

Corporate summary

The Company is a closed-ended investment company limited by shares, registered and incorporated in Jersey under the Companies (Jersey) Law 1991 on 20 March 2013, with registration number 112635. The Company's share capital consists of Euro Shares and Sterling Shares and is denominated in Euro and Sterling respectively. The Company's Euro Shares and Sterling Shares are listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange. Details of the shares in issue are detailed within the financial highlights section above.

The Company is self-managed and the Directors have invested the net proceeds from share issues into Compartment A of an existing European credit opportunities investment vehicle, CVC European Credit Opportunities S.à r.l. (the "Investment Vehicle"), managed by CVC Credit Partners Investment Management Limited (the "Investment Vehicle Manager").

The Company is a member of the Association of Investment Companies ("AIC") and is regulated by the Jersey Financial Services Commission.

Significant events during the six months ended 30 June 2017

Placing of treasury shares

The Company completed the following sale of Sterling treasury shares during the six months ended 30 June 2017:

· On 6 March 2017, the Company sold 650,000 Sterling treasury shares at a price of £1.0925 per share, raising gross proceeds of £710,125.

· On 8 March 2017, the Company sold 250,000 Sterling treasury shares at a price of £1.0983 per share, raising gross proceeds of £274,575.

· In April 2017, the Company sold a total of 1,250,000 Sterling treasury shares at a price of £1.1038 per share, raising gross proceeds of £1,379,750.

· On 8 May 2017, the Company sold 200,000 Sterling treasury shares at a price of £1.1020 per share, raising gross proceeds of £220,400.

· On 19 May 2017, the Company sold 350,000 Sterling treasury shares at a price of £1.1072 per share, raising gross proceeds of £387,520.

Contractual quarterly tenders

The Company completed the following tenders under its contractual quarterly tender mechanism during the six months ended 30 June 2017:

· On 13 February 2017, 6,270,498 Euro Shares and 7,972,725 Sterling Shares were tendered under the December 2016 tender at a price of €1.0441 and £1.0596 respectively.

· On 15 May 2017, 5,543,631 Euro Shares and 6,965,625 Sterling Shares were tendered under the March 2017 tender at a price of €1.0679 and £1.0861 respectively.

All the shares tendered were transferred into the Company's name and held in treasury.

Announcement of placing of treasury shares

On 30 June 2017, the Company announced it had agreed to sell 69,197,176 Sterling treasury shares at a price of £1.1207 per share and 12,608,528 Euro treasury shares at a price of €1.0994 per share. The trade completed and the shares were sold on 4 July 2017. Please refer to note 14 for further detail.

Change to dividend target

On the 19 May 2017, the Board announced that it has revised the Company's dividend target from 5 pence / 5 Euro cents per ordinary share of no par value per annum, to target a dividend of 5.5 pence / 5.5 Euro cents per share per annum.

The first dividend to be declared under the new target was in respect of the quarter ended 30 June 2017. Please refer to note 14 for further details.

Investment Objective and Policy

General

The investment objective and investment policy of the Investment Vehicle are consistent with the investment objective and investment policy of the Company. In the event that changes are made to the investment objective or investment policy of the Company or Investment Vehicle (including the investment limits and/or the borrowing limit) the procedures set out in the section below entitled "Material changes to the investment objective and policy of the Company or the Investment Vehicle" will apply.

Company investment objective

The Company's investment objective is to provide shareholders with regular income returns and capital appreciation from a diversified portfolio of predominantly sub-investment grade debt instruments.

Company investment policy

On the 3 April 2017, shareholders approved an amendment to the Company's investment policy to allow the Investment Vehicle to make primary investments in CVC Credit Partners managed structured finance transactions. The prior investment policy of the Company provided that a maximum of 7.5 per cent. of the Investment Vehicle's Gross Assets would be invested in CLO Securities, with no primary investments permitted to be made in CVC Credit Partners managed structured finance transactions. The revised investment policy is detailed below:

The Company's investment policy is to invest predominantly in companies domiciled, or with material operations, in Western Europe across various industries. The Company's investments are focused on senior secured obligations of such companies but investments are also made across the capital structure of such borrowers. The Company pursues its investment policy by investing net placing proceeds from share issues in the Investment Vehicle.

The investment policy of the Investment Vehicle is subject to the following limits (the "investment limits"):

· A minimum of 50 per cent. of the Investment Vehicle's gross assets will be invested in senior secured obligations (which, for the purposes of this investment limit, will include cash and cash equivalents).

· A minimum of 70 per cent. of the Investment Vehicle's gross assets will be invested in obligations of companies/borrowers domiciled, or with material operations, in Western Europe.

· A maximum of 7.5 per cent. of the Investment Vehicle's gross assets will be invested, at any given time, in obligations of a single borrower subject to a single exception at any one time permitting investment of up to 15 per cent. in order to participate in a loan to a single borrower, provided the exposure is sold down to a maximum of 7.5 per cent. within 12 months of acquisition.

· A maximum of 7.5 per cent. of the Investment Vehicle's gross assets will be invested in CLO securities.

· A maximum of 25 per cent. of the Investment Vehicle's gross assets will be invested in CVC Capital Portfolio Company debt obligations calculated as invested cost as a percentage of the Investment Vehicle's gross assets.

The Investment Vehicle is permitted to borrow up to an amount equal to 100 per cent. of the NAV of the Investment Vehicle at the time of borrowing (the "borrowing limit").

Company borrowing limit

The Company may borrow up to 15 per cent. of the NAV of the Company for the sole purpose of purchasing or redeeming its own shares otherwise than pursuant to contractual quarterly tenders.

Investment strategy and approach

The Company gave effect to its investment policy by subscribing for Preferred Equity Certificates, (the "PECs"), Series 4 and 5, issued by the Investment Vehicle. Series 4 and 5 PECs are denominated in Euro and Sterling respectively and are income distributing.

The Investment Vehicle Manager's investment strategy for the Investment Vehicle is to make loan or bond investments in companies based on detailed fundamental analysis of the operations and market position of each company and its capital structure.

The Investment Vehicle invests in the debt of larger companies which offer a number of differing characteristics relative to the broader market, including but not limited to:

(i) larger, more defensive market positions;

(ii) access to broader management talent;

(iii) multinational operations which may reduce individual customer, sector or geographic risk and provide diverse cash flow;

(iv) working capital and capital expenditure which can be managed in the event of a slowdown in economic growth; and

(v) wider access to both debt and equity capital markets.

Based on the market opportunity and relative value, the Investment Vehicle invests in a range of different credit instruments across the capital structure of target companies (including but not limited to senior secured, second lien and mezzanine loans and senior secured, unsecured and subordinated bonds).

Assets are sourced in both the new issue and secondary markets, using the sourcing networks of the Investment Vehicle Manager and CVC Group generally.

The Investment Vehicle Manager's access to deals is supported by the network of contacts and relationships of its leadership team and investment professionals, as well as the strong positioning of the CVC Group in the European leveraged finance markets.

The Investment Vehicle Manager analyses the risk of credit loss for each investment on the basis it will be held to maturity but takes an active approach to the sale of investments once the investment thesis has been realised.

The liquidity terms of the Investment Vehicle are also an important factor considered in determining the composition of the investment Portfolio.

Further information in respect to the Investment Vehicle Manager portfolio and performance as at 30 June 2017 can be found in the Investment Vehicle Manager Report which is incorporated within this Half Yearly Financial Report.

Director interests

Information on each Director is shown below.

No Director has any other interest in any contract to which the Company is a party and no Director has held or holds any management or ordinary shares in the Company.

Principal risks and uncertainties

When considering the NAV total return of the Company, the Board takes account of the risk which has been taken in order to achieve that return. The Board has carried out a robust assessment of the principal risks facing the Company including those which would threaten its business model, future performance, solvency or liquidity. The following risk factors have been identified and are listed below:

· Supply and demand

· Investment portfolio concentration

· Liquidity

· Foreign exchange risk

· Macro-economic factors

· Capital management risks

The following are the principal risks relating to an investment in the shares of the Company.

· Shareholders have no right to have their shares redeemed or repurchased by the Company.

· Contractual quarterly tenders are subject to certain restrictions and so shareholders should not have an expectation that all or any of the shares they make available for sale to the Company will be purchased through the Contractual quarterly tender facility.

· The shares in the Company may trade at a discount to the NAV per share of the relevant class of shares and shareholders may be unable to realise their shares on the market at the NAV per share or at any other price.

Information on these risks and how they are managed is given in the Annual Financial Report for the year ended 31 December 2016. In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the current financial year as they were in the six months under review.

Events after the reporting date

The Directors are not aware of any developments that might have a significant effect on the operations of the Company in subsequent financial periods not already disclosed in this report or the attached financial statements.

Going concern

Under the AIC Code of Corporate Governance ("AIC Code") and applicable regulations, the Directors are required to satisfy themselves that it is reasonable to assume that the Company is a going concern from the date of approval of this Half Yearly Financial Report.

After reviewing the Company's budget and cash flow forecast for the next twelve months, the Directors are satisfied that, at the time of approving these financial statements, no material uncertainties exist that may cast significant doubt concerning the Company's ability to continue for a period of at least twelve months from the date of approval of the financial statements. The Directors consider it is appropriate to adopt the going concern basis in preparing this Half Yearly Financial Report.

Future strategy

The Board continues to believe that the investment strategy and policy adopted by the Investment Vehicle is appropriate for and is capable of meeting the Company's objectives.

The overall strategy remains unchanged and it is the Directors' assessment that the Investment Vehicle Manager's resources are appropriate to properly manage the Investment Vehicle's portfolio in the current and anticipated investment environment.

Please refer to the Investment Vehicle Manager's report for detail regarding performance to date of the Investment Vehicle's investments and the main trends and factors likely to affect the future development, performance and position of those investments.

Board members

All the Directors are non-executive.

CHAIRMAN

Richard Michael Boléat (independent). Appointed 20 March 2013.

Richard qualified as a Chartered Accountant with Coopers & Lybrand in the United Kingdom in 1987 and subsequently worked in the Middle East, Africa and the United Kingdom for a number of commercial and financial services groups, during which time he acted as a buy-side high yield credit analyst for an Arabian investment bank.

From 1996 he was a Principal of Channel House, a Jersey based financial services group, which was acquired by Capita Group plc in September 2005. Richard led their financial services client practice in Jersey until September 2007.

He currently acts as a non-executive director of a number of substantial collective investment and investment management entities and is active in a number of asset classes including global macro, super-senior corporate CDS, long/short equity, fund of funds and EM real estate. He presently acts as Chairman of Yatra Capital Limited, which is listed on Euronext and Funding Circle SME Fund Limited and Phaunos Timber Fund Limited which are both listed on the London Stock Exchange. He is personally regulated by the Jersey Financial Services Commission in the conduct of financial services business and is a member of the Alternative Investment Management Association (AIMA), the International Corporate Governance Network and the European Corporate Governance Institute.

Directors

Mark Richard Tucker (independent). Appointed 20 March 2013.

In 1997 Mark joined Arborhedge Investments, Inc. (formally HFR Investments, Inc.) a Chicago based, boutique broker dealer specialising in the placement of hedge fund interests to institutions globally. Mark served as the President and Chief Executive Officer of Arborhedge until his return to Jersey in 2002, after which he remained a director and shareholder until 2012. Previously, Mark held a variety of retail and private banking roles in Jersey with both HSBC and Cater Allen Bank.

In 1988 Mark relocated first to London, where he joined GNI Limited in a financial futures business development role, and later to New York where he was responsible for the alternative investment program of Gresham Asset Management, Inc. and later for the asset allocation and manager selection activities of Mitsui & Company.

Mark is personally regulated by the Jersey Financial Services Commission in the conduct of financial services business, and he is an Associate of the Chartered Institute of Bankers, a Chartered Fellow of the Chartered Institute for Securities and Investment and a member of the Institute of Directors. Mark also serves as a non-executive director to several other offshore structures.

David Alan Wood (independent). Appointed 20 March 2013.

David was a founding partner of CVC Cordatus (a predecessor to CVC Credit Partners Group) in 2006, but retired in April 2012. He was a member of CVC Credit Partners Advisory Board until April 2015. With 36 years of industry experience, David joined from Deutsche Bank where he was Co-Head of European Leveraged Finance. Prior to this, he was a Managing Director at JP Morgan/Chase Manhattan where he worked in leveraged finance and corporate banking. Mr Wood continues to sit on the CVC Credit Partners Conflicts Committee.

investment vehicle manager's report

Summary

The Investment Vehicle Manager is pleased with the performance of the portfolio for the six months ended 30 June 2017. Each strategy performed to expectations and the Investment Vehicle Manager remains optimistic about its ability to continue to grow given the current flow of assets.

Portfolio

As at 30 June 2017, the Investment Vehicle portfolio was invested in-line with investment policy and was diversified with 68 (31 December 2016: 67) issuers¹ across 30 (31 December 2016: 24) different industries and 14 (31 December 2016: 16) different countries, and had exposure of no more than 4.0% (31 December 2016: 3.7%) to any single issuer.

Portfolio Statistics²

	As at 30 June 2017	As at 31 December 2016
Percentage of Portfolio in Floating Rate Assets	91.0%	88.6%
Percentage of Portfolio in Fixed Rate Assets	9.0%	11.4%
Weighted Average Price³	95.2	91.8
Yield to Maturity	7.7%	7.4%
Current Yield	6.0%	6.7%
Weighted Average Fixed Rate Coupon	6.7%	7.3%
Weighted Average Floating Rate plus Margin	5.2%	5.0%

5 Largest Issuers as at 30 June 2017
Issuer	% of Gross Assets	Industry	Country
Saur	4.0	Ecological	France
Ambac	3.5	Finance	U.S.
Ceva	3.0	Transport & Logistics	UK
Cortefiel	2.9	Retail	Spain
Tipico	2.8	Gaming	Luxembourg

5 Largest Issuers as at 31 December 2016
Issuer	% of Gross Assets	Industry	Country
Ambac	3.7	Finance	U.S.
Consolis	3.4	Buildings & Real Estate	France
Dell	3.2	Electronics	U.S.
Numericable	3.2	Broadcasting & Entertainment	France
FCC	2.9	Buildings & Real Estate	Spain

5 Largest Industry Positions as at 30 June 2017¹
Retail Store	11.7%
Electronics	8.4%
Finance	8.4%
Leisure, Amusement, Motion Pictures, Entertainment	7.5%
Broadcasting & Entertainment	6.9%

5 Largest Industry Positions as at 31 December 2016¹
Finance	11.4%
Electronics	10.3%
Retail Store	9.4%
Buildings & Real Estate	8.6%
Broadcasting & Entertainment	7.5%

Geographical Breakdown by issuer country⁴	As at 30 June 2017	As at 31 December 2016
U.S.	23.5%	23.6%
France	20.2%	24.5%
UK	16.0%	11.8%
Spain	9.2%	10.1%
Germany	7.6%	6.2%
Luxembourg	7.1%	5.1%
Other	16.4%	18.7%

Currency Breakdown	As at 30 June 2017	As at 31 December 2016
EUR	45.7%	55.7%
USD	38.4%	30.2%
GBP	15.9%	14.1%

Asset Breakdown	As at 30 June 2017	As at 31 December 2016
Loans (1st Lien)	62.9%	57.2%
Senior Secured Bonds	9.2%	13.1%
Loans (2nd Lien)	7.6%	9.7%
PIK	2.8%	5.1%
Structured	4.5%	5.2%
Cash	12.2%	5.2%
Other	0.8%	4.5%

Performance

The total return (net of fees and including dividends reinvested) for the period was 6.4% to Euro investors, and 6.9% to Sterling investors. For the same period, the Credit Suisse Western European HY Index hedged to Euro returned 4.09%, and the Credit Suisse Western ELLI hedged to Euro returned 2.06%.

Throughout the period the portfolio opportunistically participated in new issue primary, and actively managed exposures in the performing segment, to take advantage of the strong market technical. With the political uncertainty and national elections during the first half of the year, the Investment Vehicle Manager sought to reduce volatility within the Credit Opportunities segment of the portfolio. The core income segment of the portfolio delivered 1.3% to gross portfolio performance, and the Credit Opportunities segment of the portfolio 6.5%.

Market Review and Outlook

European Leveraged Loan Market

Leveraged loan volume for H1 2017 totalled €57.9 billion, an 89% increase to H1 2016 at €30.6 billion. At the current rate, if the rate of issuance continues in H2 2017, volumes for the full-year would be the highest since 2007, when they were €162.6 billion.⁵

Refinancings (excluding recapitalisations) were the largest percentage of deal flow by type in H1 2017, with the volume to the end of June totalling €29.5 billion. This is an increase of more than five times on H1 2016, and already greater than the full-year 2016 total of €24.2 billion. In terms of quarter on quarter, most of it was in Q1 2017 at €21.6 billion, with Q2 2017 at €7.9 billion, which is the lowest quarterly amount since Q2 2016.⁵

The level of repricings have almost doubled in the last six months to €51 billion, from €25.9 billion in H2 2016, and was only €3.1 billion in H1 2016. Again, looking at the quarterly split (Q1 2017 at €33 billion and Q2 2017 at €18 billion) the H1 2017 tally has been dominated by Q1 2017.⁵

As the European leveraged credit market heads into H2 2017, a supply/demand imbalance in both loans and bonds is expected to continue to keep yields tight. The supply of assets is not low on an absolute level with leveraged loan and bond volumes up 49% and 60% on the prior six months, rather, the strength of demand is boosted by non-traditional leveraged investors. On the loan side, pension and insurance managers are allocating more capital in these markets via managed accounts, and multi-strategy fund managers are increasing their loan allocations.⁵

In the primary market, YTM for new Term Loan B issues has fallen at least 30 bps since the start of 2017, although the rate of change has moderated in recent months. The rolling three-month yield stood just below 4% in each of the last 3 months, resulting in a quarterly average of 3.97%, slightly down from 4.03% in Q1 2017.⁵

High Yield Bond Market

HY new issue volume is on track to reach the 2014 level of issuance of €72bn, which has been the highest since 2010, with €46bn of paper hitting the market during H1 2017. This is almost double the H1 2016 amount of €24bn and it is promising to see an increase after two consecutive years of declining volumes. Yields on single-B Term Loan B continued to decline to 4% in June 2017, from 4.08% in March 2017.⁵ This is also much lower than the 6.1% seen at the end of 2016, as identified in the previous report.

Market Opportunity in Credit Opportunities & Special Situations Strategies

Looking ahead to the rest of 2017 the Investment Vehicle Manager is optimistic about opportunities in the credit markets. The continued FX fluctuations and the seemingly relentless flow of re-pricing activity during H1 2017 presented significant opportunities for the Investment Vehicle Manager's Credit Opportunities and Special Situations strategies. The Investment Vehicle Manager believes that pockets of volatility, and continued regulatory changes due to the changing geopolitical landscape, will support its healthy pipeline of new investments. Examples of opportunity-inducing events include:

- Repositioning of Central Banks;

- Monetary and fiscal policy changes in key economies, including the U.S and Europe;

- German and Italian parliamentary elections;

- Brexit negotiations between Britain and Brussels and its impact on investment and growth on the UK economy; and

- Uncertainty around the sustainability of Italy's public debt.

In the Special Situations space, the Investment Vehicle Manager continues to evaluate credits in the energy sector, particularly in Europe where subsidies for renewable energy production and infrastructure have been reigned in. Attention will also be given to assets in the retail, shipping and the U.S. healthcare markets, where fluctuating oil prices and changing regulatory regimes should contribute to the asset flow and price volatility.

Whilst the Investment Vehicle Manager is of the belief that defaults may take longer to materialise in the current climate, acknowledgement is given to the Fed's interest rate rises during 2017 and the consequences this may have for over-levered credits. By taking advantage of the CVC global network, the Investment Vehicle Manager expects to be able to identify investment opportunities and deploy additional capital both from recapitalisations outside of technical defaults, and by stepping in at the front end of restructurings.

Conclusion

The portfolio has once again outperformed broader market indices despite significant market volatility caused by various external factors. The combination of Performing Credit providing stable yield exposure, alongside the higher yielding event driven Credit Opportunities strategy, helps the Investment Vehicle Manager deliver what it believes to be a balanced risk profile in differing market environments.

Political uncertainty is set to continue in H2 2017, with the continuation of the tough Brexit negotiations. President Trump's continuing changes to economic and foreign policies will also be keenly watched by investors. Despite the risks, our core scenario is that global growth and inflation continue to pick up for the rest of the year. Within fixed income, we expect European leveraged loans to outperform, as stronger economic growth should support corporate earnings provided that the ECB remains accommodative (although on a lower basis) through the rest of 2017.

Going into H2 2017, the Investment Vehicle Manager continues to focus on maintaining low NAV volatility and actively allocating to new issue performing credits supported by strong Sponsors.

CVC Credit Partners Investment Management Limited

Investment Vehicle Manager

21 September 2017

1 Excludes 12 (31 December 2016: 18) structured finance positions.

2 Note: All metrics exclude cash unless otherwise stated.

3 Average market price of the portfolio weighted against the size of each position.

4 Excludes 12 (31 December 2016: 18) structured finance positions.

5 Sources :a S&P Global Market Intelligence - LCD European Quarterly

The indices referred to herein (including the Credit Suisse Western European HY Index hedged to Euro and the Credit Suisse Western ELLI hedged to Euro) are widely recognised, unmanaged indices of market activity and have been included as general indicators of market performance. There are significant differences between the types of investments made or expected to be made by the Investment Vehicle and the investments covered by the indices, and the methodology for calculating returns. For example, the Credit Suisse Western European HY Index is designed as an objective proxy for the investable universe of the Western European high yield debt market. Additionally, the Credit Suisse Western ELLI is designed to mirror the investable universe of the Western European leveraged loan market where the loans eligible for inclusion must be denominated in US$ or Western European currencies and must have a minimum outstanding amount of 100m (in local currency). In contrast, CVC Credit Partners may have discretion whether to reinvest such payments during any relevant commitment period. Moreover, coupon payments received by the Investment Vehicle after the expiration of any commitment period typically will not be reinvested. It should not be assumed that the Investment Vehicle will invest in any specific equity or debt investments, such as those that comprise the indices, nor should it be understood that there will be a correlation between the Investment Vehicle's returns and those of the indices. It should not be assumed that correlations to the indices based on historical returns will persist in the future. No representation is made that the Investment Vehicle will replicate the performance of any of the indices. The indices are included for general, background informational purposes only and recipients should use their own judgment to appropriately weight or discount their relevance to the Investment Vehicle .

Directors' Statement of Responsibilities

The Directors are responsible for preparing the Half Yearly Financial Report in accordance with applicable Jersey law and regulations.

The Directors confirm to the best of their knowledge that:

· the unaudited condensed financial statements within the Half Yearly Financial Report have been prepared in accordance with IAS 34 - Interim Financial Reporting, as adopted by the European Union ("EU") and give a true and fair view of the state of the affairs of the Company as at 30 June 2017, as required by the FCA's Disclosure Guidance and Transparency Rule ("DTR") 4.2.2R;

· the Chairman's Statement, the Investment Vehicle Manager's Report, the Executive Summary and the notes to the condensed financial statements include a fair review of the information required by:

a) DTR 4.2.7R, being an indication of important events that have occurred during the six months ended 30 June 2017 and their impact on the unaudited condensed financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

b) DTR 4.2.8R, being related party transactions that have taken place during the six months ended 30 June 2017 and that have materially affected the financial position or performance of the Company during that period.

Richard Michael Boléat Mark Richard Tucker

Chairman Audit Committee Chairman

21 September 2017

independent review report to the members of cvc credit partners european opportunities limited

Introduction

We have been engaged by CVC Credit Partners European Opportunities Limited (the "Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 which comprises the Condensed Statement of Comprehensive Income, the Condensed Statement of Financial Position, the Condensed Statement of Changes in Net Assets, the Condensed Statement of Cash Flows, and the related notes 1 to 15 to the condensed set of financial statements. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34, as adopted by the European Union and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

London

21 September 2017

CONDENSED Statement of comprehensive income

For the six months ended 30 June 2017

		Six months ended 30 June 2017	Six months ended 30 June 2016
		(Unaudited)	(Unaudited)
	Notes	€	€
Income
Investment income	3	9,737,677	14,301,129
Net gains / (losses) on investments held at fair value through profit or loss	6	15,707,173	(2,705,681)
Foreign exchange loss on investments held at fair value through profit or loss	6	(7,209,075)	(43,804,439)
Foreign exchange gain on ordinary shares		7,204,361	43,859,430
Other net foreign currency exchange loss		(16,241)	(21,944)
		25,423,895	11,628,495
Expenses
Operating expenses	4	(408,953)	(561,920)
Partial termination fee		(291,829)	(644,326)
		(700,782)	(1,206,246)

Profit before finance costs and taxation		24,723,113	10,422,249
Bank charges		(4,630)	(1,606)
Share issue finance cost	4	(31,066)	-
Finance costs - dividend payment		(8,941,379)	(13,155,549)

Profit/(loss) before taxation		15,746,038	(2,734,906)
Taxation		-	-
Increase/(decrease) in net assets attributable to shareholders from operations		15,746,038	(2,734,906)

Earnings/(losses) per Euro Share	10	€0.048516	€(0.006273)

Earnings/(losses) per Sterling Share (Sterling equivalent)	10	£0.035172	£(0.004548)

All items in the above statement are derived from continuing operations.

The Company has no items of other comprehensive income, and therefore the increase / (decrease) in net assets attributable to ordinary shareholders for the period is also the total comprehensive income.

The notes form an integral part of these condensed financial statements.

CONDENSED statement of financial position

As at 30 June 2017

		30 June 2017 (Unaudited)	31 December 2016 (Audited)
	Notes	€	€
Assets
Cash and cash equivalents		1,324,393	1,567,742
Prepayments		47,297	50,185
Financial investments held at fair value through profit or loss	6	486,875,510	404,603,610
Total assets		488,247,200	406,221,537

Liabilities
Payables	7	(422,911)	(695,258)
Trade payable - PECs purchased awaiting settlement	7	(101,494,457)	-
Total liabilities		(101,917,368)	(695,258)

Net assets attributable to shareholders	11	386,329,832	405,526,279

The condensed financial statements were approved by the Board of Directors on 21 September 2017 and signed on its behalf by:

Richard Michael Boléat Mark Richard Tucker

Chairman Audit Committee Chairman

The notes form an integral part of these condensed financial statements.

CONDENSED statement of changes in net assets

For the six months ended 30 June 2017 (Unaudited)

		Net assets attributable to shareholders
Note		€
As at 1 January 2017		405,526,279
Subscriptions arising from sale of treasury shares	10	3,472,906
Redemption of shares	10	(31,211,030)
Increase in net assets attributable to shareholders from operations		15,746,038
Net foreign currency exchange gain on shares		(7,204,361)
As at 30 June 2017		386,329,832

For the six months ended 30 June 2016 (Unaudited)

		Net assets attributable to shareholders
Note		€
As at 1 January 2016		580,242,493
Subscriptions arising from conversion of ordinary shares	10	3,972,469
Redemption of shares	10	(46,431,427)
Decrease in net assets attributable to shareholders from operations		(2,734,906)
Net foreign currency exchange gain on shares		(43,859,430)
As at 30 June 2016		491,189,199

The notes form an integral part of these condensed financial statements.

CONDENSED statement of cash flows

For the six months ended 30 June 2017

		Six months ended 30 June 2017	Six months ended 30 June 2016
		(Unaudited)	(Unaudited)
	Notes	€	€
Cash inflow from operating activities
Profit/(loss) from ordinary activities before taxation		15,746,038	(2,734,906)

Adjustments to reconcile profit before tax to net cash flows:

Net (gain)/loss on investments held at fair value through profit or loss	6	(15,707,173)	2,705,681
Foreign exchange loss on investments held at fair value through profit or loss	6	7,209,075	43,804,439
Foreign currency exchange gain on ordinary shares	10	(7,204,361)	(43,859,430)
Bank charges		4,630	1,606
Finance costs - dividend payment		8,941,379	13,155,549
		8,989,588	13,072,939
Changes in working capital
Decrease/(increase) in prepayments		2,888	(82,963)
Increase/(decrease) in payables		101,222,110	(651,868)
Cash provided by operations		110,214,586	12,338,108

Net (payments)/proceeds from (subscription)/redemption of investments (PECs)	6	(73,773,802)	42,370,638
Net cash provided by operating activities		36,440,784	54,708,746

Financing activities
Proceeds from issuance of ordinary shares	10	3,472,906	3,972,469
Payments for redemption of ordinary shares	10	(31,211,030)	(46,431,427)
Dividend paid		(8,941,379)	(13,155,549)
Bank charges paid		(4,630)	(1,606)
Net cash (used in) / provided by financing activities		(36,684,133)	(55,616,113)

Net decrease in cash and cash equivalents in the period		(243,349)	(907,367)

Cash and cash equivalents at beginning of the period		1,567,742	1,484,546
Cash and cash equivalents at the end of the period		1,324,393	577,179

The notes form an integral part of these condensed financial statements.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1. General information

The Company was incorporated on 20 March 2013 and is registered in Jersey as a closed-ended Investment Company. Euro Shares and Sterling Shares were admitted to the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 25 June 2013.

The Company's registered address is IFC1, The Esplanade, St Helier, Jersey, JE1 4BP.

2. Accounting policies

The Annual Financial Report is prepared in accordance with the Disclosure Guidance and Transparency Rules of the FCA and with International Financial Reporting Standards ("IFRS") as adopted by the European Union which comprise standards and interpretations approved by the International Accounting Standards Board, and interpretations issued by the International Financial Reporting Standards and Standing Interpretations Committee as approved by the International Accounting Standards Committee which remain in effect. The Half Yearly Financial Report has been prepared in accordance with International Accounting Standards (IAS) 34 - Interim Financial Reporting. They have also been prepared using the same accounting policies applied for the year ended 31 December 2016 Annual Financial Report, which was prepared in accordance with IFRS.

The Half Yearly Financial Report has been prepared under a going concern basis. After reviewing the Company's budget and cash flow forecast for the next financial period, the Directors are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements.

There have been no changes in accounting policies during the period. The accounting policies in respect of financial instruments are set out below at 2.2 due to the significance of financial instruments to the company.

2.1. Segmental reporting

The Directors view the operations of the Company as one operating segment, being investment holding. All significant operating decisions are based upon analysis of the Company's investments as one segment. The financial results from this segment are equivalent to the financial results of the Company as a whole, which are evaluated regularly by the chief operating decision-maker (the Board with insight from the Investment Vehicle Manager).

2.2 Financial instruments

Financial assets

(a) Classification

The Company classifies its investments as financial assets at fair value through profit or loss. These are financial instruments held for investment purposes. Financial assets also include cash and cash equivalents as well as other payables and receivables.

Financial assets designated at fair value through profit or loss at inception

Financial assets designated at fair value through profit or loss at inception are financial instruments that are not classified as held for trading but are managed, and their performance is evaluated on a fair value basis in accordance with the Company's documented investment strategy.

The Company's policy requires the Investment Vehicle Manager and the Board to evaluate the information about these financial assets on a fair value basis together with other related financial information.

(b) Recognition, measurement and derecognition

Purchases and sales of investments are recognised on the trade date - the date on which the Company commits to purchase or sell the investment. Financial assets at fair value through profit or loss are measured initially and subsequently at fair value. Transaction costs are expensed as incurred and movements in fair value are recorded in the Statement of Comprehensive Income.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company holds PECs issued by the Investment Vehicle. These investments are not listed or quoted on any securities exchange and are not traded regularly and on this basis no active market exists.

The Company relies on the board of the Investment Vehicle making fair value estimates of an equivalent basis to those that would be made under IFRS. As at 30 June 2017, the Audit Committee reviewed the valuation of Investment Vehicle investments and scrutinised fair value estimates used to gain assurances as to the appropriateness and robustness of the valuation methodology applied by the Investment Vehicle to its underlying portfolio assets and hence to the Company investments in the Investment Vehicle. The Directors then incorporated those fair value estimates into the Company's Statement of Financial Position.

(d) Valuation process

The Directors have interviewed representatives of the Investment Vehicle Manager in order to verify for themselves the composition of the NAV of the PECs as of the Statement of Financial Position date.

The Directors are in ongoing communications with the Investment Vehicle Manager and hold meetings on a timely basis to discuss performance of the Investment Vehicle and its underlying portfolio and in addition review monthly investment performance reports. The Directors analyse the Investment Vehicle portfolio in terms of both investment mix and fair value hierarchy and consider the impact on the valuation at both the PECs and Investment Vehicle portfolio of general credit conditions and more specifically credit events in the European corporate environment.

PECs

The PECs are valued by the Directors, taking into consideration a range of factors including the audited NAV of the Investment Vehicle and other relevant available information, including the review of available financial and trading information of the Investment Vehicle and of its underlying portfolio, price of recent transactions of PECs redeemed, (if any), and advice received from the Investment Vehicle Manager and such other factors as the Directors, in their sole discretion, deem relevant in considering a positive or negative adjustment to the valuation.

The estimated fair values may differ from the values that would have been realised had a ready market existed and the difference could be material.

The fair value of the investment is reassessed on an ongoing basis by the Board.

Investment Vehicle Portfolio

The Directors also discuss the Investment Vehicle Manager's monthly valuation process, to understand the methodology regarding valuation of Level 3 debt securities and collateralised loan obligations ("CLOs") held at the Investment Vehicle portfolio, which includes discussion on the assumptions used and significant fair value changes during the period.

Investments in debt securities for which limited broker quotes and for which no other evidence of liquidity exists are classified as Level 3. These are then valued by considering in detail the limited broker quotes available for evidence of outliers (which may skew the average) which, if existent, are then removed, and then by calculating the average of the remaining quotes. If there are no broker quotes, the Investment Vehicle Manager produces a pricing memorandum for the Compartment drawing on the International Private Equity Valuation guidelines, which is discussed, reviewed and accepted by the board of the Investment Vehicle and the independent service provider.

Investments in CLOs are primarily valued based on the bid price as provided by the third party pricing service, and may be amended following consideration of the Net Assets Value ("NAV") published by the administrator of the CLOs. Furthermore, such a NAV is adjusted when necessary, to reflect the effect of the time passed since the calculation date, liquidity risk, limitations on redemptions and other factors. Depending on the fair value level of a CLO's assets and liabilities and on the adjustments needed to the NAV published by that CLO, the Compartment (being Compartment A of the Investment Vehicle) classifies the fair value of these investments as Level 3.

If the Investment Vehicle Manager and the independent service provider have difficulty in establishing an agreed upon valuation for an asset, they will discuss and agree alternative valuation methods.

Financial liabilities

(e) Classification

The Company classifies its ordinary shares as financial liabilities held at amortised cost. Financial liabilities also include payables which are also held at amortised cost.

(f) Recognition, measurement and derecognition

Financial liabilities are recognised initially at fair value plus any directly attributable incremental costs of acquisition or issue and are subsequently carried at amortised cost. Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Ordinary shares are carried at amortised cost, being the carrying amount of ordinary share value at which investors have the opportunity to partially tender their shareholding in accordance with the Company's quarterly contractual tender facility.

Gains and losses are recognised in the Statement of Comprehensive Income when the liabilities are derecognised.

3. Investment income

	Six months ended 30 June 2017	Six months ended 30 June 2016
	(Unaudited)	(Unaudited)
	€	€
Investment income	9,737,270	14,199,372
Bank interest income	407	-
Other income	-	101,757
Total investment income	9,737,677	14,301,129

Other income of €nil (30 June 2016: €101,757) relates to income receivable from CVC Credit Partners Investment Services Management Limited (the "Corporate Services Manager") for reimbursement of share issue costs and AIFMD marketing legal costs paid by the Company on behalf of the Corporate Services Manager. Please refer to note 4.

4. Operating expenses

	Six months ended 30 June 2017	Six months ended 30 June 2016
	(Unaudited)	(Audited)
	€	€
Administration fees	91,506	94,156
Directors' fees (see note 5)	92,203	103,188
Regulatory fees	26,862	27,141
Audit fees	30,600	30,600
Non-audit fees - interim review services	10,200	10,200
Professional fees (*)	40,639	177,803
Brokerage fees	22,735	39,205
Registrar fees	30,229	46,569
Sundry expenses	63,979	33,058
Total operating expenses	408,953	561,920

The costs and expenses of the sale of treasury shares attributable to the Company have been expensed in the Statement of Comprehensive Income and amounted to a total of €31,066 (30 June 2016: € nil).

(*) Note that €nil (30 June 2016: €101,757) of professional fees relate to share issue costs and AIFMD marketing legal costs paid by the Company on behalf of the Corporate Services Manager. Total expenses of €nil (30 June 2016: €101,757), have been recharged to the Corporate Services Manager.

5. Directors' fees and interests

Director fees are as follows:

Richard Boleat (Chairman): £65,000 per annum

Mark Tucker: £50,000 (inclusive of £6,250 for his service as Audit Committee Chairman)

David Wood: £42,500 per annum

The Company has no employees. Director's fees payable as at 30 June 2017 were €nil (31 December 2016: €nil).

None of the Directors hold shares in the Company. David Wood has several investments in a number of CVC entities.

No pension contributions were payable in respect of any of the Directors.

CVC Credit Partners Group has established an independent sub-committee (the "Independent Sub-committee") of independent directors drawn from its group board and the boards of certain of its funds and investment vehicles for the purpose of providing review and guidance to the relevant investment committee with respect to situations where there is the potential for (or perception of) a material conflict of interest.

The Independent Sub-committee currently consists of two independent Directors from CVC Investment Services' board of directors (being Douglas Maccabe and Stephen Linney), and David Wood. Any such conflict is required to be presented to the Independent Sub-committee by the relevant portfolio manager and, if necessary, CVC Credit Partners Group's managing partner and/or chief investment officer.

In 2016, Trust Associates were engaged to perform an interim evaluation on the effectiveness of the Board and concluded that David Wood's appointment on the Independent Sub Committee is not deemed to be material. The Board discussed Mr Wood's independence with regard to the AIC's guidance on this matter and concluded that Mr Wood is independent.

6. Financial Investments held at fair value through profit or loss

	30 June 2017	31 December 2016
	(Unaudited)	(Audited)
	€	€

PECs - Unquoted investment	486,875,510	404,603,610

During the period, the Company subscribed for 12,526,467.90 Euro PECs (31 December 2016: nil) and 71,475,899.28 Sterling PECs (31 December 2016: nil) issued by the Investment Vehicle.

During the period, nil (31 December 2016: 3,448,301.83) Euro PECs were converted into nil Sterling PECs (31 December 2016: 2,584,326.95) and nil Sterling PECs (31 December 2016: 656,205.39) were converted into nil Euro PECs (31 December 2016: 866,070.85) as part of the monthly share conversion process. 11,731,093 Euro PECs (31 December 2016: 63,439,573.00) and 14,837,291 (31 December 2016: 57,227,653.00) Sterling PECs, were redeemed as part of the Quarterly Contractual Tender.

As at 30 June 2017, the Company held 128,510,840.94 (31 December 2016: 127,715,466.04) Euro PECs and 269,652,672.94 (31 December 2016: 213,014,064.66) Sterling PECs. Please refer below for reconciliation of PECs from 1 January 2016:

Compartment A

Date	Transaction type	Euro PECs	Sterling PECs

As at 1 January 2016		193,737,270.02	268,313,596.10
01/01/2016	Quarterly tender	(29,012,049.00)	(260,363.00)
29/01/2016	Monthly conversion	(2,577,193.91)	1,881,536.18
29/01/2016	Monthly conversion	29,750.49	(21,719.99)
29/02/2016	Monthly conversion	693,049.73	(523,882.33)
29/02/2016	Monthly conversion	(371,578.48)	280,879.41
31/03/2016	Monthly conversion	139,917.80	(108,067.57)
01/04/2016	Quarterly tender	(117,208.00)	(9,896,222.00)
29/04/2016	Monthly conversion	(151,348.76)	118,697.71
30/06/2016	Monthly conversion	3,352.83	(2,535.50)
01/07/2016	Quarterly tender	(27,230,253.00)	(7,727,865.00)
30/09/2016	Monthly conversion	(3,425.89)	2,871.51
01/10/2016	Quarterly tender	(7,080,063.00)	(39,343,203.00)
30/11/2016	Monthly conversion	(247,583.95)	218,994.10
30/12/2016	Monthly conversion	(97,170.84)	81,348.04
As at 31 December 2016		127,715,466.04	213,014,064.66
02/01/2017	Quarterly tender	(6,227,806.00)	(7,920,070.00)
08/03/2017	PEC subscription	-	643,093.56
08/03/2017	PEC subscription	-	248,155.42
03/04/2017	Quarterly tender	(5,503,287.00)	(6,917,221.00)
17/04/2017	PEC subscription	-	501,278.29
17/04/2017	PEC subscription	-	250,638.69
17/04/2017	PEC subscription	-	250,638.69
17/04/2017	PEC subscription	-	250,638.69
19/05/2017	PEC subscription	-	349,180.30
19/05/2017	PEC subscription	-	198,594.10
30/06/2017	PEC subscription	12,526,467.90	68,783,681.54
As at 30 June 2017		128,510,840.94	269,652,672.94

The Investment Vehicle's investment objective is to provide investors with regular income returns and capital appreciation from a diversified portfolio of sub-investment grade debt instruments. The Company is entitled to receive income distributions every quarter, which will equate to not less than 75% of the net income of the Company's investment in the Investment Vehicle.

The Investment Vehicle Manager pursues the Investment Vehicle's investment policy subject to the Investment Vehicle's Investment Limits and Borrowing Limit as explained in the Executive Summary.

Fair value hierarchy

IFRS 13 'Fair Value Measurement' requires an analysis of investments valued at fair value based on the reliability and significance of information used to measure their fair value.

The Company categorises its financial assets according to the following fair value hierarchy detailed in IFRS 13, that reflects the significance of the inputs used in determining their fair values;

Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.

Level 2: Valuation techniques based on observable inputs, either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable variable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

As at 30 June 2017	Level 1	Level 2	Level 3	Total
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	€	€	€	€
Financial assets
Financial investments held at fair value through profit and loss	-	-	486,875,510	486,875,510

Financial liabilities
Ordinary shares (*)	387,980,824	-	-	387,980,824

As at 31 December 2016	Level 1 (Audited)	Level 2 (Audited)	Level 3 (Audited)	Total (Audited)
	€	€	€	€
Financial assets
Financial investments held at fair value through profit and loss	-	-	404,603,610	404,603,610

Financial liabilities
Ordinary shares (*)	391,171,161	-	-	391,171,161

* - Please note for disclosure purposes only, ordinary shares have been disclosed at fair value using the quoted price in accordance with IFRS 13. As disclosed in note 2.2, the Company classifies its ordinary shares as financial liabilities held at amortised cost.

Level 3 reconciliation - Compartment A PECs

The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3 between the beginning and the end of the reporting period.

			30 June 2017 (Unaudited)
			€
Balance as at 1 January 2017			404,603,610
Purchases of investments (PECs)			104,936,106
Subscriptions arising from conversion of investments (PECs)			-
Redemption proceeds arising from conversion of investments (PECs)			-
Redemption proceeds arising from quarterly tenders of investments (PECs)			(31,162,304)
Net gains on investments held at fair value			15,707,173
Foreign exchange loss on investments held at fair value			(7,209,075)
Balance as at 30 June 2017			486,875,510

Change in unrealised gain / (loss) related to investments still held at six months ended 30 June 2017			15,707,173

During the six months ended 30 June 2017, there were no reclassifications between levels of the fair value hierarchy.

			31 December 2016 (Audited)
			€
Balance as at 1 January 2016			579,495,831
Purchases of investments (PECs)			-
Subscriptions arising from conversion of investments (PECs)			4,350,437
Redemption proceeds arising from conversion of investments (PECs)			(4,405,259)
Redemption proceeds arising from quarterly tenders of investments (PECs)			(132,973,774)
Net gains on investments held at fair value			9,756,573
Foreign exchange loss on investments held at fair value			(51,620,198)
Balance as at 31 December 2016			404,603,610

Change in unrealised gain / (loss) related to investments still held at year ended 31 December 2016			9,140,977

During year ended 31 December 2016, there were no reclassifications between levels of the fair value hierarchy.

Quantitative information of significant unobservable inputs - Level 3 - PECs


Description	30 June 2017 (Unaudited)	Valuation technique	Unobservable input	Range / weighted average
	€

PECs	486,875,510	Adjusted Net Asset Value	Discount for lack of liquidity	0-3%

Description	31 December 2016 (Audited)	Valuation technique	Unobservable input	Range / weighted average
	€

PECs	404,603,610	Adjusted Net Asset Value	Discount for lack of liquidity	0-3%

The Board believes that it is appropriate to measure the PECs at the NAV of the investments held at the Investment Vehicle, adjusted for percentage holding of PECs in the Investment Vehicle.

Sensitivity analysis to significant changes in unobservable inputs within Level 3 hierarchy - Level 3 - PECs

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 30 June 2017 and comparative are as shown below:

As at 30 June 2017 (Unaudited)

Description

Input

Sensitivity used

Effect on fair value

€

PECs

Discount for lack of liquidity

14,606,265

As at 31 December 2016 (Audited)

Description

Input

Sensitivity used

Effect on fair value

€

PECs

Discount for lack of liquidity

12,138,108

Please refer to note 2.2 for valuation methodology of PECs.

7. Payables

	30 June 2017	31 December 2016
	(Unaudited)	(Audited)
	€	€
Administration fees	(28,071)	(21,829)
Audit fees	(41,717)	(71,400)
Partial termination fee payable	(288,409)	(535,973)
Other payables	(64,714)	(66,056)
Total payables	(422,911)	(695,258)

Partial termination fee expense of €291,829 (31 December 2016: €1,553,559) was incurred during the period, of which €288,409 (31 December 2016: €535,973) is payable to the Corporate Services Manager as at 30 June 2017. In the case of any shareholder tendering shares through a contractual quarterly tender, the Company becomes liable to pay a partial termination fee to the Corporate Services Manager and records an expense in accordance with the prospectus. A fee is built into the tender price of 1% of the placing price of the contractual quarterly tender facility to cover this partial termination fee. No further partial termination fees will be payable beyond March 2018, at which point the entire 1% fee built into the tender price in respect of tenders beyond that date will accrue to the Company.

Trade payable - PECs purchased awaiting settlement of €101,494,457 (31 December 2016: €nil) represent trade payables for Euro PECs (€13,758,423) and Sterling PECs (£76,974,939 (Euro equivalent €87,736,034) purchased that have been contracted for but not yet settled on the Statement of Financial Position date.

As at 30 June 2017, the Company's obligation to subscribe and the Investment Vehicle's obligation to issue PECs in the amount set out above is conditional on the receipt by the Company of the same (net) amount in subscription for its shares by certain investors pursuant to a contract for sale (the "Condition"). The Condition was satisfied on 4 July 2017. Refer to note 14 for further detail of the sale of Euro and Sterling treasury shares subsequent to the period ended 30 June 2017, settled on the 4 July 2017.

8. Contingent liabilities

As at 30 June 2017, the Company had no contingent liabilities (31 December 2016: €nil).

9. Stated capital

	Number of shares	Stated capital	Number of shares	Stated capital
	30 June 2017	30 June 2017	30 June 2016	30 June 2016
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
		€		€
Management shares	2	-	2	-

Management shares are non-redeemable, have no par value and no voting rights, and also no profit allocated to them for the earnings per share calculation.

10. Ordinary shares

	Number of shares¹	Stated capital	Number of shares¹	Stated capital
	30 June 2017	30 June 2017	30 June 2016	30 June 2016
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
		€		€
Euro Shares	117,147,455	117,242,303	163,868,488	165,018,505
Sterling Shares	202,610,969	231,178,183	261,941,370	317,496,662
Total	319,758,424	348,420,486	425,809,858	482,515,167

¹ - Excludes 110,001,299 (30 June 2016: 63,631,844) Euro Shares and 70,239,838 (30 June 2016: 10,603,193) Sterling Shares held as treasury shares.

			Total (Unaudited)
			€
Balance as at 1 January 2017			383,362,971
Subscriptions arising from sale of treasury shares			3,472,906
Redemption proceeds arising from quarterly tenders of shares			(31,211,030)
Foreign currency exchange gain on shares			(7,204,361)
Balances as at 30 June 2017			348,420,486

			Total (Unaudited)
			€
Balance as at 1 January 2016			568,833,555
Subscriptions arising from conversion of shares			3,972,469
Redemption proceeds arising from conversion of shares			(4,042,049)
Redemption proceeds arising from quarterly tenders of shares			(42,389,378)
Foreign currency exchange gain on shares			(43,859,430)
Balances as at 30 June 2016			482,515,167

The Company has two classes of ordinary shares, being Euro Shares and Sterling Shares.

Each Euro Share holds 1 voting right, and each Sterling Share holds 1.17 voting rights.

As at 30 June 2017, the Company held 117,147,455 Euro Shares (exclusive of 110,001,299 Euro treasury shares) (30 June 2016: 163,868,488 Euro Shares (exclusive of 63,631,844 Euro treasury shares), 31 December 2016: 128,961,584 Euro Shares (exclusive of 98,187,170 Euro treasury shares)) and 202,610,969 Sterling Shares (exclusive of 70,239,838 Sterling treasury shares) (30 June 2016: 261,941,370 Sterling Shares (exclusive of 10,603,193 Sterling treasury shares), 31 December 2016: 214,849,319 Sterling Shares (exclusive of 58,001,488 Sterling treasury shares)).

Placing of treasury shares

The Company completed the sale of 2,700,000 Sterling treasury shares during the six months ended 30 June 2017.

Voluntary conversion

The Company offers a monthly conversion facility pursuant to which holders of ordinary shares of one class may convert such shares into ordinary shares of any other class, subject to regulatory considerations as detailed in the prospectus.

Such conversion will be effected on the basis of the ratio of the NAV per class to be converted (calculated in Euro less the costs of effecting such conversion and adjusting any currency hedging arrangements and taking account of dividends resolved to be paid), to the NAV per class of the shares into which they will be converted (also calculated in Euro), in each case on the relevant conversion calculation date being the first business day of the month. During the period nil (30 June 2016, 3,127,742, 31 December 2016: 3,479,320) Euro Shares were converted into nil (30 June 2016: 2,302,213, 31 December 2016: 2,608,457) Sterling Shares and nil (30 June 2016: 661,630, 31 December 2016: 661,630) Sterling Shares were converted into nil (30 June 2016: 872,880, 31 December 2016: 872,880) Euro Shares.

Contractual quarterly tender facility

As the Company has been established as a closed-ended vehicle, there is no right or entitlement attaching to the ordinary shares that allows them to be redeemed or repurchased by the Company at the option of the Shareholder. The Company has, however, established a contractual quarterly tender facility that enables shareholders to tender their shares in the Company in accordance with a stated contracted mechanism.

The Directors believe that the Company's contractual quarterly tender facility should provide shareholders with additional liquidity when compared with other listed closed-ended investment companies.

The offer of contractual quarterly tenders is subject to annual Shareholder approval and subject to the terms, conditions and restrictions as set out in the prospectus. The Company is subject to annual Shareholder approval to tender each quarter for up to 24.99 per cent. of the shares of such class in issue at the relevant quarter record date, (being the date on which the number of shares then in issue will be recorded for the purposes of determining the restrictions), subject to a maximum annual limit of 50 per cent. of the shares of such class in issue.

However, it is important to note that contractual quarterly tenders, if made, are contingent upon certain factors including, but not limited to, the Company's ability to finance tender purchases through submitting redemption requests to the Investment Vehicle to redeem a pro rata amount of Company Investment Vehicle Interests.

Factors, including restrictions at the Investment Vehicle level on the amount of PECs which can be redeemed, may mean that sufficient Company Investment Vehicle Interests cannot be redeemed and, consequently, tender purchases in any given quarter may be scaled back on a pro rata basis.

Shareholders should therefore have no expectation of being able to tender their shares to the Company successfully on a quarterly basis.

In addition to the contractual quarterly tender facility, the Directors seek annual Shareholder approval to grant them the power to make ad hoc market purchases of Shares. If such authority is subsequently granted, the Directors will have complete discretion as to the timing, price and volume of shares to be purchased. Shareholders should not place any reliance on the willingness or ability of the Directors so to act.

In the absence of the availability of the contractual quarterly tender facility shareholders wishing to realise their investment in the Company will be required to dispose of their shares on the stock market.

Accordingly, shareholders' ability to realise their investment at any particular price and/or time may be dependent on the existence of a liquid market in the shares.

During the six months ended 30 June 2017, 11,814,129 Euro Shares (30 June 2016: 29,328,354, 31 December 2016: 63,883,680) and 14,938,350 Sterling Shares (30 June 2016: 10,228,721, 31 December 2016: 57,627,016) were redeemed as part of the contractual quarterly tender facility and held by the Company in the form of treasury shares. Refer to page 5 for details. Treasury shares do not carry any right to attend or vote at any general meeting of the Company. In addition, the contractual quarterly tenders and the voluntary conversion facility are not available in respect of Treasury shares.

As at 30 June 2017, 110,001,299 (30 June 2016: 63,631,844, 31 December 2016: 98,187,170) Euro Shares and 70,239,838 Sterling Shares (30 June 2016: 10,603,193, 31 December 2016: 58,001,488) were held as treasury shares.

Dividends

The ordinary shares of each class carry the right to receive all income of the Company attributable to such class of ordinary share, and to participate in any distribution of such income made by the Company and within each such class such income shall be divided pari passu among the shareholders in proportion to the shareholdings of that class.

Please refer below for amounts recognised as dividend distributions to ordinary shareholders in the period ended 30 June 2017.

	Ex-dividend date	Payment date	£ equivalent	€
Euro - €0.025 per share¹	04/02/2016	26/02/2016	-	4,091,783
Sterling - £0.025 per share¹	04/02/2016	26/02/2016	6,803,607	8,328,976

Euro - €0.025 per share¹	14/07/2016	05/08/2016	-	3,411,039
Sterling - £0.025 per share¹	14/07/2016	05/08/2016	6,353,879	7,778,419

Euro - €0.0125 per share¹	03/11/2016	25/11/2016	-	1,616,371
Sterling - £0.0125 per share¹	03/11/2016	25/11/2016	2,681,825	3,283,090

Euro - €0.0125 per share²	02/02/2017	24/02/2017	-	1,533,639
Sterling - £0.0125 per share²	02/02/2017	24/02/2017	2,585,957	3,006,693

Euro - €0.0125 per share²	04/05/2017	26/05/2017	-	1,464,343
Sterling - £0.0125 per share²	04/05/2017	26/05/2017	2,525,762	2,936,704

¹- Recognised in the year ended 31 December 2016

²- Recognised in the period ended 30 June 2017

Please refer to note 14 for further information subsequent to the reporting period.

Earnings per share

	30 June 2017	30 June 2017	30 June 2016	30 June 2016
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	£	€	£	€
Euro Shares
Increase/decrease in net assets for the period	-	5,817,243	-	(1,030,678)
Earnings/(losses) per share	-	0.048516	-	(0.006273)

Sterling Shares
Increase/(decrease) in net assets for the period	7,197,908	9,928,795	(1,235,485)	(1,704,228)
Earnings/(losses) per share	0.035172	0.048516	(0.004548)	(0.006273)

Earnings per share have been calculated on a weighted average basis. The weighted average number of ordinary shares held during the six months ended 30 June 2017 was 324,544,463 (30 June 2016: 435,894,524), comprising 119,903,957 (30 June 2016: 163,986,488) Euro Shares and 204,650,506 (30 June 2016: 271,908,036) Sterling Shares.

11. Net Asset Value per share

	30 June 2017	30 June 2017	31 December 2016	31 December 2016
	(Unaudited)	(Unaudited)	(Audited)	(Audited)
	£	€	£	€
Euro Shares
Net Asset Value	-	128,264,824	-	135,941,582
Net Asset Value per share	-	1.0949	-	1.0541

Sterling Shares
Net Asset Value	226,412,536	258,065,008	229,805,385	269,584,697
Net Asset Value per share	1.1175	1.2737	1.0696	1.2548

12. Reconciliation of NAV to published NAV

		30 June 2017		31 December 2016
		(Unaudited)		(Audited)
	NAV per share	NAV per share	NAV per share	NAV per share
	£	€	£	€
Euro Shares
Published NAV	-	1.0954	-	1.0541
Tender fee adjustment	-	(0.0005)	-	0.0000
NAV attributable to Shareholders	-	1.0949	-	1.0541

Sterling Shares
Published NAV	1.1178	1.2741	1.0696	1.2548
Tender fee adjustment	(0.0003)	(0.0004)	0.0000	0.0000
NAV attributable to Shareholders	1.1175	1.2737	1.0696	1.2548

13. Related Party Disclosure

The Directors are entitled to remuneration for their services. Please refer to note 5 for further detail.

Richard Boleat acts as the enforcer of the CCPEOL Purpose Trust, a business purpose trust established under Jersey law and settled by the Company. The role has arisen as a result of the implementation of the resolution passed at the Company's Annual General Meeting on 4 April 2016 which authorised the Company to make arrangements to enable the conversion of treasury shares held by the Company from time to time from one currency denomination to another. The position is unremunerated and represents an alignment of interests with those of the Company.

14. Events after the Reporting Period

Management has evaluated subsequent events for the Company through 21 September 2017, the date the financial statements were available to be issued, and had concluded there are not any material events that require disclosure or adjustment of the financial statements other than those listed below:

On 4 July 2017, the Company sold 12,608,528 Euro treasury shares at a price of €1.0994 per share and 69,197,176 Sterling treasury shares at a price of £1.1207 per share. Refer to note 7 for further detail.

On 2 August 2017, the Company declared a dividend of €0.01375 per Euro Share (total €1,728,958) and £0.01375 per Sterling Share (total £3,737,362) and a dividend of £5.37 per management share. The dividends were paid to shareholders on 1 September 2017.

On 14 August 2017, the June 2017 contractual quarterly tender completed with 4,013,564 Euro Shares being repurchased and transferred into the Company's name and held as treasury shares.

On 17 August 2017, the Company sold 200,000 Sterling treasury shares at a price of £1.1288 per share.

On 21 August 2017, the Company announced it had received applications from shareholders to convert 294,967 Sterling Shares into Euro Shares. The Company received no requests for Euro Shares to be converted to Sterling Shares.

On 1 September 2017, the Company sold 250,000 Sterling treasury shares at a price of £1.1279 per share.

On 8 September 2017, the Company sold 200,000 Euro treasury shares at a price of €1.1040 per share.

On 11 September 2017, the Company sold 200,000 Sterling treasury shares at a price of £1.1279 per share.

On 11 September 2017, Richard Boleat was appointed as an Enforcer of CCPEOL Purpose Trust. Please refer to note 13 for further details.

On 18 September 2017, the Company sold 200,000 Euro treasury shares at a price of €1.1073 per share.

On 20 September 2017, the Company sold 392,662 Sterling treasury shares at a price of £1.1310 per share.

15. Controlling party

In the Directors' opinion, the Company has no ultimate controlling party.

Company information

Registered Office		Advocates to the Company
IFC1, The Esplanade		(as to Jersey law)
St Helier, Jersey JE1 4BP		Bedell Cristin 26 New Street St Helier, Jersey JE2 3RA

Investment Vehicle Manager		Custodian
CVC Credit Partners Investment Management Limited		BNP Paribas Securities Services S.C.A., Jersey Branch
111 Strand, London WC2R 0AG		IFC1, The Esplanade St Helier, Jersey JE1 4BP

Corporate Services Manager		Auditor
CVC Credit Partners Investment Services Management Limited		Ernst & Young LLP 25 Churchill Place
22-24 Seale Street, St. Helier, Jersey JE2 3QG		Canary Wharf London, E14 5EY

Corporate Brokers		Administrator and Company Secretary
Goldman Sachs International Peterborough Court, 133 Fleet Street		BNP Paribas Securities Services S.C.A., Jersey Branch
London EC4A 5ER		IFC1, The Esplanade St Helier, Jersey JE1 4BP
Winterflood Securities Limited The Atrium Building Cannon Bridge House 25 Dowgate Hill London EC4R 2GA		BNP Paribas Securities Services S.C.A. Jersey Branch is regulated by the Jersey Financial Services Commission.
Solicitors to the Company		Registrar
(as to English law)		Computershare Investor Services (Jersey)
Herbert Smith Freehills LLP Exchange House Primrose Street London EC2A 2EG		Limited Queensway House Hilgrove Street St Helier Jersey JE1 1ES

For Investors in Switzerland:

The Prospectus, the Memorandum and Articles of Association as well as the annual and half yearly financial reports of the Company may be obtained free of charge from the Swiss Representative. In respect of the Shares distributed in and from Switzerland to Qualified Investors, the place of performance and the place of jurisdiction is at the registered office of the Swiss Representative.

Swiss Representative: FIRST INDEPENDENT FUND SERVICES LTD., Klausstrasse 33, CH-8008 Zurich, Switzerland.

Swiss Paying Agent: Neue Helvetische Bank AG, Seefeldstrasse 215, CH-8008 Zurich, Switzerland.

-END-

The person responsible for arranging for the release of this announcement on behalf of the Company is Siobhan Lavery of BNP Paribas Securities Services S.C.A., Jersey Branch, Company Secretary.

IFC1 - The Esplanade - St Helier - Jersey - JE1 4BP

Company Secretary

Tel: +44 (0) 1534 709181

This information is provided by RNS

The company news service from the London Stock Exchange

END

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