Chenavari Capital Solutions has announced results for the period from its incorporation on 12 July 2013 to the end of September 2014. Its net asset value rose by 4% compared to its value after issue expenses and they paid dividends totalling 5.25p (they were aiming for 5p). The net asset value at the end of September was 97.9p.
The statement says that, at 30 September 2014, 67.7% of the portfolio had been invested into eleven Bank Capital Solutions Transactions, consisting of four primary transactions and seven secondary transactions achieving a spread of investment risk. SME loans at 33.7% of NAV and Corporate loans of 19.97% of NAV comprised the majority of sector allocation with the largest position being an amortising exposure to a granular pool of Portuguese SME and Corporate loans.
Two further primary transactions were completed after 30 September. In October 2014, the Company closed an investment in a portfolio of Spanish real estate exposure (secured loans and residential properties) which was divested by a Spanish bank. The portfolio has been purchased at a significant discount to par and under our base cash flow scenario offers double digit unlevered returns. In December 2014, the Company closed a first loss regulatory capital investment in a static portfolio of Italian SME exposure, originated by a large Italian corporate and investment bank. This is the first investment for the Company in an exclusively Italian portfolio, and the Investment Adviser has carefully and fully examined the bank’s underwriting, monitoring and work-out processes. The investment represented approximately 5% of the Company’s NAV, and leaves the Company almost fully invested at an 86% cash utilisation level (based on December month end).
CCSL : Chenavari almost fully invested