Change of Portfolio Manager

Chenavari Toro Income Fund Limited (the Company)

Legal Entity Identifier: 549300POOPYI3IQZNS35

 07 December 2020

Change of Portfolio Manager

The Board of directors of the Company and Chenavari Credit Partners LLP ("Chenavari") have today agreed, that with effect from the date of this announcement, Benoit Pellegrini will hand over day to day responsibility for the portfolio management of the Company's investment portfolio within Chenavari to Frederic Couderc, in accordance with the succession plan agreed with the Board.

Whilst he is stepping down from his role as the portfolio manager of the Company's portfolio, it has been agreed that Benoit Pellegrini will continue to assist Frederic Couderc until 30 September 2021, in order to ensure a smooth transition of the portfolio manager role.

The Board believes that the appointment of Frederic Couderc meets the Company's long-term strategic objectives, and the investment strategy and policy of the Company will remain unchanged.

Identified as a Key Man in the Company's prospectus dated 25 April 2015, Frederic Couderc has been with Chenavari since 2009 and has been acting as Co-Chief Investment Officer since 2011. Frederic Couderc led the development of the ABS strategies within Chenavari. In 2009 he launched with Benoit Pellegrini the Toro Capital I fund (Toro I), the predecessor to the Company. He was the architect of the transition from Toro I to a permanent capital listed vehicle through the IPO of the Company in 2015.

Signalling further their alignment with the Company's shareholders, Frederic Couderc has bought approximately two thirds of Benoit Pellegrini's shareholding in the Company (representing 8,930,000 shares) at a price of EUR 0.5923 per share, a premium over the closing price of a share as at

4 December 2020 (being EUR 0.56). As part of this transaction, Loic Fery, founder and Co-Chief Investment Officer of Chenavari, has bought 2,679,000 shares from Frederic Couderc (corresponding to 30% of the total shares purchased by Frederic Couderc from Benoit Pellegrini). Following these transactions, Frederic Couderc and Loic Fery are now interested in approximately 7.50% and 7.41% of the issued share capital of the Company respectively versus 5.44% and 6.53% previously. Benoit Pellegrini retains an interest in 4,646,673 shares representing approximately 1.47% of the issued share capital of the Company.

Fred Hervouet, Chairman of the Company, commented:

Frederic Couderc co-founded Toro I in 2009 and contributed actively to the development of the Company, working closely with Benoit Pellegrini through the years. We welcome his appointment as portfolio manager of the Company's investment portfolio and look forward to a renewed focus on the continued reduction in the share price discount to NAV and maximising value for all investors in the Company. We also strongly value the acquisition of shares by Frederic Couderc and Loic Fery at a premium to the current market price. This demonstrates their conviction in the value of the Company, and their commitment to reduce the discount and create strong alignment with the shareholders of the Company. Finally, I would like to thank Benoit Pellegrini for his considerable work with the Company and the Board over the years.

An Investor Call will be organised by the Company in the New Year.

Further information in relation to the Company is available at:

http://www.chenavaritoroincomefund.com 

Enquiries:

Sophie Porter / Guy Goyard

Chenavari Investment Managers

Email: [email protected] 

Telephone: +44 20 7259 3600

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014. This announcement has been authorised for release by the Board of Directors.