Napier Park European Credit

Opportunities Fund

Fund Investment Objectives

The Fund is an opportunistic driven credit strategy seeking attractive risk-adjusted returns by investing in a portfolio of credit-based instruments primarily in leveraged loans, junior CLO tranches and high yielding bonds. The Fund will seek to employ a long bias with an overlay of macro hedges. Investment decisions are driven by deep fundamental analysis of companies coupled with a thorough understanding of a company's capital structure and debt instrument structure. The thesis behind each investment is typically catalyst and value driven, taking advantage of inefficiencies and dislocations across the corporate credit markets. Performance Notes: Napier Park European Credit Opportunities Fund Ltd (the "Master Fund" and formerly known as CCA European Credit Opportunities Fund Limited) started trading on September 1st, 2010. A substantial part of the assets comprising the initial portfolio of the Fund was purchased from Citi at independently verified market prices. Citi obtained the assets in 2008 upon liquidation of a levered credit fund with a different strategy. The portfolio manager and some of the members of the team that provides investment management services to the Fund also were involved with providing investment management services for the prior fund; Data for Napier Park European Credit Opportunities Fund Ltd (the "Master Fund" and formerly known as CCA European Credit Opportunities Fund Limited), represents the net return data for the Fund's Euro denominated A Shares of the Napier Park European Credit Global Feeder Ltd ("the Offshore Feeder") for the period from September 1, 2010 as at the month-end indicated on the first page of this report. For the periods from September 1, 2010 to December 31, 2013, performance information is based on an imputed calculation of a notional holding of Euro denominated A Shares of the Offshore Feeder, notwithstanding that such shares were issued originally on July 1, 2013. The notional returns are net of expenses, and are calculated based upon a 1.5% annual management fee and a 20% incentive allocation applicable to such shares. For the periods from January 1, 2014 onward, performance information is based upon an actual notional holding of Euro denominated A Shares of the Offshore Feeder and are determined by the Administrator. The returns are net of expenses, and are calculated based upon a 1.5% annual management fee and a 20% incentive allocation applicable to such Shares.