Herzfeld Credit Income Fund Business Summary

Herzfeld Credit Income Fund, Inc. (HERZ) is a non-diversified, closed-end management investment company that generates revenue through a specialized "CLO Equity Strategy," focusing on the acquisition of equity and junior debt tranches of collateralized loan obligations (CLOs). These structured credit instruments are backed by diversified portfolios of below-investment-grade U.S. senior secured loans, allowing the fund to capture high-yield distributions and interest income. The fund's primary objective is maximizing risk-adjusted total returns, supported by a managed distribution policy that transitioned to monthly payouts in early 2026 following a 10-for-1 reverse stock split. Within the competitive landscape, HERZ operates alongside income-focused peers such as Flaherty & Crumrine Preferred and Income Fund (PFO), Western Asset Investment Grade Income Fund (PAI), and John Hancock Investors Trust (JHI). It distinguishes itself by pivoting from its legacy Caribbean-focused equity mandate to a pure-play structured credit vehicle, positioning it as a high-conviction alternative for institutional and retail investors seeking exposure to the leveraged loan market. The fund is managed by Thomas J. Herzfeld Advisors, Inc., an investment firm founded in 1984 by Chairman Emeritus Thomas J. Herzfeld, a recognized pioneer in the closed-end fund industry. The current leadership team is led by President and Portfolio Manager Erik M. Herzfeld, who brings over two decades of experience in derivatives and FX options from JP Morgan Chase and Lehman Brothers. Key investment decisions are co-managed by Portfolio Manager Ryan Paylor, while the Board of Directors is chaired by Cecilia L. Gondor, a long-time industry analyst and former executive at the advisor. Other notable board members include Brigitta S. Herzfeld, whose pedigree includes roles at Goldman Sachs and Lehman Brothers, and Dr. Kay Tatum, an accounting expert from the University of Miami. As of February 2026, the advisor and its affiliates maintain a significant alignment of interest with shareholders, holding a beneficial ownership stake of approximately 38% in the fund.