Monachil Credit Income Fund

Semi-Annual Report
For the Period Ended June 30, 2026

Monachil Credit Income Fund

Table of Contents

For the Six Months Ended June 30, 2026

	Consolidated Schedule of Investments (Unaudited)					1
	Consolidated Statement of Assets and Liabilities (Unaudited)					4
	Consolidated Statement of Operations (Unaudited)					6
	Consolidated Statements of Changes in Net Assets (Unaudited)					7
	Consolidated Statement of Cash Flows (Unaudited)					8
	Consolidated Financial Highlights (Unaudited)					9
	Notes to Consolidated Financial Statements (Unaudited)					10
	Fund Information (Unaudited)					22

Monachil Credit Income Fund

Consolidated Schedule of Investments (Unaudited)

As of June 30, 2026

Principal Amount				Value
			ASSET-BACKED SECURITIES – 4.7%
			COLLATERALIZED LOAN OBLIGATION – 1.2%
	$	250,000	New Mountain Guardian IV Rated Series 2023-1A, Class A2, 8.143% (3-Month Term SOFR+450 basis points), 8/22/20361,2,3,4		$	250,000
			CONSUMER ABS – 3.0%
		200,000	Auxilior Term Funding LLC Series 2023-1A, Class E, 10.970%, 12/15/20321,2			214,358
			Carvana Auto Receivables Trust
		1,000	Series 2023-P4, Class C, 6.550%, 12/10/20291,2			1,037
		1,000	Series 2024-P1, Class C, 5.570%, 7/10/20301,2			1,018
		1,000	Series 2024-P1, Class D, 6.250%, 3/10/20311,2			1,019
		100,000	CP EF Asset Securitization II LLC Series 2023-1X, Class C, 7.560%, 3/15/20322			101,585
		59,077	Foundation Finance Trust Series 2023-1X, Class D, 9.180%, 12/15/20432			62,569
		100,000	GLS Auto Receivables Trust Series 2023-2X, Class D, 6.310%, 3/15/20292			101,055
		90,190	Goodleap Sustainable Home Solutions Trust Series 2023-4CX, Class B, 7.970%, 3/20/20572			60,399
		100,000	OneMain Financial Issuance Trust Series 2023-2X, Class D, 7.520%, 9/15/20362			102,124
						645,164
			OTHER ABS – 0.5%
		104,267	Lunar Aircraft, Ltd. Series 2020-1A, Class A, 3.376%, 2/15/20451,2			103,060
			TOTAL ASSET-BACKED SECURITIES (Cost $986,974)			998,224
			BANK LOANS – 83.6%
			CONSUMER LOAN POOLS – 59.4%
		110,637	Capsource II Acquisition 12.000%, 1/24/20354			192,637
		5,126,160	Capsource Venture 12.170%, 3/21/20344			5,369,515
		413,005	Innovate Master Trust Series 2023-1 17.749%, 11/7/20364			168,372
		6,534,623	Stratus Financial LLC 12.568%, 8/6/20344,5			6,833,951
						12,564,475

Monachil Credit Income Fund

Consolidated Schedule of Investments (Unaudited) — Continued

As of June 30, 2026

Principal Amount				Value
			BANK LOANS (Continued)
			CONSUMER LOAN RECEIVABLES – 24.2%
	$	5,049,023	CSPV Portfolio of Receivables 30.401%, 10/3/20354		$	5,124,023
			TOTAL BANK LOANS (Cost $17,117,006)			17,688,498
Number of Shares
			COMMON STOCKS – 4.1%
			INVESTMENT COMPANIES – 4.1%
		8,500	BCP Investment Corp.			61,880
		10,000	CION Investment Corp.			62,300
		10,000	Crescent Capital BDC, Inc.			109,200
		5,000	FS KKR Capital Corp.			52,500
		10,000	Goldman Sachs BDC, Inc.			94,800
		10,000	Great Elm Capital Corp.			54,500
		10,000	MidCap Financial Investment Corp.			100,800
		8,000	Morgan Stanley Direct Lending Fund			120,960
		20,000	TCG BDC, Inc.			210,600
						867,540
			TOTAL COMMON STOCKS (Cost $1,046,516)			867,540
Principal Amount
			U.S. TREASURY BILLS – 13.1%
			GOVERNMENTS – 13.1%
			United States Treasury Bill
	$	350,000	3.626%, 7/21/2026			349,301
		450,000	3.596%, 8/11/2026			448,149
		1,450,000	3.620%, 9/10/2026			1,439,605
		550,000	3.593%, 10/29/2026			543,115
						2,780,170
			TOTAL U.S. TREASURY BILLS (Cost $2,780,514)			2,780,170
			TOTAL INVESTMENTS – 105.5% (Cost $21,931,010)			22,334,432
			Liabilities in Excess of Other Assets – (5.5)%6			(1,174,112)
			TOTAL NET ASSETS – 100.0%		$	21,160,320

BDC — Business Development Company

LLC — Limited Liability Company

SOFR — Secured Overnight Financing Rate

U.S. — United States

Monachil Credit Income Fund

Consolidated Schedule of Investments (Unaudited) — Continued

As of June 30, 2026

1 Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $570,492, which represents 2.7% of the total net assets of the Fund.

2 Callable.

3 Floating rate security, upon which the interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

4 Level 3 securities fair valued under procedures established by the Board of Trustees, represents 84.77% of Net Assets. The total value of these securities is $17,938,498.

5 Includes $224,328 value attributed to a credit support agreement with the issuer. See Note-2(f)

6 Includes Cash, Cash equivalents, Dividends and Interest, and Total liabilities.

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

As of June 30, 2026

Assets:
Investments, at value (cost $21,931,010)	$	22,334,432
Cash		218,144
Cash deposited with broker for Futures		110,775
Receivables:
Investment securities sold		1,144,964
Due from Investment Manager		130,406
Dividends and interest		71,992
Prepaid expenses		4,547
Total assets		24,015,260
Liabilities:
Payables:
Refundable margin (Note 2)		2,708,311
Legal fees		21,153
Investment Collections, Pending Allocation		18,676
Chief Compliance Officer fees		8,036
Auditing fees		7,611
Other accrued expenses		91,153
Total liabilities		2,854,940
Commitments and contingencies (Note 11)		—
Net Assets	$	21,160,320

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Unaudited) — Continued

As of June 30, 2026

Components of Net Assets:
Paid-in Capital	$	20,976,482
Total distributable earnings (deficit)		183,838
Net Assets	$	21,160,320
Maximum Offering Price per Share
Class I Shares:
Shares Outstanding
Shares of common stock issued and outstanding		2,099,287
Net asset value per share	$	10.08

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

For the Six Months Ended June 30, 2026

Investment Income:
Interest	$	746,900
Dividends		44,670
Total investment income		791,570
Expenses:
Investment Manager fees		130,187
Legal fees		92,210
Fund administration fees		35,853
Trustees’ fees and expenses		33,859
Shareholder reporting fees		30,711
Chief Compliance Officer fees		23,593
Registration fees		23,201
Custody fees		18,271
Transfer agent fees and expenses		17,015
Fund accounting fees		12,896
Auditing fees		7,611
Miscellaneous		19,266
Total expenses, before waivers and assumed expenses		444,673
Less: Investment Manager fees waived		(130,187)
Other expenses assumed by the Investment Manager		(130,406)
Fees paid indirectly (Note 3)		(1,823)
Net expenses		182,257
Net Investment income		609,313
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Investments		(9,966)
Foreign currency transactions		(876)
Futures contracts		7,016
Net realized loss		(3,826)
Net change in unrealized appreciation/depreciation on:
Investments		338,223
Foreign currency transactions		65
Futures contracts		3,136
Net change in unrealized appreciation/depreciation		341,424
Net realized and unrealized gain (loss) on investments		337,598
Net increase (decrease) in net assets resulting from operations	$	946,911

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	For the Six Months Ended June 30, 2026 (Unaudited)			For the Year Ended December 31, 2025
Increase (Decrease) in Net Assets From:
Operations:
Net Investment income		$	609,313		$	1,663,744
Net realized loss on investments			(3,826)			(58,814)
Net change in unrealized appreciation/depreciation on investments			341,424			280,793
Net increase in net assets resulting from operations			946,911			1,885,723
Distributions to Shareholders:
Distributions:
From net investment income:
Class I			(810,603)			(1,772,945)
Return of capital:
Class I			—			(161,130)
Total distributions to shareholders			(810,603)			(1,934,075)
Capital Transactions:
Sale of Shares
Class I			—			806,200
Reinvestment of distributions:
Class I			26,067			56,092
Shares Repurchased
Class I			—			(745,272)
Net increase in net assets from capital transactions			26,067			117,020
Total increase in net assets			162,375			68,668
Net Assets:
Beginning of period			20,997,945			20,929,277
End of period		$	21,160,320		$	20,997,945
Capital Share Transactions:
Sale of Shares
Class I			—			80,406
Shares reinvested:
Class I			2,613			5,624
Shares Repurchased
Class I			—			(74,561)
Net increase in capital share transactions			2,613			11,469

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2026

Increase (Decrease) in Cash
Net increase in net assets resulting from operations	$	946,911
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
Purchases of long-term portfolio investments		(11,841,471)
Sales of long-term portfolio investments		14,430,891
Purchases of short-term portfolio investments		(5,294,506)
Sales of short-term portfolio investments		3,491,597
(Increase) Decrease in Operating Assets:
Decrease in dividends and interest		54,116
Decrease in due from investment manager		33,209
Decrease in other receivable		45,111
Decrease in prepaid expenses		14,846
Change in variation margin on futures contracts (Note 2)		3,600
Increase (Decrease) in Operating Liabilities:
Decrease in obligation to return margin (Note 2)		(632,011)
Increase in investment collections, pending allocation		18,676
Decrease in auditing fees		(7,739)
Increase in legal fees		19,683
Increase in chief compliance officer fees		3,483
Increase in other accrued expenses		20,753
Net amortization on investments		(29,866)
Net realized (gain) loss on investments and foreign currency transactions		10,842
Net change in unrealized appreciation/depreciation on investments and foreign currency transactions		(338,288)
Net cash provided by (used for) operating activities		949,837
Cash flows provided by (used for) financing activities:
Dividends paid to shareholders, net of reinvestments		(784,536)
Cost of shares redeemed		(458,718)
Net cash provided by (used for) financing activities		(1,243,254)
Net decrease in cash and foreign currency		(293,417)
Cash and foreign currency:
Beginning of period		622,336
End of period	$	328,919
End of period Cash Balances
Cash		218,144
Cash Deposited with broker		110,775
End of period:	$	328,919

Non-cash financing activities not included herein consist of $26,067 of reinvested dividends.

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

CONSOLIDATED FINANCIAL HIGHLIGHTS

Per share operating performance.
For a capital share outstanding throughout each period.

	For the Six Months Ended June 30, 2026 (Unaudited)			For the Year Ended December 31, 2025			For the Year Ended December 31, 2024			For the Year Ended December 31, 2023			For the Period December 5, 2022* through December 31, 2022
Net asset value, beginning of period		$	10.01		$	10.04		$	10.09		$	10.02		$	10.00
Income from Investment Operations:
Net investment income1			0.29			0.79			1.232			0.98			0.07
Net realized and unrealized gain (loss) on investments			0.17			0.09			(0.19)			0.10			0.02
Total from investment operations			0.46			0.88			1.04			1.08			0.09
Less Distributions:
From net investment income			(0.39)			(0.83)			(0.96)			(1.01)			—
From return of capital			—			(0.08)			—			—			(0.07)
From net realized gain			—			—			(0.13)			—			—
Total distributions			(0.39)			(0.91)			(1.09)			(1.01)			(0.07)
Net asset value, end of period		$	10.08		$	10.01		$	10.04		$	10.09		$	10.02
Total return3			4.66%4			9.22%			10.96%			11.37%			0.91%4
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	21,160		$	20,998		$	20,929		$	20,709		$	14,436
Net investment income (loss) before waivers and assumed expenses			3.33%5			4.32%			7.51%			4.22%			(7.73)%5
Net investment income (loss) to average net assets			5.85%5			7.85%			12.23%			9.35%			9.41%5
Ratio of gross expenses to average net assets			4.27%5			5.98%			7.23%			7.91%			21.06%5
Ratio of net expenses to average net assets			1.75%5			2.45%6			2.52%6			2.78%			3.93%5
Portfolio turnover rate			57%4			71%			66%			136%			0%4

* Commencement of operations.

1 Based on average shares outstanding for the period.

2 Amount includes a non-recurring, one-time payment of litigation and recovery of previously paid expenses. The per share impact to the net investment income is $0.03.

3 Total return would have been lower had fees not been waived or absorbed by the Investment Manager. These returns do not reflect the deduction of taxes that a shareholder would pay on the Fund distributions or redemption of Class I Shares.

4 Not annualized.

5 Annualized.

6 The ratio of net expense to average net assets would have been 3.03% and 4.07% for the years ending December 31, 2025 and December 31, 2024, respectively, had the Investment Manager not voluntarily waived the incentive fee.

See accompanying Notes to Consolidated Financial Statements.

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

June 30, 2026

Note 1 — Organization

Monachil Credit Income Fund (“Fund”) was organized as a Delaware statutory trust on June 3, 2021, and operates under an Amended and Restated Agreement and Declaration of Trust dated July 13, 2022 (the “Declaration of Trust”). The Fund is registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as a non-diversified, closed-end management investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services — Investment Companies”.

The Fund operates as an interval fund, pursuant to Rule 23c-3, a type of fund that, in order to provide liquidity to shareholders, has adopted a fundamental investment policy to make quarterly offers to repurchase between 5% and 25% of its outstanding shares at net asset value (“NAV”).

The Fund commenced operations on December 5, 2022. Simultaneous with the commencement of the Fund’s operations, Wolf River INV LLC (the “Predecessor Fund”), a Delaware limited liability company, reorganized with, and transferred substantially all its assets and remaining liabilities into, the Fund in exchange for 1,431,157 Class I shares valued at $14,311,572. The Predecessor Fund had substantially the same investment objective and strategies as those of the Fund. The Fund and the Predecessor Fund share the same investment manager and portfolio managers. The Agreement and Plan of Reorganization was approved by the Fund’s Board of Trustees (the “Board”) on June 8, 2022. The reorganization was accomplished at the close of business on December 2, 2022.

Cash, interest receivable and securities of the Predecessor Fund were the primary assets received by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from the Predecessor Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amount distributable to shareholders for tax purposes.

Monachil Capital Partners LP serves as the investment manager (the “Investment Manager”) of the Fund. The Investment Manager is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended.

The Fund’s primary investment objective is to provide investors with current income and attractive risk adjusted returns with low correlation to the equity and fixed income markets.

The Fund has registered two separate classes of Shares designated as Class A (“Class A Shares”) and Class I (“Class I Shares”). Class A Shares and Class I Shares are subject to different fees and expenses. Only Class I Shares have been offered as of June 30, 2026.

(a) Consolidation of Subsidiary

The Fund may seek to provide exposure to certain securities that are not freely tradeable in the U.S., such as Regulation S securities, as well as certain other securities that can only be purchased or held by a non-U.S. person or where it may be advantageous for the asset to be held by a non-U.S. person (“other restricted non-U.S. securities”) by investing through Wolf River Cayman Ltd. and Taffy III Ltd., wholly owned and controlled subsidiaries. Wolf River Cayman Ltd. had no operations for the six months ended June 30, 2026. Taffy III Ltd. (the “Subsidiary”) may invest in Regulation S securities and other restricted non-U.S. securities. Regulation S securities are debt or equity securities of U.S. and foreign issuers offered through private offerings exempt from registration with the SEC pursuant to Regulation S of the Securities Act of 1933, as amended. Offerings of Regulation S securities may be conducted outside of the United States, and Regulation S securities may be relatively less liquid as a result of legal or contractual restrictions on resale. The Consolidated Statement of Operations, Consolidated Statements of Changes in Net Assets, Consolidated Statement of Cash Flows, and Consolidated Financial Highlights of the Fund include the accounts of the Subsidiary. All inter-company accounts and transactions have been eliminated in the consolidation for the Fund. The Subsidiary is advised by the Investment Manager and has the same

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

investment objective as the Fund. The Subsidiary may also hold cash and invest in other instruments, including fixed-income investments, which are not Regulation S securities or other restricted non-U.S. securities, either as investments or to serve as margin or collateral for the Subsidiary’s Regulation S or other restricted non-U.S. securities positions. Taffy III Ltd. transferred all assets and liabilities to the Fund on January 21, 2025 given that the Investment Manager determined that the use of Taffy III Ltd. was not currently needed for attempting to meet the Fund’s investment objective.

Note 2 — Accounting Policies

The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of its consolidated financial statements. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from these estimates.

(a) Valuation of Investments

Pursuant to Rule 2a-5, the Board has designated the Investment Manager as its valuation designee (“Valuation Designee”) to perform the fair value determinations relating to all the Fund’s investments. The Investment Manager may carry out its designated responsibilities as Valuation Designee through a committee. The Fund values its investments in accordance with valuation procedures of the Fund (“Valuation Procedures”) and the Investment Manager. Generally, portfolio securities and other assets for which market quotations are readily available are valued at market value, which is ordinarily determined on the basis of official closing prices or the last reported sales prices. If market quotations are not readily available or are deemed unreliable, the Fund will use the fair value of the securities or other assets as determined by the Investment Manager in good faith, taking into consideration all available information and other factors that the Investment Manager deems pertinent, in each case subject to the overall supervision and responsibility of the Board.

In calculating the Fund’s NAV, the Investment Manager, subject to the oversight of the Board, uses various valuation methodologies. To the extent practicable, the Investment Manager generally endeavors to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors. When valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment, and may involve alternative methods to obtain fair values where market prices or market-based valuations are not readily available. As a result, the Investment Manager may exercise a higher degree of judgment in determining fair value for certain securities or other assets.

The following is a summary of certain methods generally used currently to value investments of the Fund under the Fund’s Valuation Procedures:

The Fund values equity securities at the last reported sale price on the principal exchange or in the principal over the counter (“OTC”) market in which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if the last-quoted sales price is not readily available, the securities will be valued at the mean between the last available bid and ask price. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company.

Fixed-income securities with a remaining maturity of sixty (60) days or more for which accurate market quotations are readily available will normally be valued according to dealer-supplied bid quotations or bid quotations from a recognized pricing service. Other fixed-income securities may be valued by an outside pricing service overseen by the Investment Manager. The pricing service may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

characteristics. In the event prices or quotations are not readily available or that the application of these valuation methods results in a price for an investment that is deemed to be not representative of the fair value of such investment, fair value will be determined in good faith by the Investment Manager, in accordance with the valuation policy and procedures approved by the Board. To the extent these securities are actively traded, they are categorized in Level 2 of the fair value hierarchy.

Futures contracts are typically exchange traded and valued at the last reported sale on the principal exchange in which the security is traded. All other instruments held by the Fund will be valued in accordance with the Valuation Procedures.

If no price is obtained for a security in accordance with the foregoing, because either an external price is not readily available or such external price is believed by the Investment Manager not to reflect the market value, the Investment Manager will make a determination in good faith of the fair value of the security. In general, fair value represents a good faith approximation of the current value of an asset and will be used when there is no public market or possibly no market at all for the asset. The fair values of one or more assets may not be the prices at which those assets are ultimately sold and the differences may be significant.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

(b) Foreign Currency Translation

The Fund’s records are maintained in U.S. dollars. The value of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the reporting period. The currencies are translated into U.S. dollars by using the exchange rates quoted as of 4:00 PM Eastern Standard Time. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions.

The Fund does not isolate that portion of its net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market prices. Such fluctuations are included with net realized and unrealized gains or losses from investments and foreign currency.

Net realized foreign currency transaction gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.

The Fund may utilize forward foreign currency exchange contracts (“Forward Contracts”) under which it is obligated to exchange currencies on specified future dates at specified rates and is subject to foreign exchange rate fluctuations. All Forward Contracts are “marked-to-market” daily and any resulting unrealized gains or losses are recorded as unrealized appreciation or depreciation on foreign currency translations. The Fund records realized gains or losses at the time the Forward Contract is settled. Counterparties to these Forward Contracts are major U.S. financial institutions.

(d) Futures

A futures contract is a standardized agreement to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time, (“Futures Contract”). The value of a Futures Contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

on the terms of the particular contract, Futures Contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Fund’s initial investment in such contracts.

(e) Credit and Credit-Related Investments

The Fund invests in credit and credit-related instruments, including secured and unsecured consumer loans, direct loans to middle-market companies, syndicated loans, asset-based loans and leases, infrastructure and project finance loans, and other contractual cash flow assets. Such investments may include receivables and installment payment obligations relating to consumer, commercial, and infrastructure-related assets, as well as other non-mortgage-related contractual income streams.

(f) Credit Support Agreements

In connection with certain credit investment purchases, the Fund may enter into credit support agreements with counterparties. These agreements provide contractual credit enhancement in respect of specific investments or pools of investments and may include provisions pursuant to which a counterparty is obligated to repurchase or otherwise assume specified credit investments at contractually determined prices. Credit support agreements are entered into for credit risk management purposes and are intended to mitigate the Fund’s exposure to credit losses associated with the supported investments.

For accounting purposes, credit support agreements are recorded in accordance with the Fund’s fair value policies, with changes in value reflected in earnings, as applicable under the relevant accounting guidance.

(g) Refundable Margin Payable

The Fund may receive margin, in the form of cash or other eligible instruments, in connection with credit support agreements. Margin received is recorded as refundable margin payable on the Consolidated Statement of Assets and Liabilities and represents the Fund’s obligation to return such amounts in accordance with the contractual terms of the related agreements.

(h) Investment Transactions, Investment Income and Expenses

Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method.

(i) Federal Income Taxes

The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies (“RIC”), and to distribute substantially all of its net investment income and any net realized gains to its shareholders. However, the Fund did not qualify as a RIC for the period from the commencement of operations on December 5, 2022 through December 31, 2022 given the short time period since the Fund commenced operations. As such, the Fund was taxed as a corporation for the period from the commencement of operations on December 5, 2022 through December 31, 2022. The Fund has qualified as a RIC for each subsequent year, and intends to continue to qualify. Corporate taxes incurred by the Fund during the period it was not a regulated investment company were paid by the Investment Manager through fee waivers or expense reimbursements pursuant to the terms of the Expense Limitation and Reimbursement Agreement as detailed in Note 3. Due to the timing of

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

dividend distributions and the differences in accounting for income and realized gains and losses for consolidated financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Fund.

Accounting for Uncertainty in Income Taxes (the “Income Tax Statement”) requires an evaluation of tax positions taken (or expected to be taken) in the course of preparing the Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the consolidated financial statements. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Consolidated Statement of Operations.

The Income Tax Statement requires management of the Fund to analyze tax positions taken in the prior three open tax years, if any, and tax positions expected to be taken in the Fund’s current tax year, as defined by the IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the years ended December 31, 2023, December 31, 2024, December 31, 2025, and six months ended June 30, 2026, the Fund did not have a liability for any unrecognized tax benefits. The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

(j) Distributions to Shareholders

The Fund plans to make monthly distributions of substantially all of its net investment income. Distributions cannot be assured, and the amount of each distribution is likely to vary. Distributions will be paid at least annually in amounts representing substantially all of the net investment income not previously distributed in a monthly distribution and net capital gains, if any, earned each year.

(k) Segments

An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance and has discrete financial information available. The Fund’s Principal Executive Officer acts as the Fund’s CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the Fund’s long-term strategic asset allocation is pre-determined in accordance with the terms of the Fund’s single investment objective which is executed by the Fund’s portfolio manager. The financial information in the form of the Fund’s portfolio composition, total returns, expense ratios and changes in net assets, which are used by the CODM to assess the segment’s performance versus the Fund’s comparative benchmarks and to make resource allocation decisions for the Fund’s single segment, is consistent with that presented within the Fund’s consolidated financial statements. The total return and performance of the Fund is reflected within the accompanying Consolidated Financial Highlights. Segment assets are reflected on the accompanying Consolidated Statement of Assets and Liabilities as “total assets” and segment expenses are listed on the accompanying Consolidated Statement of Operations.

(l) Recent Accounting Pronouncements

In December 2023, the FASB issued Accounting Standard Update No. 2023-09, Income Taxes (ASC 740) Improvements to Income Tax Disclosures (“ASU 2023-09”). The primary purpose of the amendments within ASU 2023-09 is to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation table and income taxes paid information. The amendments in

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

ASU 2023-09 require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this ASU 2023-09 require that all entities disclose on an annual basis taxes paid disaggregated by federal, state, foreign, and individual jurisdiction (when income taxes paid is equal to or greater than five percent of total income taxes paid). During the six months ended June 30, 2026, no taxes were paid by the Fund.

Note 3 — Agreements and Related Party Transactions

The Fund entered into an Investment Management Agreement (the “Agreement”) with the Investment Manager. Under the terms of the Agreement, the Fund pays the Investment Manager an investment management fee (the “Management Fee”) that consists of two components: (i) an advisory fee (the “Advisory Fee”), and (ii) an incentive fee (the “Incentive Fee”). The Fund pays the Investment Manager a monthly Advisory Fee equal to 1.25% on an annualized basis of the Fund’s average daily Managed Assets (total assets of the Fund (including any assets attributable to borrowings for investment purposes) minus the sum of the Fund’s accrued liabilities (other than liabilities representing borrowings for investment purposes), for the period. The Advisory Fee is paid to the Investment Manager out of the Fund’s assets and decreases the net profits or increases the net losses of the Fund.

The Advisory Fee is paid to the Investment Manager before giving effect to any repurchase of Shares of the Fund effective as of that date and will decrease the net profits or increase the net losses of the Fund that are credited to its Shareholders. The Advisory Fee is accrued daily, is due, and payable monthly in arrears within ten (10) Business Days after the end of the month.

The Investment Manager does not receive separate compensation from the Subsidiary for providing it with investment management or administrative services.

The Incentive Fee is calculated and payable quarterly in arrears based upon the Fund’s “pre-incentive fee net investment income” for the immediately preceding fiscal quarter, as a percentage of the Fund’s average daily net assets. For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income accrued during the fiscal quarter, calculated in accordance with GAAP, minus the Fund’s operating expenses for the quarter. For such purposes, the Fund’s operating expenses will include the Advisory Fee, but will exclude the Incentive Fee and any distribution and/or shareholder servicing fees, litigation or any extraordinary expenses.

For the six months ended June 30, 2026, the Fund did not achieve the 6% APIF NII as defined below, and as such, there was no Incentive Fee.

The calculation of the Incentive Fee for each fiscal quarter is as follows:

	Annualized Pre-Incentive Fee Net Investment Income (“APIF NII”)			Portion of APIF NII Due to the Investment Manager as Incentive Fee
	6.00%			0%
	6.00% – 7.06%			100%
	Above 7.06%			15%

The Investment Manager has entered into an expense limitation and reimbursement agreement (the “Expense Limitation and Reimbursement Agreement”) with the Fund, whereby the Investment Manager has agreed to waive fees that it would otherwise have been paid, and/or to assume expenses of the Fund, if required to ensure the Total Annual Expenses (excluding the Management Fee, taxes, borrowing and other investment-related costs and fees paid to unaffiliated third parties including interest payments on borrowed funds, loan origination fees, loan servicing fees, loan collection and administration fees and expenses, interest and commitment fees, distribution or servicing fees, brokerage and distribution costs and expenses, acquired fund fees and expenses (as determined in accordance with SEC Form N-2), expenses incurred in connection with any merger or reorganization, and extraordinary or non-routine expenses, such as litigation

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

expenses) do not exceed 0.50% of the average daily net assets of Class I Shares. (the “Expense Limit”) through April 30, 2027. For a period not to exceed three years from the date on which a waiver is made, the Investment Manager may recoup amounts waived or assumed, provided it is able to effect such recoupment and remain in compliance with the expense limit in effect at the time of waiver or the expense limit in effect at the time of recoupment, whichever is lower. The Expense Limitation and Reimbursement Agreement is subject to renewal annually for one-year terms.

At June 30, 2026, the amount of these potentially recoverable expenses was $2,526,883. The Investment Manager may recapture all or a portion of this amount no later than December 31st of the year stated below:

2026	$	981,635
2027		659,728
2028		624,927
2029		260,593
Total	$	2,526,883

UMB Fund Services, Inc. (“UMBFS”) serves as the Fund’s fund accountant, transfer agent and administrator; and UMB Bank, n.a. an affiliate of UMBFS, serves as the Fund’s custodian.

The Fund’s allocated fees incurred for fund accounting, fund administration, transfer agency and custody services for the six months ended June 30, 2026, are reported on the Consolidated Statement of Operations. The Fund has a fee agreement with its custodian, UMB Bank, N.A., which provides for custody fees to be reduced by earnings credit based on cash balances left on deposit with the custodian. For the six months ended June 30, 2026, the fees waived were $1,823 of Custody fees. Such amount is reported as “Fees paid indirectly” on Consolidated Statement of Operations.

Distribution Services, LLC serves as the distributor of the shares of the Fund.

The Fund’s Chief Compliance Officer is an employee of Accredence, LLC.

Note 4 — Federal Income Taxes

At June 30, 2026, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes, were as follows:

Cost of investments	$	21,931,010
Gross unrealized appreciation		866,087
Gross unrealized depreciation		(462,665)
Net unrealized appreciation on investments	$	403,422

As of December 31, 2025, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	—
Undistributed long-term capital gains		—
Tax accumulated earnings		—
Accumulated capital and other losses		(17,604)
Unrealized appreciation on investments and foreign currency		65,134
Total accumulated earnings	$	47,530

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

The tax character of distributions paid during the fiscal year ended December 31, 2025 and December 31, 2024 were as follows:

	2025			2024
Ordinary income		$	1,772,945		$	2,277,319
Net long-term capital gains			—			—
Return of Capital			161,130			—
Total distributions paid		$	1,934,075		$	2,277,319

As of December 31, 2025, the Fund has a long-term capital loss carryforward of $17,604. To the extent that a fund may realize future net capital gains, those gains will be offset by any of its unused capital loss carryforward. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code Limitations. During the year ended December 31, 2025, the Fund utilized $412,420 of short term capital loss carryovers.

Note 5 — Investment Transactions

For the six months ended June 30, 2026, purchases and sales of investments, excluding short-term investments, were $11,841,471 and $15,592,183, respectively.

Note 6 — Indemnifications

In the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote.

Note 7 — Fair Value Measurements and Disclosure

Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or a liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement.

Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad Levels as described below:

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

•

Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

•

Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value is more subjective. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used, as of June 30, 2026, in valuing the Fund’s assets carried at fair value:

Monachil Credit Income Fund	Level 1			Level 2			Level 3			Total
Assets:
Investments
Asset-Backed Securities
Collateralized Loan Obligations		$	—		$	—		$	250,000		$	250,000
Consumer ABS			—			645,164			—			645,164
Other ABS			—			103,060			—			103,060
Bank Loans
Consumer Loan Pools			—			—			12,564,475			12,564,475
Consumer Receivables			—			—			5,124,023			5,124,023
Common Stocks			867,540			—			—			867,540
United States Treasury Bills			—			2,780,170			—			2,780,170
Total Assets:		$	867,540		$	3,528,394		$	17,938,498		$	22,334,432

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining value:

	Collateralized Loan Obligations			Consumer Loan Pools			Consumer Receivables
Balance as of December 31, 2025		$	225,000		$	14,840,471		$	6,284,528
Transfers Into Level 3			—			—			—
Transfers Out of Level 3			—			—			—
Total realized gain/(loss)			—			—			—
Change in unrealized appreciation/(depreciation)			—			424,689			75,000
Amortization			—			—			—
Net Purchases			25,000			1,084,380			10,181,422
Net Sales			—			(3,785,065)			(11,416,927)
Return of Capital			—			—			—
Balance as of June 30, 2026		$	250,000		$	12,564,475		$	5,124,023

The net change in unrealized appreciation (depreciation) from Level 3 securities held as of June 30, 2026 was $499,689.

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

Valuation techniques and unobservable inputs of Level 3 assets measured at fair value as of June 30, 2026 are as follows:

Fair Value as of
December 31,
2025

Valuation
Technique

Unobservable Input

Inputs

Weighted
Average
Inputs

Effect of value
of Increase in
Input

Assets

Collateralized Loan Obligations

250,000

Market Approach

Broker Quote

N/A

Consumer Loan Pools

12,564,475

Income Approach

Discount rate
Exit Scenarios

2.69% – 18%
$12.93 – $20.12

13.13%

Decrease

Consumer Receivables

5,124,023

Cost Approach

—

N/A

Note 8 — Derivatives and Hedging Disclosures

Derivatives and Hedging requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effects on the Fund’s financial position, performance and cash flows. The Fund invested in futures contracts during the period ended June 30, 2026.

The effects of these derivative instruments on the Fund’s financial position and financial performance as reflected in the Consolidated Statement of Assets and Liabilities and Consolidated Statement of Operations are presented in the tables below. There were no derivatives held by the Fund as of June 30, 2026.

The effects of the Fund’s derivative instruments on the Consolidated Statement of Operations for the period ended June 30, 2026 are as follows:

Realized Gain/Loss on Derivatives Recognized in Income

Derivatives not designated as hedging instruments	Futures Contracts			Total
Equity contracts		$	7,016		$	7,016
Total		$	7,016		$	7,016

Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income

Derivatives not designated as hedging instruments	Futures Contracts			Total
Equity contracts		$	3,136		$	3,136
Total		$	3,136		$	3,136

The quarterly average volumes of derivative instruments in the Fund as of June 30, 2026 are as follows:

Derivatives not designated as hedging instruments			Notional Value
Equity Futures – Short Contracts			$(901,575)

Note 9 — Disclosures about Offsetting Assets and Liabilities

Disclosures about Offsetting Assets and Liabilities require an entity to disclose information about offsetting and related arrangements to enable users of its consolidated financial statements to understand the effect of those arrangements on its financial position. The guidance requires retrospective application for all comparative periods presented for the Fund.

The Fund mitigates credit risk with respect to OTC derivative counterparties through credit support annexes included with International Swaps and Derivatives Association, Inc. (“ISDA”) which are the standard contracts governing most derivative transactions between the Fund and each of its counterparties. These agreements allow the Fund and each counterparty to offset certain derivative financial instruments’

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

payables and/or receivables against each other and/or with collateral, which is generally held by the Fund’s custodian. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the agreement. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.

The Fund’s Consolidated Statement of Assets and Liabilities presents financial instruments on a gross basis, therefore there are no net amounts and no offset amounts within the Consolidated Statement of Assets and Liabilities to present. There were no gross amounts of the financial instruments or corresponding amounts related to financial instruments/cash collateral not offset as of June 30, 2026.

Note 10 — Limited Liquidity

The Fund is a closed-end interval fund and, to provide liquidity and the ability to receive NAV on a disposition of at least a portion of Shares, makes quarterly offers to repurchase Shares. No shareholder will have the right to require the Fund to repurchase its Shares, except as permitted by the Fund’s interval structure. No public market for the Shares exists, and none is expected to develop in the future. Consequently, shareholders will not be able to liquidate their investment other than as a result of repurchases of their Shares by the Fund, and then only on a limited basis.

The Fund has adopted, pursuant to Rule 23c-3 under the Investment Company Act, a fundamental policy, which cannot be changed without shareholder approval, requiring the Fund to offer to repurchase at least 5% of its Shares at NAV on a regular schedule.

Data regarding the repurchase offers conducted by the Fund for the six months ended June 30, 2026 are as follows:

	Repurchase Offer	Repurchase Offer
Commencement Date	February 25, 2026	May 27, 2026
Repurchase Request	March 27, 2026	June 26, 2026
Repurchase Pricing date	March 27, 2026	June 26, 2026
Net Asset Value as of Repurchase Offer Date
Class I Shares	$9.96	$10.06
Amount Repurchased	$—	$—
Class I Shares	—	—
Percentage of Outstanding Shares Repurchased
Class I Shares	0.00%	0.00%

In addition, the Fund will accept the total number of Shares tendered in connection with required minimum distributions from an IRA or other qualified retirement plan. It is the Shareholder’s obligation to both notify and provide the Fund supporting documentation of a required minimum distribution from an IRA or other qualified retirement plan. For IRA investors an annual maintenance fee of $50 will be charged on all accounts.

Note 11 — Commitments and Contingencies

There were no investment commitments or unfunded commitments noted as “Commitments and contingencies” as reported on the Consolidated Statement of Assets and Liabilities as of June 30, 2026.

Note 12 — Control Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of the Fund creates a presumption of control of the Fund, under Section 2(a) 9 of the Act. As of June 30, 2026, a trustee and officer of the Trust owns approximately 56% and an unaffiliated shareholder owns approximately 40% of the outstanding Class I shares of the Fund.

Monachil Credit Income Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — Continued

June 30, 2026

Note 13 — Affiliated Transactions

The Fund may be prohibited under the 1940 Act from participating in certain transactions with its affiliates without the prior approval of the SEC. On May 27, 2026, the Fund, the Investment Manager and certain of their affiliates were granted an order for exemptive relief (the “Order”) by the SEC for the Fund to co-invest with other funds managed by the Investment Manager or certain affiliates, in a manner consistent with the Fund's investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors. Pursuant to such Order, the Fund generally is permitted to co-invest with certain of its affiliates if such co-investments are made on the same class of securities, at the same time and price, and with the same conversion, financial reporting and registration rights and substantially the same other terms, as further detailed in the Order. The Order requires that a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Board make certain findings when the Fund co-invests with its affiliates in an issuer where an affiliate of the Fund has an existing investment in the issuer, except in circumstances where the Fund already holds the same security and participates approximately pro rata with the applicable affiliates. The Order also requires Required Majority approval if the Fund disposes of an asset acquired in a transaction under the Order unless the disposition is made approximately pro rata with applicable affiliates or involves a Tradable Security. Pursuant to the Order, the Board will oversee the Fund's participation in the co-investment program. As required by the Order, the Fund has adopted, and the Board has approved, policies and procedures reasonably designed to ensure compliance with the terms of the Order, and the Investment Manager and the Fund's Chief Compliance Officer will provide quarterly, annual and material compliance-related reporting to the Board.

Note 14 — Risk Factors

An investment in the Fund involves various risks. The Fund allocates assets to investment funds that invest in and actively trade securities and other financial instruments using a variety of strategies and investment techniques with significant risk characteristics, including the risks arising from the volatility of the equity, fixed income, commodity and currency markets, the risks of borrowings and short sales, the risks arising from leverage associated with trading in the equities, currencies and over-the-counter derivatives markets, the illiquidity of derivative instruments and the risk of loss from counterparty defaults.

No guarantee or representation is made that the investment program will be successful.

Certain local, regional or global events such as war, acts of terrorism, the spread of infectious illnesses and/ or other public health issues, financial institution instability or other events may have a significant impact on a security or instrument. These types of events and others like them are collectively referred to as “Market Disruptions and Geopolitical Risks” and they may have adverse impacts on the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in general in significant and unforeseen ways. Some of the impacts noted in recent times include but are not limited to embargoes, political actions, supply chain disruptions, bank failures, restrictions to investment and/or monetary movement including the forced selling of securities or the inability to participate in impacted markets. The duration of these events could adversely affect the Fund’s performance, the performance of the securities in which the Fund invests and may lead to losses on your investment. The ultimate impact of “Market Disruptions and Geopolitical Risks” on the financial performance of the Fund’s investments is not reasonably estimable at this time. Management is actively monitoring these events.

Note 15 — Events Subsequent to the Fiscal Period End

In preparing these financial statements, management has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure or would be required to be recognized in the financial statements.

Monachil Credit Income Fund

FUND INFORMATION (Unaudited)

June 30, 2026

				TICKER			CUSIP
	Monachil Credit Income Fund – Class I Shares			MONIX			60886J200

Availability of Quarterly Portfolio Schedules

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The Fund’s Form N-PORT is available on the SEC website at www.sec.gov or without charge and upon request by calling the Fund at (855) 552-5520.

Proxy Voting Record

Information regarding how the Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling the Fund at (855) 552-5520 or by accessing the Fund’s Form N-PX on the SEC’s website at www.sec.gov.

Proxy Voting Policies and Procedures

A description of the Fund’s proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Fund at (855) 552-5520 or on the SEC website at www.sec.gov.

MONACHIL CREDIT INCOME FUND
c/o UMB Fund Services, Inc.
235 West Galena Street
Milwaukee, WI 53212
(855) 552-5520

	Investment Manager Monachil Capital Partners LP 1 Sound Shore Drive, Suite 303 Greenwich, CT 06830			Transfer Agent / Administrator UMB Fund Services, Inc. 235 West Galena Street Milwaukee, WI 53212
	Custodian Bank UMB Bank, n.a. 1010 Grand Boulevard Kansas City, MO 64106			Distributor Distribution Services, LLC 190 Middle Street, Suite 301 Portland, ME 04101
	Independent Registered Public Accounting Firm Tait, Weller & Baker LLP Two Liberty Place 50 S. 16th Street, Suite 2900 Philadelphia, PA 19102			Fund Counsel Vedder Price P.C. 1401 New York Avenue NW, Suite 500 Washington D.C. 20005

(registrant)	Monachil Credit Income Fund

By (Signature and Title)*	/s/ Ali Meli
	Ali Meli, President
	(Principal Executive Officer)

Date	September 8, 2026

By (Signature and Title)*	/s/ Ali Meli
	Ali Meli, President
	(Principal Executive Officer)

Date	September 8, 2026

By (Signature and Title)*	/s/ Charles S. Todd
	Charles S. Todd, Treasurer
	(Principal Financial Officer)

Date	September 8, 2026