# FRED ALGER & COMPANY, LLC X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: FRED ALGER & COMPANY, LLC - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0000313800-26-000006 - CIK: 313800 - File #: 8-15900 - Type: Broker-dealer - Material weakness: No - Auditor: Deloitte & Touche LLP - Auditor location: New York, NY - Contact: Robert Kincel - Phone: 201-547-3604 - Email: rkincel@alger.com - Website: alger.com - Signed by: Robert Kincel (SVP, Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/313800/000031380026000006/fac1232025.pdf --- {0}------------------------------------------------ Financial Statements and Supplemental Schedules As of and for the year ended December 3 I , 2025 (With Report of independent Registered Publ ic Accow1ting Fim1 Thereon) This report is prepared in accordance with Rule 17a-5(e)(3) under the ecurities Exchange Act of 1934. {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** > **ANNUAL REPORTS FORM X-17A-S PART** Ill | 0MB APPROVAL
0MB Number: 3235-0123 | | |---------------------------------------|----| | Expires: Nov. 30, 2026 | | | Estimated average burden | | | hours per response: | 12 | | SEC FILE NUMBER | |-----------------| | 8-15900 | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | MM/DD/YY | | | MM/DD/YY | |------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | (No. and Street) | | | | | NY | | | 10004 | | (State) | | | (Zip Code) | | | | | | | | | Rkincel@alger.com | | | | | (Email Address) | | | | | | | | | | | | | | | | | | | | | | | | | | 10112 | | | | | (Zip Code) | | | | | | | | | | I PCAOB Reg;m,,;o, N ,mbec, ;f appUca ble) | | | | | | | | FILING FOR THE PERIOD BEGINNING 01/01/2025
TYPE OF REGISTRANT (check all applicable boxes):
D Security-based swap dealer
□ Check here if respondent is also an OTC derivatives dealer
100 Pearl Street 27TH FL
PERSON TO CONTACT WITH REGARD TO THIS FILING
201-54 7 -3604
Deloitte & Touche LLP
(City) | A. REGISTRANT IDENTIFICATION
NAME oF FIRM : Fred Alger & Company, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
(Area Code - Telephone Number)
B. ACCOUNTANT IDENTIFICATION
New York
34
FOR OFFICIAL USE ONLY | AND ENDING 12/31/2025
D Major security-based swap participant
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
NY
{State) | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {2}------------------------------------------------ ## **OATH OR AFFIRMATION** I, Robert Kincel swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Fred Alger & Company, LLC , as of December 31 2~, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. > Ryan Craig Notary Public, State of New York Reg. No. 02CR0014306 Qualified in Kings County ,ommission Expires October 10, 2027 Signature: Title: ## **This filing\*\* contains (check all applicable boxes):** - **l!i!ii** (a) Statement of financial condition. - **l!i!ii** (b) Notes to consolidated statement offinancial condition. - **l!i!ii** (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - **l!i!ii** (d) Statement of cash flows. - **l!i!ii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - **l!i!ii** (g) Notes to consolidated financial statements. - **l!i!ii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - **l!i!ii** (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - **l!i!ii** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **l!i!ii** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **l!i!ii** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - **l!i!ii** (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **l!i!ii** (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5{e)(3) or 17 CFR 240.18a-7{d){2), as applicable. {3}------------------------------------------------ ## **Table of Contents** | | Page | |-----------------------------------------------------------------------------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1-2 | | Financial Statements: | | | Statement of Financial Condition | 3 | | Statement of Income | 4 | | Statement of Change in Member's Equity | 5 | | Statement of Ca h Flows | 6 | | otes to Financial Statements | 7-17 | | Supplemental Schedules | | | Schedule I - Computation of
et Capital Under 17 CFR 240.15c3-l | 18 | | Schedule II - Computation for Detern1ination of Customer Re erve Requirements pur uant to
Exhibit A to 17 CFR 240.15c3-3 | 19 | | Report of Independent Registered Public Accounting Firm Regarding Rule 15c3-3
Exemption Report | 20 | | Rule 15c3-3 Exemption Report | 21 | {4}------------------------------------------------ ## **Deloitte.** **Deloitte & Touche LLP** 30 Rockefeller Plaza New York, NY 10012-0015 USA Tel: 1 212 492 4000 Fax: 1 212 489 1687 www .deloitte.com ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Fred Alger & Company, LLC: ## **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Fred Alger & Company, LLC (the "Company") as of December 31, 2025, the related statements of income, cash flows, and changes in member's equity for the year then ended, and the related notes {collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America . ## **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board {United States) {PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ## **Report on Supplemental Schedules** The accompanying supplemental schedules of Computation of Net Capital Under 17 CFR 240.15c3- 1 and Computation for Determination of Customer Reserve Requirements pursuant to Exhibit A to 17 CFR 240.15c3-3 as of December 31, 2025, {collectively "the supplemental schedules") have been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental schedules are the responsibility of the Company's management. Our audit procedures included determining whether the supplemental schedules reconcile to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedules. In forming our opinion on the supplemental schedules, we evaluated {5}------------------------------------------------ whether the supplemental schedules, including their form and content, are presented **in** compliance with Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion, such schedules are fairly stated, in all material respects, **in** relation to the financial statements as a whole. March 2, 2026 We have served as the Company's auditor since 2023. {6}------------------------------------------------ ## Statement of Financial Condition As of December 31 , 2025 | Assets | | |---------------------------------------------------------|------------------| | Cash and cash equivalents (note 2b) | \$
3,103,414 | | Restricted cash ( note 2c) | 790,893 | | Financial instruments owned, at fa
ir value (note 3) | 37,713,034 | | Receivable from mutual funds (note 4) | 3,860,356 | | Due from affiliates (note 6) | 226,812 | | Prepaid compensation asset (note 11 b) | 2,004,827 | | Prepaid expenses and other assets (note 2k) | 3,254,690 | | Property and equipment, net (note 7) | 3,540,347 | | Total assets | \$
54,494,373 | | | | #### **Liabilities and Member's Equity** | 28,079,424 | |------------------| | 239,764 | | 28,319,188 | | | | | | 26,175,185 | | \$
54,494,373 | | | See accompanying notes to financial statements. {7}------------------------------------------------ ## Statement oflncome For the Year Ended December 31 2025 | Revenues: | | |-----------------------------------------|---------------------| | Mutual fund fees (note 4) | 25,222,918 | | Servicing fees (Sc) | 41,235,291 | | Brokerage commissions (note 4) | 2 840,816 | | Interest and dividends | 954,537 | | et gains from financial instruments | 2,838,244 | | Other income | 18, 1 79 | | Total revenues | 73,109,985 | | Expenses: | | | Compensation and benefits (note 11) | 24,138,267 | | Distribution and/or administration fees | 24,364,120 | | General and administrative expenses | 5,717,177 | | Advertising and marketing | 3,865,578 | | Sub criptions | 1,400,139 | | Occupancy | 1,463,378 | | Professional fees | 1,047,657 | | Trading costs | 777,885 | | Depreciation and amortization (note 7) | 621,295 | | Regulatory fees | 442,383 | | Communications | 321 ,261 | | Printing and supplies | 29,347 | | Total expenses | 64,188,487 | | et income | \$
8,921
,498 | See accompanying notes to financial statements. {8}------------------------------------------------ Statement of Changes in Member's Equity For the year ended December 31 , 2025 | | Total
Member's
Equity | |---------------------------------|-----------------------------| | Balance, January 1, 2025 | \$
38,084,907 | | oncash compensation (note 11 b) | (37,122) | | Dividends | (20,794,098) | | et income | 8,92
1,498 | | Balance, December 31
, 2025 | \$
26,175,185 | See accompanying notes to financial statements. {9}------------------------------------------------ Statement of Cash Flows For the year ended December 3 l, 2025 | Cash flows from operating activities: | | | |---------------------------------------------------------------|---------------------|--------------------| | et income | | \$
,921
,498 | | Adjustments to reconcile net income to net cash provided by | | | | operating activities: | | | | Depreciation and amortization | | 621 ,295 | | oncash compensation | | (37,122) | | Decrease (increase) in: | | | | Financia
l instruments owned at fair value | | 4,400,784 | | Receivable from mutual funds | | (508,093) | | Due from affiliates | | 6,215855 | | Prepaid compensation asset | | (2,004,827) | | Prepaid expense and other a
ets | | (861 117) | | Increa e (decrease) in: | | | | Accrued expenses and other liabilities | | 3 548,740 | | Due to Ultimate Parent and affi
liates | | (166,938) | | Net cash provided by operating activities | | 20,130,075 | | Cash flows from investing activities: | | | | Acquisition of property and equipment | | (409,145) | | et cash used in investing activities | | (409,145) | | Cash flows from financing activities: | | | | Dividends Paid | | (20,794,098) | | et cash used in financing activities | | (20,794,098) | | et decrea e in ca h | | (1 ,073 168) | | Cash, cash equivalents and restricted cash, beginning of year | | 4,967 475 | | Cash, cash equivalents and restricted cash, end of year | | \$
3, 94,307 | | | | | | Cash and cash equivalents decription | Begin.ni ng of year | End of year | | Cash and cash equivalent | 4,177,383 | \$
3,103,414 | | Re tricted cash | 790,092 | 790,893 | | Total cash cash equivalents and restricted ca h | \$
4,967,475 | \$
3,894,307 | See accompanying note to financial statements. {10}------------------------------------------------ Notes to Financial Statements December 31 , 2025 #### CONFIDE TIAL ### **(1) Organization** Fred Alger & Company, LLC (the Company) is a wholly owned subsidiary of Alger Group Holdings, LLC (the Parent). The Parent is a wholly owned subsidiary of Alger Associates, Inc. (the Ultimate Parent). The Company is a broker/dealer registered with the Securities and Exchange Commission (SEC) under the Securities and Exchange Act of 1934, as amended, and is a member of variou exchanges and the Financial Industry Regulatory Authority (FINRA). The Company acts as the principal underwriter of the mutual funds sponsored by Fred Alger Management, LLC (FAM). Among FAM's advisory customers are ix U.S. regi tered investment companies (Alger mutual funds): - The Alger Funds - The Alger Pmifolios - The Alger Fund II - Alger Global Equity Fund - The Alger Institutional Funds - The Alger ETF Trust The Company also effects transactions principally for the clients of FAM who elect to have the Company do so on their behalf. The Company clears these transactions on a fully disclosed basi through a third-party clearing broker. As a non-clearing broker-dealer, the Company does not maintain customers' accounts and does not hold cu tomers' funds or securities in cmmection with such transactions. ## **(2) Summary of Significant Accounting Policies** ## *(a) Use of Estimates* The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) which requires the Company to make estimates and assumptions based upon available infomrntion. These estimates and assumptions made could affect the amounts recorded in the financial statements provided and the disclosures presented. Actual results could differ from those estimates. Accounting estimates reflected in the financial statements include, among others, the Deferred Compensation costs and Distribution and/or admini tration fees. ## *(b) Cash and Cash Equivalents* The Company considers al l highly liquid investments, with original maturities of les than ninety days at acquisition as cash equivalents. The Company does not hold any cash equivalents at December 31 , 2025. Cash is held at major financial institutions and is subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation ("FDIC'') or Securities Investor Protection Corporation ("SIPC'') limitation . The Company manages this risk by maintaining it deposit with highly rated financial institutions. {11}------------------------------------------------ #### Notes to Financial Statements December 3 I, 2025 #### CONFIDENTIAL #### *( c) Restricted cash* Under the terms of the agreement between the Company, its clearing organization and counter-parties, balances owed to the e counterparties are collateralized by certain of the Company's cash balances that are considered to be restricted cash and that could be used to offset losses incurred by the clearing organizations on behalf of the Company' activities, if such losses were to occur. Deposits with clearing organizations and brokers are primarily held in cash, or highly liquid inve tments including money market funds. ## *(d) Valuation of Financial Instruments* Financial Accounting Standards Board Accounting Standards Codification 820 - Fair Value Measurement and **Di** clo ures ("ASC 820"') defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of ob ervable market data and minimize the use of unobservable inputs and to establish clas ification of fair value measurements for disclo ure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be ob ervable or unobservable. Observable inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions and reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs that reflect the Company's own assw11ptions based upon the best infom1ation available in the circumstances. The three-level hierarchy of inputs is summarized below. Level 1 - Valuations based on unadjusted quoted prices in active markets for identical as ets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing infom1ation on an ongoing basis. Valuation adjustments and block discounts are not applied to Level l instruments. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 inputs include: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical assets or liabilities traded in nonactive markets (i.e., dealer or broker markets); and (iii) inputs other than quoted prices that are observable or inputs derived from or corroborated by market data . Level 3 - Valuations based on inputs that are unob ervable and ignificant to the overall fair value measurement. The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors, including, for example, the type of financial instrument, whether the financia l instrument is new and not yet establi hed in the marketplace, and other characteristics particular to the transaction. 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 requires more judgment. Accordingly, the degree of judgment exercised by the Company in detennining fair value is greatest for instruments categorized in Level 3. {12}------------------------------------------------ otes to Financial Statements December 3 I , 2025 #### CO · lDENTIAL Fair value i a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that the Company believe market participants would u e in pricing the asset or liability at the mea urement date. The Company uses price and inputs that are current a of the measurement date, including during period of market di location. The Company held the following types of financial in truments as of December 31 , 2025: ## **Money Market Funds** The Company own an investment in a money market fund that is valued based on readily available and observable net a et values. Thi .investment is included in Level 1 of the fair value hierarchy. #### **Mutual Funds** The Company owns investments in various mutual funds advi ed by FAM that are valued ba ed on readily available and observable net a et values. The e investments are included in Level l of the fair value hierarchy. #### *(e) Securities Tran ·action* The Company records security tran actions on trade date. Dividend income i recognized on the ex-dividend date, and interest income is recognized on an accrual basis. Realized gain (los es) on the sales of securities are recognized using co t, calculated on a specific identification method. The Company has the ability to purchase securities on margin, however, they did not participate in any such transactions during the year ended December 31 , 2025 . #### *(/) Mutual Fund Fees: 12b-l and shareholder servicing f ees* These fees are earned by the Company for distribution, shareholder servicing, administrative and over ight services performed for the Alger mutual funds. l 2b- l fees earned for distribution and/or shareholder servicing for the Alger mutual funds are collected pur uant to plans operating under Rule I 2b-l of the Investment Company Act of 1940 a amended ( 12b-1 Plans). The Company al o earns shareholder servicing fees pursuant to agreements with certain Alger mutual funds. Contracts for these services exist between the Company and the Alger mutual funds to whom such services are provided. The contract price varies by fund and share class, but prices are stipulated in the applicable contracts and take the fom1 of a calculated fee (a percentage of account a ets). This fee is accrued on a daily basi by the Alger mutual funds and is part of each fund's daily Net Asset Value (NA V). The Company receives payment for these fees from the Alger mutual funds on a monthly basis. Performance obligations relating to the e fees are considered a series of distinct ervices that are substantially the same and are satisfied each day during the contract tern,. The e fees are largely pas ed through to third party distributor who di tribute or service the Alger mutual funds. {13}------------------------------------------------ #### Notes to Financial Statements December 31, 2025 #### CONFIDE TIAL #### *(g) Mutual Fund Fees: Sub-Transf er Agency f ees* The Company make payments to certain intennediarie that provide sub-accounting and ub-transfer agency ervices to omnibus accounts invested in the Alger murual funds. The e payment are based upon either the As et Under Management (AUM) or the number of accounts that the intem1ediary services. These payments are recorded in the Distribution and/or admini trative fees expen e line on the Company's Statement of Income. The Company is reimbursed a portion of these fees from the appropriate Alger mutual fund subject to certain limitations, as approved by the Alger mutual fund Boards of ru tee . As uch, the fee owed to the Company are accru d on a daily ba is by the Alger mutual fund and are part of the Alger mutual fund 's daily NA V. The Company receives payment from the Alger mutual fund ubsequent to the approval by the Alger mutual funds Board of Tru tees. These fees are recorded in the Mutual fund fees line item on the Company' Statement of Income. #### *(h) Brokerage comm is ·ions* Brokerage commission revenues are recorded on a settlement-date ba is, the effect of which is not materially different from a trade date ba i . ln addition to acting as the principal underwriter of the Alger mutual funds, the Company effects transactions as agent for the customer of FAM who elect to have the Company do so on their behalf. Brokerage commission income i earned by providing trade execution services through the Company for Alger mutual funds and eparately managed accounts that are managed by FAM. The Company clears these transactions on a fully disclo ed ba is through a third-party clearing broker. The effective contract price for such trades is the applicable commi sion rate for a specific trade. The revenue associated with the trades i earned as the trade is executed by the clearing broker. On trade date, the customer obtains control through a right to either own a security or receive payment for a sale. The e fees are collected on a monthly basis from the third-party clearing brokers. #### (i) *Distribution and I or administration f ees* The Company, in its capacity as the principal underwriter for the Alger mutual fund , pay fees to third party dealer who sell the Alger mutual funds to their customers. To the extent the fees paid do not exceed amounts collected from the lger mutual funds pursuant to 126-1 Plans they are incurred by the Company and included in Di tribution and I or administration fee on the Statement of Income. #### *(j) Depreciation and Amortization* Property and equipment are stated at cost, net of accw1rnlated depreciation. Depreciation relating to these assets is provided for primaiily by the straight-line method over their estimated useful lives, ranging from 5 to 14 years. Leasehold improvement are amortized by the straight-line method over the lesser of their economic useful lives or the tern, of the related lea es. #### *(k) Prepaid Expense and other assets* Prepaid expenses and other assets consist of prepaid insurance, prepaid subscriptions, prepaid regulatory fees, capitalized software costs, other prepaid operating expense , commi sions receivables and other receivables. {14}------------------------------------------------ #### otes to Financial Statement December 3 1, 2025 #### CONFIDE TIAL #### *(/) Segment Reporting* The Company acts primarily a the principal underwriter of the Alger mutual funds sponsored by FAM and effects tran actions principally for the clients of FAM who elect to have the Company do so on their behalf. The Company has identified its Chjef Financial Officer as the chief operating decision maker (''CODM"), who u es net income to evaluate the re ult of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM u e exce s net capital (see ate 9), whlch is not a measure of profit and los , to make operational decisions while maintairung adequate capital, uch as whether to pay dividends. The Company·s operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manage the business activities using information of the Company as a who le. The accounting policies used to measure the profit and loss of the egment are the same as those described in the ummary of sigruficant accounting policies. Servicing Fees derived from the affiliate. #### **(3) Financial Instruments owned, at Fair Value** The following presents the Company's financial instruments' fair va lue hierarchy as of December 31 , 2025 : | Assets | | Quoted prices
in active
markets for
identical assets
(Level I) | ignificant
other
inpu ts
(Lml 2) | ignificanl
observable unobservable
in puts
(Level 3) | Total | |------------------------------------|---|----------------------------------------------------------------------------|-------------------------------------------|---------------------------------------------------------------|--------------| | Financial instrumen t 01, ncd: | | | | | | | Money market fund | S | 9.008.73 1 | | | 9.008.731 | | Mutua l fund | | 28.704.303 | | | 28. 70-l.303 | | Total finan cial instruments owned | | 37,713,034 | | | 37,713,034 | There were no level 2 or 3 inve tments held during the year or level 2 or 3 purchase or transfers made during the year. #### **(4) Mutual fund fees, Brokerage commissions and receivables** A summary of mutual fund fees, brokerage commi sions and the corre ponding receivables for the year ended and as of December 31 , 2025 are as follows: {15}------------------------------------------------ #### ote to Financial Statements #### December 31, 2025 #### CONFIDENTIAL | Income earned
for the year | Amounts
receivab le | |-------------------------------|--------------------------------------| | | 1,741,604 | | | 490,311 | | 3,126,475 | 1,628,441 | | 322,199 | | | \$
25,222,918 | 3,860,356 | | Income earned
for the year | Amounts
receivable | | | 348,716 | | 175,551 | 15,715 | | \$
2,840,816 | 364,431
* | | \$
\$ | 17,064,390
4,709,854
2,665,265 | \*Brokerage commissions receivable are included in Prepaid expenses and other assets in the Statement of Financial Condition. #### **(5) Related Party Transactions** #### *(a) Directors and Officer* Certain employees of the Company are director and/or officers of the Alger mutual fund and Alger SICA V, a collective investment undertaking organized under the law of the Grand Duchy of Luxembourg for ale to non-U.S. citizens in certain European countries. The Alger SI AV i comprised of the fo llowing sub-funds: - 1. Alger SICA V Alger American Asset Growth Fund - 2. Alger SICA Y Alger Small Cap Focus Fund - 3. Alger SICA V Alger Dynamic Opportunities Fund - 4. Alger SICA V Alger Emerging Market Fund - 5. Alger SICA V Alger Weatherbie Specialized Growth Fund - 6. Alger SIC V Alger Focus Equity Fund - 7. Alger SICA V lger Mid Cap Focus Fund - 8. Alger SICA V Alger Global Equity Fund {16}------------------------------------------------ Notes to Financial Statements December 31, 2025 CONFIDE TIAL #### *(b) Revenue Transactions* The Company earn l 2b- **l** fees from the Alger mutual funds pursuant to the above as defined I 2b-l Plans. The Company also earns shareholder servicing fees pursuant to agreement with certain Alger mutual funds. These fee are included in Mutual fund fees in the Company' Statement of Income. Amounts receivable relating to these fees is included in Receivable from mutual funds on the Company' Statement of Financial Condition. The Company receives Sub-Transfer Agency fees from the Alger mutual funds, which represents a partial reimbursement of payments made to intem1ediaries that provide ub-accounting services to omnibus accounts invested in the Alger mutual funds. These fees are included in Mutual fund fees in the Company·s Statement of Income. Amounts receivable relating to these fee are includ d in Receivable from mutual funds on the Company· Statement of Financial Condition. The Alger mutual funds, Alger SICA V and certain institutional eparate account clients pay the Company brokerage commissions in connection with securities transactions. These fees are included in Brokerage commi sions in the Company"s Statement of Income. Amount receivable which relate to these fees are included in Prepaid expenses and other as ets on the Company's Statement of Financial Condition. The Company provide certain marketing support services to lger Management, Ltd. (A.ML), a U.K. registered investment advi or which i wholly owned by the Parent, for which it earns a fee. Such fees are included in Other Income on the Company's Statement of Income. Amounts receivable which relate to these fees are recorded in the Due from Parent and affiliates account on the Company' Statement of Financial Condition. A summary of income earned through related party tran actions for the year ended December 31, 2025, and receivables from related parties a of that date is a follows: {17}------------------------------------------------ otes to Financial Statements December 31, 2025 #### CONFIDE TIAL | Mutual fund fees: | | | |------------------------------|------------------|------------| | I 2b- I and hareholder | | | | servicing fee | \$
21,774.243 | 2,231 ,915 | | ub-T/A fees | 3,126,475 | 1,628,441 | | Total mutual | | | | fund fees | 24,900,718 | 3,860,356 | | ion fees:
Commi | | | | Brokerage commis ions | 2,665,265 | 348,716 | | Other Income: | | | | Admini tration and Marketing | 82.030 * | 8,554 | | Total related | | | | party | | | | income/ | | | | receivables | 27,648,013 | 4,217,626 | \* Related party Other Income is one of several account that compri e Other Income on the tatement of Income. One account ha a debit balance that offset the related party income on the Statement of Income. #### *(c) Servicing fees* Pursuant to an agreement with FAM, Servicing fees of 41 ,235,291 have been earned by the Company for the year ended December 3 I, 2025 . Under the term of the agreement, FAM pays a monthly asset-ba ed fee to the Company for its efforts in promoting, distributing and admjni te1ing certain product for which FAM receives management fee . These fee are accrued for on a monthly ba i and included in Servicing fees on the Company·s Statement of lncome. #### **(6) Due from affiliates and Due to Ultimate Parent and affiliates** The Company provides cash and or pays certain expenses to and on behalf of its affiliates. As of December 31 , 2025, the Company has a Due from affiliate of \$226,812. The amount due to the Ultimate Parent and affiliates wa 239,764. The Due to Ultimate Parent wa \$229,283 as a re ult of the Company' allocation of the liabilities associated with the Company's Equity and Phantom Equity compensation plan and \$10,481 due to affiliates for various expense allocation . {18}------------------------------------------------ ote to Financial Statements December 3 I, 2025 ## CO IDE TIAL ## **(7) Property and Equipment, et** | | Useful lives | Amount | |---------------------------------------------------|--------------|-----------------| | Leasehold improvements | 14 years | \$
3,175,707 | | Office machines | 5 years | 2,047,434 | | Furniture and fixtures | 7 years | 1,214,058 | | omputer software | 5 years | 771
,709 | | | | 7,208,908 | | Le
: accumulated depreciation and amortization | | (3,668,561) | | | | 3,540,347 | Depreciation and amortization expense for the year ended December 31 , 2025 was \$621 ,295. #### **(8) Accrued Expense and Other Liabilities** Accrued expenses and other liabilities con i t of the following at December 31 , 2025: | Equity plan payable | 10,690,929 | |---------------------------------------------|------------| | Accrued distribution fees | 5,515,372 | | Accrued bonus | 4,670,463 | | Incentive plan payable | 2,938,492 | | Incentive unit plan payable | 2,444,974 | | Other | 1,819,194 | | Total accrued expense and other liabilities | 28,079,424 | | | | #### **(9) Regulatory et Capital Requirements** The Company is subject to the et Capital Requirements of Rule I 5c3-l (the Rule), which requires the maintenance of minimum et Capital of the greater of 2% of Aggregate Debits or 250,000 a defined by the Rule. The Company ha elected to u e the alternative method pennitted by the Rule. At December 31 , 2025 the Company had net capital of \$9,143,555 which wa \$8,893,555 in excess of the minimum required. #### **(10) Income Taxes** The Company is a single member limited liability company treated as a disregarded entity that is included in the income tax return filed by the Parent and i not subject to income tax on a stand-alone basi . The Company applied the amendments prospectively, as permitted by the transition guidance in ASU o. 2019- 12. The Company has not included net current taxe receivables and net deferred tax a et in the Statement of Financial Condition nor has the Company recorded any income tax expense. {19}------------------------------------------------ otes to Financial Statements December 3 I, 2025 CO IDE TIAL #### **(11) Pension and Profit-Sharing Plans** #### *(a) 401 (k) Plan* The Company sponsors a contributory 40 I (k) plan. This plan includes all officer and full-time compensation contributed as pre-tax contributions subject to a maximum amount of I 0,000 for each participant. The Company's practice is to fund its obligation under the plan currently. Included in Compensation and benefits expense are employer contributions for the year ended December 31 , 2025 of \$308,652. #### *(b) Def erred Compensation Plan* The Ultimate Parent maintain nonqualified deferred compensation plans (the Plans) for certain employees of the Company and FAM. A more fully described in the Alger As ociates, Inc. Profit Participation Plan, a amended and restated December 31 , 2023 (Incentive Plan), and the individual Award Agreements, the Ultimate Parent may issue an award which i credited to the participant's "award account"' and vests after four year . Pur uant to the Incentive Plan, the award accounts are credited or debited with gains or losse based upon changes in values of notional investments in ce1tain Alger mutual funds elected by the plan participant. The participant is also eligible for a matching contribution of up to I 00% of the original award. Both the ve ting percentage attributable to the award and the level of matching contributions are based on growth in the consolidated pre-tax net operating income of the Ultimate Parent and its subsidiaries, as defined by the plan, and which may be adjusted by management according to the terms of the Incentive Plan. Upon the issuance of a grant, the Company records a prepaid compensation asset, which i included on the Statement of Financial Condition. Such assets are amortized on a straight-line basis over the appropriate ervice pe1iod and charged to Compensation and Benefit on the Statement of Income. At December 31 , 2025 , the Company recorded a Prepaid compen ation asset of \$2,004,827. The Company recognized fair value adjustments of \$933 665 in expense relating to the lncenti ve Plan. In 2009, the Ultimate Parent adopted the Alger Associates, Inc . Equity Plan (Equity Plan), a amended and restated as of December 18, 2018. Under the terms of the Equity Plan a portion of eligible participant's annual bonus compensation is converted into Alger quity Units (Units). Such Units participate in any dividend declared by the Ultimate Parent on a notional ba is as well a future appreciation or depreciation of the book value of the Ultimate Parent, as more fully described in the Equity Plan. Any award issued under the Equity Plan vests equally over four year . A portion of the value of the participant"s awards may be paid after seven years (if so elected by the recipient of the award) subject to certain further allowable deferral elections. If such deferral option is not elected the entire value of the award will be paid on the earlier of a .. termination of employment" or a ··change in contror· as uch tem1 are defined in the Equity Plan. The deferred liability for thi award is measured at fair va lue initially and subsequently until the award i paid. During the year ended December 31 , 2025, the Company recognized a reduction of \$894 915 in compensation expense relating to the Equity Plan. {20}------------------------------------------------ #### ote to Financial Statement ### December 31 , 2025 #### CO FIDE *TIAL* ln April 2010, the Parent adopted a ··Phantom Equity Grant Agreement" (Agreement) which granted phantom ownership of (5% initially, 5.2 48% currently) the combined fair market value of the Parent and its sub idiaries, as defined in the Agreement, to the Chief Executive Officer (the CEO) of the Ultimate Parent. Under the terms of the Agreement, the CEO participates in any dividend declared or distribution made by the Ultimate Parent on a notional basis a well as future appreciation or depreciation of th fair market value of the Ultimate Parent, as more fully described in the Agreement. The phantom equity grant d under this agreement is fully vested . The value of the phantom equity will be paid on the earlier of a "separation from rvice" or a '·change in control'' a such terms a-ce defined in the greement. During the year ended December 31 , 2025, the Company r cogruzed fair market value adjustments of 129 623 in compen ation expense relating to this Agreement. For the year ended December 31 , 2025, 37,122 was credited as capital and represents a capital contribution by the Company to the Ultimate Parent for the services rendered by the CEO. On February 15, 2022 (the ··Effective Date"), the Ultimate Parent entered into a deferred compensation agreement, the Alger A ociates, Inc. Incentive njt Plan (Incentive Unit Plan). As more clearly defined in the Incentive Plan agreement, the Ultimate Parent granted Alger Equity Units Incentive Unit (Units) which will participate in any dividend declared by the Ultimate Parent on a notional basis as well a future appreciation or depreciation of the book value of the Ultimate Parent. The Incentive Units shall vest in equal installment on the first five (5) anniversaries of the Effective Date. The deferred liability for this award i mea ured at book value initially and subsequently until the award is paid. During the year ended December 31 , 2025, the Company recogruzed \$1 ,189 914 in compensation expense relating to the Incentive Unit Plan. The Plans are intended to qualify under Section 409A of the Internal Revenue Code, which allows, among other things, for the participant to defer tax recogrution until such time as the award is distributed to the participant. #### **(12) Commitments and contingencies** During the year, the Company was not a party to, nor is currently a party to any legal proceedings incident to the ordinary course of business that would have an adverse effect on the business or financial condition of the Company. #### **(13) ubsequent Events** The Company has evaluated the need for di clo ures and/or adjustments to the financial statement resulting from subsequent events through March 2, 2026, the date the financial statements were available to be i ued. As a result of this evaluation, the Company found no subsequent events that necessitated disclosures in and/or adjustments to the financial statements. {21}------------------------------------------------ #### Schedule I #### **FRED ALGER & COMPANY, LLC** ## Computation of et Capital Under 17 CFR 240. l 5c3-l **December 31, 2025** Computation of net capital pursuant to Rule l 5c3-l | Total member's equity from Statement of Financial Condition | \$
26,175,185 | |------------------------------------------------------------------------------------|------------------| | Deductions and/or charges: | | | onallowable assets: | | | Receivables from afffiliates | 226,812 | | Other nonallowable assets | 8,778,651 | | Property & equipment, net | 3,540,347 | | Total nonallowable assets | 12,545,8 10 | | Net capital before haircuts | 13,629 375 | | Haircuts on securities: | | | Corporate bonds, mutual funds, money markets and exchange traded equity securities | 4,485,820 | | et Capital | \$
9,143,555 | | | | | Computation of alternative net capital requirement | | | Capital requirement of broker-dealer electing alternative method | 250,000 | | Total net capital requirement | 250,000 | | Excess
et Capital | 8,893,555 | | | | o material differences exist between the above computation of net capital and the computation of net capital reported in the Company's unaudited amended Form X-17 A-5, Part llA filing as of December 31, 2025 filed on March 2, 2026. {22}------------------------------------------------ ## Computation for Detennination of Cu tomer Re erve Requirement pursuant to Ex hibit A to 17 CFR 240. I 5c3-3 ## Year Ended December 31 , 2025 ## 0 FIDE TIAL ## **tatement of Exemption from Rule 15c3-3** The Company is exempt from the provi ions of Rule l 5c3-3 under the Securities Exchange Act of **l** 934, in that the Company's activities are limited to tho e set forth in the condition for exemption appearing in paragraph (k)(2)(ii) of the Rul e. The Company met the identified exemption provisions in 17 C.F.R. §240. **l** 5c3-3 (k) throughout the most recent fisca l year without exception. The Company is a lso filing this Exemption Report because the Company's other business act1v1t1es contemplated by Footnote 74 of the S C Release o. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are that (I) the company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) did not carry accounts of or for customers; and (3) did not carry P AB account (as defined in Rule I 5c3-3) throughout the most recent fiscal year without exception. See accompanying report of independent registered public accounting finn {23}------------------------------------------------ # **Deloitte.** **Deloitte & Touche LLP** 30 Rockefeller Plaza New York, NY 10112 USA Tel: +1212-492-4000 www.deloitte.com ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Fred Alger & Company, LLC: We have reviewed management's statements, included in the accompanying Fred Alger & Company, LLC's Exemption Report (the "Exemption Report", in which {1) Fred Alger & Company, LLC (the "Company") identified the following provisions of 17 C.F.R. § 240.15c3-3{k) under which the Company claimed exemption from 17 C.F.R. § 240.15c3-3: paragraph (k){2){ii) (the "exemption provisions") and {2) the Company stated that the Company met the identified exemption provisions throughout the year ended December 31, 2025, without exception . The Company's management is responsible for compliance with the exemption provisions and its statements. We have also reviewed management's statements, included in the Exemption Report, in which the Company stated that it is also filing the Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 {"Footnote 74") throughout the year ended December 31, 2025, without exception . The Company's management is responsible for its compliance with the eligibility requirements to file an Exemption Report in reliance on Footnote 74 for its other business activities and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board {United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions and the Company's compliance with the eligibility requirements to file an Exemption Report in reliance on Footnote 74 for its other business activities. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion . Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k){2){ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and Footnote 74. March 2, 2026 {24}------------------------------------------------ ## **Fred Alger & Company, LLC's Exemption Report CO FIDE TlAL** Fred Alger & Company, LLC (the ·'Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange ommission ( 17 C.F.R. § 240.17a-5, "Reports to be made by certain brokers and dealers""). This xemption Report wa prepared as required by 17 C.F.R. § 240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - **(1)** The Company claimed an exemption from 17 C.F.R. § 240. I 5c3-3 under the following provisions of 17 C.F.R. 240. l 5c3-3 (k)(2)(ii). - **(2)** The Company met the identified exemption provisions in 17 C.F.R. 240.15c3-3(k) throughout the most recent fiscal year without exception. - **(3)** The Company i al o filing this Exemption Report because the Company·s other busine activitie contemplated by Footnote 74 of the SEC Release o. 34-70073 adopting amendment to 17 C.F .R. 240.17a-5 are that (I) the company did not directly or indirectly receive hold, or otherwise owe fund or securities for or to customer , (2) did not carry accounts of or for customers; and (3) did not carry P AB accounts (a defined in Rule I 5c3-3) throughout the mo t recent fiscal year without exception. I Robert Kincel, affinn to that, to my best knowledge and belief, this Exemption Report i true and correct. Robert Kincel Chief Financial Officer Fred lger & Company, LL March 2, 2026 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.