# ANKURA CAPITAL ADVISORS, LLC X-17A-5 (2023-03-03) — Broker-dealer annual report - Company: ANKURA CAPITAL ADVISORS, LLC - Form: X-17A-5 - Filed: 2023-03-03 - Period: 2022-12-31 - Accession: 0001144526-23-000001 - CIK: 1144526 - File #: 8-53403 - Type: Broker-dealer - Material weakness: No - Auditor: Plante & Moran, PLLC - Auditor location: Chicago, IL - Contact: Fredric Obsbaum - Phone: 212-897-1694 - Signed by: Brian Lenart (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1144526/000114452623000001/anca2022v2.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORMX-17A-5 PART** III | 0MB APPROVAL | |--------------------------| | 0MB Number: 3235-0123 | | Expires: Oct. 31, 2023 | | Estimated average burden | | hours per response: 12 | | SEC FILE NUMER | 8- 53403 **FACING PAGE** Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING **Q 1 /Q 1 /22** AND ENDING **12/31 /22** *MM/DDN Y* *MM/DDN Y* # **A. REGISTRANT IDENTIFICATION** # NAME oF FIRM: Ankura Capital Advisors LLC TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 485 Lexington Avenue - 10th Floor | (No. and Street) | | |----------------------------------------------|-------------------------------| | NY | 10017 | | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | (212) 897-1694 | obsbaum@integrated.so1utions | | (Area Code - Telephone Number) | (Email Address) | | | | | | B. ACCOUNT ANT IDENTIFICATION | INDEPENDENT PUBLIC ACCOUNT ANT whose reports are contained in this filing\* # Plante & Moran, PLLC | (Name - if individual, state last, first, and middle name) | | | | |------------------------------------------------------------|---------|---------|-------------------------------------------| | 1 O South Riverside Plaza | Chicago | IL | 60606 | | (Address) | (City) | (State) | (Zip Code) | | 10/20/2003 | | 166 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, ifapplicable) | #### **FOR OFFICIAL USE ONLY** \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(l)(ii), **if** applicable. **Persons who arc to respond to the collection of information contained** in **this form arc not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ # **Ankura Capital Advisors, LLC** Financial Statements and Supplementary Schedules Pursuant to Rule 17a-5(d) under the Securities Exchange Act of 1934 December 31, 2022 {2}------------------------------------------------ #### **AFFIRMATION** I, B (; c... *r-. L~c..,* r , swear (or affirm) that, to the best of my knowledge and belief. the financial report pertaining to Ankura Capital Advisors LLC as of 12/31/22 • 1s true and correct. I fut1her 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. **Signature** **cco Title** **OFFICIAL SEAL HEATHERINGEVALDSON NOTARY PUBLIC, STATE OF ILLINOIS MY COMMISSION EXPIRES: 03/0712026** {3}------------------------------------------------ # **This filing\*\* contains (check all applicable boxes):** - **CEI** (a) Statement of financial condition. - **D** (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable. - CEI (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). - **CEI** (d) Statement of cash flows. - CEl (e) Statement of changes in stockholders' or partners' or members' or sole proprietor's equity, as applicable. - **D** (f) Statement of changes in liabilities subordinated to claims of creditors. - **CE1** (g) Notes to unconsolidated or consolidated financial statements,, as applicable. - **CEI** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a- 1, as applicable. - **D** (i) Computation of tangible net worth under 17 CFR 240. I 8a-2. - **CEI** U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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 240.1 8a-4, as applicable. - D (1) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - CEI (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. l 8a-4, as applicable. - CEI (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-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240. l 5c3-3 or 17 CFR 240. l 8a-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. - ~ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-l 2, or 17 CFR 240.1 Sa-7, as applicable. - **D** (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **CEI** (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. - CE1 ( 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. l 7a-l2, 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. - CEI (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240. l 7a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240. l 5c3-J e or 17 CFR 240. l 7a-l 2, as applicable. - D (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.l 7a-12(k). D (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.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Sole Member Ankura Capital Advisors, LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Ankura Capital Advisors, LLC (the "Company") as of December 31 , 2022, the related statements of operations, changes in member's equity, and cash flows 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 , 2022 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. #### **Supplemental Information** The Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission and the Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission (the "supplemental information") have been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles 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 information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. ~ I *~I /Jl,.LC* We have served as Ankura Capital Advisors, LLC's auditor since January 2018. Chicago, Illinois February 28, 2023 ![](_page_4_Picture_13.jpeg) {5}------------------------------------------------ # **ANKURA CAPITAL ADVISORS, LLC Statement of Financial Condition December 31, 2022** | Assets
Cash
net of allowance for doubtful accounts of \$1,404
Accounts receivable -
Deferred contract costs
Prepaid expenses and other assets | 992,221
\$
27,017
74,606
56,828 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------| | Total assets | \$1,150,67
2 | | Liabilities and Member's Equity
Liabilities:
Accrued expenses and other liabilities
Deferred revenue
Payable to related party
Total liabilities | 16,000
\$
150,000
371,811
537,811 | | Member's equity | | | Member's equity | 612,861 | | Total liabilities and member's equity | \$1,150,672 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ # **ANKURA CAPITAL ADVISORS, LLC Statement of Operations For the year ended December 31, 2022** | Revenues | | |---------------------------|----------------| | Success fees | 61 1,044
\$ | | Reimbursement revenues | 7,082 | | Total revenues | 618,126 | | Expenses | | | Compensation and benefits | 212,546 | | Professional fees | 111,285 | | Insurance | 135,970 | | Information technology | 18,297 | | Rent expense | 43,140 | | Expense reimbursements | 7,082 | | Taxes and fees | 40,119 | | Other expenses | 33,084 | | Total expenses | €,01,523 | | Net income | 16,603
\$ | | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # **ANKURA CAPITAL ADVISORS, LLC Statement of Changes in Member's Equity For the year ended December 31, 2022** | Balance January 1, 2022 | 446,258
\$ | |------------------------------|---------------| | Non-cash capital contnbution | 150,000 | | Net income | 16,603 | | Balance December 31, 2022 | 612,861
\$ | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ # **Cash flows from operating activities** Net income Adjustments to reconcile net income to net cash provided by operating activities (Increase) decrease in operating assets Accounts receivable Deferred contract costs Prepaid expenses and others assets Increase in operating liabilities **Cash** Accrued expenses and other liabilities Deferred revenue Payable to related party Net cash provided by operating activities Beginning of year End of year \$ 16,603 (74,606) 150,000 183,707 808,514 \$ 992,221 36,688 660 11,000 43,362 **Non-cash financing activity:** Forgiveness of indebtedness by parent \$ 150,000 {9}------------------------------------------------ #### **1. Organization and Business** Ankura Capital Advisors, LLC (the "Company") is a wholly-owned subsidiary of Thoreau HoldCo, LLC ("Thoreau"), which is a wholly-owned subsidiary of Ankura Consulting Group, LLC ("ACG"). ACG is the primary operating entity of Ankura Holdings, LP ("Ankura") and provides support services to the Company through a shared services agreement. ACG is a wholly-owned subsidiary of Ankura Intermediate Holdings, LP, which is itself a wholly owned subsidiary of Ankura Holdings, LP. Ankura is global provider of a broad range of consulting services in the areas of strategy and performance; transformation, talent and transactions; data and technology; risk, forensics and compliance; disputes and economics; and turnaround and restructuring. The Company is a broker-dealer registered with the Securities and Exchange Commission (the "SEC'') and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company provides financial advisory services in connection with mergers, acquisitions and divestitures and placement agent services in connection with the private placement of securities. # **2. Summary of Significant Accounting Policies** # **Basis** of **Presentation** These financial statements were prepared in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. # **Basis of Accounting** Revenues and expenses are recorded on the accrual basis of accounting. #### **Cash** All cash deposits are held by one financial institution and therefore are subject to the credit risk at that financial institution. The Company has not experienced any losses in such accounts and does not believe there to be any significant credit risk with respect to these deposits. #### **Accounts Receivable** Accounts receivable consists of retainers and reimbursable expenses billed to customers but not yet paid. Management determines an allowance for doubtful accounts based on its assessment of the current status of individual accounts. #### **Deferred Contracts** Deferred contract costs consist of wages and other costs related to the fulfillment of a contract. Such costs are capitalized to the extent they are explicitly reimbursable by the customer and expensed when the related revenue is recognized. {10}------------------------------------------------ #### **2. Summary of Significant Accounting Policies (continued)** #### **Income Taxes** The Company is a single-member limited liability company and is treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code provides that any income or loss is passed through to the ultimate beneficial individual members for federal, state, and certain local income taxes. Accordingly, the Company has not provided for federal and state income taxes. There are no uncertain tax positions to be accounted for in accordance with Financial Accounting Standards Board guidance on income taxes as of December 31 , 2022. #### **Revenue Recognition** The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company provides financing and mergers and acquisitions advisory services. Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. #### **Significant Judgments** Revenue from contracts with customers includes comm1ss1on income and fees from investment banking and asset management services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### **Contract Assets and Contract Liabilities** The Company had contract assets in the amount of \$0 and \$74,606 at January 1, 2022 and December 31 , 2022, respectively. It had no contract liabilities at January l, 2022 and \$150,000 contract liabilities at December 31, 2022 respectively. {11}------------------------------------------------ # **3. Regulatory Requirements** The Company is subject to SEC Uniform Net Capital Rule J 5c3-I under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. At December 31, 2022, the Company had net capital of approximately \$454,000 which exceeded the required net capital by approximately \$418,000. The Company does not hold customers' cash or securities; therefore, it is not affected by SEC Rule 15c3-3. # **4. Related-Party Transactions** The Company has a service agreement with Ankura Consulting Group, LLC ("ACG"), an entity related through common ownership. Under the Agreement, the Company is provided with consulting personnel; office space; office-related equipment; administrative support such as technical, accounting, and bookkeeping; and such other services as the parties may agree to from time to time. Some of the personnel are registered with FINRA as representatives and principals of the Company to the extent required under FINRA rules. During 2022, \$284,446 of expenses were allocated pursuant to the Agreement and included consulting services at cost plus fringe benefits \$2 12,546, facilities of \$43,140 and other operating expenses of \$28,760. Certain expenses directly attributable to the Company are paid by the Parent and charged to the Company. During 2022, such expenses totaled \$0. In addition, the Company has a policy that assigns to ACG revenues for services that do not culminate in a securities transaction. Cash receipts for these services by the Company result in the Company owing ACG for amounts received. In certain situations, ACG may receive cash receipts on behalf of the Company related to revenue earned by the Company. The net amount payable to ACG related to the transactions described above was \$371,811 at December 31 , 2022. During 2022, the Parent forgave \$150,000 owed to it by the Company. The amount was classified as a capital contribution. # **5. Subsequent Events** The Company has performed an evaluation of events that have occurred subsequent to December 31, 2022 through the date these financial statements were issued. There have been no material subsequent events that would require recognition or disclosure in this report as of December 31, 2022. {12}------------------------------------------------ SUPPLEMENT ARY INFORMATION {13}------------------------------------------------ # **ANKURA CAPITAL ADVISORS, LLC Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission December 31, 2022** | December 31, 2022 | Schedule I | |---------------------------------------------------------------|---------------| | Member's equity | \$
612,861 | | Deductions | | | Accounts receivable | 27,017 | | Deferred contract costs | 74,606 | | Prepaid expenses and other assets | 56,828 | | Total nonallowable assets | 158,451 | | Net capital | 454,410 | | Minimum capital requirement (the greater of \$5,000 or 6 2/3% | | | of aggregate indebtedness) | 35,854 | | Excess net capital | \$
418,556 | | Aggregate indebtedness | \$
537811 | | Ratio of aggregate indebtedness to net capital | l.18 to I | There are no material differences between the computation of net capital presented above and the computation of net capital reported in the Company's unaudited Form X- 17 A-5, Part TIA as amended and filed on February 28, 2023. {14}------------------------------------------------ The Company does not hold customer cash or securities; therefore, it is not affected by SEC Rule l 5c3-3. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Sole Member Ankura Capital Advisors, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which Ankura Capital Advisors, LLC (the "Company") stated that: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240. 15c3-3. (2) The Company is relying on Footnote 74 of SEC Release No. 34;70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits its business activities exclusively to financial advisory services in connection with mergers, acquisitions, and divestitures and placement agent services in connection with the private placement of securities. The Company (1) did not directly or indirectly receive. hold, or otherwise owe funds or securities for or to customers (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year ended December 31 , 2022 without exception. Management is responsible for compliance with 17 C.F.R. §240.15c3-3 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 17 C.F .R. §240.15c3-3. 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, pursuant to Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5. Chicago, Illinois February 28, 2023 ![](_page_15_Picture_12.jpeg) {16}------------------------------------------------ To the best of its knowledge and belief, the Company states the following: - (I) The Company does not claim an exemption from 17 C.F.R. § 240.l 5c3-3; - (2) The Company is relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to financial advisory services in connection with mergers, acquisitions and divestitures and placement agent servicesin connection with the private placement of securities. - (3) The Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule l 5c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis \.\'here the funds are payable to the issuer or its agent and not to the Company): (2) did not carry accounts of or for customers: and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. **Signature** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.