Full text of TOWERBROOK FINANCIAL, L.P.'s X-17A-5 filed 2020-02-28 (period 2019-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## 1. Organization and Nature of Business TowerBrook Financial, L.P. (the "Partnership"), a Delaware limited partnership, was formed on May 19, 2011. The Partnership is owned 99% by TowerBrook Financial LP, LLC and 1% by the general partner, TowerBrook Financial GP, LLC (the "General Partner''), each of which are owned 100% by Tower Brook Capital Partners L.P. ("TCP"). The Partnership became registered as a broker dealer with the Securities and Exchange Commission ("SEC") on February 17, 2012 and is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Partnership does not carry customer securities accounts for customers or perform custodial services and, accordingly, claims exemptions from Rule 15c3-3 ofthe Securities Exchange Act of 1934 under Section (k)(2)(i). The Partnership operates in the United Kingdom ("UK") through its London branch, and is also an appointed representative for an affiliate, TowerBrook Capital Partners (U.K.) LLP ("SubAdvisor") for the purposes of the UK Financial Services and Markets Act 2000. The SubAdvisor is authorized and regulated by the UK Financial Conduct Authority ("FCA"). The Partnership and the SubAdvisor are under common control. The Partnership provides private placement marketing services and advice to TCP, the adviser of affiliated private equity funds (the "Affiliated Funds"). The Affiliated Funds are managed or advised by TCP or its investment advisory affiliates. #### 2. Significant Accounting Policies ## Basis of Presentation The financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The following is a summary of significant accounting policies used in preparing the financial statement: #### Use of Estimates The preparation of the financial statement in conformity with US GAAP 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 statement of financial condition. Actual results could differ from management's estimates and these differences could be material. #### Revenue and Expense Recognition The Partnership earns revenue based on a services agreement with TCP (Note 4). All revenues are billed and generally collected by the Partnership, or are settled net with expenses…Read the full text as markdown