# HOWDEN TIGER CAPITAL MARKETS & ADVISORY, LLC X-17A-5 (2023-03-31) — Broker-dealer annual report - Company: HOWDEN TIGER CAPITAL MARKETS & ADVISORY, LLC - Form: X-17A-5 - Filed: 2023-03-31 - Period: 2022-12-31 - Accession: 0001616528-23-000003 - CIK: 1616528 - File #: 8-69523 - Type: Broker-dealer - Material weakness: No - Auditor: EisnerAmper LLP - Auditor location: New York, NY - Contact: Dmitriy Rutitskiy - Phone: 2127514422 - Email: drutitskiy@dfppartners.com - Website: dfppartners.com - Signed by: Jarad Madea (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1616528/000161652823000003/TigerRiskPublic2022.pdf --- {0}------------------------------------------------ ## **TIGERRISK CAPITAL STRATEGIES LLC** Financial Statement December 31 , 2022 and Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ #### UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response . . . 12.00 SEC FILE NUMBER ## **ANNUAL AUDITED REPORT FORM X-17 A-5 PART** Ill | SEC FILE NUMBER | | |-----------------|--| | 8 -69523 | | ## **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | 01/01/2022
------'- | AND ENDING | 12/31/2022
-----'---=------ | | | | |---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | MM/DD/YYYY | | MM/DD/YYYY | | | | | | | | | | | | NAME OF FIRM:
TIGERRISK CAPITAL STRATEGIES LLC | | | | | | | | | | | | | | | | | | | | | dealer | | | | | | | | | | | | | | | | | | | | | (No. and Street) | | | | | | | NY | | 10019 | | | | | (:State) | | (Zip Code) | | | | | | | | | | | | 212-751-4422 | | | | | | | (Area Code -- Telephone No.) | (Email Address) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | New York | NY | 10017 | | | | | (City) | (State) | (Zip Code) | | | | | | | 274 | | | | | | | (PCAOB Registration Number, ifnpplicnblc) | | | | | | | | | | | | | _,:
TYPE OF REGISTRANT (check all applicable boxes):
□ Security-based swap dealer
□ Check here if respondent is also an OTC derivatives
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
PERSON TO CONT ACT WITH REGARD TO THIS FILING
EisnerAmper LLP | ______
A. REGISTRANT IDENTIFICATION
□ Major security-based swap participant
1350 Avenue of the Americas, 33rd Floor
drutitskiy@dfppartners.com
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
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)(J)(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, | Jarad Madea
, swear (or affirm) that, to the best ofmy knowledge and belief, the financial report pertaining to | |----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | the firm of
Tigerrisk Capital Strategies LLC
, as of___ December 31 , 2022 | | | is true and correct. I further swear (or affirm) that neither the company nor any partner, officer. director.
or eouivalent oerson.
as the case may Tl-fr:'tfft'
.s'Xo~~~~~E~ | | | in any account classified solely as that of a | | | Netary Public, State
of New
York | | | No. 0JCO6l07957
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New York Counly
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21, 20d
CEO
Comm1ss1on
Expires May | | | Title
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~ | | | This filing** contains (check all applicable boxes): | | | @ (a) Statement of financial condition. | | | @ (b) Notes to consolidated statement of financial condition. | | 0 | (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). | | 0 | (
d) Statement of cash flows. | | 0 | (e) Statement of changes in stockholders' or partners' or sole proprietor's eouitv. | | 0 | (t) Statement of changes in liabilities subordinated to claims of creditors. | | | (g) Notes to consolidated financial statements. | | □ | (h) Computation of net capital under 17 CFR 240. I 5c3-1 or 17 CFR 240. l 8a-1. as applicable. | | □ | (i) Computation of tangible net worth under 17 CFR 240.1 Sa-2. | | □ | (i) Computation for determination of customer reserve reouirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | □ | (k) Computation for determination of securitv-based swap reserve reouirements pursuant to Exhibit B to
17 CFR 240.15c3-3 or | | □ | Exhibit A to 17 CFR 240.1 Sa-4. as applicable. | | 0 | (I) Computation for Determination of P AB Reouirements under Exhibit A to § 240. l 5c3-3. | | 0 | (m) Information relating to possession or control reouirements for customers under 17 CFR 240.15c3-3. | | 0 | (n) Information relating to possession or control reouirements for securitv-based swap customers under 17
CFR | | | 240.15c3-3(p)(2) or 17 CFR 240. l8a-4, as applicable. | | 0 | (o) Reconciliations. including appropriate explanations. of the FOCUS Report with computation of net capital
or tangible net | | | worth under 17 CFR 240. l5c3-1, 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. | | 0 | (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.
l 7a-5, 17 CFR 240. l 7a-12, or 17 CFR 240.18a-7. as applicable. | | 0 | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.l8a-7, as applicable. | | 0 | (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | @ (t) Independent public accountant's report based on an
examination of the statement of financial condition. | | 0 | (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. | | 0 | (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. | | 0 | (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. | | 0 | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or
17 CFR 240.17a-12. | | | as applicable. | | 0 | (y) Report describing any material inadeouacies found to exist or found to have existed since the date of the
previous audit. or | | 0 | a statement that no material inadeouacies exist. under 17 CFR 240. l 7a-12(k). | | | (z) Other: ______
_________
_
_________________ _ | *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240. l 7a-5(e)(3) or 17 CFR 240. l 8a-7(d)(2), as* applicable. {3}------------------------------------------------ ## **TIGERRISK CAPITAL STRATEGIES LLC** #### **Index** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | | | | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition | 3-6 | {4}------------------------------------------------ # ElSNER PER **EisnerAmper LLP** 733 Third Avenue New York, NY 10017 **T** 212.949.8700 F 21.2.891.4100 www.eisne1·arnper.cc m ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of TigerRisk Capital Strategies LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of TigerRisk Capital Strategies LLC (the "Company") as of December 31, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion .on the Company's financial statement 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 qbtaip reasonable assurance a.boutV\lh~therthe financial statement is free of material misstatemerit,wh~ther; .clu~ to ~rror or fraud. Our auditincluded performing .procedures to assess the risks of material rhisstatem~ntof the financial statement, whether·dueto 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 stc:1tement. Our audit also included evaluating the accounting principles used and significant estin:iates. mac:le by management, as well as evaluating the overall presentation of.the financial statement. We beiieve that our audit provides a reasonable basis for our opinion. *s~r1¥,-*~ r We have served as the Company's auditor since 2021 . **EISNERAMPER** LLP New York, New York March 30, 2023 "EisnerAmper" is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC provide professional services. EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an altemative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services, and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are not licensed CPA firms. {5}------------------------------------------------ ## **TIGERRISK CAPITAL STRATEGIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022** #### **ASSETS** | Cash
Accounts receivable
Prepaid expenses
Reimbursable client expenses | \$
4,473,901
1,839,176
339,367
26,817 | |---------------------------------------------------------------------------------------------------|---------------------------------------------------| | Total assets | \$
6,679,261 | | LIABILITIES AND MEMBER'S CAPITAL | | | LIABILITIES
Accounts payable and accrued expenses
Deferred revenue
Due to Parent Company | \$
3,023,381
175,000
257,041 | | Total liabilities | 3,455,422 | | MEMBER'S CAPITAL | 3,223,839 | | Total liabilities and member's capital | \$
6,679,261 | The accompanying notes are an integral part of this statement of financial condition. {6}------------------------------------------------ ## Note 1 . **ORGANIZATION** TigerRisk Capital Strategies LLC (the "Company"), a wholly-owned subsidiary of TigerRisk Partners LLC (the "Parent Company"), was formed on July 3, 2008, under the Delaware Limited Liability Act. The Company acts as a broker-dealer engaging in private placement of securities, merger and acquisition advisory services, and providing related financial services. The Company, which is a member of the Financial Industry Regulatory Authority ("FINRA") since May 2015, does not carry customer funds or securities. The Company is headquartered in New York, New York. On January 9, 2023, the Company's ultimate parent, Cavu Ultimate Holdings, LLC ("Cavu"), was acquired by Howden Group Holdings Limited ("Howden"), a privately held, leading international insurance group headquartered in London, United Kingdom. On January 20, 2023, the Company changed its name to Howden Tiger Capital Markets & Advisory, LLC. The Company operates by limiting its business activities to investment banking services contemplated by Footnote 74 of the SEC Release No 34-70073 adopting amendments to 17 C.F.R. §240.17a-5. ## Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ## Basis of Financial Statement Presentation: The accompanying financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies and reporting practices of the Company conform to the predominant practices in the broker-dealer industry. ## Estimates: The preparation of the financial statement in conformity with U.S. 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 financial statement. Certain amounts included in the financial statement are estimated based on currently available information and management's judgment as to the outcome of future conditions and circumstances. Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statement and actual results could differ from the estimates and assumptions. ## Cash: The Company maintains its cash balance in a bank deposit account at a major financial institution. Cash balances may periodically exceed the Federal Depository Insurance Corporation ("FDIC") insurance coverage limits. ## Revenue recognition: Revenue from contracts with customers includes fees from investment banking. 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. Investment banking revenues include fees earned from providing services related to mergers and acquisition, private placements, and financial advisory services provided to the Company's customers upon entering into an agreement. The Company recognizes investment banking fees in accordance with the terms of the related agreements. These agreements are generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is canceled. Retainers received from customers prior to recognizing revenue are reflected as deferred revenue. {7}------------------------------------------------ ## Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Leases: The Company evaluates its vendor agreements under U.S. GAAP applicable to leases, including its expense sharing agreement for the recognition criteria under this guidance. It was determined that during the year ended December 31 , 2022, no agreements or arrangements existed that would be classified as a lease under the guidance. ### Accounts Receivable: Customer accounts receivable are non-interest bearing uncollateralized investment banking fees receivable in accordance with the terms agreed upon with each customer. Since all of such fees receivables are believed to be fully collectible, no current expected credit losses are reflected in the accompanying financial statement (refer to Note 6). ## Income Taxes: The Company is a single member LLC and a disregarded entity for federal and state income tax purposes and generally would not incur income taxes or have any unrecognized tax benefits. Instead , its earnings and losses are reported by the members of Cavu , on their income tax returns in accordance with the laws of the applicable jurisdiction. As a result, the financial statement does not reflect a provision for income taxes. Cavu is subject to the New York City Unincorporated Business Tax (the "UBT"). As a portion of the liability associated with the UBT is the result of the operations of the Company, the UBT, which is calculated using currently enacted tax laws and rates , is recorded as an imputed expense or benefit. The Parent Company pays the UBT on behalf of Cavu and the Company is required to reimburse the Parent Company for the Company's portion of UBT. ## Note 3. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying values and estimates fair values at December 31 , 2022 of financial assets and liabilities, and information on their classification within the fair value hierarchy. At December 31 , 2022, the carrying values of the Company's financial instruments approximate their fair value due to their short term nature. | ASSETS
\$
\$
\$
\$
\$
Cash
4,473,901
4,473,901
4,473,901
Accounts receivable
1,839,176
1,839,176
1,839,176
TOTAL ASSETS
\$
6,313,077
\$
4,473,901
\$ 1,839,176
\$
\$
6,313,077
Total at
Carrying
estimated fair
amounts
Le.el 1
Le.el 2
Le.el 3
value
LIABILITIES
Accounts payable and
accrued expenses
\$
3,023,381
\$
\$ 3,023,381
3,023,381
\$
\$
Due to Parent Company
257,041
257,041
257,041
\$
\$
TOTAL LIABILITIES
3,280,422
\$ 3,280,422
\$
\$
3,280,422 | Carrying
value | Level 1 | Level 2 | Level 3 | Total at
estimated
fair value | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|---------|---------|---------|-------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {8}------------------------------------------------ ## Note 4. RELATED PARTY TRANSACTIONS The Company entered into an expense sharing agreement whereby expenses including the Parent Company's office, certain payroll and personnel expenses, and other general administrative services are paid for by the Parent Company and allocated back to the Company. The Company also reimburses the Parent Company for the UBT associated with the Company's operations. In addition, the Company paid certain expenses on behalf of the Parent Company and charged the Parent Company during the year ended December 31 , 2022. At December 31 , 2022, the Company had due to Parent Company in the amount of \$257,041 related to the above transactions, which are reflected on the accompanying statement of financial condition. Such payable is non-interest bearing and due on demand. ## Note 5. NET CAPITAL REQUIREMENTS The Company is a broker-dealer subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1 ), which requires the Company to maintain minimum "net capital" of 6-2/3% of "aggregate indebtedness" or \$100,000, whichever is greater, as these terms are defined. In addition, the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1. Net capital and aggregate indebtedness change daily. As of December 31 , 2022, the Company had net capital of \$1 ,018,479, which was \$799,784 in excess of its required net capital of \$218,695, and the ratio of aggregate indebtedness to net capital was 3.22 to 1. ## Note 6. CREDIT LOSSES ON FINANCIAL INSTRUMENTS The Company accounts for estimated credit losses on financial assets measured at amortized cost basis in accordance with Financial Accounting Standards Board ("FASB"), Accounting Standard Codification ("ASC") Topic 326 that requires management's measurement of the current expected credit loss ("CECL") to be based on a broader range of reasonable and supportable information for lifetime credit loss estimates including historical experience, current conditions, and supportable forecasts. **A** broker-dealer's estimate of expected credit losses should consider the expected risk of credit loss even if that risk is remote, regardless of the method applied to estimate credit losses. **A** broker-dealer, however, is not required to measure expected credit losses on a financial asset (or group of financial assets) in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is remote. ## **Accounts receivable** Accounts receivable represents investment banking fees receivable. In consideration of the historical lossrate of zero since inception for this asset class, while considering other current and future economic conditions, the Company assessed the risk of default from the customers to be virtually non-existent and considers any resultant allowance to be not material to the users of this financial statement. The Company will continue to evaluate the appropriateness of a credit loss allowance on this receivable as facts and circumstances may evolve. At December 31 , 2022 and 2021 , the accounts receivable amounted to \$1 ,839,176 and \$1 ,789,168 respectively. {9}------------------------------------------------ ## Note 7. EMPLOYEE BENEFIT PLAN The Company has a 401 (k) Plan whereby eligible employees are automatically enrolled at 6% employee contribution with an auto-escalation each year of 2% up to 10%, unless he/she opts out or elects a different contribution amount. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Company makes matching contributions equal to 100% of the first 2%, and 50% of the next 4% of the employees' contribution , and then management has the ability to make discretionary contributions above the matching contribution. All Company contributions are subject to a 3 year vesting schedule. Matching contributions cannot exceed defined limits set by the Company. ## Note 8. SUBSEQUENT EVENTS The Company has evaluated its subsequent events through March 30, 2023, the date that the accompanying statement of financial condition was available to be issued. On March 2, 2023 and March 8, 2023, the Company made distributions of capital in the amounts of \$3,500,000 and \$1 ,000,000, respectively. Other than the acquisition by Howden and subsequent name change disclosed in Note 1, there were no other subsequent events which would require disclosure in the footnotes to the statement of financial condition. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.