# CVC FUNDING, LLC X-17A-5 (2021-02-12) — Broker-dealer annual report - Company: CVC FUNDING, LLC - Form: X-17A-5 - Filed: 2021-02-12 - Period: 2020-12-31 - Accession: 0001647525-21-000001 - CIK: 1647525 - File #: 8-69650 - Material weakness: No - Auditor: Mazars USA LLP - Auditor location: New York, NY - Contact: Dmitriy Rutitskiy - Phone: 2127514422 - Website: mazars.us - Signed by: Robert Squire (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1647525/000164752521000001/CVCpubl2020.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | | 8 - 69650 | | |---------------------------|-----------------------|--| | | SEC FILE NUMBER | | | hours per response 12.00 | | | | Estimated average burden | | | | Expires: October 31, 2023 | | | | | OMB Number: 3235-0123 | | | OMB APPROVAL | | | ### ANNUAL AUDITED REPORT FORM X-17A-5 PART III FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING | 01/01/2020 | AND ENDING | 12/31/2020 | |------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------|------------------------------| | | MM/DD/YYYYY | | MM/DD/YYYYY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | | | CVC FUNDING LLC | OFFICIAL USE ONLY
FIRM ID. NO. | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | 712 FIFTH AVE,45TH FL | | | | | (No. and Street) | | | | NEW YORK | NY | | 10019 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | (Area Code -- Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | MAZARS USA LLP | | | | | | (Name -- if individual, state last, first, middle name ) | | | | 135 West 50th Street | New York | NY | 10020 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE:
[x] Certified Public Accountant
Public Accountant
Accountant not resident in United States or any of its possessions | FOR OFFICIAL USE ONLY | | | | | | | | \*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2). > Potential 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 OMB control number. SEC 1410 (06-02) {1}------------------------------------------------ #### OATH OR AFFIRMATION | Robert Squire | swear (or affirm) that, to the | |---------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | | best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | CVC Funding, LLC
as of as of | | December 31, 2020 | , are true and correct. I further swear (or affirm) that neither the company | | | nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of | | a customer, except as follows: | | | | | | | | | | | | | | | | | | | Jignature | | | | | | CFO
Title | | Noha Moussa | | | Notary Public | NOHA M. MOUSSA
Notary Public, State of New York | | Notary Public, State of New York | No. 01M06320879
Qualifed in New York | | No. 01M06320879, Qualified in New York | Commission Expires March 9, 20 | | Commission expires 3/9/2023 | | | This report** contains (check all applicable boxes): | | | (a) Facing page. | | | (b) Statement of Financial Condition. | (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) | | | (d) Statement of Changes in Financial Condition. | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | (g) Computation of Net Capital. | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | (i) Information Relating to the Possession or control Requirements Under Rule 15c3-3. | | | | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | | solidation. | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of con- | | (1) An Oath or Affirmation. | | | (m) A copy of the SIPC Supplemental Report. | | | | (n) A report describing any material inadequacies found to have existed since the date of the previous audit. | | (o) Exemption report | | | | | \*\*For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {2}------------------------------------------------ # CVC Funding, LLC # (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC) Statement of Financial Condition Pursuant to Rule 17a-5(e)(3) under the Securities and Exchange Act of 1934 December 31, 2020 (With Reports of Independent Registered Public Accounting Firm Therein) {3}------------------------------------------------ # CVC Funding, LLC (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC) Index ### December 31, 2020 | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Tel: 212.812.7000 www.mazars.us ## Report of Independent Registered Public Accounting Firm #### To the Member of CVC Funding, LLC. #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of CVC Funding, LLC, (the "Company"), as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company, as of December 31, 2020, 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 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 statement is 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 statement, 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 statement. Our audit also included evaluating principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2018. New York, New York February 11, 2021 {5}------------------------------------------------ # CVC Funding, LLC (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC) Statement of Financial Condition December 31, 2020 #### ASSETS | Cash
Due from Parent, net
Furniture and Equipment, | ക്ക | 19,003,935
55,968 | |-----------------------------------------------------------------|-------|----------------------| | Net of accumulated depreciation of \$39,225
Prepaid Expenses | | 220,157
55,279 | | Total Assets | સ્ત્ર | 19,335,339 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities | | | | Accrued Expenses
Accounts Payable | ಲ್ಲಿ | 11,149,533
30,187 | | Total Liabilities | | 11,179,720 | | Member's Equity | | 8,155,619 | | Total Liabilities and Member's Equity | ಕಿ | 19,335,339 | {6}------------------------------------------------ # CVC Funding, LLC (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC) Notes to Financial Statement December 31, 2020 #### 1. Nature of business #### Nature of Business CVC Funding, LLC (the "Company"), is a State of Delaware limited liability company formed on June 3, 2015. The Company is wholly-owned by CVC Credit Partners LLC. (the "Parent"). The Company is registered as a brokerdealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company acts primarily as finder and/or placement agent to its own proprietary funds, as well as affiliated funds under Rule 506 of Regulation S. Fund sales in which the Company engages generally involves securities that are not registered with the SEC pursuant to the Securities Act of 1933 and that are offered by private equity funds or funds that are also not registered with the SEC pursuant to the Investment Company Act of 1940. ### 2. Summary of significant accounting policies #### Basis of Presentation The accompanying financial statement is presented in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entitled in exchange for those goods or services. The Company follows 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. The Company generates revenue the reimbursement of all operating expenses (excluding SIPC assessment and income taxes, if any) of the Company plus a mark-up of 10% under the service agreement with the Parent. Revenue is recognized and the performance obligation is satisfied when the underlying expenses have been incurred. #### Furniture and Equipment Furniture and Equipment are carried at cost, less accumulated depreciated using the straight line method based on their respective estimated useful lives. #### Income Taxes The Company is a single member Limited Liability Company and is treated as a disregarded entity for Federal and statellocal income tax purposes and therefore any income or loss is included in the consolidated federal and state/local income tax returns of the Company is not subject to federal and state income taxes. {7}------------------------------------------------ ### Notes to Financial Statement December 31, 2020 ### 3. Cash and concentration of credit risk In the normal course of business, the Company maintains its cash balances in one financial institution. The deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At December 31, 2020, the Company had \$18,753,935 in excess of the FDIC-insured limit. The Company is subject to credit risk should the financial institution be unable to fulfill its obligations. The Company has not experienced any losses in such accounts and management monitors the financial institution and does not anticipate any losses from this counterparty. ### 4. Related party transactions Pursuant to a service agreement, the Parent provides various services and other operating assistance to the Company. These include professional services, physical premises, utilities, the use of travel, insurance, accounting services, personnel and other general and administrative services. The Company is paid a service fee by the Parent based upon total expenses incurred. For the year ended December 31, 2020, the service fee earned was \$20,808,031. The right of offset was made effective January 1, 2018 between the Company and the Parent and effectively allowed for the offsetting of receivables and payables between the Company and the Parent. Therefore, only a net receivable related to the activity under this agreement is recorded on the statement of financial condition. The related receivable from the Parent at December 31, 2020 was \$55,968 and the net change from December 31, 2019 includes payments made by the Parent of approximately \$22,622,000. ### 5. Furniture and equipment The major classes of fixed assets as of the balance sheet date are as follows: | Asset Class | | Cost | Accumulated
Depreciation | Net | |-----------------------------------------------|----|----------------------|-----------------------------|-------------------| | Furniture & fixtures
Computers & equipment | ಕಾ | 172,987 \$
86.395 | (24,315) \$
(14.910) | 148.672
71.485 | | Total | ക | 259,382 \$ | (39,225) \$ | 220,157 | ### 6. Net capital requirement The Company is a member of FINRA and is subject to the SEC Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2020, the Company's net capital was approximately \$7,824,000, which was approximately \$7,079,000 in excess of its minimum requirement of approximately \$745,000. ### 7. Exemption from Rule 15c3-3 The Company has represented that it does not and will not hold customer funds or securities, and has not been subject to the reserve computation or possession and control provisions of Rule 15c3-3 of the Securities Exchange Act of 1934. {8}------------------------------------------------ # CVC Funding, LLC (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC) ### Notes to Financial Statement December 31, 2020 ### 8. Risks and uncertainties Political developments, natural disasters, public heath crises and other events outside of the Company control can also adversely, directly and indirectly, impact the Company and its affiliates in material respects. While the Company is not aware of any events that would result in an immediate impact to the day-to-day operations, the Company continues to monitor developments on the global spread of COVID-19 as additional information is obtained. ### 9. Contingencies The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2020, and through February 11, 2021. ### 10. Subsequent events The Company has evaluated events and transactions occurring subsequent to December 31, 2020. Management believes that no material events have occurred since December 31, 2020 through February 11, 2021, the date of the filing of this report that requires recognition or disclosure in the financial statement or related notes. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.