# CVC FUNDING, LLC X-17A-5 (2024-02-08) — Broker-dealer annual report - Company: CVC FUNDING, LLC - Form: X-17A-5 - Filed: 2024-02-08 - Period: 2023-12-31 - Accession: 0001647525-24-000001 - CIK: 1647525 - File #: 8-69650 - Type: Broker-dealer - 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/1647525/000164752524000001/cvcpublic2023.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | | 0MB APPROVAL | | |-------------|-----------------------------|-----------------| | 0MB Number: | | 3235-01 23 | | | Expires: November 30, 2026 | | | | Estimated average burden | | | | hours per respanse . 12.00 | | | | | SEC FILE NUMBER | | | 8 - 69650 | | | | | | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART** Ill **FACING PAGE** **Information Required Pursuant to Rules l7a-5, l7a-12, and 18a-7 under the Securities Exchange Act of 1934** | | 01/01 /2023 | AND ENDING | 12/31/2023 | |---------------------------------------------------------------------------|-----------------------------------------------------------|-----------------|--------------------------------------------| | REPORT FOR THE PERIOD BEGINNING | -------
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MM/DD/YYYY | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: | | eve FUNDING LLe | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | D Security-based swap dealer
X Broker-dealer | D Major security-based swap participant | | | | □ Check here ifrespondent is also an OTC derivatives dealer | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | 712 FIFTH AVE, 45TH FL | | | | | (No. and Street) | | | | | NY | | 10019 | | NEW YORK | (State) | | (Zip Code) | | (City) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | (Name) | (Area Code -- Telephone No.) | (Email Address) | | | | B. ACCOUNTANT IDENTJFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | MAZARS USA LLP | | | | | (Name- if individual, state last, first, and middle name) | | | | 135 West 50th Street | New York | NY | 10020 | | (Address) | (City) | (State) | (Zip Code) | | | | | 339 | | 10/8/2003
(Date of Rcgismuion with PCAOBXifapplicable) | | | (PCAOB Registration Number, if applicable) | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | *\*Claims f01: exemptio/1 from 1he requirement that the annual reports be covered by the reports of an independe.111 public accou111an1 must be supported by a statement of facts a11d circumstances relied on. as the basis of the exemption. See 17 CFR 240.l 7a-5(e)(J)(ii), if applicable.* **Persons who ara to raspond to the collection of information contained in this form are not raquired to respond unless the form displays a currently vaUd 0MB control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, | Robert Squire | , swear (or affirm) that, to the best ofmy knowledge and belief, the financial report pertaining to
r 31 2023
, as of___ Dece | |-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | | eve Funding, LLe
the firm of | uivale | | | is true and correct. I further swear ( or affirm) that neither the company nor any partner, officer, director, | person, | | | as ~-~"'-1~14;-Elizabeth Raju | | | | NOTARY PUBLIC, STATE OF NEW YORK | | | | Registration No. 01 RA6428591 | | | | Qualmed in New York County | | | | Commission Expires January 24, 2026 | | | | NotaryPublic
~
~ | | | | This filing** contains (check all applicable ~es): | | | | (ig (a) Statement of financial condition. | | | | @ (b) Notes to consolidated statement of financial condition. | | | D | (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 | (
d) Statement of cash flows. | | | D | e) Statement of changes in slockholders' or partners' or sole proprietor's eauity.
( | | | D | (f) Statement of changes in Ii.abilities subordinated to claims of creditors. | | | D | (g) Notes to consolidated financial statements. | | | D | (h) Computation ofnet capital under 17 eFR 240.15c3-1 or 17 eFR 240.1 Sa-1. as applicable. | | | D | (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | D | (i) Computation for determination of customer reserve reauirements pursuant to Exhibit A to 17 eFR 240.15c3-3. | | | D | | (k) Computation for determination of security-based swap reserve reouirements 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 Detennination of PAB Requirements under Exhibit A to§ 240.15c3-3. | | | D | (m) .l.nformation relating to possession or control reouirements for customers under 17 CFR 240.15c3-3. | | | D | (n) Information relatinl!. to possession or control requirements for security-based swap customers under 17 CFR | | | | 240. I 5c3-3(p)(2) or 17 CFR 240. l8a-4, as applicable. | | | D | | (o) Reconciliations. including appropriate explanations. oft11e FOCUS Report with computation ofnet capital or tanl!.ible net | | | | worth under 17 CFR 240.15c3- I. 17 CFR 240. l Sa-l. or 17 CFR 240. l 8a-2, as applicable, and the reserve reauirements 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 | | | | | | D | exisL
(p) Summarv of financial data for subsidiaries not consolidated in the statement of financial condition. | | | Iii | (a) Oath or affirmation in accordance with 17 CPR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. | | | D | (r) Compliance report in accordance with 17 CPR 240.17a-5 or 17 CFR 240.l8a-7, as applicable. | | | D | (s) Exemption report in accordance wiU1 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | (ig (l) Independent public accountant's report based on an examination of the statement offmancial condition. | | | D | (u) Independent public accountants report based on an examination of the fmancial report or financial statements under 17 | | | | CFR 240. I 7a-5. 17 CPR 240.18a~7. or 17 CFR 240. l 7a-12. as applicable. | | | | (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | D | | | | | CFR 240. I 7a-5 or 17 CFR 240.1 Sa-7. as applicable.
(w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 or 17 | | | D | | | | | CFR 240.18a-7. as applicable. | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, | | D | | | | | as applicable. | (v) Report describing any material inadeouacies found to exist or found to have existed since the date of the previous audit, or | | D | | | | | a statement that oo material inadeQuacies exist, under 17 CFR 240. l 7a-l2(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. {2}------------------------------------------------ # **eve Funding, LLe** # **(A Wholly-Owned Subsidiary of eve Credit Partners, LLC)** Statement of Financial Condition Pursuant to Rule 17a-5(e)(3) under the Securities and Exchange Act of 1934 December 31, 2023 (With Reports of Independent Registered Public Accounting Firm Therein) {3}------------------------------------------------ # eve Funding, LLe **(A Wholly-Owned Subsidiary of eve Credit Partners,** LLC) **Index** ### **December 31, 2023** | Accounting Firm
Public
Independent Registered
Report of | | |------------------------------------------------------------------|-----| | Statement
Financial | 2 | | Statement of Financial Condition | 3-6 | | Notes to Financial Statement | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Mazars USA LLP 135 West 50th Street New York, New York 10020 Tel: 212.812.7000 www.mazars.us # **Report of Independent Registered Public Accounting Firm** **To the Member of eve Funding, LLe.** #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of CVC Funding, LLC, (the "Company"), as of December 31, 2023, 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, 2023, 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 the accounting 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 7, 2024 {5}------------------------------------------------ # eve Funding, LLe **(A Wholly-Owned Subsidiary of eve Credit Partners,** LLC) **Statement of Financial Condition December 31, 2023** #### **ASSETS** | Cash
Due from Parent, net | \$
21,189,002
8,223,920 | |-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------| | Furniture and Equipment,
Net of accumulated depreciation of \$177,578
Right of Use Assets
Prepaid Expenses
Other Assets | 140,965
73,238
76,198
334 | | Total Assets | \$
29,703,657 | | LIABILITIES AND MEMBER'S EQUITY
Liabilities | | | Accrued Expenses
Lease Liabilities
Accounts Payable | \$
15,672,890
83,216
88,594 | | Total Liabilities | 15,844,700 | | Member's Equity | 13,858,957 | | Total Liabilities and Member's Equity | \$
29,703,657 | See accompanying notes to financial statement. {6}------------------------------------------------ # **eve Funding, LLe (A Wholly-Owned Subsidiary of CVC Credit Partners, LLC)** ### **Notes to Financial Statement December 31 2023** #### **1. Nature of business** #### Nature of Business eve 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 D and 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 the financial statement in conformity with 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 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 ("ASe 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 entity expects to be 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. #### **Services Income from Parent** The Company generates revenue through 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. #### **Underwriting Income** Fees from underwriting are recognized in accordance with the terms of the related investment banking and advisory service 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. There were no underwriting activities in 2023. {7}------------------------------------------------ # **eve Funding, LLe (A Wholly-Owned Subsidiary of eve Credit Partners, LLC)** ## **Notes to Financial Statement December 31 2023** #### Furniture and Equipment Furniture and Equipment are carried at cost, less accumulated depreciation and are 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 state/local income tax purposes and therefore any income or loss is included in the consolidated federal and state/local income tax returns of the Parent. The Company is not subject to federal and state income taxes. ### Right-of-use assets and lease liabilities The Company accounts for its long-term leases under the Accounting Standards Codification (ASC) 842, Leases. The guidance requires the recognition of right-of-use assets and lease liabilities on the statement of financial condition. The Company is a lessee in a non-cancellable operating lease for a printer. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. 1he discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of our leases are not readily determinable and accordingly, we use our incremental borrowing rate based on the information available at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest It would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The right of use asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), less the unamortized balance of lease incentives received. Lease cost for lease payments is recognized on a straight-line basis over the lease term. The undiscounted maturity of the non-cancellable lease payments under the current lease agreement as of December 31, 2023 are as follows: Year ending December 31, | Total undiscounted lease payments \$ | 85,526 | |--------------------------------------|--------| | 2027 | 10,430 | | 2026 | 25,032 | | 2025 | 25,032 | | 2024 | 25,032 | The Company leases a printer/copier. The lease is for a 60-months term expiring in 2027. It has been classified as an operating lease and is included in the data presented above. {8}------------------------------------------------ # **eve Funding, LLe (A Wholly-Owned Subsidiary of eve Credit Partners, LLC)** ### **Notes to Financial Statement December 31 2023** ### **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 , 2023, the Company had \$20,939,002 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 condition of the financial institution and does not anticipate any losses from this counterparty. # **4. Related party transactions** Pursuant to a seNice agreement, the Parent provides various seNices and other operating assistance to the Company. These include professional seNices, physical premises, utilities, the use of travel, insurance, accounting seNices, personnel and other general and administrative seNices. The Company is paid a service fee by the Parent based upon total expenses incurred. For the year ended December 31, 2023, the seNice fee earned was \$28,977,686. 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, 2023 was \$8,223,920 and the net change from December 31, 2023 includes payments made by the Parent of \$19,983,479. ### **5. Furniture and equipment** The major classes of fixed assets as of December 31, 2023 are as follows: | Asset Class | Accumulated
Depreciation
Cost | | | Net | |-------------------------------------------------------------------------|-------------------------------------|----|--------------------------|------------------| | Furniture & fixtures
Computers & equipment
Leasehold imprm.ements | \$
183,592
134,951 | \$ | (102,577) \$
(75,001) | 81,015
59,950 | | Total | \$
318,543 | \$ | (1 77,578) \$ | 140,965 | # **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, 2023, the Company's net capital was approximately \$5,418,000, which was approximately \$4,366,000 in excess of its minimum requirement of approximately \$1,052,000. # **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 reseNe computation or possession and control provisions of Rule 15c3-3 of the Securities Exchange Act of 1934. {9}------------------------------------------------ # **eve Funding, LLe (A Wholly-Owned Subsidiary of eve Credit Partners, LLC)** **Notes to Financial Statement December 31 2023** ### **8. Risks and uncertainties** Political developments, natural disasters, public health crises and other events outside of the Company control can also adversely, directly and indirectly, impact the Company and its affiliates in material respects. # **9. Contingencies** The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2023, and through February 7, 2024. # **10. Subsequent events** The Company has evaluated events and transactions occurring subsequent to December 31, 2023. Management believes that no material events have occurred since December 31, 2023 through February 7, 2024, 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.