# QUILVEST CAPITAL PARTNERS SECURITIES LLC X-17A-5 (2021-03-04) — Broker-dealer annual report - Company: QUILVEST CAPITAL PARTNERS SECURITIES LLC - Form: X-17A-5 - Filed: 2021-03-04 - Period: 2020-12-31 - Accession: 0001692970-21-000002 - CIK: 1692970 - File #: 8-69883 - Material weakness: No - Auditor: RSM US LLP - Auditor location: New York, NY - Contact: Manuel Fischer - Phone: 212-920-3863 - Signed by: Manuel Fischer (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1692970/000169297021000002/x17a-5public.pdf --- {0}------------------------------------------------ QUILVEST CAPITAL PARTNERS SECURITIES LLC (f/k/a QUILVEST SECURITIES LLC) REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2020 The report is deemed a PUBLIC DOCUMENT in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {1}------------------------------------------------ **UNITEDSTATES SECURITIESANDEXCHANGECOMMIS~ON Washington,D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | 0MB Number: | 3235-0123 | | |-------------|----------------------------|--| | Expires: | October 31, 2023 | | | | Estimated average burden | | | | hours per response 12.00 | | | | | | 0MB APPROVAL | SEC FILE NUMBER | |-----------------| | 8-69883 | **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/YY | | MMIDDIYY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Quilvest Capital Partners Securities LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 527 Madison Avenue 11th Floor | | | | | | | (No. and Street) | | | | | New-York | New-York | | 10022 | | | (City) | (State) | | (Zip Code) | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
RSM US LLP | B. ACCOUNTANT IDENTIFICATION
(Name - if individual, state last, | | | | | | | jirst, middle name) | | | | 4 Time Square 151 West 42nd Street 19th Floor | New-York | New-York | 10036 | | | (Address)
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Certified Public Accountant
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Public Accountant | (City)
Accountant not resident in United States or any of its possessions. | (State) | (Zip Code) | | | | | | | | | | 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 0MB control number.** SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I , Manuel FISCHER | , swear (or affirm) that, to the best of | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ____
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Quilvest Capital _:_
Securities LLC
Partners | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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, as | | of December 31th | 2020
are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | | | | | : ::-
. - | .::::::--signature
~ | | | Chief Compliance Officer | | ~
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Notary Public | Title | | This report** contains (check all applicable boxes):
0 (a) Facing Page.
0 {b) Statement of Financial Condition.
of Comprehensive Income (as defined in §2 l 0.1-02 of Regulation S-X).
§ (d) Statement of Changes in Financial Condition.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
§ (g) Computation of Net Capital. | D (c) Statement oflncome {Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule I 5c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 1 Sc3-3.
D U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | consolidation.
§ (I) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report. | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
( n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | ** For conditions of confidential treatment of certain portions of this filing, see section 240. 17a-5(e)(3). | {3}------------------------------------------------ #### **&217(176** | | 3DJHV | |----------------------------------------------------|-------| | 2DWKRU\$IILUPDWLRQ | | | 5HSRUWRI,QGHSHQGHQW5HJLVWHUHG3XEOLF\$FFRXQWLQJ)LUP | | | 6WDWHPHQWRI)LQDQFLDO&RQGLWLRQ
| | | 1RWHVWR6WDWHPHQWRI)LQDQFLDO&RQGLWLRQ | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) RSM US LLP #### **Report of Independent Registered Public Accounting Firm** To the Manager of Quilvest Capital Partners Securities LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Quilvest Capital Partners Securities LLC (the Company) as of December 31, 2020, and the related notes (collectively, 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, 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 26, 2021 THE POWER OF BEING UNDERSTOOD AUDIT I TAX I CONSULTING {5}------------------------------------------------ #### QUILVEST CAPITAL PARTNERS SECURITIES LLC (f/k/a QUILVEST SECURITIES LLC) #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 #### ASSETS | | S | 2,130,805 | |--------------------------------|---|-----------| | Other assets | | 3,678 | | Prepaid expenses | | 28,056 | | Due from affiliate | | 202,799 | | Fees receivable from affilates | | 1,252,898 | | Cash | S | 643,374 | #### LIABILITIES AND MEMBER'S EQUITY #### LIABILITIES: | Due to affiliate | S | 229,681 | |----------------------------------------|---|-----------| | Accrued liabilities | | 45,897 | | | | 275,578 | | COMMITMENTS AND CONTINGENCIES (Note 6) | | | | MEMBER'S EQUITY (Note 2) | | 1,855,227 | | | S | 2,130,805 | {6}------------------------------------------------ ## **127(672),1\$1&,\$/67\$7(0(176** # *NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES* #### *Organization and Business* 4XLOYHVW&DSLWDO3DUWQHUV6HFXULWLHV//&IND4XLOYHVW6HFXULWLHV//& WKH³&RPSDQ\´ LVDOLPLWHG OLDELOLW\FRPSDQ\DZKROO\RZQHGVXEVLGLDU\RI4XLOYHVW3DUWQHUV86\$//&³3DUHQW´ IRUPHGLQWKH VWDWHRI'HODZDUHRQ2FWREHU7KH&RPSDQ\ZDVDSSURYHGWRGREXVLQHVVDVDUHJLVWHUHGEURNHU GHDOHURQ0DUFKZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ³6(&´ DQGLVDPHPEHURIWKH )LQDQFLDO,QGXVWU\5HJXODWRU\\$XWKRULW\,QF³),15\$´ 7KH&RPSDQ\¶VSULPDU\EXVLQHVVDFWLYLW\LV WRDVVLVWPDQDJHUVRISULYDWHDOWHUQDWLYHLQYHVWPHQWIXQGVLQFOXGLQJSULYDWHHTXLW\KHGJHIXQGVDQGIXQG RIIXQGVUDLVHFDSLWDO ## *15c3-3 Exemption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asis of Presentation* 7KHVHILQDQFLDOVWDWHPHQWVZHUHSUHSDUHGLQFRQIRUPLW\ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ WKH8QLWHG6WDWHVRI\$PHULFDZKLFKUHTXLUHPDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDWDIIHFW WKHUHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVDQGGLVFORVXUHRIFRQWLQJHQWDVVHWVDQGOLDELOLWLHVDWWKHGDWH RIWKHILQDQFLDOVWDWHPHQWVDQGWKHDPRXQWVRIUHYHQXHVDQGH[SHQVHVGXULQJWKHUHSRUWLQJSHULRG\$FWXDO UHVXOWVFRXOGGLIIHUIURPWKHVHHVWLPDWHV ## *Revenue Recognition* 7KH&RPSDQ\¶VSULPDU\VRXUFHVRIUHYHQXHDUHDGYLVRU\IHHVHDUQHGIURPSULYDWHSODFHPHQWDQGDGYLVRU\ VHUYLFHVIRUPHUJHUVDFTXLVLWLRQVUHRUJDQL]DWLRQVDQGGLYHVWXUHV7KHVHIHHVIURPSULYDWHSODFHPHQWDQG DGYLVRU\VHUYLFHVDUHUHFRJQL]HGZKHQVHUYLFHVUHODWHGWRWKHXQGHUO\LQJWUDQVDFWLRQVDUHFRPSOHWHGXQGHU WKHWHUPVRIWKHDJUHHPHQW {7}------------------------------------------------ # **127(672),1\$1&,\$/67\$7(0(176** # *NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)* # *Cash* &DVK LQFOXGLQJ FDVK GHQRPLQDWHG LQ IRUHLJQ FXUUHQFLHV UHSUHVHQWV FDVK GHSRVLWV KHOG DW ILQDQFLDO LQVWLWXWLRQV&DVKLVKHOGDWPDMRU ILQDQFLDOLQVWLWXWLRQVDQGLVVXEMHFWWRFUHGLW ULVNWRWKHH[WHQWWKRVH EDODQFHV H[FHHG DSSOLFDEOH )HGHUDO 'HSRVLW ,QVXUDQFH &RUSRUDWLRQ ³)',&´ RU 6HFXULWLHV ,QYHVWRU 3URWHFWLRQ&RUSRUDWLRQ³6,3&´ OLPLWDWLRQV # *Estimates* 7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH 8QLWHG6WDWHVRI\$PHULFD³86\*\$\$3´ UHTXLUHVPDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDW DIIHFWWKHUHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVDQGGLVFORVXUHRIFRQWLQJHQWDVVHWVDQGOLDELOLWLHVDW WKH GDWH RI WKH ILQDQFLDO VWDWHPHQWV DQG WKH UHSRUWHG DPRXQWV RI UHYHQXHV DQG H[SHQVHV LQFOXGLQJ SURYLVLRQVIRUWD[HVGXULQJWKHUHSRUWLQJSHULRG\$FWXDOUHVXOWVFRXOGGLIIHUIURPWKRVHHVWLPDWHV ## *Income Taxes* (IIHFWLYH-DQXDU\WKH&RPSDQ\ILOHGDQHOHFWLRQZLWK,QWHUQDO5HYHQXH6HUYLFHWREHWUHDWHGDV WKHGLVUHJDUGHGHQWLW\IRUWD[SXUSRVHVDVVXFKQRSURYLVLRQIRUIHGHUDORUVWDWHLQFRPHWD[HVKDVEHHQ PDGHIRUWKH&RPSDQ\ 86\*\$\$3SURYLGHVJXLGDQFHIRUKRZXQFHUWDLQWD[SRVLWLRQVVKRXOGEHUHFRJQL]HGPHDVXUHGSUHVHQWHG DQGGLVFORVHGLQWKHILQDQFLDOVWDWHPHQWV7KHJXLGDQFHUHTXLUHVWKHHYDOXDWLRQRIWD[SRVLWLRQVWDNHQRU H[SHFWHGWREHWDNHQWRGHWHUPLQHZKHWKHUWKHWD[SRVLWLRQVZLOO³PRUHOLNHO\WKDQQRW´EHVXVWDLQHGE\ WKHDSSOLFDEOHWD[DXWKRULW\\$VRI'HFHPEHUWKH&RPSDQ\KDVQRWUHFRUGHGDQ\OLDELOLW\IRU PDWHULDOXQFHUWDLQLQFRPHWD[SRVLWLRQV ## *New Accounting Pronouncements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{8}------------------------------------------------ # **127(672),1\$1&,\$/67\$7(0(176** *NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)* RWKHUHQWLWLHVKDYHQRWPDGHILQDQFLDOVWDWHPHQWVDYDLODEOHIRULVVXDQFH7KH&RPSDQ\HDUO\DGRSWHGWKLV JXLGDQFHHIIHFWLYH -DQXDU\DVLWFKDQJHGLW¶VWD[ VWDWXV IURPFRUSRUDWLRQWRGLVUHJDUGHGHQWLW\ HIIHFWLYH-DQXDU\7KHHIIHFWLYHRIWKHDGRSWLRQRIWKLVJXLGDQFHLVWKDWWKH&RPSDQ\LVQRORQJHU UHTXLUHGWRPDNHSURYLVLRQIRUIHGHUDORUVWDWHLQFRPHWD[HVLQWKHILQDQFLDOVWDWHPHQWV 2Q-DQXDU\WKH&RPSDQ\DGRSWHG\$68)LQDQFLDO,QVWUXPHQWV±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¶VQHWFDSLWDOUDWLRDJJUHJDWHLQGHEWHGQHVVWRQHWFDSLWDO ZDVWR\$FFRUGLQJWR5XOHF WKH&RPSDQ\¶VQHWFDSLWDOUDWLRVKDOOQRWH[FHHGWR # *NOTE 3 - RELATED PARTY TRANSACTIONS* 7KH&RPSDQ\KDVDQH[SHQVHVKDULQJDJUHHPHQWZLWKDQDIILOLDWHIRUFHUWDLQRSHUDWLQJH[SHQVHVLQFOXGLQJ SHUVRQQHO RIILFH VSDFHDQG RWKHU JHQHUDODQGDGPLQLVWUDWLYHFRVWV)RUWKH \HDUHQGHG'HFHPEHU WKH&RPSDQ\PDGHSD\PHQWVWRDIILOLDWHVLQWKHDPRXQWRIDQGH[SHQVHGDQDPRXQWRI ZKLFKZDVLQFOXGHGLQWKHVWDWHPHQWRIRSHUDWLRQVIRUVKDUHGRSHUDWLQJH[SHQVHVDQGH[SHQVHV SDLG RQLWV EHKDOI\$W'HFHPEHU 7KH&RPSDQ\ KDG GXH IURPDIILOLDWH UHODWLQJWR DPRXQWVUHPLWWHGWRDIILOLDWHE\DFOLHQWDQGGXHWRDIILOLDWHIRUH[SHQVHSDLGRQLW VEHKDOI7KH &RPSDQ\DQGLW VDIILOLDWHSURYLGHFHUWDLQDGYLVRU\VHUYLFHVWRWKHFOLHQWVDQGWKH&RPSDQ\ VDIILOLDWHKDV HFRQRPLFRZQHUVKLSLQWKHVHFOLHQWV # *NOTE 4 – FEES RECEIVABLE FROM AFFILIATES* 7KH &RPSDQ\ UHFRJQL]HV FXUUHQW HVWLPDWHG FUHGLW ORVVHV IRU IHHV UHFHLYDEOH 7KH &RPSDQ\ UHJXODUO\ HYDOXDWHVIHHVUHFHLYDEOHIRUH[SHFWHGFUHGLWORVVHV7KHH[SHFWHGORVVDOORZDQFHPHWKRGRORJ\IRUIHHV UHFHLYDEOHLVGHYHORSHGXVLQJKLVWRULFDOFROOHFWLRQH[SHULHQFHFXUUHQWDQGIXWXUHHFRQRPLFDQGPDUNHW FRQGLWLRQVDQGDUHYLHZRIWKHFXUUHQWVWDWXVRIHDFKFOLHQW¶VIHHVDFFRXQWVUHFHLYDEOHV {9}------------------------------------------------ # QUILVEST CAPITAL PARTNERS SECURITIES LLC (f/k/a QUILVEST SECURITIES LLC) # NOTES TO FINANCIAL STATEMENTS NOTE 4 - FEES RECEIVABLE FROM AFFILIATES (continued) Specific allowance amounts are established to record the appropriate provision for clients that have a higher probability of default. Monitoring activities include timely account reconciliation, dispute resolution, payment confirmation of each client's financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. For the year ended December 31, 2020, we also considered the current and estimated future economic and market conditions resulting from the COVID-19 pandemic in the determination of our estimated credit losses. Estimates are used to determine the expected loss allowances. Such allowances are based on management's assessment of anticipated payment, taking into account available historical and current information as well as management's assessment of potential future developments. As of December 31, 2020, the Company estimated that no allowance for credit losses were necessary against fee receivable from affiliates and there were no balances written off for the year ended December 31, 2020. #### NOTE 5 -CONCENTRATION OF RISK During the year ended December 31, 2020, approximately 88% of revenues are earned from two affiliated clients. As of December 31, 2020, 100% of fees receivable from affiliate is due from two affiliated clients. ## NOTE 6 - CONTINGENCIES The Company is engaged in various corporate financing activities in which counterparties primarily include managers of investment partnerships. In the event that counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty. It is the Company's policy to review, as necessary, the credit standing of each counterparty with which it conducts business. Price risk is comprised of interest rate, market and currency risk. Interest rate risk is the value of financial instruments (mainly investments) may fluctuate as a result of changes in market interest rates. Market risk is the risk that the market values of investments changes in market conditions. Investments in private investment companies are subject to market and interest rate risk. Currency risk is the risk that the value of instruments may fluctuate as a result of changes in foreign exchange rates. As of December 31, 2020, all assets and liabilities of the Company were denominated in United States dollars. {10}------------------------------------------------ #### **127(672),1\$1&,\$/67\$7(0(176** #### *NOTE 6 - FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES (continued)* 7KH &RPSDQ\ DOVR PDLQWDLQV LWV FDVK EDODQFH LQ D ILQDQFLDO LQVWLWXWLRQ ZKLFK DW WLPHV PD\ H[FHHG IHGHUDOO\LQVXUHGOLPLWV\$VRI'HFHPEHUWKH&RPSDQ\KHOGLQH[FHVVRIWKHIHGHUDOO\ LQVXUHGOLPLWDWWKHILQDQFLDOLQVWLWXWLRQ7KH&RPSDQ\KDVQRWH[SHULHQFHGDQ\ORVVHVLQVXFKDFFRXQWV DQGEHOLHYHVLWLVQRWH[SRVHGWRDQ\VLJQLILFDQWFUHGLWULVN &29,'\*OREDO3DQGHPLF&29,'SUHVHQWVFRQWLQXHGXQFHUWDLQW\ZLWKUHVSHFWWRJOREDOHFRQRPLF DFWLYLW\ZKLFKPD\QHJDWLYHO\LPSDFWWKH&RPSDQ\¶VUHYHQXHRSSRUWXQLWLHV #### *NOTE 7 - SUBSEQUENT EVENTS* 7KH&RPSDQ\KDVSHUIRUPHGDQHYDOXDWLRQRIVXEVHTXHQWHYHQWVWKURXJKWKHGDWHWKHILQDQFLDOVWDWHPHQWV ZHUHLVVXHG7KHHYDOXDWLRQGLGQRWUHVXOWLQDQ\RWKHUVXEVHTXHQWHYHQWVWKDWUHTXLUHGGLVFORVXUHVDQGRU DGMXVWPHQWV Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.