# QUILVEST CAPITAL PARTNERS SECURITIES LLC X-17A-5 (2022-02-28) — Broker-dealer annual report - Company: QUILVEST CAPITAL PARTNERS SECURITIES LLC - Form: X-17A-5 - Filed: 2022-02-28 - Period: 2021-12-31 - Accession: 0001692970-22-000001 - CIK: 1692970 - File #: 8-69883 - Type: Broker-dealer - Material weakness: No - Auditor: RSM US LLP - Auditor location: New-York, NY - Contact: Manuel FISCHER - Phone: 2129616940 - Email: maafischer@quilvestusa.com - Website: quilvestusa.com - Signed by: Manuel FISCHER (Vice-President) Original filing: https://www.sec.gov/Archives/edgar/data/1692970/000169297022000001/Public1.pdf --- {0}------------------------------------------------ QUILVEST CAPITAL PARTNERS SECURITIES LLC (f/k/a QUILVEST SECURITIES LLC) REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2021 The report is deemed CONFIDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. A statement of the financial condition has been filed with the Securities and Exchange Commission simultaneously herewith as a PUBLIC DOCUMENT. {1}------------------------------------------------ #### CONTENTS | | Page(s) | |---------------------------------------------------------|---------| | Oath or Affirmation | 1-2 | | Report of Independent Registered Public Accounting Firm | 3 | | Statement of Financial Condition | ব | | Notes to Statement of Financial Condition | ર-8 | {2}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB APPROVAL | | | |---------------------------|--|--| | OMB Number: 3235-0123 | | | | Expires: Oct. 31, 2023 | | | | Estimated average burden | | | | 12
hours per response: | | | # ANNUAL REPORTS FORM X-17A-5 PART III | ours per lesportse. | | |---------------------|--| | SEC FILE NUMBER | | | 8-69883 | | FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING | 01/01/21 | AND ENDING | 12/31/21 | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|--------------------------------------------|--|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: Quilvest Capital Partners Securities LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
lx Broker-dealer
O Check here if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 527 Madison Avenue 11th Floor | (No. and Street) | | | | | | New- York - New-York 10022
(City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Manuel FISCHER | 212 961 9640 | | maafischer@quilvestusa.com | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filling* | | | | | | | RSM US LLP | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 4 Times Square, 151 W 42nd St,19th Floor, New York, NY 10036 | | | | | | | (Address) | (City) | (State) | | | | | 09/24/2003 | | | 49 | | | | (Date of Registration with PCAOB) (if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | * Claims for exemption from the requirement that the annual 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)(1)(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 OMB control number. {3}------------------------------------------------ #### OATH OR AFFIRMATION | Manuel FISCHER | swear (or affirm) that, to the best of my knowledge and belief, the | | |-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of Quilvest Capital Partners Securities LLC | | as of | | December 31th | , 2021 | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | Based upon the Division of Trading and Markets Staff Statement regarding requirements for certain paper submissions in light of Covid-19 concerns and difficulties arising from Covid-19, Quilvest Capital Partners Securities, LLC is making this filing without notarization. Signature: Title: Vice-President Notary Public #### This filing \*\* contains (check all applicable boxes): - 区 (a) Statement of financial condition. - [ (b) Notes to consolidated 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 cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [n] Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements 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 exist. - | - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 区 (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - | (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. - □ (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. - | as applicable. - □ (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). [ (z) Other: \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e/(3) or 17 CFR 240.18c-7(d)(2), as applicable. {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, 2021, and the related notes. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2021, 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. RSM US LLP We have served as the Company's auditor since 2018. New York, New York February 25, 2022 THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING {5}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 #### ASSETS | Cash | સ્ત્ર | 1,210,822 | |----------------------------------------|-------|-----------| | Fees receivable from affiliates | | 2,766,422 | | Prepaid expenses | | 28,228 | | Other assets | | 3,568 | | | | | | | S | 4,009,040 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES: | | | | Due to affiliate | S | 164,713 | | Accrued liabilities | | 97,991 | | | | 262,704 | | COMMITMENTS AND CONTINGENCIES (Note 6) | | | | MEMBER'S EQUITY | | 3,746,336 | | | S | 4,009,040 | {6}------------------------------------------------ ### NOTES TO STATEMENT OF FINANCIAL CONDITION # NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES #### Organization and Business Quilvest Capital Partners Securities LLC (f/k/a Quilvest Securities LLC) (the "Company") is a limited liability company, a wholly owned subsidiary of Quilvest Partners USA LLC ("Parent"), formed in the state of Delaware on October 13, 2016. The Company was approved to do business as a registered brokerdealer on March 6, 2018 with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company's primary business activity is to assist managers of private alternative investment funds, including private equity, hedge funds and fund of funds, raise capital. #### 15c3-3 Exemption The Company does not claim an exemption under paragraph (k) of Rule 15c3-3. The Company files an exemption report relying on Footnote 74 of the SEC Release No. 34-70073 because the Company limits its business activities exclusively to (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, and the Company (1) did not directly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year. ### Basis of Presentation These financial statements were prepared in conformity with accounting principles generally accepted in the United States of America which require 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 statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. ### Revenue Recognition The Company's primary sources of revenue are advisory fees earned from private placement and advisory services for mergers, acquisitions, reorganizations and divestures. These fees from private placement and advisory services are recognized when services related to the underlying transactions are completed under the terms of the agreement. {7}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 1 - # Cash Cash, including cash denominated in foreign currencies, represents cash deposits held at financial institutions. Cash is held at major financial institutions and is subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation ("FDIC") or Securities Investor Protection Corporation ("SIPC") limitations. ### Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("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 statements and the reported amounts of revenues and expenses including provisions for taxes during the reporting period. Actual results could differ from those estimates. ### Income Taxes Effective January 1, 2020, the Company filed an election with Internal Revenue Service to be treated as the disregarded entity for tax purposes, as such, no provision for federal or state income taxes has been made for the Company. U.S. GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. The guidance requires the evaluation of tax positions taken or expected to be taken to determine whether the tax positions will "more likely-than-not" be sustained by the applicable tax authority. As of December 31, 2021, the Company has not recorded any liability for material uncertain income tax positions. #### NOTE 2 -NET CAPITAL REQUIREMENTS Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. At December 31, 2021, the Company had net capital and net capital requirements of \$933,118 and \$17,514, respectively. The Company's net capital ratio (aggregate indebtedness to net capital) was .28 to 1. According to Rule 15c3-1, the Company's net capital ratio shall not exceed 15 to 1. # NOTE 3 - RELATED PARTY TRANSACTIONS The Company has an expense sharing agreement with an affiliate for certain operating expenses including personnel, office space and other general and administrative costs. At December 31, 2021, The Company had \$164,713 due to affiliate for expense paid on it's behalf. The Company and it's affiliate provide certain advisory services to the clients and the Company's affiliate has economic ownership in these clients. {8}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION FEES RECEIVABLE FROM AFFILIATES NOTE 4 - The Company recognizes current estimated credit losses for fees receivable. The Company regularly evaluates fees receivable for expected credit losses. The expected loss allowance methodology for fees receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of each client's fees accounts receivables. 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, consideration of each client's financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. For the year ended December 31, 2021, 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, 2021, the Company had no allowances for credit losses. #### CONCENTRATION OF RISK NOTE 5 - During the year ended December 31, 2021, approximately 88% of revenues are earned from three affiliated clients. As of December 31, 2021, 100% of fees receivable from affiliates is due from two 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, 2021, all assets and liabilities of the Company were denominated in United States dollars. {9}------------------------------------------------ ### NOTES TO STATEMENT OF FINANCIAL CONDITION NOTE 6 - CONTINGENCIES (continued) The Company also maintains its cash balance in a financial institution, which at times may exceed federally insured limits. As of December 31, 2021, the Company held \$960,822 in excess of the federally insured limit at the financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. #### NOTE 7 - -SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any subsequent events that required disclosures and/or adjustments. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.