BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Company Registration Number:
03883749 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 January 2023

End date: 31 December 2023

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Directors' report period ended 31 December 2023

The directors present their report with the financial statements of the company for the period ended 31 December 2023

Principal activities of the company

The company, a private limited company incorporated under the laws of the United Kingdom, is wholly owned by Black Diamond Capital Management LLC (“BDCM”). The company provides investment advisory services to BDCM, which is the company’s sole client. BDCM is controlled by Black Diamond Capital Holdings, LLC (the “LLC”), a Delaware limited liability company. The LLC provides investment management services to a range of alternative investment vehicles. The company is regulated by the Financial Conduct Authority. The directors consider that the activities of the company will remain unchanged for the foreseeable future.

Additional information

The directors present their report and the financial statements of Black Diamond Capital Management Limited (“the company”) for the year ended 31 December 2023. Results and dividends The profit/(loss) of the company for the year after taxation amounted to £216,704 (2022 – £301,020). The directors do not recommend the payment of a final dividend (2022 – £nil) and did not make a dividend payment during the year. Going concern While the company remains dependent on a single source of revenue from BDCM, the directors are not aware of any reason that this agreement will be terminated in the foreseeable future. The nature of the agreement with BDCM provides a high degree of certainty that the company will continue to be profitable and, historically, the company has received income in a timely manner in order to manage its obligations (which are relatively predictable in nature). The full extent to which current events may impact company’s results, operations or liquidity is uncertain. However, having performed an impact analysis management believes regulatory capital requirements continue to be met and have sufficient liquidity to meet its liabilities for the next 12 months from the date of approval of these financial statements. As a result, the directors believe that the company is well placed to manage its business risks successfully and the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to prepare the financial statements of the company on a going concern basis. Note 1 outlines the company’s assessment of the impacts of current events on the company and its ability to continue to operate as a going concern. Directors The directors who served the company during the year and up to the date of this report were as follows: S Deckoff M Ward, resigned 13 July 2023 P Osment, appointed 21 August 2023 Disclosure of information to the auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow directors and the company’s auditor, each director has taken all the steps that he is obliged to take as a director in order to make himself aware of any relevant audit information and to establish that the auditor is aware of that information. Auditor A resolution to reappoint Ernst & Young LLP as the company’s auditor will be put to the members at the Annual General Meeting.



Directors

The director shown below has held office during the whole of the period from
1 January 2023 to 31 December 2023

Stephen H. Deckoff


The director shown below has held office during the period of
1 January 2023 to 13 July 2023

Martin Ward


The director shown below has held office during the period of
21 August 2023 to 31 December 2023

Paul Osment


Secretary Samuel Goldfarb

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
27 June 2024

And signed on behalf of the board by:
Name: Paul Osment
Status: Director

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Profit And Loss Account

for the Period Ended 31 December 2023

2023 2022


£

£
Turnover: 1,628,066 2,712,952
Cost of sales: 0 0
Gross profit(or loss): 1,628,066 2,712,952
Distribution costs: 0 0
Administrative expenses: ( 1,350,023 ) ( 2,359,089 )
Other operating income: 0 0
Operating profit(or loss): 278,043 353,863
Interest receivable and similar income: 0 0
Interest payable and similar charges: 0 0
Profit(or loss) before tax: 278,043 353,863
Tax: ( 63,476 ) ( 52,843 )
Profit(or loss) for the financial year: 214,567 301,020

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Balance sheet

As at 31 December 2023

Notes 2023 2022


£

£
Called up share capital not paid: 0 0
Fixed assets
Intangible assets:   0 0
Tangible assets: 3 7,164 9,983
Investments:   0 0
Total fixed assets: 7,164 9,983
Current assets
Stocks:   0 0
Debtors: 4 3,014,098 4,597,542
Cash at bank and in hand: 370,508 122,090
Investments:   0 0
Total current assets: 3,384,606 4,719,632
Prepayments and accrued income: 0 0
Creditors: amounts falling due within one year: 5 ( 144,644 ) ( 976,030 )
Net current assets (liabilities): 3,239,962 3,743,602
Total assets less current liabilities: 3,247,126 3,753,585
Creditors: amounts falling due after more than one year: 6 0 ( 721,025 )
Provision for liabilities: 0 0
Accruals and deferred income: 0 0
Total net assets (liabilities): 3,247,126 3,032,560
Capital and reserves
Called up share capital: 100,000 100,000
Share premium account: 0 0
Other reserves: 0 0
Profit and loss account: 3,147,126 2,932,560
Total Shareholders' funds: 3,247,126 3,032,560

The notes form part of these financial statements

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Balance sheet statements

For the year ending 31 December 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 27 June 2024
and signed on behalf of the board by:

Name: Paul Osment
Status: Director

The notes form part of these financial statements

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover, which is net of any value added tax, represents fees receivable for investment advisory services arising from continuing activities in the United Kingdom. Advisory fees are recognised on an accruals basis when the company obtains the right for consideration in exchange for its performance of services.

    Tangible fixed assets depreciation policy

    Tangible assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

    Other accounting policies

    Basis of preparation The financial statements of the company have been prepared on a going concern basis under the historical cost convention in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Companies Act 2006. The functional and presentational currency of the company is Great British Pounds. On February 24, 2022, Russia invaded Ukraine. Such event and/or future additional geopolitical conditions are highly uncertain, and its impact cannot be predicted. The members continue to monitor the market and assess this evaluation as the situation develops. The UK is less exposed to the direct trade effects of Russia's invasion of Ukraine than its European neighbours. However, the indirect and longer-term effects of the war on UK trade could still be significant. Inflationary pressure worldwide will contribute to price rises in the UK, particularly for food and energy. The full extent to which the Russian invasion of Ukraine, the Israel and Gaza conflict, and the UK cost of living crisis may impact the company’s results, operations or liquidity is uncertain. Management continues to monitor the impact that these current events have on the company, the asset management industry and the economies in which the company operates. Management has performed an impact analysis as part of their going concern assessment using information available to the date of issue of these financial statements. The analysis has modelled a number of adverse scenarios to assess the potential impact current events may have on company’s operations, liquidity, solvency and regulatory capital position as well as including an assessment of any relevant mitigations management have within their control to implement. All of the company’s cost are recharged to the US parent plus a markup under a service agreement. The main risk is therefore that the US parent fails to be able to pay the recharged costs. The main stress testing therefore concerns the failure of the US parent and /or its funds. Cost reduction measures have been put in place, but in the event of liquidity issues, the US parent is able to obtain funding through realisation of liquid investments, available borrowing lines or redemptions from the funds which could provide sufficient liquidity to enable it to provide financial support to the company. It is not possible to quantify the overall impact of current events as financial markets continue to react to developments and management has a number of actions that they are able to take to protect profitability and solvency. Having performed this analysis, management believes regulatory capital requirements continue to be met and have sufficient liquidity to meet its liabilities for the next 12 months from the date of issuance of these financial statements and that the preparation of the financial statements on a going concern basis remains appropriate as the company expects to be able to meet its obligations as and when they fall due for the foreseeable future.

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 2 4

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2023 29,422 29,422
Additions
Disposals
Revaluations
Transfers
At 31 December 2023 29,422 29,422
Depreciation
At 1 January 2023 19,439 19,439
Charge for year 2,819 2,819
On disposals
Other adjustments
At 31 December 2023 22,258 22,258
Net book value
At 31 December 2023 7,164 7,164
At 31 December 2022 9,983 9,983

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Debtors

2023 2022
£ £
Trade debtors 2,897,377 4,514,778
Prepayments and accrued income 29,165 33,487
Other debtors 87,556 49,277
Total 3,014,098 4,597,542

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 7,932 4,741
Taxation and social security 42,445 157,766
Accruals and deferred income 94,267 74,996
Other creditors 738,527
Total 144,644 976,030

BLACK DIAMOND CAPITAL MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

6. Creditors: amounts falling due after more than one year note

2023 2022
£ £
Other creditors 0 721,025
Total 0 721,025