Cain Hoy Finance Limited is a private company limited by shares incorporated in England and Wales. The registered office was changed to 72 Welbeck Street, London, United Kingdom, W1G 0AY on 1 May 2024 (previously 116 Upper Street, London, N1 1QP). The company registration number is 08924629.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Basic financial assets, which include loans receivable within fixed asset investments, debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method less any reduction for impairment or uncollectability unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
For basic financial assets held at amortised cost where an impairment loss has been recognised, if in a subsequent period, the amount of an impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the impairment previously recognised shall be reversed.
Basic financial assets which include traded stocks within fixed asset investments are initially measured at the transaction price and are subsequently measured at their fair value based on a quoted market price, with any gains and losses being recognised through the profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Where there are indicators of impairments of loans receivable which indicate that the carrying value may not be recoverable, the directors perform impairment tests on these receivables based on the fair value by comparing the carrying value with its recoverable amount. On 15 June 2023 and as part of a wider group restructuring, all rights and obligations attaching to the loans receivable were assigned to its immediate parent company, Cain PE LLC. The directors, having observed a downturn in trading performance due to adverse economic factors, considered the financial position and trading results of the investment entity as at the date of the assignment of all rights and obligations to these loan notes and determined that based on the conditions that existed as at that date, it was not probable that the debt would be recovered. Loans receivable with a carrying amount of £2,164,892 were fully impaired during the year.
An analysis of the company's turnover, which has been fully derived in the UK, is as follows:
The average monthly number of persons (including directors) employed by the company during the year was nil (2022 - nil).
The directors received no remuneration during the year (2022 - £nil). The directors are also directors of other related party undertakings and their remuneration for the year was paid for by other undertakings. The directors did not receive any remuneration in relation to the company as the qualifying services provided to the company was incidental to the qualifying services provided to the other related party undertakings.
The other investments represents investments in listed securities and other commodities held in an investment portfolio.
Notes receivable are loan notes issued to a third party amounting to principal of £6,686,359 (2022: £4,979,871), plus unpaid interest of £1,120,894 (2022: £721,768). These loan notes carried interest at a rate of 12% and were secured by an agreement with the third party. On 15 June 2023, all rights and obligations attaching to these loan notes were assigned to its immediate parent company, Cain PE LLC, along with its associated intra-group debt arising from funds borrowed to facilitate the loan, accordingly, the loans were de-recognised. Prior to the assignment, the loans had been fully impaired, as disclosed in Note 2.
During the year, and as part of the restructuring of the wider group, the amount of £5,459,359 owed by the company to CH Capital A Holdings LLC, in respect of monies previously borrowed to fund its loans to a third party, was formalised in a loan agreement, dated 29 May 2023. This loan was subsequently assigned to Cain PE LLC, following the assignment of the loans receivable from a third party as described in Note 7 above.
Other reserves comprises a capital contribution by the company's immediate parent company, Cain PE LLC, arising from the assumption by Cain PE LLC of a loan due by the company to another group entity.
Under FRS 102 section 1 AC.35, disclosure is not given of details between two or more members of a group, provided that the subsidiary which is a party to the transaction is wholly-owned by such a member. The directors consider that all related party balances and transactions meet the requirement for such exemption.
As at the year end, the immediate parent undertaking is Cain PE LLC, a company incorporated in Delaware, with a registered address of 767 Fifth Avenue, 17th Floor, New York, NY 10153.
In 2023, the ultimate controlling parties were Mr T.L. Boehly and Mr. J.S. Goldstein.
The largest group in which results of the Company are consolidated is that headed by Eldridge Industries, LLC of 600 Steamboat Road, Greenwich, Connecticut, 06830, USA. The financial statements of these entities are not publicly available.
The smallest group in which they are consolidated is that headed by Cain RE LLC, with a registered office address of 767 Fifth Avenue, 17th Floor, New York, NY 10153. The financial statements of this entity are not publicly available.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.