Business ProfileforKiso Capital, LP

Beginning in or about January 2021, Kiso provided investment advisory services to a pooled investment vehicle, Kiso Capital, LP (The Fund), and recommended to members of the public, to invest money in The Fund. At all relevant times, Kiso was the investment manager of The Fund and had discretionary authority on how The Fund invested its money, including investing in debt instruments, warrants, and options. 

From February 2021 - June 2023, Kiso provided investment advisory services to the Fund and collected at least $172,043.11 in management fees and $99,203.69 in performance-based fees. At all relevant times, neither the Department nor the United States Securities and Exchange Commission have issued an investment adviser certificate to any of the respondents. 

From February 2021 - June 2023, Kiso charged performance-based fees to at least 41 investors of the Fund, totaling at least $99,203.69. Of the 41 investors of the Fund, of which were charged performance fees, 40 investors were not “Qualified Client[s]” At all relevant times, Kiso had custody of client funds and securities by having signatory authority on The Fund’s bank accounts, and authority to make withdrawals or transfers to outside accounts. However, between February 10, 2021, through September 30, 2023, Kiso failed to follow relevant safekeeping requirements

Based on the foregoing findings, the Commissioner is of the opinion that Kiso has conducted business as an investment adviser in this state without first securing from the Commissioner a certificate, authorizing them to do so. Pursuant to Corporations Code section 25532, Kiso Capital Management I, LLC and Damon Doe are hereby ordered to desist and refrain from acting as an investment adviser in the State of California unless and until he has first applied for and secured from the Commissioner a certificate, authorizing them to act as an investment adviser, or unless exempt.  

Based on the foregoing findings, the Commissioner finds that Kiso collected from the 2 3 4 5 State of California - Department of Financial Protection and Innovation California pooled investment vehicle, while engaged in unregistered investment advisory activities, in an amount of $271,246.80. Full Disgorgement, consisting of the total investment advisory fees collected by Kiso, in the amount of $172,043.11 in management fees and $99,203.69 in performance-based fees, totaling $271,246.80, or according to proof. 

Based upon the foregoing, the Commissioner finds that grounds exist, and that it is in the public interest, to issue the following orders: (1) desist and refrain orders against Kiso Capital, LP, Kiso Capital Management I, LLC, and Damon Doe; and (2) claim for ancillary relief against Kiso Capital Management I, LLC and Damon Doe, in the form of disgorgement, totaling $271,246.80. The Commissioner hereby notifies Kiso Capital, LP, Kiso Capital Management I, LLC, and Damon Doe of her intention to make such orders final.