CityVest Capital Inc. Settles SEC Charges Over Alleged Breaches of Fiduciary Duty

CityVest Capital Inc., an investment adviser to access funds that invest in third-party real estate funds, agreed to an SEC order over undisclosed loans it took from funds it advised, according to an administrative order the US Securities and Exchange Commission released Oct. 2.

The order also names CV Manager LLC, a CityVest subsidiary, and Alan P. Donenfeld, CityVest's part-owner and sole operator. The SEC found that between July 2019 and May 2025 the respondents borrowed $425,000 from three of the access funds at points when those funds did not owe CityVest any fees. According to the order, Donenfeld caused CityVest to take the loans in part to meet operating expenses, including payroll.

"This matter arises out of breaches of fiduciary duty by investment advisers CityVest, CV Manager, and their part-owner and sole operator, Donenfeld, by taking undisclosed loans from funds they advised," the order says.

The order says the loans were repaid in full, with interest fully paid by July 2, 2025. The SEC found that the conflicts of interest the loans created were not fully and fairly disclosed to or consented to by the funds and their investors, and that the respondents willfully violated the Advisers Act.

The respondents were censured and ordered to cease and desist from further violations. CityVest and Donenfeld must each pay a $10,000 civil penalty within 30 days, according to the order.

The respondents consented to the order without admitting the findings, except as to the SEC's jurisdiction, the order says.