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Segment Reporting
 9 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts. As additional products and services are offered in the future, we expect to have additional reportable segments, including Ben Insurance Services and Ben Markets.
As the central operating hub of the company, Ben Liquidity is responsible for offering Ben’s fiduciary alternative asset liquidity and financing products through AltAccess. Ben Custody delivers products that address the administrative and regulatory burden of holding alternative assets by offering full service bespoke custody and trust administration services, and specialized document custodian services to Customers. Certain of Ben’s operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts. Certain of the Customer ExAlt Trusts hold interests in alternative assets and therefore recognize changes in such assets’ net asset value in earnings. Certain other Customer ExAlt Trusts pay interest on the ExAlt Loans to Ben Liquidity and transaction fees to Ben Liquidity and Ben Custody in connection with the liquidity transactions, and pay fees to Ben Custody for providing full-service trust administration services to the trustees of the Customer ExAlt Trusts. The amounts paid to Ben Liquidity and Ben Custody are eliminated solely for financial reporting purposes in our consolidated financial statements but directly impact the allocation of income (loss) to Ben’s and BCH’s equity holders.
The Corporate & Other category includes the following items, among others:
•Equity-based compensation;
•Gains (losses) on changes in the fair value of interests in the GWG Wind Down Trust (or common stock and L Bonds of GWG Holdings, as applicable) held by Ben;
•Interest expense incurred on the corporate related debt transactions; and
•Operations of Ben Insurance Services and Ben Markets that are not considered reportable segments as they do not meet the quantitative criteria to be separately reported.
The Corporate & Other category also consists of unallocated corporate overhead and administrative costs.
These segments are differentiated by the products and services they offer as well as by the information used by the Company’s chief operating decision maker to determine allocation of resources and assess performance. Operating income (loss) is the measure of profitability used by management to assess the performance of its segments and allocate resources. Performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because management makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the Customer ExAlt Trusts.
The following tables include the results of each of the Company’s reportable segments reconciled to the consolidated financial statements (in thousands):
Three Months Ended December 31, 2023
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment income, net
$— $— $7,448 $— $— $7,448 
Gain (loss) on financial instruments, net
— — (18,695)671 — (18,024)
Interest and dividend income— — — 118 — 118 
Trust services and administration revenues— 158 — — — 158 
Other income— — 65 — — 65 
Intersegment revenues
Interest income11,275 — — — (11,275)— 
Trust services and administration revenues— 5,739 — — (5,739)— 
Total revenues11,275 5,897 (11,182)789 (17,014)(10,235)
External expenses
Employee compensation and benefits938 588 — 5,814 — 7,340 
Interest expense3,045 — 423 1,203 — 4,671 
Professional services490 173 572 3,735 — 4,970 
Loss on impairment of goodwill604,668 272,830 — 5,725 — 883,223 
Other expenses463 301 219 4,529 — 5,512 
Intersegment expenses
Interest expense— — 32,976 — (32,976)— 
Provision for credit losses8,076 — — — (8,076)— 
Other expenses— — 3,991 — (3,991)— 
Total expenses617,680 273,892 38,181 21,006 (45,043)905,716 
Operating income (loss)$(606,405)$(267,995)$(49,363)$(20,217)$28,029 $(915,951)
Three Months Ended December 31, 2022
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment income, net
$— $— $11,478 $— $— $11,478 
Loss on financial instruments, net— — (15,069)(7,974)— (23,043)
Interest and dividend income— — 23 90 — 113 
Trust services and administration revenues— 8 — — — 8 
Intersegment revenues
Interest income12,716 — — — (12,716)— 
Trust services and administration revenues— 7,208 — — (7,208)— 
Total revenues12,716 7,216 (3,568)(7,884)(19,924)(11,444)
External expenses
Employee compensation and benefits2,380 692 — 9,598 — 12,670 
Interest expense772 — 2,344 1,031 — 4,147 
Professional services693 435 1,240 5,705 — 8,073 
Provision credit for credit losses
— — 1,236 563 — 1,799 
Other expenses664 210 262 5,937 — 7,073 
Intersegment expenses
Interest expense— — 28,658 — (28,658)— 
Provision for loan losses
27,204 — — — (27,204)— 
Other expenses— — 4,545 — (4,545)— 
Total expenses31,713 1,337 38,285 22,834 (60,407)33,762 
Operating income (loss)$(18,997)$5,879 $(41,853)$(30,718)$40,483 $(45,206)
Nine Months Ended December 31, 2023
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment income, net
$— $— $7,935 $— $— $7,935 
Loss on financial instruments, net— — (62,373)(1,887)— (64,260)
Interest and dividend income— — 10 338 — 348 
Trust services and administration revenues— 173 — — — 173 
Other income— — 65 — — 65 
Intersegment revenues
Interest income36,303 — — — (36,303)— 
Trust services and administration revenues— 18,788 — — (18,788)— 
Total revenues36,303 18,961 (54,363)(1,549)(55,091)(55,739)
External expenses
Employee compensation and benefits4,912 1,693 — 51,956 — 58,561 
Interest expense5,922 — 4,091 3,556 — 13,569 
Professional services1,387 762 2,718 17,133 — 22,000 
Loss on impairment of goodwill
1,725,880 554,607 — 5,725 — 2,286,212 
Other expenses1,649 739 603 14,613 — 17,604 
Intersegment expenses
Interest expense— — 92,591 — (92,591)— 
Provision for credit losses78,074 — — — (78,074)— 
Other expenses— — 11,685 — (11,685)— 
Total expenses1,817,824 557,801 111,688 92,983 (182,350)2,397,946 
Operating loss
$(1,781,521)$(538,840)$(166,051)$(94,532)$127,259 $(2,453,685)
Nine Months Ended December 31, 2022
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment loss, net
$— $— $(30,738)$— $— $(30,738)
Loss on financial instruments, net
— — (42,245)(13,856)— (56,101)
Interest and dividend income— — 38 257 — 295 
Trust services and administration revenues— 23 — — — 23 
Other income— — — 86 — 86 
Intersegment revenues
Interest income37,920 — — — (37,920)— 
Trust services and administration revenues— 22,257 — — (22,257)— 
Total revenues37,920 22,280 (72,945)(13,513)(60,177)(86,435)
External expenses
Employee compensation and benefits6,196 1,647 — 26,909 — 34,752 
Interest expense2,179 — 6,638 2,539 — 11,356 
Professional services2,201 1,761 3,615 22,003 — 29,580 
Provision for credit losses— — 13,843 6,737 — 20,580 
Other expenses1,759 552 1,631 17,512 — 21,454 
Intersegment expenses
Interest expense— — 81,165 — (81,165)— 
Provision for loan losses
53,236 — — — (53,236)— 
Other expenses— — 14,137 — (14,137)— 
Total expenses65,571 3,960 121,029 75,700 (148,538)117,722 
Operating income (loss)$(27,651)$18,320 $(193,974)$(89,213)$88,361 $(204,157)
As of December 31, 2023
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
Loans to Customer ExAlt Trusts, net$290,779 $— $— $— $(290,779)$— 
Investments, at fair value— — 378,382 38 — 378,420 
Other assets10,445 47,679 29,647 13,393 (63,835)37,329 
Goodwill and intangible assets, net— 39,612 — 45,202 — 84,814 
Total Assets$301,224 $87,291 $408,029 $58,633 $(354,614)$500,563 
As of March 31, 2023
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
Loans to Customer ExAlt Trusts, net$376,253 $— $— $— $(376,253)$— 
Investments, at fair value— — 491,859 5,362 — 497,221 
Other assets9,447 47,466 10,447 21,849 (46,761)42,448 
Goodwill and intangible assets, net1,725,880 594,219 — 50,927 — 2,371,026 
Total Assets$2,111,580 $641,685 $502,306 $78,138 $(423,014)$2,910,695