Investments held by Ben or held by the Customer ExAlt Trusts are comprised of investments in alternative assets, public debt and equity securities, other equity securities and interests (including those of a related party), and put options. The composition of investments recorded at fair value by holder is included in the table below (in thousands):


	December 31, 2024				March 31, 2024
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	301,058	$	—	$	293,916
Public equity securities and option	—		4,466		—		4,897
Debt securities available-for-sale	—		1,849		—		2,962
Other equity securities and interests	—		26,905		6		27,338
Total investments, at fair value	$	—	$	334,278	$	6	$	329,113

The investments in alternative assets are held, either through direct ownership or through beneficial interests, by certain of the Customer ExAlt Trusts and consist primarily of limited partnership interests in various alternative investments, including private equity funds. These alternative investments are valued using NAV as a practical expedient. Changes in the NAV of these investments are recorded in investment income (loss), net in our consolidated statements of comprehensive income (loss). The investments in alternative assets provide the economic value that ultimately collateralizes the ExAlt Loans that Ben Liquidity originates with the Customer ExAlt Trusts in liquidity transactions and any associated fees due from the Customer ExAlt Trusts. The increase in investments in alternative assets since March 31, 2024, was primarily driven by net upward adjustments of NAV as reported by the investment managers or general partners offset by $19.3 million in distributions.

The NAV calculation reflects the most current report of NAV and other data received from firm/fund sponsors. If no such report has been received, Ben estimates NAV based upon the last NAV calculation reported by the investment manager and adjusts it for capital calls and distributions made in the intervening time frame. Ben also considers whether adjustments to the NAV are necessary, in certain circumstances, in which management is aware of specific material events, changes in market conditions, and other relevant factors that have affected the value of an investment during the period between the date of the most recent NAV calculation reported by the investment manager or sponsor and the measurement date. Public equity securities known to be owned within an alternative investment fund, based on the most recent information reported by the general partners, are marked to market using quoted market prices on the balance sheet reporting date.

The underlying interests in alternative assets are primarily limited partnership interests. The transfer of the investments in private equity funds generally requires the consent of the corresponding private equity fund manager, and the transfer of certain fund investments is subject to rights of first refusal or other preemptive rights, potentially further limiting the ExAlt PlanTM from transferring an investment in a private equity fund. The investments are not subject to redemption with the funds. Distributions from funds are received as the underlying investments are liquidated. Timing of liquidation is currently unknown.


	Alternative Investments Portfolio Summary
	December 31, 2024				March 31, 2024
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Private Equity	$	137,284	$	37,530	$	116,462	$	38,401
Venture Capital	131,775		1,660		139,495		2,548
Natural Resources	15,590		3,256		17,553		3,340
Private Real Estate	7,905		2,832		8,760		2,907
Hedge Funds	4,135		245		6,095		245
Other(1)	4,369		383		5,551		382
Total	$	301,058	$	45,906	$	293,916	$	47,823

As of December 31, 2024, the Customer ExAlt Trusts collectively had exposure to 222 professionally managed alternative asset investment funds, comprised of 749 underlying investments, 93 percent of which are investments in private companies.

Investment in public equity securities primarily represents ownership by certain of the Customer ExAlt Trusts in public companies. These investments are carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses are recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of December 31, 2024 and March 31, 2024, the fair value of investments in public equity securities was $4.5 million and $4.9 million, respectively. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective, and the Company’s investment was transferred to equity interests in the GWG Wind Down Trust (as defined herein). The interests in the GWG Wind Down Trust are reflected as an investment in other equity securities. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

On April 1, 2022, Ben, through CT Risk Management, L.L.C., (“CT”) made aggregate payments of $5.0 million to purchase put options in the S&P 500 Index with an aggregate notional amount of $141.3 million. Half of the notional expired in April 2024, while the other half expires in April 2025. On April 27, 2022, CT sold an equity interest for $2.4 million to the third-party involved in a participation loan transaction described in Note 7 and utilized the proceeds to purchase additional put options similar to the put options purchased on April 1, 2022. The put options were sold in September 2023 for $1.0 million, resulting in a recognized loss of $0.7 million.

The put options were designed to protect the NAV of the interests in alternative assets, which generate the collateral to certain of the ExAlt Loans in Ben Liquidity’s loan portfolio or the loans related to the participation loan transaction and provide for distributions to the Customer ExAlt Trusts’ ultimate beneficiary, against market risk. The options were carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss).

No put options were held as of December 31, 2024 and March 31, 2024. For the nine months ended December 31, 2023, Ben recognized losses of $3.0 million on the put options, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

As of December 31, 2024 and March 31, 2024, investments in debt securities represent ownership in privately held debt securities. Investments in debt securities are classified and accounted for as available-for-sale, with unrealized gains and losses presented as a separate component of equity under the accumulated other comprehensive income (loss) line item.

Prior to August 1, 2023, investments in debt securities also included ownership in corporate debt securities, specifically, L Bonds of GWG Holdings (“L Bonds”) held by certain of the Customer ExAlt Trusts. The L Bonds had a maturity date of

August 8, 2023. However, upon the effectiveness of GWG Holdings’ plan of reorganization on August 1, 2023, the investments in L Bonds converted to equity interests in the GWG Wind Down Trust, which are reflected in “other equity securities and interests,” as of December 31, 2024 and March 31, 2024.

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of December 31, 2024 and March 31, 2024 are summarized as follows:


	December 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	224	$	(1,060)	$	1,849
Total available-for-sale debt securities	$	2,685	$	224	$	(1,060)	$	1,849

	March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Other debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962
Total available-for-sale debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962


	December 31, 2024				March 31, 2024
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses



Other debt securities:
Less than twelve months	$	—	$	—	$	—	$	—
Twelve months or longer	1,849		1,060		1,964		1,060
Total available-for-sale debt securities with unrealized losses	$	1,849	$	1,060	$	1,964	$	1,060

The noncredit-related portion of the net unrealized losses was $0.1 million for the three and nine months ended December 31, 2024, respectively, and recognized as a component of accumulated other comprehensive income (loss). The noncredit-related portion of the net unrealized gains of $0.1 million and gains of $4.2 million for the three and nine months ended December 31, 2023, respectively, was recognized as a component of accumulated other comprehensive income (loss). Unrealized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities were reclassified from accumulated other comprehensive income and recognized within the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss) during the nine months ended December 31, 2023.

During the three and nine months ended December 31, 2024, the Company determined there was nil and $1.0 million, respectively, credit-related loss on its investment in debt securities available-for-sale. During the three and nine months ended December 31, 2023, the Company determined there was no credit-related loss on its investment in debt securities available-for-sale.


(Dollars in thousands)	Three Months Ended December 31,				Nine Months Ended December 31,
	2024		2023		2024		2023
Balance, beginning of period	$	32,288	$	31,290	$	31,290	$	31,290
Credit related losses not previously recognized	—		—		522		—
Increase in amounts previously recognized	—		—		476		—
Balance, end of period	$	32,288	$	31,290	$	32,288	$	31,290


	December 31, 2024				March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	1,687	$	1,849	$	1,687	$	1,964

No fixed maturity	998		—		998		998
	$	2,685	$	1,849	$	2,685	$	2,962

Ben and certain of the Customer ExAlt Trusts hold investments in equity securities of private companies measured based on quoted prices for similar assets in active markets, including those of the GWG Wind Down Trust. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective and our investments in its common stock and L Bonds (previously accounted for as public equity securities and available-for-sale debt securities, respectively) were then transferred to an investment in the GWG Holdings Wind Down Trust. The fair value of these equity interests was nominal and $0.6 million as of December 31, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Additionally, certain of the Customer ExAlt Trusts hold investments in equity securities that do not have a readily determinable fair value. These equity securities are measured, using the measurement alternative for equity investments that do not have readily determinable fair values, at cost, less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The value of these equity securities was $26.9 million and $26.8 million as of December 31, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein, which reflects any upward or downward adjustments to these equity securities for the periods presented herein. There were no impairments to these equity securities during the three and nine months ended December 31, 2024 and 2023.