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Segment Reporting
 9 Months Ended
Dec. 31, 2024
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, 2024
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment income, net
$— $— $4,742 $— $— $4,742 
Loss on financial instruments, net
— — (427)(96)— (523)
Interest and dividend income
— — — 10 — 10 
Trust services and administration revenues— 188 — — — 188 
Other income— — 2 — — 2 
Intersegment revenues
Interest income11,297 — — — (11,297)— 
Trust services and administration revenues— 5,222 — — (5,222)— 
Total revenues11,297 5,410 4,317 (86)(16,519)4,419 
External expenses
Employee compensation and benefits353 294 — 2,282 — 2,929 
Interest expense3,168 — — 72 — 3,240 
Professional services69 80 508 4,426 — 5,083 
Other expenses361 189 61 2,069 — 2,680 
Intersegment expenses
Interest expense— — 35,855 — (35,855)— 
Provision for credit losses10,199 1,340 — — (11,539)— 
Other expenses— — 3,437 — (3,437)— 
Total expenses14,150 1,903 39,861 8,849 (50,831)13,932 
Operating income (loss)$(2,853)$3,507 $(35,544)$(8,935)$34,312 $(9,513)
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 losses
8,076 — — — (8,076)— 
Other expenses— — 3,991 — (3,991)— 
Total expenses617,680 273,892 38,181 21,006 (45,043)905,716 
Operating loss
$(606,405)$(267,995)$(49,363)$(20,217)$28,029 $(915,951)
Nine Months Ended December 31, 2024
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
External revenues
Investment income, net
$— $— $24,311 $— $— $24,311 
Loss on financial instruments, net— — (1,031)(854)— (1,885)
Interest and dividend income— — — 34 — 34 
Trust services and administration revenues— 564 — — — 564 
Other income— — 2 — — 2 
Intersegment revenues
Interest income34,124 — — — (34,124)— 
Trust services and administration revenues— 15,614 — — (15,614)— 
Total revenues34,124 16,178 23,282 (820)(49,738)23,026 
External expenses
Employee compensation and benefits1,144 1,192 — 11,578 — 13,914 
Interest expense9,412 — — 2,436 — 11,848 
Professional services938 506 1,675 14,765 — 17,884 
Provision for credit losses— — 998 2 — 1,000 
Loss on impairment of goodwill
— 3,427 — 265 — 3,692 
Release of loss contingency related to arbitration award
— — — (54,973)— (54,973)
Other expenses1,214 590 370 6,377 — 8,551 
Intersegment expenses
Interest expense— — 106,703 — (106,703)— 
Provision for credit losses21,878 1,340 — — (23,218)— 
Other expenses— — 10,258 — (10,258)— 
Total expenses34,586 7,055 120,004 (19,550)(140,179)1,916 
Operating income (loss)
$(462)$9,123 $(96,722)$18,730 $90,441 $21,110 
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 losses
78,074 — — — (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)
As of December 31, 2024
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
Loans to Customer ExAlt Trusts, net$260,639 $— $— $— $(260,639)$— 
Investments, at fair value— — 334,278 — — 334,278 
Other assets1,144 21,289 18,634 45,466 (33,813)52,720 
Goodwill and intangible assets, net— 7,469 — 5,545 — 13,014 
Total Assets$261,783 $28,758 $352,912 $51,011 $(294,452)$400,012 
As of March 31, 2024
Ben LiquidityBen CustodyCustomer ExAlt TrustsCorporate & OtherConsolidating EliminationsTotal
Loans to Customer ExAlt Trusts, net$256,184 $— $— $— $(256,184)$— 
Investments, at fair value— — 329,113 6 — 329,119 
Other assets5,814 20,398 19,467 12,510 (35,513)22,676 
Goodwill and intangible assets, net— 10,896 — 5,810 — 16,706 
Total Assets$261,998 $31,294 $348,580 $18,326 $(291,697)$368,501