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

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 decrease in investments in alternative assets since March 31, 2025 of $96.3 million was principally related to the disposition of certain limited partnership interests for $51.5 million of proceeds, normal distributions on the investments of approximately $12.1 million and downward adjustments of NAV as reported by the investment managers or general partners or other fair value adjustments totaling $49.5 million, primarily related to asset sales activity, partially offset by approximately $14.8 million of new originations and $2.2 million of capital call contributions.

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
	March 31, 2026				March 31, 2025
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Private Equity	$	80,685	$	25,975	$	120,008	$	34,252
Private Real Estate	6,300		1,650		6,454		2,777
Natural Resources	6,111		1,250		12,691		2,663
Venture Capital	60,021		1,183		109,361		1,324
Hedge Funds	3,332		—		3,931		245
Other(1)	6,375		376		6,668		383
Total	$	162,824	$	30,434	$	259,113	$	41,644

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 March 31, 2026 and 2025, the fair value of investments in public equity securities was $4.5 million and $4.1 million, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

As of March 31, 2026 and 2025, 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.


	March 31, 2026
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	1,687	$	52	$	—	$	1,739
Total available-for-sale debt securities	$	1,687	$	52	$	—	$	1,739

	March 31, 2025
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	—	$	(998)	$	1,687
Total available-for-sale debt securities	$	2,685	$	—	$	(998)	$	1,687


	March 31, 2026				March 31, 2025
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses



Other debt securities:
Less than twelve months	$	—	$	—	$	—	$	—
Twelve months or longer	—		—		1,687		998
Total available-for-sale debt securities with unrealized losses	$	—	$	—	$	1,687	$	998

During the year ended March 31, 2026, the Company determined there was a no credit-related loss on its investment in debt securities available-for-sale. During the year ended March 31, 2025, the Company determined there was $1.0 million credit-related loss on its investment in debt securities available-for-sale.


	Year Ended March 31,
(Dollars in thousands)	2026		2025
Cumulative losses as of the beginning of period	$	32,288	$	31,290
Credit related losses not previously recognized	—		998
Increase in amounts previously recognized	—		—
Cumulative losses as of the end of period	$	32,288	$	32,288

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 (as defined herein). 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 created as part of the approved plan of reorganization. The fair value of these equity interests was nominal as of both March 31, 2026 and 2025. 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. When observable price adjustments are identified, the inputs used are generally Level 2 inputs within the fair value hierarchy. The value of these equity securities was $26.5 million and $26.5 million as of March 31, 2026 and 2025, 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 years ended March 31, 2026 and 2025. Additionally, through March 31, 2026, one security has cumulative upward adjustments of $10.8 million based upon observable price changes, which was based on a then recent equity offering and stock to stock transactions. The cumulative upward adjustments occurred in fiscal year 2023. No significant adjustments were made during the years ended March 31, 2026 and 2025.