In accordance with ASC 810, an enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Ben holds a variable interest is a VIE and (b) whether Ben’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance-related fees), would give it a controlling financial interest. The performance of that analysis requires the exercise of judgment. Based on management’s analysis, there are no VIEs that require consolidation, other than those described below.

CT, a Delaware limited liability company, is currently governed by the Fourth Amended and Restated Limited Liability Company Agreement entered into on April 27, 2022. CT was created to reduce the impact of a potential market downturn on the interests in alternative assets held by the Customer ExAlt Trusts that collateralize the loans receivable from the Customer ExAlt Trusts held by BFF, or other Ben entities (such loans receivable are eliminated solely for financial reporting purposes in our consolidated financial statements) by distributing any potential profits to certain of the Customer ExAlt Trusts thereby offsetting any reduction in the value of the alternative assets.

CT is considered a VIE as the at-risk equity holder, BFF, does not have all of the characteristics of a controlling financial interest due to BFF’s receipt of returns being limited to its initial investment in CT. The Company concluded that BFF is the primary beneficiary of CT as BFF has the power to direct the most significant activities and has an obligation to absorb potential losses of CT. Accordingly, the results of CT are included in the Company’s consolidated financial statements.

As of March 31, 2026 and 2025, the consolidated statements of financial condition include assets of this consolidated VIE with a carrying value of nil. No options were held as of March 31, 2026 and 2025 and there was no activity of CT during the years ended March 31, 2026 and 2025.

The Company determined that all of the Customer ExAlt Trusts used in connection with its operations are VIEs of which Ben is the primary beneficiary as defined under ASC 810. The Company concluded that it is the primary beneficiary of the Customer ExAlt Trusts as it has the power to direct the most significant activities and has an obligation to absorb potential losses of the Customer ExAlt Trusts. Accordingly, the results of the Customer ExAlt Trusts are included in the Company’s consolidated financial statements. Although the Company is deemed to be the primary beneficiary of the Customer ExAlt Trusts for purposes of ASC 810, it is neither designated as a beneficiary under the trust agreements nor recognized as a beneficiary of such trusts under applicable state trust law. The assets of the Customer ExAlt Trusts may only be used to settle obligations of the Customer ExAlt Trusts. Other than potentially funding capital calls above the related reserve (refer to Note 20), there is no recourse to the Company for the Customer ExAlt Trusts’ liabilities. The cash flows generated by these VIEs are included within the Company’s consolidated statements of cash flows.


(Dollars in thousands)	March 31, 2026		March 31, 2025
Assets:
Cash and cash equivalents	$	2,186	$	717

Investments, at fair value	195,536		291,371
Other assets	264		378
Total Assets of VIEs	$	197,986	$	292,466

Liabilities:
Accounts payable and accrued expense	$	3,026	$	3,107
Other liabilities	136		95

Total Liabilities of VIEs	$	3,162	$	3,202

Equity:
Treasury stock	$	(3,444)	$	(3,444)
Noncontrolling interests	(228,743)		(201,518)
Accumulated other comprehensive income (loss)	54		(2)
Total Equity of VIEs	$	(232,133)	$	(204,964)


	Year Ended March 31,
(Dollars in thousands)	2026		2025
Revenues
Investment income (loss), net	$	(49,532)	$	(6,500)
Gain (loss) on financial instruments, net	358		(1,776)


Other income	—		2
Total revenues	(49,174)		(8,274)

Operating expenses

Provision for credit losses	—		998
Professional services	1,880		2,137
Other expenses	987		794
Total operating expenses	2,867		3,929

Net income (loss)	$	(52,041)	$	(12,203)
Net income (loss) attributable to noncontrolling interests	$	(25,639)	$	(34,914)