Q1 2025 Beneficient Earnings Call

August 14, 2024

Thank you for watching.

Operator: first quarter fiscal 2025 earnings conference. At this time, all participants are in a listen-only mode.

Operator: First quarter of fiscal 2025 earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded.

Speaker Change: Hello, and welcome to the Beneficent First Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Dan Kallis: I advise that today's conference is being, [inaudible] Director of Communications, Dan Kallis. Good afternoon, and thank you for joining us today for beneficence fiscal first quarter 2025 conference call. In addition to this call, we issued an earnings press release that was posted to the shareholders section of our website at shareholders.trustspam.com. Today's webcast is being recorded and a replay will be available on the company's website.

Dan Callahan: It is now my pleasure to introduce Director of Communications, Dan Callahan. Good afternoon, and thank you for joining us today for Beneficence fiscal first quarter 2025 conference call. In addition to this call, we issued an earnings press release that was posted to the shareholders section of our website at shareholders.trustbenn.com.

Speaker Change: Please be advised that today's conference is being recorded.

Speaker Change: It is now my pleasure to introduce Director of Communications, Dan Callahan.

Dan Kallis: On today's call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Actual results and future events could materially differ from those discussed in these forward-looking statements because of factors described in our earnings press release and in the risk factors section of our Form 10-K and in subsequent filings we make with the Securities and Exchange, Forward-looking statements represent management's current estimates and Beneficent assumes no obligation to update any forward-looking statements in the future.

Speaker Change: Good afternoon, and thank you for joining us today for Beneficent's fiscal first quarter 2025 conference call.

Speaker Change: In addition to this call, we issued an earnings press release that was posted to the shareholders section of our website at shareholders.trustspam.com. Today's webcast is being recorded and a replay will be available on the company's website.

Dan Callahan: Today's webcast is being recorded, and a replay will be available on the company's website. On today's call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Actual results and future events could materially differ from those discussed in these forward-looking statements because of factors described in our earnings press release and in the risk factors section of our Form 10-K, and in subsequent filings we make with the Securities and Exchange Commission. Forward-looking statements represent management's current estimates, and Beneficent assumes no obligation to update any forward-looking statements in the future.

Speaker Change: On today's call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today.

Speaker Change: Actual results and future events could materially differ from those discussed in these forward-looking statements because of factors described in our earnings press release and in the risk factors section of our Form 10-K and in subsequent filings we make with the Securities and Exchange Commission.

Speaker Change: Forward-looking statements represent management's current estimates, and Beneficent assumes no obligation to update any forward-looking statements in the future.

Dan Kallis: Today's call also contains certain non-GAAP financial measures. Please refer to our earnings press release, which is available on our website, for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures. Hosting with call today are CEO and Chairman Brad Hefner and Chief Financial Officer Greg Azell. Now I'll hand the meeting over to Brad. Thank you, Dan, and good afternoon and thank you for joining us.

Dan Callahan: Today's call also contains non-GAAP financial measures. Please refer to our earnings press release, which is available on our website for important disclosures regarding such measures, including reconciliation to the most comparable GAAP financial measures.

Speaker Change: Today's call also contains certain non-GAAP financial measures. Please refer to our earnings press release, which is available on our website, for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures.

Dan Callahan: Hosting the call today are CEO and Chairman Brad Hefner and Chief Financial Officer Greg Azell.

Speaker Change: Hosting the call today are CEO and Chairman Brad Heppner and Chief Financial Officer Greg Gazzell. Now I'll hand the meeting over to Brad.

Brad Hefner: Now I'll hand the meeting over to Brad.

Brad Hefner: Well, thank you, Dan. Good afternoon, and thank you for joining us. Today I will cover three advancements that the company has made in order to initiate our growth plans and renewed sales efforts starting this month. I'll also discuss some positive news on the legal front.

Brad Hefner: Today I will cover three advancements that the company has made in order to initiate our growth plans and renewed sales efforts starting this month. I'll also discuss some positive news on the legal front than Greg Azale, our Chief Financial Officer, will provide comments on our quarterly results. As a reminder to help frame today's discussion, Ben was created to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets.

Brad Heppner: Thank you, Dan. Good afternoon and thank you for joining us. Today, I will cover three advancements that the company has made in order to initiate our growth plans and renewed sales efforts starting this month.

Brad Hefner: Then Greg Azell, our Chief Financial Officer, will provide comments on our quarterly results. As a reminder to help frame today's discussion, Ben was created to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets. We particularly focus on the target markets of high net worth individuals and small to mid-sized institutions who have been underserved when it comes to exiting alternative assets prior to their maturity. The traditional process for these smaller investors is incredibly complex. It's expensive and time-consuming, often taking as long as 15 months or more if liquidity can be found at all.

Speaker Change: I'll also discuss some positive news on the legal front, then Greg Azale, our Chief Financial Officer, will provide comments on our quarterly results.

Speaker Change: As a reminder to help frame today's discussion, then was created to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets.

Brad Hefner: We particularly focus on the target markets of high net worth individuals and small to mid-sized institutions who have been underserved when it comes to exiting alternative assets prior to their maturity. The traditional process for these smaller investors is incredibly complex. It's expensive and time-consuming, often taking as long as 15 months or more if liquidity can be found at all.

Speaker Change: We particularly focus on the target markets of high net worth individuals and small to mid-sized institutions who have been underserved when it comes to exiting alternative assets prior to their maturity.

Speaker Change: The traditional process for these smaller investors is incredibly complex. It's expensive and time-consuming, often taking as long as 15 months or more, if liquidity can be found at all.

Brad Hefner: To address this process, we built a FinTech platform called Ben All Access with a goal of completing these very important transactions in a fraction of that time, now potentially in as few as 15 days. That's thanks to our newest release of an automated pricing system coupled with our standardized documentation we developed to enhance this entire process. I will speak more on this in just a moment.

Brad Hefner: To address this process, we built a fintech platform called Ben Alt Access with a goal of completing these very important transactions in a fraction of that time, now potentially in as few as 15 days. That thanks to our newest release of an automated pricing system coupled with our standardized documentation we developed to enhance this entire process. I will speak more on this in just a moment.

Speaker Change: To address this process, we built a fintech platform called BAN ALT-ACCESS.

Speaker Change: with a goal of completing these very important transactions in a fraction of that time. Now, potentially in as few as 15 days.

Speaker Change: That's thanks to our newest release of an automated pricing system, coupled with our standardized documentation we developed to enhance this entire process.

Operator: First quarter of fiscal 2025 earnings conference call. At this time, all participants are in a listen only mode. Please be advised that today's conference is being recorded.

Brad Hefner: The turning to our three advanced, First, we created, through our GP Solutions Group, a unique primary capital fiduciary financing product aimed at general partners, which we see as an adjacent and related market to our liquidity fiduciary financing. This product is targeted to general partners who are experiencing the challenges of sourcing capital and a lack of innovative new solutions to solve this problem. Recent PEI data shows that it is now taking an average of 18 months for general partners to raise their private equity funds. That's double what it took them just three years ago.

Brad Hefner: The turning to our three advancements. First, we created through our GP Solutions Group, a unique primary capital, fiduciary financing product, aimed at general partners, which we see as an adjacent and related market to our liquidity fiduciary finance. This product is targeted to general partners who are experiencing the challenges of sourcing capital and a lack of innovative new solutions to solve this problem. Recent PEI data shows that it is now taking an average of 18 months for general partners to raise their private equity funds. That's double what it took them just three years ago. To help this audience learn about how Ben can assist through our primary capital solutions, we have recently launched a new NASDAQ co-branded advertising campaign directed at these important prospects.

Speaker Change: I will speak more on this in just a moment, but turning to our three advancements.

Dan Callahan: It is now my pleasure to introduce Director of Communications, Dan Callahan. Good afternoon, and thank you for joining us today for beneficence fiscal first quarter 2025 conference call. In addition to this call, we issued an earnings press release that was posted to the shareholders section of our website at shareholders.trustbenn.com. Today's webcast is being recorded and a replay will be available on the company's website. On today's call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today.

Speaker Change: First, we created through our GP Solutions Group a unique primary capital fiduciary financing product aimed at general partners which we see as an adjacent and related market to our liquidity fiduciary financings.

Dan Callahan: Actual results and future events could materially differ from those discussed in these forward-looking statements because of factors described in our earnings press release and in the risk factors section of our form 10K, and in subsequent filings we make with the Securities and Exchange Commission. Forward-looking statements represent management's current estimates and beneficent assumes no obligation to update any forward-looking statements in the future. Today's call also contains non-gap financial measures.

Dan Callahan: Please refer to our earnings press release which is available on our website for important disclosures regarding such measures, including reconciliation to the most comparable gap financial measures.

Speaker Change: This product is targeted to general partners who are experiencing the challenges of sourcing capital and a lack of innovative new solutions to solve this problem.

Speaker Change: Recent PEI data shows that it is now taking an average of 18 months for general partners to raise their private equity funds. That's double what it took them just three years ago.

Brad Hefner: To help this audience learn about how Bend can assist through our primary capital solutions, we have recently launched a new NASDAQ co-branded advertising campaign directed at these important prospects. Our second advancement was announced earlier this week, a significant upgrade to our Alt-Access Fintech platform that we call Machine Automated Pricing System, or Maps for short, which automates the pricing of our exalt loans that are backed by alternative assets. It integrates enhanced algorithmic capabilities designed to handle a higher volume of transactions by beneficent with greater efficiency.

Speaker Change: To help this audience learn about how Ben can assist through our primary capital solutions, we have recently launched a new NASDAQ co-branded advertising campaign directed at these important prospects.

Brad Hefner: Our second advancement was announced earlier this week, a significant upgrade to our Ulta Access Fintech platform that we call machine automated pricing system or MAPS for short, which automates the pricing of our exalt loans that are backed by alternative assets. It integrates enhanced algorithmic capabilities designed to handle a higher volume of transactions by beneficient with greater efficiency. We will now be able to provide more timely delivery of pricing for qualified fiduciary financing and enable our customers to achieve earlier liquidity from their alternative assets or for our general partners to secure primary capital solutions during their fundraising, all while fostering increased confidence and transparency.

Speaker Change: Our second advancement was announced earlier this week, a significant upgrade to our Alt Access FinTech platform that we call Machine Automated Pricing System, or MAPS for short, which automates the pricing of our Exalt loans that are backed by alternative assets.

Speaker Change: It integrates enhanced algorithmic capabilities designed to handle a higher volume of transactions by beneficial with greater efficiency.

Brad Hefner: We will now be able to provide more timely delivery of pricing for qualified fiduciary financing and enable our customers to achieve earlier liquidity from their alternative assets or for our general partners to secure primary capital solutions during their fundraising all while fostering increased confidence and transparency. As I stated earlier, because of MAPS, liquidity transactions can be completed in as little as 15 days, which we believe will further set us apart in this market. Ben's formula-based pricing system incorporated into MAPS is engineered to adjust pricing dynamically based on a broad spectrum of inputs, including the latest private market metrics and public market data.

Speaker Change: We will now be able to provide more timely delivery of pricing for qualified fiduciary financing and enable our customers to achieve earlier liquidity from their alternative assets

Dan Callahan: Hosting the call today are CEO and chairman Brad Hefner and Chief Financial Officer Greg Azell.

Speaker Change: or for our general partners to secure primary capital solutions during their fundraising, all while fostering increased confidence and transparency.

Brad Hefner: Now I'll hand the meeting over to Brad. Well, thank you, Dan. Good afternoon, and thank you for joining us. Today I will cover three advancements that the company has made in order to initiate our growth plans and renewed sales efforts starting this month. I'll also discuss some positive news on the legal front.

Brad Hefner: As I stated earlier, because of maps, liquidity transactions can be completed in as little as 15 days, which we believe will further set us apart in this market. Ben's formula-based pricing system, incorporated into maps, is engineered to adjust pricing dynamically based on a broad spectrum of inputs, including the latest private market metrics and public market data. This innovation is designed to provide customers with up-to-date and precise valuations generated through a consistently applied methodology that is intended to streamline their decision-making processes. The initial rollout of maps is expected to include Ben's general partner or GP solutions group, particularly the primary commitment program I just mentioned, which is focused on providing primary capital solutions and financing anchor and other commitments while also immediately deploying capital into our equity to general partners during their fundraising efforts.

Speaker Change: As I stated earlier, because of MAPS, liquidity transactions can be completed in as little as 15 days, which we believe will further set us apart in this market.

Brad Hefner: Then Greg Azell, our Chief Financial Officer, will provide comments on our quarterly results.

Speaker Change: Ben's formula-based pricing system incorporated into MAPS is engineered to adjust pricing dynamically based on a broad spectrum of inputs, including the latest private market metrics and public market data.

Brad Hefner: As a reminder to help frame today's discussion, Ben was created to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets. We particularly focus on the target markets of high net worth individuals and small to mid-sized institutions who have been underserved when it comes to exiting alternative assets prior to their maturity. The traditional process for these smaller investors is incredibly complex. It's expensive and time-consuming, often taking as long as 15 months or more if liquidity can be found at all.

Brad Hefner: This innovation is designed to provide customers with up-to-date and precise valuations generated through a consistently applied methodology that's intended to streamline their decision making process. The initial rollout of MAPS is expected to include Ben's General Partner or GP Solutions Group, particularly the Primary Commitment Program I just mentioned, which is focused on providing primary capital solutions and financing anchor and other commitments while also immediately deploying capital into our equity to general partners during their fundraising efforts.

Speaker Change: This innovation is designed to provide customers with up-to-date and precise valuations generated through a consistently applied methodology that's intended to streamline their decision-making processes.

Ben: The initial rollout of MAPS is expected to include Ben's general partner or GP Solutions Group, particularly the Primary Commitment Program I just mentioned, which is focused on providing primary capital solutions

Ben: financing anchor and other commitments while also immediately deploying capital into our equity to general partners during their fundraising efforts.

Brad Hefner: Following the initial deployment, we plan to extend the use of maps across other target markets to further diversify and enhance our product offerings with a goal of delivering significant value to both our customers and our stockholders while meeting a large and rapidly growing demand for alternative asset liquidity and primary capital commitments. Our innovation through all taxes and its integration of maps is poised to address the approximate $400 billion in market demand for liquidity-restructuring solutions and primary capital. This enhanced platform aims to further secure rapid and transparent transactions, reinforcing Ben's position as an innovator in the alternative asset liquidity market.

Brad Hefner: Following the initial deployment, we plan to extend the use of maps across other target markets to further diversify and enhance our product offerings with a goal of delivering significant value to both our customers and our stockholders while meeting a large and rapidly growing demand for alternative asset liquidity and primary capital, Our innovation throughout access and its integration of maps is poised to address the approximate $400 billion in market demand for liquidity restructuring solutions and primary capital. This enhanced platform aims to deliver secure rapid and transparent transactions reinforcing Ben's position as an innovator in the alternative asset liquidity market. Now third, we have now been listed for a year on the NASDAQ.

Ben: Following the initial deployment, we plan to extend the use of maps.

Ben: across other target markets to further diversify and enhance our product offerings with the goal of delivering significant value to both our customers and our stockholders while meeting a large and rapidly growing demand for alternative asset liquidity and primary capital commitments.

Brad Hefner: The turning to our three advancements. First, we created through our GP Solutions Group, a unique primary capital, fiduciary financing product, aimed at general partners which we see as an adjacent and related market to our liquidity fiduciary finance. This product is targeted to general partners who are experiencing the challenges of sourcing capital and a lack of innovative new solutions to solve this problem. Recent PEI data shows that it is now taking an average of 18 months for general partners to raise their private equity funds. That's double what it took them just three years ago.

Ben: Our innovation through Alt Access and its integration of MAPS is poised to address the approximate $400 billion in market demand for liquidity restructuring solutions and primary capital.

Ben: This enhanced platform aims to deliver secure, rapid, and transparent transactions, reinforcing Ben's position as an innovator in the alternative asset liquidity market.

Brad Hefner: Now, third, we have now been listed for a year on the NASDAQ, and we believe that a greater portion of the market is becoming increasingly aware of our business and unique solutions. This is important to Ben in particular as visibility and volume helps support confidence in the company among our target audiences and facilitates our exchange trust product sales as we work to close a creative asset transactions with customers. As I've shared in prior conversations, Beneficient benefits from a number of strategic advantages which provide a substantial moat around our business as we work to scale up and deliver on our vision.

Ben: Now third, we have now been listed for a year on the NASDAQ. We believe that a greater portion of the market is becoming increasingly aware of our business and unique solutions.

Brad Hefner: We believe that a greater portion of the market is becoming increasingly aware of our business and unique solutions. This is important to Ben in particular as visibility and volume helps support confidence in the company among our target audiences and facilitates our exchange trust product sales as we work to close a creative asset transactions with customers. As I've shared in prior conversations, beneficient benefits from a number of strategic advantages which provide a substantial moat around our business as we work to scale up and deliver on our vision. Primary among these are first our custom built patented protected technology platform.

Speaker Change: This is important to Ben. In particular, as visibility and volume helps support confidence in the company among our target audiences and facilitates our exchange trust product sales as we work to close a creative asset transactions with customers.

Brad Hefner: To help this audience learn about how Ben can assist through our primary capital solutions, we have recently launched a new NASDAQ Co-branded advertising campaign directed at these important prospects.

Brad Hefner: Our second advancement was announced earlier this week, a significant upgrade to our Ulta Access Fintech platform that we call machine automated pricing system or maps for short, which automates the pricing of our exalt loans that are backed by alternative assets. It integrates enhanced algorithmic capabilities designed to handle a higher volume of transactions by beneficient with greater efficiency. We will now be able to provide more timely delivery of pricing for qualified fiduciary financing and enable our customers to achieve earlier liquidity from their alternative assets or for our general partners to secure primary capital solutions during their fundraising all while fostering increased confidence and transparency.

Speaker Change: As I've shared in prior conversations, Beneficient benefits from a number of strategic advantages which provide a substantial moat around our business as we work to scale up and deliver on our vision.

Brad Hefner: Primary among these are first our custom built patented protected technology platform. Second, our statutory and regulatory oversight and compliance providing confidence to our customers and counter parties with whom we transact. Third, just being a publicly traded company with exposure to our optimum alternative assets through our exalt loans, and finally, thousands of industry relationships giving us access to the holders of private assets. Our financial model also provides an innovative approach that enables our stockholders to benefit from the free fee revenue generated from our fiduciary products and trust and custody services and also the unique opportunity to benefit from the upside returns of the underlying loan portfolios, which include many of the best known and most sought after investments in private equity.

Speaker Change: Primary among these are first our custom-built patented protected technology platform.

Brad Hefner: Second our statutory and regulatory oversight and compliance providing confidence to our customers and counter parties with whom we transact. Third, just being a publicly traded company with exposure to our optimum alternative assets through our exalt loans. And finally, thousands of industry relationships giving us access to the holders of private assets. Our financial model also provides an innovative approach that enables our stockholders to benefit from the free fee revenue generated from our fiduciary products and trust and custody services, and also the unique opportunity to benefit from the upside returns of the underlying loan portfolios, which include many of the best-known and most sought-after investments in private equity.

Speaker Change: Second, our statutory and regulatory oversight and compliance, providing confidence to our customers and counterparties with whom we transact.

Speaker Change: Third, just being a publicly traded company with exposure to our optimum alternative assets through our exalt loans. And finally, thousands of industry relationships giving us access to the holders of private assets.

Speaker Change: Our financial model also provides an innovative approach that enables our stockholders to benefit from the free fee revenue generated from our fiduciary products and trust and custody services, and also the unique opportunity to benefit from the upside returns

Speaker Change: of the underlying loan portfolios, which include many of the best known and most sought after investments in private equity.

Brad Hefner: I am pleased to say that our custody business returned to profitability in the quarter ending June 30.

Brad Hefner: I am pleased to say that our custody business returned to profitability in the quarter ending June 30. Now let's dig into the opportunity here in a bit more detail. With publicly traded equities, investors can readily open a brokerage account at one of many brokerage firms. Transact in these equities on a major exchange quickly, easily and at an nominal cost. Contrast with alternative assets there's no readily available communal marketplace where regulated entity exercise using fiduciary powers on behalf of its investors provides dedicated permanent capital and ease of timely trade execution for liquidity. This means that most alternative assets are very illiquid, time-consuming and expensive to transact in, and hold for most investors, with the exception of well-capitalized sophisticated institutional firms.

Speaker Change: I am pleased to say that our custody business returned to profitability in the quarter ending June 30.

Brad Hefner: Now let's dig into the opportunity here in a bit more detail. With publicly traded equities, investors can readily open a brokerage account at one of many brokerage firms, transact in these equities on a major exchange quickly, easily, and at a nominal cost. In contrast, with alternative assets, there is no readily available communal marketplace where regulated entity, exercise using fiduciary powers on behalf of its investors, provides dedicated permanent capital and ease of timely trade execution for liquidity. This means that most alternative assets are very liquid, time consuming, and expensive to transact in and hold for most investors, with the exception of well-capitalized, sophisticated institutional firms. Despite these limitations, there continues to be an ever-increasing number of mid- to high-net-worth individuals and small- to mid-sized institutions participating in the alternative asset markets.

Speaker Change: Now let's dig into the opportunity here in a bit more detail. With publicly traded equities, investors can readily open a brokerage account at one of many brokerage firms, transacting these equities on a major exchange quickly, easily, and at a nominal cost.

Brad Hefner: The initial rollout of maps is expected to include Ben's general partner or GP solutions group, particularly the primary commitment program I just mentioned, which is focused on providing primary capital solutions and financing anchor and other commitments while also immediately deploying capital into our equity to general partners during their fundraising efforts. Following the initial deployment, we plan to extend the use of maps across other target markets to further diversify and enhance our product offerings with a goal of delivering significant value to both our customers and our stockholders while meeting a large and rapidly growing demand for alternative asset liquidity and primary capital commitments.

Speaker Change: In contrast, with alternative assets, there is no readily available communal marketplace where a regulated entity exercising fiduciary powers on behalf of its investors provides dedicated permanent capital and ease of timely trade execution for liquidity.

Speaker Change: This means that most alternative assets are very illiquid, time-consuming, and expensive to transact in, and hold for most investors, with the exception of well-capitalized, sophisticated institutional firms.

Brad Hefner: Despite these limitations, there continues to be an ever-increasing number of mid- to high-net worth individuals and small to mid-sized institutions participating in the alternative asset markets. We estimate mid- to high-net-worth investors in small-to-medium-sized institutions, those markets in the U.S. alone account for more than $2.7 trillion of net asset value, and we believe the unmet demand for liquidity is over $61 billion annually, growing to more than $100 billion within the next five years.

Speaker Change: Despite these limitations, there continues to be an ever-increasing number of mid- to high-net-worth individuals and small- to mid-sized institutions participating in the alternative asset markets.

Brad Hefner: Our innovation through all taxes and its integration of maps is poised to address the approximate $400 billion in market demand for liquidity-restructuring solutions and primary capital. This enhanced platform aims to further secure rapid and transparent transactions reinforcing Ben's position as an innovator in the alternative asset liquidity market.

Brad Hefner: We estimate mid to high net worth investors and small to medium-sized institutions, those markets in the U.S. alone account for more than $2.7 trillion of net asset value, and we believe the unmet demand for liquidity is over $61 billion annually, growing to more than $100 billion within the next five years. Further, the market for general partner seeking liquidity for restructuring in the secondary market is in excess of $100 billion annually. We feel we are in the right position to address this demand for secondary market liquidity from mid high net worth investors, small to medium-sized institutions, and general partners with a combined market of over $150 billion today.

Speaker Change: We estimate mid-to-high net worth investors and small to medium sized institutions Those markets in the US alone account for more than 2.7 trillion dollars of net asset value.

Speaker Change: And we believe the unmet demand for liquidity is over $61 billion annually, growing to more than $100 billion within the next five years. Further, the market for general partners seeking liquidity for restructurings in the secondary market is in excess of $100 billion annually.

Brad Hefner: Further the market for general partner seeking liquidity for restructuring in the secondary market is an excess of $100 billion annual. We feel we are in the right position to address this demand for secondary market liquidity from mid-high net worth investors, small to medium-sized institutions, and general partners with a combined market of over $150 billion today. But that is just the market for existing alternative investment.

Brad Hefner: Now, third, we have now been listed for a year on the NASDAQ, and we believe that a greater portion of the market is becoming increasingly aware of our business and unique solutions. This is important to Ben in particular as visibility and volume helps support confidence in the company among our target audiences and facilitates our exchange trust product sales as we work to close a creative asset transactions with customers. As I've shared in prior conversations, beneficient benefits from a number of strategic advantages which provide a substantial moat around our business as we work to scale up and deliver on our vision.

Speaker Change: We feel we are in the right position to address this demand for secondary market liquidity from mid-high net worth investors, small to medium sized institutions, and general partners with a combined market of over $150 billion today.

Brad Hefner: But if that is just the market for existing alternative investments, going back to my earlier comments about our new primary capital solution for GPs, as fund sponsors continue to launch new products and face an increasingly competitive and challenging fundraising environment. We believe there's up to approximately $330 billion in additional primary capital demand over the coming years, which we can finance from our balance sheet in the same manner. The deals we have done to date demonstrate that our architecture can deliver our products and our broad, sorry, and our board recently approved an Exchange Trust product plan to complete up to $5 billion of fiduciary financing to customer-exalt trusts through our Exchange Trust transactions.

Speaker Change: But that is just the market for existing alternative investments.

Brad Hefner: Going back to my earlier comments about our new primary capital solution for GPs, as fund sponsors continue to launch new products and face an increasingly competitive and challenging fundraising environment. We believe there is up to approximately $330 billion in additional primary capital demand over the coming years, which we can finance from our balance sheet in the same manner. The deals we have done today demonstrate that our architecture can deliver our product.

Speaker Change: Going back to my earlier comments about our new primary capital solution for GPs, as fund sponsors continue to launch new products and face an increasingly competitive and challenging fundraising environment.

Brad Hefner: Primary among these are first our custom built patented protected technology platform. Second our statutory and regulatory oversight and compliance providing confidence to our customers and counter parties with whom we transact. Third just being a publicly traded company with exposure to our optimum alternative assets through our exalt loans and finally thousands of industry relationships giving us access to the holders of private assets. Our financial model also provides an innovative approach that enables our stockholders to benefit from the free fee revenue generated from our fiduciary products and trust and custody services and also the unique opportunity to benefit from the upside returns of the underlying loan portfolios which include many of the best known and most sought after investments in private equity. I am pleased to say that our custody business returned to profitability in the quarter ending June 30.

Speaker Change: We believe there is up to approximately $330 billion in additional primary capital demand over the coming years, which we can finance from our balance sheet in the same manner.

Speaker Change: The deals we have done to date demonstrate that our architecture can deliver our products.

Brad Hefner: And our broad, sorry, and our board recently approved an exchange trust product plan to complete up to $5 billion of fiduciary financing to customer-exalt trusts through our exchange trust transaction. As we've highlighted in the past, our business plan is to finance liquidity transactions at a discount to market value, collect services revenue from the fiduciary and custody services we provide, and share in the upside on investment. Those investments that back our exalt loans upon maturity.

Speaker Change: And our board recently approved an exchange trust product plan to complete up to $5 billion of fiduciary financing to customer exalt trusts through our exchange trust transactions.

Brad Hefner: As we've highlighted in the past, our business plan is to finance liquidity transactions at a discount to market value, collect services revenue from the fiduciary and custody services we provide, and share in the upside on investments. Those investments, the back are exalt loans upon maturity. This is a distinct contrast to most other private equity companies in the market today, who typically only participate as a broker, a manager, a trader, or fiduciary, not in the multiple of these roles as Ben does. As Ben liquidity closes liquidity and primary capital transactions with our customers, our exalt loan collateral portfolios are expected to proportionally increase.

Speaker Change: As we've highlighted in the past, our business plan is to finance liquidity transactions at a discount to market value, collect services revenue from the fiduciary and custody services we provide, and share in the upside on investments.

Brad Hefner: This is a distinct contrast to most other private equity companies in the market today who typically only participate as a broker, a manager, a trader, or a fiduciary, not in the multiple of these roles as Ben does.

Speaker Change: Those investments to back our exalt loans upon maturity. This is a distinct contrast to most other private equity companies in the market today who typically only participate as a broker, a manager, a trader, or a fiduciary, not in the multiple of these roles as Ben does.

Brad Hefner: As Bend Liquidity closes liquidity and primary capital transactions with our customers, our Exalt Loan collateral portfolio is expected to proportionally increase. Our plan is to grow and scale our capital, commensurate with the demand for liquidity and primary capital products and in a manner that strengthens Ben's balance sheet over time. In order to achieve an optimized, risk-adjusted return in diversification under our Optima Multendowment Model, operational economies of scale, improved margins and tangible book value for our shareholders, our company must innovate and market new fiduciary products, Now before I hand off the call, I want to provide an update on certain legal proceedings where we have received positive news in the last quarter.

Speaker Change: Has been liquidity closes liquidity and primary capital transactions with our customers our exalt loan collateral Portfolio is expected to proportionately increase

Brad Hefner: Our plan is to grow and scale our capital, commensurate with the demand for liquidity and primary capital products in a manner that strengthens Ben's balance sheet over time.

Speaker Change: Our plan is to grow and scale our capital commensurate with the demand for liquidity in primary capital products and in a manner that strengthens Ben's balance sheet over time.

Brad Hefner: In order to achieve an optimized, risk-adjusted return and diversification under our optimal multi-endowment model, operational economies of scale, improved margins, and tangible book value for our shareholders, our company must innovate and market new fiduciary products and services.

Speaker Change: In order to achieve an optimized risk-adjusted return and diversification under our optimum alt-endowment model, operational economies of scale, improved margins, and tangible book value for our shareholders, our company must innovate and market new fiduciary products and services.

Brad Hefner: This means that most alternative assets are very liquid, time consuming and expensive to transact in and hold for most investors with the exception of well capitalized sophisticated institutional firms. Despite these limitations, there continues to be an ever increasing number of mid to high net worth individuals and small to mid-sized institutions participating in the alternative asset markets. We estimate mid to high net worth investors and small to medium-sized institutions, those markets in the U.S, alone account for more than $2.7 trillion of net asset value, and we believe the unmet demand for liquidity is over $61 billion annually, growing to more than $100 billion within the next five years.

Brad Hefner: Now, before I hand off the call, I want to provide an update on certain legal proceedings where we have received positive news in the last quarter. Last month, the Texas State District Court vacated its entirety previously disclosed our Petration Award against the company and the aggregate amount of approximately $55.3 million pertaining to a former member of the Board of Directors of Beneficient Management LLC, who challenged the termination of certain equity awards under two incentive plans. The court directed the parties to file motions requesting any further relief that may be available within 20 days of that order.

Speaker Change: Now, before I hand off the call, I want to provide an update on certain legal proceedings where we have received positive news in the last quarter.

Brad Hefner: Last month, the Texas State District Court vacated its entirety previously disclosed arbitration award against the company and the aggregate amount of approximately $55.3 million pertaining to a former member of the Board of Directors of Beneficient Management LLC who challenged the termination of certain equity awards under two incentive plans. The court directed the parties to file motions requesting any further relief that may be available within 20 days of that order.

Speaker Change: Last month, the Texas State District Court vacated its entirety of previously disclosed arbitration award against the company in the aggregate amount of approximately $55.3 million pertaining to a former member of the Board of Directors of Beneficent Management, LLC, who challenged the termination of certain equity awards under two incentive plans.

Speaker Change: The court directed the parties to file motions requesting any further relief that may be available within 20 days of that order.

Brad Hefner: Further, the market for general partner seeking liquidity for restructuring in the secondary market is an excess of $100 billion annually. We feel we are in the right position to address this demand for secondary market liquidity from mid high net worth investors, small to medium-sized institutions, and general partners with a combined market of over $150 billion today.

Brad Hefner: The company intends to continue to vigorously defend itself in the event the claim it seeks in the additional relief, or in the event he seeks an appeal in connection with the order.

Brad Hefner: The company intends to continue to vigorously defend itself in the event the claimant seeks any additional relief or in the event he seeks an appeal in connection with the order. As we mentioned on the last call and highlighted in press releases and filings, the company and key members of its leadership received letters from the SEC advising us that the Securities and Exchange Commission staff has terminated its investigation and does not intend to recommend an enforcement action by the SEC under the previously issued Wells Notice.

Speaker Change: The company intends to continue to vigorously defend itself in the event the claimant seeks any additional relief or in the event he seeks an appeal in connection with the order.

Brad Hefner: As we mentioned on the last call and highlighted in press releases and filings, the company and key members of its leadership received letters from the SEC advising us that the Securities and Exchange Commission staff has terminated its investigation and does not intend to recommend an enforcement action by the SEC under the previously issued wells. In regarding beneficence lawsuit for defamation against the Wall Street Journal's reporter Alex Gladstone, has previously reported a federal judge in the United States District Court for the Eastern District of Texas ruled against the motion to dismiss by the defendants. Noting, and I quote, the article repeatedly juxtaposes facts and uses provocative language and ways to convey it to the defamatory jest identified by the plaintiff's in-quote.

Speaker Change: As we mentioned on the last call and highlighted in press releases and filings,

Speaker Change: The company and key members of its leadership received letters from the SEC advising us that the Securities and Exchange Commission staff has terminated its investigation and does not intend to recommend an enforcement action by the SEC under the previously issued Wells notices.

Brad Hefner: And regarding Beneficent's lawsuit for defamation against the Wall Street Journal's reporter Alex Gladstone, as previously reported, a federal judge in the United States District Court for the Eastern District of Texas ruled against a motion to dismiss by the defendants, noting, and I quote, the article repeatedly juxtaposes facts and uses provocative language in ways to convey the defamatory jest identified by the plaintiff. And the beneficent, and I quote again, repeatedly notified Gladstone of specific factual errors in the article and that Gladstone nevertheless rejected or ignored their corrections to serve his preconceived agenda.

Speaker Change: And regarding Beneficent's lawsuit for defamation against the Wall Street Journal's reporter Alex Gladstone, as previously reported, a federal judge in the United States District Court for the Eastern District of Texas ruled against the motion to dismiss by the defendants.

Speaker Change: noting, and I quote, the article repeatedly juxtaposes facts and uses provocative language in ways to convey the defamatory jest identified by the plaintiffs.

Brad Hefner: And the beneficence, I quote again, repeatedly notified Gladstone of specific factual errors in the article, and the Gladstone nevertheless rejected or ignored their corrections to serve his preconceived agenda. In-quote, the company believes its case is just and will continue to pursue it with the utmost determination and discipline.

Speaker Change: In quote, and the beneficence, I quote again, repeatedly notified Gladstone of specific factual heirs in the article and the Gladstone nevertheless rejected or ignored, though their corrections to serve his preconceived agenda.

Brad Hefner: The company believes its case is just and will continue to pursue it with the utmost determination and discipline. A few weeks ago on July 26... Ben filed to add the Wall Street Journal's publisher Dow Jones and company into the suit. With those updates, I'll turn the call over to Beneficient's Chief Financial Officer Greg Azell to provide the financial update for the quarter. Greg?

InClub: The company believes its case is just and will continue to pursue it with the utmost determination and discipline.

Brad Hefner: A few weeks ago, on July 26, Ben filed to add the Wall Street Journal's publisher, Dow Jones and Company, into the sue.

Speaker Change: A few weeks ago, on July 26...

Speaker Change: Then filed to add the Wall Street Journal's publisher, Dow Jones and Company, Inc. to the suit.

Greg Azell: With those updates, I will turn the call over to Beneficence Chief Financial Officer Greg Gazelle to provide the financial update for the court.

Speaker Change: With those updates, I will turn the call over to Beneficiants Chief Financial Officer, Greg Gazelle, to provide the financial update for the quarter. Agreed?

Greg Azell: Greg? Thank you, Brad.

Greg Azell: Thank you, Brad. Let's now turn to our quarterly results and financial position as of June 30, 2024. First, I'll start with a few highlights from the quarter. We reported investments with a fair value of $331.4 million, up slightly from $329.1 million at the end of our prior fiscal year, which serve as collateral for Bend Liquidity's net loan portfolio of $255.9 million and $256.2 million respectively. Revenues were $10.0 million in the first quarter of fiscal 2025 as compared to a negative $2.7 million in the same quarter of fiscal 2024.

Greg Azell: Let's now turn to our quarterly results and financial position as of June 30, 2024. First, I'll start with a few highlights from the quarter. We reported investments with a fair value of $331.4 million, up slightly from $329.1 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity's net loan portfolio of $255.9 million and $256.2 million, respectively. Revenues were $10.0 million in the first quarter of fiscal 2025, as compared to a negative $2.7 million in the same quarter of fiscal 2024.

Greg Azel: Thank you, Brad. Let's now turn to our quarterly results and financial position as of June 30, 2024. First, I'll start with a few highlights from the quarter.

Brad Hefner: As Ben liquidity closes liquidity and primary capital transactions with our customers, our exalt loan collateral portfolios are expected to proportionally increase. Our plan is to grow and scale our capital, commensurate with the demand for liquidity and primary capital products in a manner that strengthens Ben's balance sheet over time.

Greg Azel: We reported investments with a fair value of $331.4 million up slightly from $329.1 million at the end of our prior fiscal year, which serve as collateral for Bend Liquidity's net loan portfolio of $255.9 million and $256.2 million, respectively.

Greg Azel: Revenues were $10.0 million in the first quarter of fiscal 2025 as compared to a negative $2.7 million in the same quarter of fiscal 2024.

Greg Azell: Due to the court ruling vacating the previously disclosed arbitration award, this resulted in a release of the recognized loss contingency accrual in the amount of $55.0 million being reflected in the June 30, 2024, statement of comprehensive income and loss. Excluding the non-cash goodwill impairment and the loss contingency accrual release in each period as applicable, operating expenses were $17.3 million in the first quarter of fiscal 2025, as compared to $56.9 million in the same period of fiscal 2024, which represents a decrease of 70%.

Greg Azell: Due to the court ruling vacating the previously disclosed arbitration award, this resulted in a release of the recognized loss contingency accrual in the amount of $55.0 million being reflected in the June 30, 2024 Statement of Comprehensive Income and Loss. Excluding the non-cash goodwill impairment and the lost contingency accrual release in each period, as applicable, operating expenses were $17.3 million in the first quarter of fiscal 2025 as compared to $56.9 million in the same period of fiscal 2024, which represents a decrease of 70 percent. Next we'll move to our primary business segment.

Greg Azel: Due to the court ruling vacating the previously disclosed arbitration award, this resulted in a release of the recognized loss contingency accrual in the amount of $55.0 million being reflected in the June 30, 2024 Statement of Comprehensive Income and Loss.

Greg Azel: Excluding the non-cash goodwill impairment and the lost contingency accrual release in each period as applicable.

Greg Azel: operating expenses were $17.3 million in the first quarter of fiscal 2025 as compared to $56.9 million in the same period of fiscal 2024, which represents a decrease of 70 percent.

Brad Hefner: The court directed the parties to file motions requesting any further relief that may be available within 20 days of that order. The company intends to continue to vigorously defend itself in the event the claim it seeks in the additional relief or in the event he seeks an appeal in connection with the order.

Greg Azell: Ben liquidity which generates interest revenue for supplying liquidity out the balance sheet and Ben custody which produces fee revenue for the use of the platform and trust, As typical, I will be focusing my discussion on these business segments as it's their operations along with corporate and other that accrues to Bend Equity. During the first quarter of fiscal 2025, Ben Liquidity recognized $10.8 million in base interest revenue, up 1.9% from the prior quarter due to slightly higher carrying value of loans receivable offset by higher allowances for credit loss.

Greg Azell: Next, we'll move to our primary business segment, Ben liquidity, which generates interest revenue for supplying liquidity off the balance sheet and Ben custody, which produces fee revenue for the use of the platform and trust services. As typical, I will be focusing my discussion on these business segments at their operations, along with corporate and other that accrues to Ben equity holders. During the first quarter of fiscal 2025, Ben Liquidity recognized $10.8 million in base interest revenue, up 1.9% from the prior quarter due to slightly higher carrying value of low and receivable, offset by higher allowances for credit losses.

Speaker Change: Next we'll move to our primary business segment, then liquidity which generates interest revenue for supplying liquidity off the balance sheet and then custody which produces fee revenue for the use of the platform and trust services.

Speaker Change: As typical, I will be focusing my discussion on these business segments as it's their operations along with corporate and other that accrues to Bend equity holders.

Brad Hefner: As we mentioned on the last call and highlighted in press releases and filings, the company and key members of its leadership received letters from the SEC advising us that the Securities and Exchange Commission staff has terminated its investigation and does not intend to recommend an enforcement action by the SEC under the previously issued wells In regarding beneficence lawsuit for defamation against the Wall Street Journal's reporter Alex Gladstone has previously reported a federal judge in the United States District Court for the Eastern District of Texas ruled against the motion to dismiss by the defendants. Noting, and I quote, the article repeatedly juxtaposes facts and uses provocative language and ways to convey it to the defamatory jest identified by the plaintiff's in-quote.

Speaker Change: During the first quarter of fiscal 2025, Ben liquidated the recognized $10.8 million in base interest revenue up 1.9% from the prior quarter due to slightly higher carrying value of loans receivable offset by higher allowances for credit losses.

Greg Azell: Operating loss for the first fiscal quarter was $1,500,000 compared to an operating loss of $29.4 million for the fourth quarter of fiscal 2024. This improvement was primarily due to lower credit loss adjustments and lower operating expenses, partially offset by higher interest. The decrease was driven by monetization from investments exceeding the increase in the fair value of the investment held in custody. Prevenues applicable to the bank custody were 5.4 million in the first fiscal quarter compared to 5.6 million for the prior quarter. The slight decline was due to lower and have alternative assets and other securities held in custody.

Greg Azell: Operating loss for the first fiscal quarter was half a million dollars compared to an operating loss of $29.4 million for the fourth quarter of fiscal 2024. This improvement was primarily due to lower credit loss adjustments and lower operating expenses, partially offset by higher interest rates. Moving on to Bank Custody, NAB of alternative assets and other securities held at period end was $380.7 million compared to $381.2 million at March 31, 2024. The decrease was driven by monetization from investments exceeding the increase in the fair value of the investments held in custody.

Speaker Change: Operating loss for the first fiscal quarter was half a million dollars compared to an operating loss of 29.4 million for the fourth quarter of fiscal 2024. This improvement was primarily due to lower credit loss adjustments and lower operating expenses partially offset by higher interest expense.

Speaker Change: Moving on to Bank Custody, NAB of alternative assets and other securities held at period end was $380.7 million compared to $381.2 million at March 31, 2024. The decrease was driven by monetization from investments exceeding the increase in the fair value of the investments held in custody.

Brad Hefner: And the beneficence, I quote again, repeatedly notified Gladstone of specific factual errors in the article and the Gladstone nevertheless rejected or ignored their corrections to serve his preconceived agenda. In-quote, the company believes its case is just and will continue to pursue it with the utmost determination and discipline.

Greg Azell: Revenues applicable to the bank custody were $5.4 million in the first fiscal quarter compared to $5.6 million for the prior quarter. Like the climb was due to lower nav alternative assets and other security sales and cuts.

Speaker Change: Revenues applicable to be in custody were $5.4 million in the first fiscal quarter compared to $5.6 million for the prior quarter. The slight decline was due to lower NAVA alternative assets and other securities held in custody.

Greg Azell: Operating income for the quarter was $1.3 million compared to an operating loss of $50.0 million in the prior quarter, primarily due to lower non-cash goodwill impairment of $3.1 million this quarter compared to $28.7 million in the prior quarter. Additionally, in the quarter ended March 31, 2024, we recognized $25.5 million provision for credit losses related to accrued fees collateralized by securities of our former parent company compared to no such credit losses in the current.

Greg Azell: Operating income for the quarter was 1.3 million compared to an operating loss of 50.0 million in the prior quarter. Primarily due to lower non-cash goodwill impairment of 3.1 million this quarter compared to 28.7 million in the prior quarter.

Speaker Change: Operating income for the quarter was $1.3 million compared to an operating loss of $50.0 million in the prior quarter, primarily due to lower non-cash goodwill impairment of $3.1 million this quarter compared to $28.7 million in the prior quarter.

Brad Hefner: A few weeks ago, on July 26, Ben filed to add the Wall Street Journal's publisher Dow Jones and company into the sue.

Greg Azell: Additionally, in the quarter ended March 31, 2024, we recognized 25.5 million provision for credit losses related to accrued fees collateralized by securities of our former parent company, compared to no such credit losses in the current quarter. Adjusted operating income for the current quarter was 4.4 million compared to adjusted operating income of 4.0 million for the quarter ended March 31, 2024. The increase was primarily due to lower operating expenses, which is mirroring the decrease in expenses we are seeing across the organization as we continue to look for opportunities to operate more efficiently.

Greg Azell: With those updates, I will turn the call over to beneficence chief financial officer Greg Gazelle to provide the financial update for the court. Greg? Thank you, Brad.

Speaker Change: Additionally, in the quarter ended March 31, 2024, we recognized $25.5 million provision for credit losses related to accrued fees collateralized by securities of our former parent company compared to no such credit losses in the current quarter.

Greg Azell: Let's now turn to our quarterly results and financial position as of June 30, 2024. First, I'll start with a few highlights from the quarter. We reported investments with a fair value of $331.4 million, up slightly from $329.1 million at the end of our prior fiscal year, which served as collateral for Ben liquidity's net loan portfolio of $255.9 million and $256.2 million respectively. Revenues were $10.0 million in the first quarter of fiscal 2025, as compared to a negative $2.7 million in the same quarter of fiscal 2024.

Greg Azell: Adjusted operating income for the current quarter was $4.4 million compared to adjusted operating income of $4.0 million for the quarter ended March 31, 2024. The increase was primarily due to lower operating expenses, which is mirroring the decrease in expenses we are seeing across the organization as we continue to look for opportunities to operate more efficiently. At the end of the quarter, the company had cash and cash equivalents of $4.4 million and total debts of $120.6 million. Distributions received from alternative assets and other securities held in custody totaled $7.2 million for the quarter compared to $12.0 million for the prior year.

Speaker Change: Adjusted operating income for the current quarter was $4.4 million compared to adjusted operating income of $4.0 million for the quarter ended March 31, 2024.

Speaker Change: The increase was primarily due to lower operating expenses, which is mirroring the decrease in expenses we are seeing across the organization as we continue to look for opportunities to operate more efficiently.

Greg Azell: At the end of the quarter, the company had cash and cash equivalents of 4.4 million in total deaths of 120.6 million. Distributions received from alternative assets and other securities held in custody totaled 7.2 million for the quarter, compared to 12.0 million for the prior year period.

Speaker Change: At the end of the quarter, the company had cash and cash equivalents of $4.4 million and total debts of $120.6 million. Distributions received from alternative assets and other securities held in custody totaled $7.2 million for the quarter compared to $12.0 million for the prior year period.

Greg Azell: Due to the court ruling vacating the previously disclosed arbitration award, this resulted in a release of the recognized loss contingency accrual in the amount of $55.0 million being reflected in the June 30, 2024 statement of comprehensive income and loss. Excluding the non-cash goodwill impairment and the loss contingency accrual release in each period as applicable, operating expenses were $17.3 million in the first quarter of fiscal 2025, as compared to $56.9 million in the same period of fiscal 2024, which represents a decrease of 70%.

Greg Azell: That concludes my remarks on the quarter, but I'd like to make one additional announcement. Then we'll be presenting at the Sedotti Virtual Conference tomorrow afternoon and hosting one-on-one discussions for investors. So reach out to your Sedotti representative if you are interested.

Greg Azell: That concludes my remarks on the quarter, but I'd like to make one additional announcement. Ben will be presenting at the Sedotti Virtual Conference tomorrow afternoon and hosting one-on-one discussions for investments. Reach out to your Sudoti representative if you are interested.

Speaker Change: That concludes my remarks on the quarter, but I'd like to make one additional announcement. Ben will be presenting at the Sudoti Virtual Conference tomorrow afternoon and hosting one-on-one discussions for investors. So reach out to your Sudoti representative if you are interested.

Operator: With that, we close out today's webcast. Thank you for your participation, and have a great rest of the day.

Operator: With that, we close out today's webcast. Thank you for your participation, and have a great rest of the day. Ladies and gentlemen, thank you for participating. This does conclude today's program and you may now disconnect. [music] [inaudible] for joining us today, thank you so much, [music]

Speaker Change: With that, we close out today's webcast. Thank you for your participation and have a great rest of the day.

Operator: Ladies and gentlemen, thank you for participating.

Operator: This does conclude today's program, and you may now disconnect. You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You Thank you for joining us today, and we'll see you in the next video.

Speaker Change: Ladies and gentlemen, thank you for participating. This does conclude today's program and you may now disconnect.

Greg Azell: Next, we'll move to our primary business segment, Ben liquidity, which generates interest revenue for supplying liquidity off the balance sheet and Ben custody, which produces fee revenue for the use of the platform and trust services. As typical, I will be focusing my discussion on these business segments at their operations along with corporate and other that accrues to Ben equity holders. During the first quarter of fiscal 2025, Ben liquidity recognized $10.8 million in base interest revenue up 1.9% from the prior quarter due to slightly higher carrying value of low and receivable offset by higher allowances for credit losses.

Greg Azell: Operating loss for the first fiscal quarter was $1,500,000 compared to an operating loss of $29.4 million for the fourth quarter of fiscal 2024. This improvement was primarily due to lower credit loss adjustments and lower operating expenses partially offset by higher interest. The decrease was driven by monetization from investments exceeding the increase in the fair value of the investment held in custody. Prevenues applicable to the bank custody were 5.4 million in the first fiscal quarter compared to 5.6 million for the prior quarter.

Greg Azell: The slight decline was due to lower and have alternative assets and other securities held in custody. Operating income for the quarter was 1.3 million compared to an operating loss of 50.0 million in the prior quarter. Primarily due to lower non-cash goodwill impairment of 3.1 million this quarter compared to 28.7 million in the prior quarter. Additionally in the quarter ended March 31, 2024 we recognized 25.5 million provision for credit losses related to accrued fees collateralized by securities of our former parent company compared to no such credit losses in the current quarter.

Greg Azell: Adjusted operating income for the current quarter was 4.4 million compared to adjusted operating income of 4.0 million for the quarter ended March 31, 2024. The increase was primarily due to lower operating expenses which is mirroring the decrease in expenses we are seeing across the organization as we continue to look for opportunities to operate more efficiently. At the end of the quarter the company had cash and cash equivalents of 4.4 million in total deaths of 120.6 million. Distributions received from alternative assets and other securities held in custody totaled 7.2 million for the quarter compared to 12.0 million for the prior year period.

Greg Azell: That concludes my remarks on the quarter, but I'd like to make one additional announcement.

Greg Azell: Then we'll be presenting at the Sedotti Virtual Conference tomorrow afternoon and hosting one-on-one discussions for investors. So reach out to your Sedotti representative if you are interested.

Operator: With that we close out today's webcast. Thank you for your participation and have a great rest of the day. Ladies and gentlemen thank you for participating.

Operator: This does conclude today's program and you may now disconnect. [inaudible] You[inaudible] Thank you for joining us today, and we'll see you in the next video. . [inaudible] Thank you very much for joining us today[inaudible]

Speaker Change: [music]

Speaker Change: Thank you for watching!

Speaker Change: [inaudible]

Speaker Change: [inaudible] ¶ ¶ ¶ ¶ ¶

Operator: I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I I know I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a good man, I'm not a

Speaker Change: Thank you for watching.

Q1 2025 Beneficient Earnings Call

Request a DemoDemo

BENF

Beneficient

Earnings