Investments, at Fair Value (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2023

Mar. 31, 2023

Investments [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	June 30, 2023				March 31, 2023
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	374,603	$	—	$	385,851
Public equity securities and option		1,690		5,023		4,742		8,087
Debt securities available-for-sale		656		80,532		620		76,278
Other equity securities		—		26,786		—		21,643
Total investments, at fair value	$	2,346	$	486,944	$	5,362	$	491,859

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on June 30, 2023 and March 31, 2023 are presented below.

	As of June 30, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	5,051	$	—	$	—	$	5,051
Put options		1,663		—		—		1,663
Debt securities available-for-sale
Corporate debt securities (L Bonds)		—		78,007		—		78,007
Other debt securities		—		998		2,183		3,181
Liabilities:
Warrant liability		1,128		—		—		1,128
Prepaid forward liability		92		—		—		92
Derivative liability		—		—		2,095		2,095

	As of March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	8,837	$	—	$	—	$	8,837
Put options		3,991		—		—		3,991
Debt securities available-for-sale
Corporate debt securities (L Bonds)		—		73,822		—		73,822
Other debt securities		—		998		2,078		3,076
Liabilities:
Derivative liability		—		—		3,513		3,513

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on March 31, 2023 and March 31, 2022 are presented below.

	As of March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	8,837	$	—	$	—	$	8,837
Put options		3,991		—		—		3,991
Debt securities available-for-sale
Corporate debt securities (L Bonds)		—		73,822		—		73,822
Other debt securities		—		998		2,078		3,076
Liabilities:
Derivative liability		—		—		3,513		3,513

	As of March 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	69,769	$	—	$	—	$	69,769
Debt securities available-for-sale
Corporate debt securities (L Bonds)		—		74,295		—		74,295
Other debt securities		—		998		3,000		3,998
Liabilities:
Derivative liability		—		—		8,108		8,108

Alternative Investments

Our portfolio of alternative asset investments, held by certain of the Customer ExAlt Trusts by asset class of each fund as of June 30, 2023 and March 31, 2023, is summarized below (in thousands):

	Alternative Investments Portfolio Summary
	June 30, 2023				March 31, 2023
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Venture Capital	$	164,097	$	2,877	$	165,933	$	2,810
Private Equity		143,714		46,838		145,073		47,218
Natural Resources		27,832		4,567		27,756		5,240
Hedge Funds(1)		19,291		337		24,935		337
Private Real Estate		10,436		4,808		10,391		4,800
Other(2)		9,233		730		11,763		730
Total	$	374,603	$	60,157	$	385,851	$	61,135

Certain prior year items have been reclassified to conform with current year presentation.

(1) As of June 30, 2023, $10.8 million of the investments in this asset class are currently redeemable with no restrictions apart from the notice period. The redemption frequency ranges from weekly to quarterly and the redemption notice period ranges from 2 to 90 days.

(2) “Other” includes earnouts, escrow, net other assets, and private debt strategies.

Our portfolio of alternative asset investments, held by certain of the Customer ExAlt Trusts by asset class of each fund as of March 31, 2023 and March 31, 2022, is summarized below (in thousands):

	Alternative Investments Portfolio Summary
	March 31, 2023				March 31, 2022
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Venture Capital	$	165,933	$	2,810	$	209,912	$	3,035
Private Equity		145,073		47,218		199,280		55,269
Hedge Funds(1)		24,935		337		51,974		358
Natural Resources		27,756		5,240		31,736		4,994
Private Real Estate		10,391		4,800		15,757		4,802
Other(2)		11,763		730		16,268		635
Total	$	385,851	$	61,135	$	524,927	$	69,093

Certain prior year items have been reclassified to conform with current year presentation.

(1) As of March 31, 2023, $16.4 million of the investments in this asset class are currently redeemable with no restrictions apart from the notice period. The redemption frequency ranges from weekly to quarterly and the redemption notice period ranges from 2 to 90 days.

(2) “Other” includes earnouts, escrow, net other assets, and private debt strategies.

Debt Securities, Available-for-Sale

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of June 30, 2023 and March 31, 2023 are summarized as follows:

	June 30, 2023
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities (L Bonds)	$	64,313	$	23,016	$	(9,322	)	$	78,007
Other debt securities		2,685		1,452		(956	)		3,181
Total available-for-sale debt securities	$	66,998	$	24,468	$	(10,278	)	$	81,188

	March 31, 2023
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities (L Bonds)	$	64,313	$	17,433	$	(7,924	)	$	73,822
Other debt securities		2,685		1,347		(956	)		3,076
Total available-for-sale debt securities	$	66,998	$	18,780	$	(8,880	)	$	76,898

The contractual maturities of available-for-sale debt securities as of June 30, 2023 and March 31, 2023 are as follows:

	June 30, 2023				March 31, 2023
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	66,000	$	80,190	$	66,000	$	75,900
No fixed maturity		998		998		998		998
	$	66,998	$	81,188	$	66,998	$	76,898

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of March 31, 2023 and March 31, 2022 are summarized as follows:

	March 31, 2023
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities (L Bonds)	$	64,313	$	17,433	$	(7,924	)	$	73,822
Other debt securities		2,685		1,347		(956	)		3,076
Total available-for-sale debt securities	$	66,998	$	18,780	$	(8,880	)	$	76,898

	March 31, 2022
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities (L Bonds)	$	76,934	$	132	$	(2,771	)	$	74,295
Other debt securities		2,685		1,313		—			3,998
Total available-for-sale debt securities	$	79,619	$	1,445	$	(2,771	)	$	78,293

The contractual maturities of available-for-sale debt securities as of March 31, 2023 and March 31, 2022 are as follows:

	March 31, 2023				March 31, 2022
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	66,000	$	75,900	$	1,687	$	3,000
Due in one to five years		—		—		76,934		74,295
No fixed maturity		998		998		998		998
	$	66,998	$	76,898	$	79,619	$	78,293

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The table below indicates the length of time individual debt securities have been in a continuous loss position as of June 30, 2023 and March 31, 2023:

	June 30, 2023				March 31, 2023
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities (L Bonds):
Twelve months or longer	$	78,007	$	9,322	$	73,822	$	7,924
Other debt securities:
Less than twelve months		—		—		2,078		956
Twelve months or longer		2,183		956		—		—
Total available-for-sale debt securities with unrealized losses	$	80,190	$	10,278	$	75,900	$	8,880

The table below indicates the length of time individual debt securities have been in a continuous loss position as of March 31, 2023 and March 31, 2022:

	March 31, 2023				March 31, 2022
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities (L Bonds):
Less than twelve months	$	—	$	—	$	74,295	$	2,771
Twelve months or longer		73,822		7,924		—		—
Other debt securities:
Less than twelve months		2,078		956		—		—
Total available-for-sale debt securities with unrealized losses	$	75,900	$	8,880	$	74,295	$	2,771

Debt Securities, Available-for-Sale, Allowance for Credit Loss

The following table is a rollforward of credit-related OTTI recognized in earnings for the periods presented below:

(Dollars in thousands)	Three Months Ended June 30,
	2023		2022
Balance, beginning of period	$	31,290	$	18,669
Increase in OTTI amounts previously recognized		—		12,608
Balance, end of period	$	31,290	$	31,277

The following table is a rollforward of credit-related OTTI recognized in earnings for the periods presented below:

(Dollars in thousands)	Year Ended March 31,		Three Months Ended March 31,		Year Ended December 31,
	2023		2022		2021		2020
Balance, beginning of period	$	18,669	$	13,726	$	—	$	—
Credit related OTTI not previously recognized		—		—		13,726		—
Increase in OTTI amounts previously recognized		12,621		4,943		—		—
Balance, end of period	$	31,290	$	18,669	$	13,726	$	—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	March 31, 2023				March 31, 2022
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	385,851	$	—	$	524,927
Public equity securities and option		4,742		8,087		13,625		56,144
Debt securities available-for-sale		620		76,278		624		77,669
Other equity securities		—		21,643		—		1,181
Total investments, at fair value	$	5,362	$	491,859	$	14,249	$	659,921

Schedule of Reconciliation of Investment Income

A reconciliation of investment income (loss), net for each of the periods presented herein is included in the table below (in thousands):

	Year Ended March 31,			Three Months Ended March 31,					Year Ended December 31,
	2023			2022			2021		2021		2020
							(unaudited)
(Loss) gain from change in NAV of alternative assets	$	(54,010	)	$	(10,811	)	$	2,091	$	15,534	$	(17,558	)
Gain on repurchase options (see Note 6)		—			—			—		—		61,664
Gain on Collateral Swap (see Note 4)		—			—			—		—		88,514
Investment (loss) income, net	$	(54,010	)	$	(10,811	)	$	2,091	$	15,534	$	132,620