Beneficient · NASDAQ:BENF
Beneficient — The Beneficient Company Group — SPAC Merger (March 2023)
36 slides from Beneficient's SPAC merger presentation, Mar 10, 2023
Slide 1: March 2023 Ben and Avalon Acquisition Inc.
March 2023 act ~) Ben . . GS AVALON \ = Acquisition Inc. NASDAQGM: AVAC COMM ReEHHOHHHROHTEHHEHHEHOH EHH HEE E OS CORO e eee mee meee eRe HEHEHE HEHEHE HEHEHE HH EEE HEHE EEE EEE EH EEE EHH EEE ESD
Slide 2: Important Risks and Disclaimers
Important Risks and Disclaimers This presentation is for educational and informational purposes only This presentation has been prepared for use by The Beneficient Company Group, LP. ("Ben") and Avalon Acquisition Inc. (“Avalon") in connection with their proposed business combi LiCentered into» Busi
Slide 3: Combination Overview
Combination Overview The Beneficient Company Group, L.P. (Ben) and Avalon Acquisition Inc. (NASDAQ: AVAC or Avalon) have agreed to a business combination. Upon the closing of the transaction, the combined company will be named Beneficient and is expected to be listed on the NASDAQ under the ticker B
Slide 4: Summary Transaction Overview
Summary Transaction Overview * AVAC has $212 million in trust Ben common stock ? Transaction ° (rust eli opportunities for the company _ Rationale Use of Proceeds Management and Sponsor i icti i 2029 2029 Alignment
Slide 5: Detailed Transaction Overview
Detailed Transaction Overview Pro Forma Valuation’? (In mi Pro-forma Shares Outstanding” 253,683 (x) Illustrative Share Price $ 10.00 Illustrative Sources & Uses Sources AVAC Cash in Trust* $212 ‘otal Sources $212} Uses Cash to Balance Sheet" $180 Estimated Transaction Fees & Expenses $ 32 ‘otal Use
Slide 6: Key Investment Highlights
Key Investment Highlights Significant Market . : ; : Opportunity : oo ce - _ Sized Institutions (SMTI) FO & d * CEO & Founder Strong Team . Simple, rapid i irely Innovative, Disruptive to customers in as few as 30 days Business Model . J s cha y Multiple Competitive Powerful Advantages * Unique plat
Slide 7: Alternative Assets and Associated Liquidity Represent a Large Market Opportunity
Alternative Assets and Associated Liquidity Represent a Large Market Opportunity Recent period of rapid growth in alternative has result d for early liquidity, currently most e provided through the secondaries market, witch caters to org institut ns ‘AUM ($B) ondary a 12,000 Top 3 Secondary Fund Mar
Slide 8: The Journey of Transforming an Asset Class
The Journey of Transforming an Asset Class The alternative asset class is at the precipice of being digitized and democratized as other asset classes have been e (e.g., equities, mortgages, etc Standardization of assets through Technology-Driven and sound process Strategy Statutory Custody Trust Sta
Slide 9: What Problem is Ben Solving for Alternative Asset Investors?
What Problem is Ben Solving for Alternative Asset Investors? Ben provides liquidity solutions for underserved investor segments, who hold illiquid, professionally managed alternative investments Global alternative Mid-to-ultra high p i Liquidity solutions and assets under ni and related data analyti
Slide 10: Ben's Technology-Driven Ecosystem
Ben’s Technology-Driven Ecosystem Ben’s ecosystem seeks to digitize and democratize the alternative asset class Overview of Ben’s Integrated, Data-Rich Ecosystem “Digitizing” assets on the platform decreases riction costs o' AltCustody™ transferring assets to AltQuote™* ExAlt Trusts AltData™? Future
Slide 11: Trailblazing the Path to Democratization of Alternative Assets
Trailblazing the Path to Democratization of Alternative Assets Ben gets them out t investors i 5! Traditional alternativ g Global alternative under management growing rapidly APOLLO KKR BESor Brookfield O ARES CARLYLE High growth, FinTech disruptors have Moonfare ‘Capital AIS ..while Ben’s liquidity
Slide 12: Breadth and Depth of Solutions for Almost All Asset Types and Asset Vehicles
Breadth and Depth of Solutions for Almost All Asset Types and Asset Vehicles — Near Ubiquitous Relevance Provides a modernized digital method of delivering liquidity to investors in | ts, including: Other ae seen rivate Venture Structured Infracteerure Managed Equity Capital redit herent Eligible As
Slide 13: Leveraging Digital Technology to Provide a Simple & Rapid Exit
Leveraging Digital Technology to Provide a Simple & Rapid Exit Faster liquidity timelines are made possible by Ben AltAccess™, a digital secure AT&T NetBond® certified tech platform ~) Ben Non-Disclosure Agreement O Days and lesigned to deliver liquidity and Instead of negotiating an NDA, customers
Slide 14: Projected Target Market Growth
Projected Target Market Growth Focus on U.S. Medium-to-High Net Worth (MHNW) i d Small-t M. Cisad Inctiti ti a 1) vay} growing, but traditionally underserved liquidity market High Growth Asset Class Alternatives AUM growing at a 19.5% CAGR $11.9 tr MHNW Investot rs. 1 trillio STMI Investors ~$1 tril
Slide 15: Go-to-Market Strategy To Meet Industry Demand for Liquidity
Go-to- Market Strategy To Meet Industry Demand for Liquidity Source eof Fund Sponsor Financial Advisor Distribution Channel Preferred Liquidity Partners (PLP) GP Solutions National Advisory Coverage Direct-to- Investor pit Why It’s Important Highly scalable Increasing penetration of alts in MHNW por
Slide 16: Competitive Advantages That Set Ben Apart
Competitive Advantages That Set Ben Apart A unique platform fortified by a strong underlying structure Anticipated Public Statutory istin, Technology ® Regulatory Technology y N) Leadership Anticipated Public to grow at scale ane the RIA and financial advisory market g <> Statutory y ae Regulatory c
Slide 17: Ben's Advantage
Ben’s Adva ntage As a Kansas Technology Enabled Fiduciary Financial | custodial B rves asa regulated fiduciary iding liquidi to alternative asset investors & managers? Ben’s Services Provide a Model of Efficiency Strong standard of * Holds similar fiduciary * Duty of loyalty, * Subject w° ser by int
Slide 18: Strong Management Team
Strong Management Team Brad K. Heppner =:CTOR, CEO AND CHAIRMAN OF THE BOARD 30+ years aus experience in finance and the alternative asset space Te Coma Geop Iman bain K COMPANY @ — MacArtl Sts Foundation Derek L. Fletcher james G. Silk EXECUTIVE VICE PRESIDENT & CHIEF LEGAL OFFICER 201 U.S. TRUST @
Slide 19: Experienced Board of Directors
Experienced Board of Directors Brad K. Heppner DIRECTOR, CEO AND CHAIRM/ F THE BOARD years alternative asset and financial institutions experience, Chairman of the Board and CEO, rok Founder and CEO of The Crossroads Group; Founder of oral nals previously with Bain & Company, MacArthur Foundation an
Slide 20: Financial Highlights
Financial Highlights aoe eee peewee were rece eases eseneseceseeeee” eee eee eee esses eee eeee Ee EH eeEEEEE EEE EEE TEESE EEEEEEE EEE COR e meee mere eer eases reese sseseeaseeseeeseseessesssesseseesseses
Slide 21: Translation from Market Opportunity to Ben's Serviceable Market
Translation from Market Opportunity to Ben’s Serviceable Market Ben’s revenue capture is illustrative and intended to contextualize the key components of monetization . Secular Trends Additive $11.9" Trillion Illustrative Revenue Funnel Alternatives Market 4 $50- y Annual ae au mand (A) Total Global
Slide 22: Liquidity Transaction Economics
Liquidity Transaction Economics? All transaction-related fees embedded into the determination of the advance rate, allowing customer to avoid out-of-pocket ment of fees Certain Services / Costs Covered Expected Rates Rate Basis Revenue Recognition of Ben’s products and services + Transfer of Alterna
Slide 23: Revenues Per Financial Statement Reporting
Revenues Per Financial Statement Reporting illustrate the impact of liquidity transactions Busi revenues, not the ExAlt Trusts or Customer Ben Custody ExAlt Trusts External Investment’ R I (le Unrealized evenues income ( och net Ceres Interest Income Recurring Interest Intersegment Revenue: One-time
Slide 24: Sample Buildup of Annualized Net Revenue Rate from an ExchangeTrust Fiduciary Loan Transaction
Sample Buildup of Annualized Net Revenue Rate from an ExchangeTrust Fiduciary Loan Transaction Interest and fee 1 from applicable basis ( y based on collateral NAV or ExAlt loan balance) and accounting for revenue recognition timing into an annualized revenue rate as a % of original ExAlt loan balan
Slide 25: Conclusion and Q&A
Conclusion and Q&A
Slide 26: Appendix
Appendix Certain Financial Information
Slide 27: Segment Balance Sheets
Segment Balance Sheets — 1 of 2 Three Months Ended December 31, 2022, and March 31, 2022 As of December 31, 2022 Customer ExAlt Consolidating Ben Liquidity Ben Custody Trusts Corporate & Other Eliminations Total Loans to Customer ExAlt Trusts, net 402,376 El - - (402,376) - Investments, at fair valu
Slide 28: Segment Balance Sheets
Segment Balance Sheets 2 of 2 Years ended December 31, 2021, and December 31, 2020 As of December 31, 2021 Customer ExAlt Corporate & Consolidating Trusts Other i Ben Liquidity Ben Custody liminations Total Loans to Customer ExAlt Trusts, net 508,909 - - - (508,909) - Investments, at fair value = -
Slide 29: Segment Income Statements
Segment Income Statements Three Months Ended December 31, 2022, and December 31, 2021 {in thousands) (unaudited) al Revenues Investment income, n Loss on financial instruments, net Interestincome Trust services and administration ‘ther income Intersegment revenues Interest ineé Trust services and ad
Slide 30: Segment Income Statement
Segment Income Statement 2 of 4 Nine Months Ended December 31, 2022, and December 31, 2021 {in thousands) (unaudited) External Reveni interes Trust services and administration revenues Other income Intersegment revenues Interest income Trust services and administration Total revenues External expens
Slide 31: Segment Income Statement
Segment Income Statement 3 of 4 Three Months Ended March 31, 2022, and March 31, 2021 (i rows) (in thousand) (une) Corporate/consoldating poate] ™ consollati sentiguty _senCusody “Tne Other" timinaons__Conoiated ben tiqudty _tenCusody "rus Other” eliminations __Consoliated External Revenues External
Slide 32: Segment Income Statement
Segment Income Statement 4 of 4 Year Ended December 31, 2021, (in thousands) eros Instruments, net Interest ine [eee Other income Intersegment revenues Interest income Trust services and administration Total revenues External expenses. Employee compensation and benefits Interest expense Professional
Slide 33: Non-GAAP
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Slide 34: Non-GAAP
Non-GAAP Nine Months Ended December 31, 2022, and December 31, 2021 nde) Nive Moats Ended December 31,2022 Customer Capra! Conaining Bentigitiy Bea Cusndy Esa Truss “ter Flint Connie Toutes SSMS NMS MOE GEIS ITVS Gs Makita ney ‘pa ose = ee ee) = Ase Reems sims ons CaS wa pea iene) $ @rssys sD Ss aso
Slide 35: Non-GAAP
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Slide 36: Non-GAAP
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The Beneficient Company Group — SPAC Merger (March 2023) on 6ix