# EDGAR Filing Document

**Accession Number:** 0001775734
**File Stem:** 0000000000-23-000173
**Filing Date:** 2023-1
**Character Count:** 23924
**Document Hash:** a6e10a8e49f7c192746f1c0600475320
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-000173.hdr.sgml**: 20230613

**ACCESSION NUMBER**: 0000000000-23-000173

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230106

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Beneficient
- **CENTRAL INDEX KEY:** 0001775734
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **IRS NUMBER:** 721573705
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 325 N. SAINT PAUL STREET
- **STREET 2:** SUITE 4850
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201
- **BUSINESS PHONE:** 2144454705

**MAIL ADDRESS:**
- **STREET 1:** 325 N. SAINT PAUL STREET
- **STREET 2:** SUITE 4850
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Beneficient Co Group, L.P.
- **DATE OF NAME CHANGE:** 20190503
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001193125-22-301885

## Text-Extract

```

United States securities and exchange commission logo

                               January 6, 2023

       Brad K. Heppner
       Chief Executive Officer
       The Beneficient Company Group, L.P.
       325 N. Saint Paul Street, Suite 4850
       Dallas, TX 75201

                                                        Re: The Beneficient
Company Group, L.P.
                                                            Registration
Statement on Form S-4
                                                            Filed December 9,
2022
                                                            File No. 333-268741

       Dear Brad K. Heppner:

              We have reviewed your registration statement and have the
following comments. In
       some of our comments, we may ask you to provide us with information so
we may better
       understand your disclosure.

              Please respond to this letter by amending your registration
statement and providing the
       requested information. If you do not believe our comments apply to your
facts and
       circumstances or do not believe an amendment is appropriate, please tell
us why in your
       response.

              After reviewing any amendment to your registration statement and
the information you
       provide in response to these comments, we may have additional comments.

       Registration Statement on Form S-4

       General

   1.                                                   With a view toward
disclosure, please tell us whether your sponsor is, is controlled by, or
                                                        has substantial ties
with a non-U.S. person. Please also tell us whether anyone or any
                                                        entity associated with
or otherwise involved in the transaction, is, is controlled by, or has
                                                        substantial ties with a
non-U.S. person. If so, also include risk factor disclosure that
                                                        addresses how this fact
could impact your ability to complete your initial business
                                                        combination. For
instance, discuss the risk to investors that you may not be able to
                                                        complete an initial
business combination with a U.S. target company should the
                                                        transaction be subject
to review by a U.S. government entity, such as the Committee on
                                                        Foreign Investment in
the United States (CFIUS), or ultimately prohibited. Further,
                                                        disclose that the time
necessary for government review of the transaction or a decision to
 Brad K. Heppner
FirstName  LastNameBrad
                Company K. Heppner
The Beneficient         Group, L.P.
Comapany
January    NameThe Beneficient Company Group, L.P.
        6, 2023
January
Page 2 6, 2023 Page 2
FirstName LastName
         prohibit the transaction could prevent you from completing an initial
business
         combination and require you to liquidate. Disclose the consequences of
liquidation to
         investors, such as the losses of the investment opportunity in a
target company, any price
         appreciation in the combined company, and the warrants, which would
expire worthless.
2.       Please define terms in the context where first used. For example, the
term    ExAlt Loan    is
         first used on page 12, but is first defined on page 254 of the
registration statement. As a
         separate matter, please quantitatively define "mid-to-high net worth"
on page 225.
3.       Please quantify the aggregate dollar amount of the current value of
fees due to the Avalon
         Sponsor and out-of-pocket expenses for which the Avalon Sponsor and
its affiliates are
         awaiting reimbursement.
Cover Page

4.       Please refer to the statement, in the Letter from Ben   s Founder and
CEO, about "utilizing
         standardized liquidity transaction documentation and agreements that
have been reviewed
         by [y]our banking regulator." Please name your banking regulator and
describe its
         jurisdiction. Disclose the date when such regulator completed a review
of the
         documentation and agreements. Describe the extent of the review and
explicitly state
         whether such agency has approved or endorsed such documentation or
agreements. Also
         explain the extent to which these documents and agreements may change
from transaction
         to transaction.
5.       Please refer to the statement, in the Letter from Ben   s Founder and
CEO, regarding your
         "operational Kansas charter." Clarify the nature and extent of your
authority pursuant to
         this charter and explain exactly what you mean by "operational Kansas
charter." Explain
         here in simple terms what you are currently permitted to do pursuant
to this charter.
         Additionally, explain what you mean by "extensive regulatory audit
review."
Questions and Answers, page xiii

6.       Please add a separate Q&A briefly summarizing the pending litigation
that
         could negatively impact public investors. Quantify here the aggregate
potential negative
         impact of all litigation including, but not limited to, a potential
requirement to make
         quarterly payments to the Trusts in an aggregate amount of up to $350
million.
Summary of the Proxy Statement/Prospectus, page 1

7.       We note the Post-Business Combination Structure chart on page 12.
Please revise to
         provide a chart with a more legible font. In the chart show the
ownership interest
         percentage for each entity or group and the type of security
conferring such
         ownership. Separately show voting and economic interests if these
percentages are
         different for a given group or entity. Please also include an
organization chart depicting
         the organizational structure of Beneficient prior to the consummation
of the transaction.
         Charts should also illustrate the states or countries of incorporation
of various legal
 Brad K. Heppner
The Beneficient Company Group, L.P.
January 6, 2023
Page 3
         entities and various affiliations that exist.
Risk Factors, page 41

8.       Please add a separately captioned risk factor addressing BCG's history
of net losses.
We are aware of two lawsuits in which BCG or certain of our directors have been
named
defendants., page 53

9.       Revise to explain what the "CVR contract" is, and summarize the
material terms as
         asserted by PCA.
Pursuant to a registration rights agreement, if we do not become a public
company and register
certain securities, we may incur expenses., page 62

10.      Please quantify the amount of funds you would have to expend to
repurchase Preferred B-
         2 Units from all holders of BCG Preferred B-2 Unit Accounts, in the
event that a
         registration statement registering Registrable Securities for resale
has not been declared
         effective by the SEC by June 30, 2023 and the holders of the BCG
Preferred B-2 Unit
         Accounts exercise their right to have BCG repurchase those securities.
State whether you
         have such funds available and how such a repurchase would impact your
financial
         condition.
Business of Avalon, page 205

11.      We note your disclosure that the Avalon Sponsor, directors and each
member of Avalon's
         management team agreed to waive their redemption rights. Please
describe any
         consideration provided in exchange for this agreement.
Business of Beneficient, page 225

12.      We note your disclosure on page 231 that the revenue generated by Ben
Liquidity and Ben
         Custody are eliminated in consolidation and that the platform fees
generated by AltAccess
         are expected to be eliminated in consolidation. At the forefront of
the section "Business of
         Beneficient," please highlight this disclosure and explain the primary
source of your
         recognized revenue. Also revise the "Ben Operational Overview" graphic
on page 230 to
         clarify that such interest and fee revenue is eliminated upon
consolidation.

Our Business Model, page 231

13.    We note your disclosure describing the revenue from interest and fees,
which are
FirstName LastNameBrad K. Heppner
       eliminated in consolidation. Please expand this disclosure to provide a
similar discussion
Comapany
       of anyNameThe
               expensesBeneficient  CompanyinGroup,
                        that are eliminated         L.P. and to better describe
the net impact
                                              consolidation
Januaryof6,these
            2023items.
                 Page 3
FirstName LastName
 Brad K. Heppner
FirstName  LastNameBrad
                Company K. Heppner
The Beneficient         Group, L.P.
Comapany
January    NameThe Beneficient Company Group, L.P.
        6, 2023
January
Page 4 6, 2023 Page 4
FirstName LastName
Cash Flow, page 306

14.      Please revise your disclosure to explain, in more detail, the
distributions received as return
         of investments in alternative assets.
Critical Accounting Estimates
Goodwill and Intangible Identifiable Assets, page 316

15.      Please refer to your discussion of goodwill impairment on page 316 and
revise to provide
         information for investors to assess the probability of future goodwill
impairment charges.
         For example, as of each period end, please disclose whether your
reporting unit was at risk
         of failing the quantitative impairment test or if the fair value of
your reporting unit
         substantially exceeded the carrying value and was not at risk of
failing. If a reporting unit
         was at risk of failing at any period end, please disclose the
percentage by which fair value
         exceeded the carrying value and the amount of goodwill allocated to
the reporting unit.
         Please refer to Item 303(b)(3) of Regulation S-K.
Beneficial Ownership of Securities, page 358

16.      Please populate the table to provide the disclosure required in this
section.
Annex A, page A-1

17.      We note from the exhibit index that certain information has been
excluded from this
         exhibit because it both is not material and would likely cause
competitive harm to the
         registrant if publicly disclosed. Please include a prominent statement
on the first page of
         the redacted exhibit that certain identified information has been
excluded from the exhibit
         because it is both not material and is the type that the registrant
treats as private or
         confidential. Please also include brackets indicating where the
information is omitted from
         the filed version of the exhibit.
Index to Financial Statements, page F-1

18.      We note reference to the Report of Independent Registered Public
Accounting Firm on
         Avalon Acquistion, Inc.   s annual financial statements for the years
ended December 31,
         2021 and 2020 as well as exhibit 23.1, which references inclusion of
         WithumSmith+Brown, PC   s report dated March 29, 2022. However, we are
unable to
         locate the report in the filing. Please amend the filing to include
the audit report of
         WithumSmith+Brown, PC.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       Refer to Rules 460 and 461 regarding requests for acceleration. Please
allow adequate
time for us to review any amendment prior to the requested effective date of
the registration
 Brad K. Heppner
The Beneficient Company Group, L.P.
January 6, 2023
Page 5

statement.

       You may contact Ben Phippen at 202-551-3697 or Amit Pande at
202-551-3423 if you
have questions regarding comments on the financial statements and related
matters. Please
contact Madeleine Joy Mateo at 202-551-3465 or John Dana Brown at 202-551-3859
with any
other questions.

FirstName LastNameBrad K. Heppner                       Sincerely,
Comapany NameThe Beneficient Company Group, L.P.
                                                        Division of Corporation
Finance
January 6, 2023 Page 5                                  Office of Finance
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

January 6, 2023

Brad K. Heppner  
Chief Executive Officer  
The Beneficent Company Group, L.P.  
325 N. Saint Paul Street, Suite 4850  
Dallas, TX 75201

# **Re: The Beneficent Company Group, L.P.  
Registration Statement on Form S-4  
Filed December 9, 2022  
File No. 333-268741**

Dear Brad K. Heppner:

We have reviewed your registration statement and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to this letter by amending your registration statement and providing the requested information. If you do not believe our comments apply to your facts and circumstances or do not believe an amendment is appropriate, please tell us why in your response.

After reviewing any amendment to your registration statement and the information you provide in response to these comments, we may have additional comments.

# Registration Statement on Form S-4

# General

1. With a view toward disclosure, please tell us whether your sponsor is, is controlled by, or has substantial ties with a non-U.S. person. Please also tell us whether anyone or any entity associated with or otherwise involved in the transaction, is, is controlled by, or has substantial ties with a non-U.S. person. If so, also include risk factor disclosure that addresses how this fact could impact your ability to complete your initial business combination. For instance, discuss the risk to investors that you may not be able to complete an initial business combination with a U.S. target company should the transaction be subject to review by a U.S. government entity, such as the Committee on Foreign Investment in the United States (CFIUS), or ultimately prohibited. Further, disclose that the time necessary for government review of the transaction or a decision to

Brad K. Heppner
The Beneficient Company Group, L.P.
January 6, 2023
Page 2

prohibit the transaction could prevent you from completing an initial business combination and require you to liquidate. Disclose the consequences of liquidation to investors, such as the losses of the investment opportunity in a target company, any price appreciation in the combined company, and the warrants, which would expire worthless.

2. Please define terms in the context where first used. For example, the term "ExAlt Loan" is first used on page 12, but is first defined on page 254 of the registration statement. As a separate matter, please quantitatively define "mid-to-high net worth" on page 225.
3. Please quantify the aggregate dollar amount of the current value of fees due to the Avalon Sponsor and out-of-pocket expenses for which the Avalon Sponsor and its affiliates are awaiting reimbursement.

Cover Page

4. Please refer to the statement, in the Letter from Ben's Founder and CEO, about "utilizing standardized liquidity transaction documentation and agreements that have been reviewed by [y]our banking regulator." Please name your banking regulator and describe its jurisdiction. Disclose the date when such regulator completed a review of the documentation and agreements. Describe the extent of the review and explicitly state whether such agency has approved or endorsed such documentation or agreements. Also explain the extent to which these documents and agreements may change from transaction to transaction.
5. Please refer to the statement, in the Letter from Ben's Founder and CEO, regarding your "operational Kansas charter." Clarify the nature and extent of your authority pursuant to this charter and explain exactly what you mean by "operational Kansas charter." Explain here in simple terms what you are currently permitted to do pursuant to this charter. Additionally, explain what you mean by "extensive regulatory audit review."

Questions and Answers, page xiii

6. Please add a separate Q&A briefly summarizing the pending litigation that could negatively impact public investors. Quantify here the aggregate potential negative impact of all litigation including, but not limited to, a potential requirement to make quarterly payments to the Trusts in an aggregate amount of up to $350 million.

Summary of the Proxy Statement/Prospectus, page 1

7. We note the Post-Business Combination Structure chart on page 12. Please revise to provide a chart with a more legible font. In the chart show the ownership interest percentage for each entity or group and the type of security conferring such ownership. Separately show voting and economic interests if these percentages are different for a given group or entity. Please also include an organization chart depicting the organizational structure of Beneficient prior to the consummation of the transaction. Charts should also illustrate the states or countries of incorporation of various legal

Brad K. Heppner  
The Beneficient Company Group, L.P.  
January 6, 2023  
Page 3

entities and various affiliations that exist.

# Risk Factors, page 41

8. Please add a separately captioned risk factor addressing BCG's history of net losses.

We are aware of two lawsuits in which BCG or certain of our directors have been named defendants., page 53

9. Revise to explain what the 'CVR contract' is, and summarize the material terms as asserted by PCA.

Pursuant to a registration rights agreement, if we do not become a public company and register certain securities, we may incur expenses., page 62

10. Please quantify the amount of funds you would have to expend to repurchase Preferred B-2 Units from all holders of BCG Preferred B-2 Unit Accounts, in the event that a registration statement registering Registrable Securities for resale has not been declared effective by the SEC by June 30, 2023 and the holders of the BCG Preferred B-2 Unit Accounts exercise their right to have BCG repurchase those securities. State whether you have such funds available and how such a repurchase would impact your financial condition.

# Business of Avalon, page 205

11. We note your disclosure that the Avalon Sponsor, directors and each member of Avalon's management team agreed to waive their redemption rights. Please describe any consideration provided in exchange for this agreement.

# Business of Beneficient, page 225

12. We note your disclosure on page 231 that the revenue generated by Ben Liquidity and Ben Custody are eliminated in consolidation and that the platform fees generated by AltAccess are expected to be eliminated in consolidation. At the forefront of the section 'Business of Beneficient,' please highlight this disclosure and explain the primary source of your recognized revenue. Also revise the 'Ben Operational Overview' graphic on page 230 to clarify that such interest and fee revenue is eliminated upon consolidation.

# Our Business Model, page 231

13. We note your disclosure describing the revenue from interest and fees, which are eliminated in consolidation. Please expand this disclosure to provide a similar discussion of any expenses that are eliminated in consolidation and to better describe the net impact of these items.

Brad K. Heppner  
The Beneficient Company Group, L.P.  
January 6, 2023  
Page 4

# Cash Flow, page 306

14. Please revise your disclosure to explain, in more detail, the distributions received as return of investments in alternative assets.

# Critical Accounting Estimates

# Goodwill and Intangible Identifiable Assets, page 316

15. Please refer to your discussion of goodwill impairment on page 316 and revise to provide information for investors to assess the probability of future goodwill impairment charges. For example, as of each period end, please disclose whether your reporting unit was at risk of failing the quantitative impairment test or if the fair value of your reporting unit substantially exceeded the carrying value and was not at risk of failing. If a reporting unit was at risk of failing at any period end, please disclose the percentage by which fair value exceeded the carrying value and the amount of goodwill allocated to the reporting unit. Please refer to Item 303(b)(3) of Regulation S-K.

# Beneficial Ownership of Securities, page 358

16. Please populate the table to provide the disclosure required in this section.

# Annex A, page A-1

17. We note from the exhibit index that certain information has been excluded from this exhibit because it both is not material and would likely cause competitive harm to the registrant if publicly disclosed. Please include a prominent statement on the first page of the redacted exhibit that certain identified information has been excluded from the exhibit because it is both not material and is the type that the registrant treats as private or confidential. Please also include brackets indicating where the information is omitted from the filed version of the exhibit.

# Index to Financial Statements, page F-1

18. We note reference to the Report of Independent Registered Public Accounting Firm on Avalon Acquisition, Inc.’s annual financial statements for the years ended December 31, 2021 and 2020 as well as exhibit 23.1, which references inclusion of WithumSmith+Brown, PC’s report dated March 29, 2022. However, we are unable to locate the report in the filing. Please amend the filing to include the audit report of WithumSmith+Brown, PC.

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

Refer to Rules 460 and 461 regarding requests for acceleration. Please allow adequate time for us to review any amendment prior to the requested effective date of the registration

Brad K. Heppner  
The Beneficent Company Group, L.P.  
January 6, 2023  
Page 5

statement.

You may contact Ben Phippen at 202-551-3697 or Amit Pande at 202-551-3423 if you have questions regarding comments on the financial statements and related matters. Please contact Madeleine Joy Mateo at 202-551-3465 or John Dana Brown at 202-551-3859 with any other questions.

Sincerely,

Division of Corporation Finance Office of Finance