Hamilton Lane (HLNE) 10-Q 10 Aug 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Entity Registrant Name	Hamilton Lane INC
Entity Central Index Key	1,433,642
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Common Class A
Entity Common Stock, Shares Outstanding		19,265,873
Common Class B
Entity Common Stock, Shares Outstanding		27,935,255

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Assets
Cash and cash equivalents	$ 46,471	$ 32,286
Restricted cash	1,857	1,849
Fees receivable	19,474	12,113
Prepaid expenses	2,719	2,593
Due from related parties	2,951	3,313
Furniture, fixtures and equipment, net	4,014	4,063
Investments	124,027	120,147
Deferred income taxes	59,435	61,223
Other assets	3,595	3,030
Total assets	264,543	240,617
Liabilities and Equity
Accounts payable	1,326	1,366
Accrued compensation and benefits	11,543	3,417
Deferred incentive fee revenue	45,166	45,166
Principal amount	85,450	86,100
Less: unamortized discount and debt issuance costs	1,705	1,790
Senior secured term loan payable, net	83,745	84,310
Accrued members’ distributions	4,598	2,385
Accrued dividend payable	3,167	0
Payable to related parties pursuant to tax receivable agreement	10,734	10,734
Other liabilities	6,670	6,612
Total liabilities	166,949	153,990
Commitments and Contingencies
Preferred stock, $0.001 par value, 10,000,000 authorized, none issued	0	0
Additional paid-in-capital	60,220	61,845
Accumulated other comprehensive loss	(299)	(311)
Retained earnings	2,909	612
Less: Treasury stock, at cost, 114,529 shares of Class A common stock as of March 31, 2017	0	(2,151)
Total Hamilton Lane Incorporated stockholders’ equity	62,877	60,042
Total equity	97,594	86,627
Total liabilities and equity	264,543	240,617
Common Class A
Liabilities and Equity
Common stock	19	19
Common Class B
Liabilities and Equity
Common stock	28	28
General Partnerships
Liabilities and Equity
Stockholders' equity attributable to noncontrolling interest	9,705	9,901
Hamilton Lane Advisors, L.L.C.
Liabilities and Equity
Stockholders' equity attributable to noncontrolling interest	$ 25,012	$ 16,684

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Mar. 31, 2017
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Treasury stock (in shares)		114,529
Common Class A
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	19,265,873	19,151,033
Common stock, shares outstanding (in shares)	19,265,873	19,036,504
Common Class B
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	27,935,255	27,935,255
Common stock, shares outstanding (in shares)	27,935,255	27,935,255

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
Revenues
Management and advisory fees		$ 51,684	$ 37,583
Incentive fees		1,017	1,983
Total revenues		52,701	39,566
Expenses
Compensation and benefits		19,962	15,936
General, administrative and other		8,458	6,770
Total expenses		28,420	22,706
Other income (expense)
Equity in income of investees		5,919	1,966
Interest expense		(1,106)	(2,902)
Interest income		316	66
Other non-operating income (loss)		(106)	0
Total other income (expense)		5,023	(870)
Income before income taxes		29,304	15,990
Income tax expense (benefit)		3,692	(401)
Net income		25,612	16,391
Net income attributable to Hamilton Lane Incorporated		$ 5,464	0
Common Class A
Other income (expense)
Basic earnings per share of Class A common stock (in dollars per share)	[1]	$ 0.30
Diluted earnings per share of Class A common stock (in dollars per share)	[1]	0.30
Dividends declared per share of Class A common stock (in dollars per share)	[1]	$ 0.175
Common stock, shares outstanding (in shares)		19,265,873
General Partnerships
Other income (expense)
Less: Income attributable to non-controlling interests		$ 898	545
Hamilton Lane Advisors, L.L.C.
Other income (expense)
Less: Income attributable to non-controlling interests		$ 19,250	$ 15,846
[1]	There were no shares of Class A common stock outstanding prior to March 6, 2017, therefore no earnings or dividends declared per share information has been presented for any period prior to that date.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net income	$ 25,612	$ 16,391
Other comprehensive income (loss), net of tax:
Unrealized loss on cash flow hedge	0	(129)
Realized loss on cash flow hedge	35	0
Total other comprehensive income (loss), net of tax	35	(129)
Comprehensive income	25,647	16,262
Less:
Total comprehensive income attributable to Hamilton Lane Incorporated	5,476	0
General Partnerships
Less:
Comprehensive income (loss) attributable to non-controlling interests	898	545
Hamilton Lane Advisors, L.L.C.
Less:
Comprehensive income (loss) attributable to non-controlling interests	$ 19,273	$ 15,717

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Shareholders' Equity - 3 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Class A Common Stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	General PartnershipsNoncontrolling Interests	Hamilton Lane Advisors, L.L.C.Noncontrolling Interests
Beginning balance at Mar. 31, 2017	$ 86,627		$ 19	$ 28	$ 61,845	$ 612	$ (2,151)	$ (311)	$ 9,901	$ 16,684
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,612					5,464			898	19,250
Other comprehensive loss	35							12		23
Equity-based compensation	1,416				486					930
Retirement of treasury stock	0	$ (2,151)			(2,151)		2,151
Proceeds received from option exercises	313				108					205
Purchase and retirement of Class A shares for tax withholding	(663)	$ (663)			(228)					(435)
Deferred tax adjustment	115				115
Dividends declared	(3,167)					(3,167)
Capital contributions from (distributions to) non-controlling interests, net	(1,094)								(1,094)
Member distributions	(11,600)									(11,600)
Equity reallocation between controlling and non-controlling interests	0				45					(45)
Ending balance at Jun. 30, 2017	$ 97,594		$ 19	$ 28	$ 60,220	$ 2,909	$ 0	$ (299)	$ 9,705	$ 25,012

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016
Operating activities:
Net income	$ 25,612		$ 16,391
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	437		488
Change in deferred income taxes	1,903		(410)
Amortization of deferred financing costs	85		214
Equity-based compensation	1,416		1,094
Equity in income of investees	(5,919)	$ (1,966)	(1,966)
Proceeds received from investments	5,176		950
Other	129		0
Changes in operating assets and liabilities:
Fees receivable	(7,361)		548
Prepaid expenses	(126)		(510)
Due from related parties	362		679
Other assets	(672)		(2,038)
Accounts payable	(40)		(254)
Accrued compensation and benefits	8,126		4,924
Other liabilities	58		(2,674)
Net cash provided by operating activities	29,186		17,436
Investing activities:
Purchase of furniture, fixtures and equipment	(388)		(363)
Distributions received from investments	3,465		1,487
Contributions to investments	(6,589)		(8,069)
Net cash (used in) investing activities	(3,512)		(6,945)
Financing activities:
Repayments of senior secured term loan	(650)		(650)
Contributions from non-controlling interest in Partnerships	40		84
Distributions to non-controlling interest in Partnerships	(1,134)		0
Sale of membership interests	0		2,434
Purchase of Class A shares for tax withholdings	(663)		0
Purchase of membership interests	0		(1,028)
Proceeds received from option exercises	313		217
Members’ distributions	(9,387)		(18,281)
Net cash (used in) financing activities	(11,481)		(17,224)
Increase (decrease) in cash, cash equivalents, and restricted cash	14,193		(6,733)
Cash, cash equivalents, and restricted cash at beginning of the period	34,135		70,382
Cash, cash equivalents, and restricted cash at end of the period	$ 48,328	$ 34,135	$ 63,649

Organization

Organization	3 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Hamilton Lane Incorporated (“HLI”) was incorporated in the State of Delaware on December 31, 2007. As of March 6, 2017, following the initial public offering (“IPO”) and related transactions (“Reorganization”), the Company became a publicly-traded entity, and both the holding company for and sole managing member of Hamilton Lane Advisors, L.L.C. (“HLA”). Unless otherwise specified, “the Company” refers to the consolidated group of HLI and HLA and its subsidiaries throughout the remainder of these notes. HLA is a registered investment advisor with the United States Securities and Exchange Commission (“SEC”), providing asset management and advisory services, primarily to institutional investors, to design, build and manage private markets portfolios. HLA generates revenues primarily from management fees, by managing assets on behalf of customized separate accounts, specialized fund products and distribution management accounts, and advisory fees, by providing asset supervisory and reporting services. HLA sponsors the formation, and serves as the general partner or managing member, of various limited partnerships or limited liability companies consisting of specialized funds and certain single client separate account entities (“Partnerships”) that acquire interests in third-party managed investment funds that make private equity and equity-related investments. The Partnerships may also make direct co-investments, including investments in debt, equity, and other equity-based instruments. HLA, which includes certain subsidiaries that serve as the general partner or managing member of the Partnerships, may invest its own capital in the Partnerships and generally makes all investment and operating decisions for the Partnerships. HLA operates several wholly or majority owned entities through which it conducts its foreign operations. Reorganization In connection with the IPO, the Company completed a series of transactions on March 6, 2017, which are described below: • the certificate of incorporation of HLI was amended and restated to, among other things, (i) provide for Class A common stock and Class B common stock, (ii) set forth the voting rights of the Class A common stock ( one vote per share) and Class B common stock ( ten votes per share) and (iii) establish a classified board of directors; • the limited liability company agreement of HLA was amended and restated to, among other things, (i) appoint HLI as the sole managing member of HLA and (ii) classify the interests that were acquired by HLI as Class A Units, the voting interests held by the continuing members of HLA as Class B Units, and the non-voting interests held by the continuing members of HLA as Class C Units; • HLA effectuated a reverse unit split of 0 .68 -for-1 for each unit class. All unit-based data, including the number of units and per unit amounts in these condensed consolidated financial statements and accompanying notes have been retroactively adjusted for the reverse split; • certain HLA members exchanged their HLA units for 3,899,169 shares of Class A common stock of HLI; • HLI issued to the Class B unitholders of HLA one share of Class B common stock for each Class B unit that they owned, in exchange for a payment of its par value; • certain Class B unitholders of HLA entered into a stockholders agreement where they agreed to vote all their shares of voting stock in accordance with the instructions of HLA Investments, LLC; and • HLI entered into an exchange agreement with the direct owners of HLA pursuant to which they will be entitled to exchange HLA units for shares of HLI’s Class A common stock on a one-for-one basis. Initial Public Offering On March 6, 2017, HLI issued 13,656,250 shares of Class A common stock in the IPO at a price of $16.00 per share. The net proceeds totaled $203,205 after deducting underwriting commissions of $15,295 and before offering costs of $5,844 that were incurred by HLA. The net proceeds were used to purchase 11,156,250 newly issued Class A units in HLA for $166,005 , and 2,500,000 Class A units from existing HLA owners for $37,200 . Subsequent to the IPO and Reorganization transactions, HLI is a holding company whose principal asset is a controlling equity interest in HLA. As the sole managing member of HLA, HLI operates and controls all of the business and affairs of HLA, and through HLA, conducts its business. As a result, HLI consolidates HLA’s financial results and reports a non-controlling interest related to the portion of HLA units not owned by HLI. The assets and liabilities of HLA represent substantially all of HLI’s consolidated assets and liabilities with the exception of certain deferred tax assets and liabilities and payable to related parties pursuant to a tax receivable agreement. As of June 30, 2017 and March 31, 2017, HLI held approximately 34.4% and 34.2% , respectively, of the economic interest in HLA. As future exchanges of HLA units occur, the economic interest in HLA held by HLI will increase. The Reorganization is considered a transaction between entities under common control. As a result, the condensed consolidated financial statements for periods prior to the IPO and the Reorganization are the condensed consolidated financial statements of HLA as the predecessor to HLI for accounting and reporting purpose

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Management believes it has made all necessary adjustments (which consisted of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing the condensed consolidated financial statements are reasonable and prudent. Results of operations for the three months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of March 31, 2017. Fair Value of Financial Instruments The Company utilizes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below: • Level 1: Values are determined using quoted market prices for identical financial instruments in an active market. • Level 2: Values are determined using quoted prices for similar financial instruments and valuation models whose inputs are observable. • Level 3: V alues are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company considers cash and cash equivalents, fees receivable, prepaid expenses, other assets, investments, accounts payable, accrued compensation and benefits, senior secured term loan, and other liabilities to be its financial instruments. The carrying amount reported in the Condensed Consolidated Balance Sheets for these financial instruments equals or closely approximates their fair values; except for investments carried at cost, which are discussed in Note 3, and senior secured term loan and interest rate cap, which are discussed in Note 5. Distributions and Dividends Distributions and dividends are reflected in the condensed consolidated financial statements when declared. Distributions to members represent amounts paid to the non-controlling interest holders of HLA. All distributions received by HLI from HLA are eliminated in the condensed consolidated financial statements. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards update (ASU) No. 2014-09, “ Revenue from Contracts with Customers ” (ASU 2014-09). ASU 2014-09 represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. The new standards will be effective for the Company on April 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company currently recognizes incentive fee revenue when required return levels are met and all contingencies have been resolved. Under the new standard, the Company will recognize incentive fee revenue when it concludes that it is probable that a significant reversal in the cumulative amount of incentive fee revenue will not occur when the uncertainty is resolved. The Company is continuing to assess the impact of adoption of the new standard on other revenue-related items as well, including evaluating the impact of certain revenue related costs, gross vs. net reporting issues, as well as the additional disclosures required by the new standard. In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01) , which requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and entities may early adopt. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “ Leases” (ASU 2016-02). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Payments ” (ASU 2016-15). ASU 2016-15 clarifies cash flow classification of several discrete cash flows issues including debt prepayment costs and distributions received from equity method investees. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows - Restricted Cash” (ASU 2016-18) . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this update are effective for years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted the standard on October 1, 2016 and retrospectively applied the amendment. Other than the change in presentation of restricted cash within the Condensed Consolidated Statements of Cash Flows, the adoption of this standard did not have a material impact on its consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Investments

Investments	3 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Investment	Investments Investments consist of the following: June 30, March 31, 2017 2017 Equity method investments in Partnerships $ 107,015 $ 103,141 Other equity method investments 1,152 661 Investments carried at cost 15,860 16,345 Total Investments $ 124,027 $ 120,147 The Company’s equity method investments in Partnerships represent its ownership in certain specialized funds and customized separate accounts. The strategies and geographic location of investments within the Partnerships vary by fund. The Company generally has a 1% interest in each of the Partnerships, although the Company has interests in certain Partnerships ranging from 0 - 7 %. The Company’s other equity method investments represent its ownership in a technology company that provides benchmarking and analytics of private equity data and its ownership in a joint venture that automates the collection of fund and underlying portfolio company data from general partners. The Company recognized equity method income related to its investments in Partnerships and other equity method investments of $5,919 , and $1,966 for the three months ended June 30, 2017 and 2016 , respectively. The Company evaluates each of its equity method investments to determine if any were significant pursuant to the requirements of Regulation S-X. As of June 30, 2017 and March 31, 2017 , no individual equity method investment held by the Company met the significance criteria, and as a result, the Company is not required to present separate financial statements for any of its equity method investments. The Company’s investments carried at cost include other proprietary investments that are not consolidated, over which the Company does not exert significant influence and for which fair value is not readily determinable. The Company has determined in accordance with the applicable guidance that it is impracticable to estimate the fair value of the investments carried at cost due to limited information available. As of June 30, 2017 and March 31, 2017 , the Company did not identify any significant events or changes in circumstances that have a significant adverse effect on the carrying value of these investments carried at cost.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary. The consolidated VIEs are general partner entities of the Partnerships, which are not wholly owned by the Company. The total assets of the consolidated VIEs are $ 19,305 and $ 19,653 as of June 30, 2017 and March 31, 2017 , respectively, and are recorded in Investments in the Condensed Consolidated Balance Sheets. The consolidated VIEs had no liabilities as of June 30, 2017 and March 31, 2017 . The assets of the consolidated VIEs may only be used to settle obligations of the consolidated VIEs, if any. In addition, there is no recourse to the Company for the consolidated VIEs’ liabilities, except for certain entities in which there could be a claw back of previously distributed carried interest. The Company holds variable interests in certain Partnerships that are VIEs, which are not consolidated, as it is determined that the Company is not the primary beneficiary. Certain Partnerships are considered VIEs because limited partners lack the ability to remove the general partner or dissolve the entity without cause, by simple majority vote (i.e. do not have substantive “kick out” or “liquidation” rights). The Company’s involvement with such entities is in the form of direct equity interests in, and fee arrangements with, the Partnerships in which it also serves as the general partner or managing member. In the Company’s role as general partner or managing member, it generally considers itself the sponsor of the applicable Partnership and makes all investment and operating decisions. As of June 30, 2017 , the total commitments and remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $11,927,604 and $4,900,996 , respectively. These commitments are the primary source of financing for the unconsolidated VIEs. The maximum exposure to loss represents the potential loss of assets recognized by the Company relating to these unconsolidated entities. The Company believes that its maximum exposure to loss is limited because it establishes separate limited partnerships or limited liability companies to serve as the general partner or managing member of the Partnerships. The carrying amount of assets and liabilities recognized in the Condensed Consolidated Balance Sheets related to the Company’s interests in these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: June 30, March 31 2017 2017 Investments $ 64,428 $ 60,597 Fees receivable 7,121 430 Due from related parties 723 1,742 Total VIE Assets 72,272 62,769 Deferred incentive fee revenue 45,166 45,166 Non-controlling interests (9,705 ) (9,901 ) Maximum Exposure to Loss $ 107,733 $ 98,034

Senior Secured Term Loan

Senior Secured Term Loan	3 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Senior Secured Term Loan	Senior Secured Term Loan The credit agreement for the senior secured term loan contains various restrictive covenants. It requires the Company to maintain a specified maximum total leverage ratio. In addition, the credit agreement, among other things, limits the ability of the Company to incur additional indebtedness, to make certain restricted payments, to consummate mergers, consolidations, asset sales and make certain investments, subject to certain exceptions and carve-outs. The fair value of the outstanding balance of the term loan at June 30, 2017 and March 31, 2017 approximated par value based on then current market rates for similar debt instruments and is classified as Level II within the fair value hierarchy. In July 2015, the Company purchased interest rate caps through June 30, 2020 to limit exposure to fluctuations in LIBOR above 2.5% on a portion of the Company’s senior secured term loan. In October 2016, the Company de-designated its remaining interest rate caps as cash flow hedges and discontinued hedge accounting. The amount accumulated in other comprehensive income (loss) will be amortized to interest expense over the remaining term of the respective interest rate caps, or written off if the cash flows become probable of not occurring. The changes in the fair value of these interest rate caps after the de-designation are recorded in other non-operating income in the Condensed Consolidated Statements of Income. The fair value of the interest rate caps was $87 and $194 as of June 30, 2017 and March 31, 2017 , respectively, and is included in other assets in the Condensed Consolidated Balance Sheets. The fair value of the interest rate caps is determined utilizing quoted prices in active markets for the same or similar instruments and is classified as Level II within the fair value hierarchy.

Equity

Equity	3 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Equity The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2017 : Class A Common Stock Class B Common Stock March 31, 2017 19,036,504 27,935,255 Restricted stock granted 40,427 — Shares issued due to option exercise, net 200,244 — Forfeitures of restricted stock (11,302 ) — June 30, 2017 19,265,873 27,935,255 During the three months ended June 30, 2017 , the Company retired 114,529 shares of Class A common stock held as treasury stock at a total cost of $2,151 (that were outstanding as of March 31, 2017) and 33,251 shares of Class A common stock at a total cost of $663 that were purchased from employees to meet statutory tax withholding requirements. On June 12, 2017, the Company declared a quarterly dividend of $0.175 per share of Class A common stock to record holders at the close of business on June 26, 2017 for a total amount of $3,167 that was paid on July 10, 2017.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity-Based Compensation	Equity-Based Compensation Summary of Option Activity A summary of option activity for the three months ended June 30, 2017 is presented below: Number of Weighted- Options outstanding at March 31, 2017 233,495 $ 1.34 Options exercised (233,495 ) $ 1.34 Options outstanding at June 30, 2017 — $ — The intrinsic value of options exercised during the three months ended June 30, 2017 was $4,350 . Restricted Stock A summary of restricted stock activity for the three months ended June 30, 2017 is presented below: Total Weighted- March 31, 2017 1,138,521 $ 14.49 Granted 40,427 $ 19.28 Vested — $ — Forfeited (11,302 ) $ 15.04 June 30, 2017 1,167,646 $ 14.65 As of June 30, 2017 , total unrecognized compensation expense related to restricted stock was $ 15,265 .

Compensation and Benefits

Compensation and Benefits	3 Months Ended
	Jun. 30, 2017
Compensation Related Costs [Abstract]
Compensation and Benefits	Compensation and Benefits The Company has recorded the following amounts related to compensation and benefits: Three Months Ended June 30, 2017 2016 Base compensation and benefits $ 18,292 $ 14,346 Incentive fee compensation 254 496 Equity-based compensation 1,416 1,094 Total compensation and benefits $ 19,962 $ 15,936

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes As a result of the Reorganization and IPO, HLI became the sole managing member of HLA, which is organized as a limited liability company and treated as a “flow-through” entity for income tax purposes. As a “flow-through” entity, HLA is not subject to income taxes apart from foreign taxes attributable to its operations in foreign jurisdictions. Any taxable income or loss generated by HLA is passed through to and included in the taxable income or loss of its members, including HLI following the Reorganization and IPO, on a pro rata basis. As a result, the Company does not record income taxes on pre-tax income or loss attributable to the non-controlling interests in the general partnerships and HLA, except for foreign taxes discussed above. HLI is subject to U.S. federal and applicable state corporate income taxes with respect to its allocable share of any taxable income from HLA following the Reorganization and IPO. The Company’s effective tax rate used for interim periods is based on an estimated annual effective tax rate combined with the tax effect of items required to be recorded discretely in the interim period in which those items occur. The effective tax rate is dependent on many factors, including the estimated amount of income subject to income tax; therefore, the effective tax rate can vary from period to period. The Company’s effective tax rate was 12.6% and (2.5)% for the three months ended June 30, 2017 and 2016 , respectively. These rates were less than the statutory rate due primarily to the portion of income allocated to the non-controlling entities. We evaluate the realizability of our deferred tax asset on a quarterly basis and adjust the valuation allowance when it is more likely than not that all or a portion of the deferred tax asset may not be realized. The Company believes all of our deferred tax assets, except the deferred tax asset relating to the basis difference in HLA, are more likely than not to be realized. As of June 30, 2017 , the Company had no unrecognized tax positions. Tax Receivable Agreement HLI’s purchase of HLA Class A units concurrent with the IPO, and the subsequent and future exchanges by holders of HLA units for shares of HLI’s Class A common stock pursuant to the Exchange Agreement, are expected to result in increases in HLI’s share of the tax basis of the tangible and intangible assets of HLA. This will increase the tax depreciation and amortization deductions that otherwise would not have been available to HLI. These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that HLI would otherwise be required to pay in the future. On March 6, 2017, HLI entered into a tax receivable agreement (“TRA”) with the other members of HLA that requires HLI to pay exchanging HLA unitholders (the “TRA Recipients”) 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that HLI actually realizes (or, under certain circumstances, is deemed to realize) as a result of the increases in tax basis in connection with exchanges by the TRA Recipients described above and certain other tax benefits attributable to payments under the TRA. No amounts were paid to TRA Recipients during the three months ended June 30, 2017 .

Earnings per Share

Earnings per Share	3 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share There were no shares of Class A common stock outstanding during the three months ended June 30, 2016 , therefore no earnings per share information has been presented for that period. Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to HLI and therefore are not participating securities. As a result, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included. Shares of the Company’s Class B common stock are, however, considered potentially dilutive to the Class A common stock because each share of Class B common stock, together with a corresponding Class B unit, is exchangeable for a share of Class A common stock on a one-for-one basis. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Three Months Ended June 30, 2017 Net income attributable to HLI Weighted-Avg Shares Per share amount Basic EPS of Class A common stock $ 5,464 17,981,601 $ 0.30 Adjustment to net income: Assumed exercise and vesting of employee awards 83 Effect of dilutive securities: Assumed exercise and vesting of employee awards 477,814 Diluted EPS of Class A common stock $ 5,547 18,459,415 $ 0.30 The calculation of diluted earnings per share excludes 34,438,669 outstanding Class B and C Units of HLA, which are exchangeable into Class A common stock under the “if-converted” method, because the inclusion of such shares would be antidilutive.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions The Company has investment management agreements with various specialized funds and customized separate accounts that it manages. The Company earned management and incentive fees from Partnerships of $33,465 and $22,446 for the three months ended June 30, 2017 and 2016 , respectively. Due from related parties in the Condensed Consolidated Balance Sheets consists primarily of advances made on behalf of the Partnerships for the payment of certain operating costs and expenses for which the Company is subsequently reimbursed and refundable tax distributions made to members. Fees receivable from the Partnerships were $7,969 and $918 as of June 30, 2017 and March 31, 2017 , respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Months Ended June 30, 2017 2016 Non-cash financing activities: Dividends declared but not paid $ 3,167 $ — Member distributions declared but not paid $ 4,598 $ 15,000

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time, the Company is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not believe it is probable that any current legal proceeding or claim would individually or in the aggregate materially affect its condensed consolidated financial statements. Incentive Fees In connection with Carried Interest from the Partnerships, the Company only recognizes its allocable share of the Partnerships’ earnings to the extent that this income is not subject to continuing contingencies. Carried Interest allocated to the Company from the Partnerships that is subject to continuing contingencies is not recognized in the accompanying Condensed Consolidated Balance Sheets. The Partnerships have allocated Carried Interest still subject to contingencies in the amounts of $266,374 and $236,857 at June 30, 2017 and March 31, 2017 , respectively, of which $45,166 and $45,166 at June 30, 2017 and March 31, 2017 , respectively, has been received and deferred by the Company. If the Company ultimately receives the unrecognized Carried Interest, a total of $56,228 and $48,849 as of June 30, 2017 and March 31, 2017 , respectively, would potentially be payable to certain employees and third parties pursuant to compensation arrangements related to the carried interest profit-sharing plans. Such amounts have not been recorded in the Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Income as this liability is not yet probable. Commitments The Company serves as the investment manager of the Partnerships. The general partner or managing member of each Partnership is generally a separate subsidiary of the Company and has agreed to invest funds on the same basis as the limited partners in most instances. The aggregate unfunded commitment of the general partners to the Partnerships was $ 84,654 and $76,908 as of June 30, 2017 and March 31, 2017 , respectively.

Management and Advisory Fees

Management and Advisory Fees	3 Months Ended
	Jun. 30, 2017
Investment Advisory, Management and Administrative Fees [Abstract]
Management and Advisory Fees	Management and Advisory Fees The following presents management and advisory fee revenues by product offering: Three Months Ended June 30, 2017 2016 Customized separate accounts $ 18,784 $ 17,504 Specialized funds 25,206 13,752 Advisory and reporting 6,650 5,767 Distribution management 1,044 560 Total management and advisory fees $ 51,684 $ 37,583

Subsequent Event

Subsequent Event	3 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 8, 2017, the Company declared a quarterly dividend of $0.175 per share of Class A common stock to record holders at the close of business on September 15, 2017. The payment date will be October 2, 2017.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Management believes it has made all necessary adjustments (which consisted of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing the condensed consolidated financial statements are reasonable and prudent. Results of operations for the three months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of March 31, 2017.
Fair Value of Financial Instruments
Distributions and Dividends	Distributions and Dividends Distributions and dividends are reflected in the condensed consolidated financial statements when declared. Distributions to members represent amounts paid to the non-controlling interest holders of HLA. All distributions received by HLI from HLA are eliminated in the condensed consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards update (ASU) No. 2014-09, “ Revenue from Contracts with Customers ” (ASU 2014-09). ASU 2014-09 represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. The new standards will be effective for the Company on April 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company currently recognizes incentive fee revenue when required return levels are met and all contingencies have been resolved. Under the new standard, the Company will recognize incentive fee revenue when it concludes that it is probable that a significant reversal in the cumulative amount of incentive fee revenue will not occur when the uncertainty is resolved. The Company is continuing to assess the impact of adoption of the new standard on other revenue-related items as well, including evaluating the impact of certain revenue related costs, gross vs. net reporting issues, as well as the additional disclosures required by the new standard. In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01) , which requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and entities may early adopt. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “ Leases” (ASU 2016-02). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Payments ” (ASU 2016-15). ASU 2016-15 clarifies cash flow classification of several discrete cash flows issues including debt prepayment costs and distributions received from equity method investees. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows - Restricted Cash” (ASU 2016-18) . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this update are effective for years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted the standard on October 1, 2016 and retrospectively applied the amendment. Other than the change in presentation of restricted cash within the Condensed Consolidated Statements of Cash Flows, the adoption of this standard did not have a material impact on its consolidated financial statements.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Investments	Investments consist of the following: June 30, March 31, 2017 2017 Equity method investments in Partnerships $ 107,015 $ 103,141 Other equity method investments 1,152 661 Investments carried at cost 15,860 16,345 Total Investments $ 124,027 $ 120,147

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The carrying amount of assets and liabilities recognized in the Condensed Consolidated Balance Sheets related to the Company’s interests in these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: June 30, March 31 2017 2017 Investments $ 64,428 $ 60,597 Fees receivable 7,121 430 Due from related parties 723 1,742 Total VIE Assets 72,272 62,769 Deferred incentive fee revenue 45,166 45,166 Non-controlling interests (9,705 ) (9,901 ) Maximum Exposure to Loss $ 107,733 $ 98,034

Equity (Tables)

Equity (Tables)	3 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Rollforward of Common Stock	The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2017 : Class A Common Stock Class B Common Stock March 31, 2017 19,036,504 27,935,255 Restricted stock granted 40,427 — Shares issued due to option exercise, net 200,244 — Forfeitures of restricted stock (11,302 ) — June 30, 2017 19,265,873 27,935,255

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Option Activity	A summary of option activity for the three months ended June 30, 2017 is presented below: Number of Weighted- Options outstanding at March 31, 2017 233,495 $ 1.34 Options exercised (233,495 ) $ 1.34 Options outstanding at June 30, 2017 — $ —
Summary of Restricted Stock Activity	A summary of restricted stock activity for the three months ended June 30, 2017 is presented below: Total Weighted- March 31, 2017 1,138,521 $ 14.49 Granted 40,427 $ 19.28 Vested — $ — Forfeited (11,302 ) $ 15.04 June 30, 2017 1,167,646 $ 14.65

Compensation and Benefits (Tabl

Compensation and Benefits (Tables)	3 Months Ended
	Jun. 30, 2017
Compensation Related Costs [Abstract]
Schedule of Compensation and Benefits	The Company has recorded the following amounts related to compensation and benefits: Three Months Ended June 30, 2017 2016 Base compensation and benefits $ 18,292 $ 14,346 Incentive fee compensation 254 496 Equity-based compensation 1,416 1,094 Total compensation and benefits $ 19,962 $ 15,936

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Three Months Ended June 30, 2017 Net income attributable to HLI Weighted-Avg Shares Per share amount Basic EPS of Class A common stock $ 5,464 17,981,601 $ 0.30 Adjustment to net income: Assumed exercise and vesting of employee awards 83 Effect of dilutive securities: Assumed exercise and vesting of employee awards 477,814 Diluted EPS of Class A common stock $ 5,547 18,459,415 $ 0.30

Supplemental Financial Inform30

Supplemental Financial Information (Tables)	3 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Three Months Ended June 30, 2017 2016 Non-cash financing activities: Dividends declared but not paid $ 3,167 $ — Member distributions declared but not paid $ 4,598 $ 15,000

Management and Advisory Fees (T

Management and Advisory Fees (Tables)	3 Months Ended
	Jun. 30, 2017
Investment Advisory, Management and Administrative Fees [Abstract]
Management and Advisory Fee Revenues by Product Offering	The following presents management and advisory fee revenues by product offering: Three Months Ended June 30, 2017 2016 Customized separate accounts $ 18,784 $ 17,504 Specialized funds 25,206 13,752 Advisory and reporting 6,650 5,767 Distribution management 1,044 560 Total management and advisory fees $ 51,684 $ 37,583

Organization - Reorganization (

Organization - Reorganization (Details)	Mar. 06, 2017voteshares
Common Class A
Class of Stock [Line Items]
Number of votes	1
Shares issued in exchange for units in the Reorganization (in shares) | shares	3,899,169
Common Class B
Class of Stock [Line Items]
Number of votes	10
Member Units | HLA
Class of Stock [Line Items]
Stock split, conversion ratio	0.68

Organization - Initial Public O

Organization - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 06, 2017	Jun. 30, 2017	Mar. 31, 2017
Class of Stock [Line Items]
Percent of economic interest held		34.40%	34.20%
Common Class A | IPO
Class of Stock [Line Items]
Common stock shares issued in IPO (in shares)	13,656,250
Common stock issued (in dollars per share)	$ 16
Proceeds from IPO, net of underwriting discount	$ 203,205
Underwriting commissions	15,295
Offering costs	$ 5,844
Member Units | Common Class A
Class of Stock [Line Items]
Purchase of interest by parent (in shares)	11,156,250
Purchase of interest by parent	$ 166,005
Member Units | Existing HLA Owners | Common Class A
Class of Stock [Line Items]
Purchase of interest by parent (in shares)	2,500,000
Purchase of interest by parent	$ 37,200

Investments - Schedule of Inves

Investments - Schedule of Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Investment [Line Items]
Investments carried at cost	$ 15,860	$ 16,345
Total Investments	124,027	120,147
Partnerships
Investment [Line Items]
Equity method investments	107,015	103,141
Other Equity Method Investments
Investment [Line Items]
Equity method investments	$ 1,152	$ 661

Investments - Additional Inform

Investments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Equity in income of investees	$ 5,919	$ 1,966	$ 1,966
Partnerships
Schedule of Equity Method Investments [Line Items]
Percent interest in partnerships	1.00%
Partnerships | Minimum
Schedule of Equity Method Investments [Line Items]
Percent interest in partnerships	0.00%
Partnerships | Maximum
Schedule of Equity Method Investments [Line Items]
Percent interest in partnerships	7.00%

Variable Interest Entities - Co

Variable Interest Entities - Consolidated VIEs (Details) - Primary Beneficiary - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Variable Interest Entity [Line Items]
Total assets of consolidated VIEs	$ 19,305,000	$ 19,653,000
Total liabilities of consolidated VIEs	$ 0	$ 0

Variable Interest Entities - Un

Variable Interest Entities - Unconsolidated VIEs (Details) - Not Primary Beneficiary - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Variable Interest Entity [Line Items]
Total commitments from the limited partners and general partners to the unconsolidated VIE	$ 11,927,604
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE	4,900,996
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]
Investments	64,428	$ 60,597
Fees receivable	7,121	430
Due from related parties	723	1,742
Total VIE Assets	72,272	62,769
Deferred incentive fee revenue	45,166	45,166
Non-controlling interests	(9,705)	(9,901)
Maximum Exposure to Loss	$ 107,733	$ 98,034

Senior Secured Term Loan - Inte

Senior Secured Term Loan - Interest Rate Caps (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Jul. 31, 2015
Other Assets | Level II | Interest Rate Cap
Debt Instrument [Line Items]
Fair value of interest rate caps	$ 87	$ 194
Credit Agreement | Senior Secured Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			2.50%

Equity - Shares of Common Stock

Equity - Shares of Common Stock Outstanding (Details)	3 Months Ended
	Jun. 30, 2017shares
Common Class A
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	19,036,504
Restricted stock granted (in shares)	40,427
Shares issued due to option exercise, net (in shares)	200,244
Forfeitures of restricted stock (in shares)	(11,302)
Outstanding, end of period (in shares)	19,265,873
Common Class B
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	27,935,255
Restricted stock granted (in shares)	0
Shares issued due to option exercise, net (in shares)	0
Forfeitures of restricted stock (in shares)	0
Outstanding, end of period (in shares)	27,935,255

Equity - Additional Information

Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 10, 2017	Jun. 30, 2017	Aug. 08, 2017	Jun. 12, 2017
Class of Stock [Line Items]
Retirement of treasury stock		$ 0
Purchase and retirement of Class A shares for tax withholding		663
Dividends		$ 3,167
Common Class A
Class of Stock [Line Items]
Common stock retired (in shares)		114,529
Retirement of treasury stock		$ 2,151
Shares paid for tax withholding (in shares)		33,251
Purchase and retirement of Class A shares for tax withholding		$ 663
Dividends payable (in dollars per share)				$ 0.175
Subsequent Event
Class of Stock [Line Items]
Dividends	$ 3,167
Subsequent Event | Common Class A
Class of Stock [Line Items]
Dividends payable (in dollars per share)			$ 0.175

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Option Activity (Details) - 2017 Equity Incentive Plan $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of Options
Outstanding at beginning of period (in shares) | shares	233,495
Exercised (in shares) | shares	(233,495)
Outstanding at end of period (in shares) | shares	0
Weighted- Average Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 1.34
Exercised (in dollars per share) | $ / shares	1.34
Outstanding at end of period (in dollars per share) | $ / shares	$ 0
Intrinsic value of options exercised | $	$ 4,350

Equity-Based Compensation - S42

Equity-Based Compensation - Summary of Restricted Stock (Details) - 2017 Equity Incentive Plan - Restricted Stock $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Total Unvested
Unvested at beginning of period (in shares) | shares	1,138,521
Granted (in shares) | shares	40,427
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(11,302)
Unvested at end of period (in shares) | shares	1,167,646
Weighted- Average Grant-Date Fair Value of Award
Unvested at beginning of period (in dollars per share) | $ / shares	$ 14.49
Granted (in dollars per share) | $ / shares	19.28
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	15.04
Unvested at end of period (in dollars per share) | $ / shares	$ 14.65
Total unrecognized compensation expense relating to restricted stock | $	$ 15,265

Compensation and Benefits - Sch

Compensation and Benefits - Schedule of Compensation and Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Compensation Related Costs [Abstract]
Base compensation and benefits	$ 18,292	$ 14,346
Incentive fee compensation	254	496
Equity-based compensation	1,416	1,094
Total compensation and benefits	$ 19,962	$ 15,936

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income Tax Contingency [Line Items]
Effective tax rate	12.60%	(2.50%)
Unrecognized tax positions	$ 0
TRA Recipients | Tax Receivable Agreement
Income Tax Contingency [Line Items]
Percentage of cash savings payable	85.00%
Amounts paid to TRA recipients	$ 0

Earnings per Share - Schedule o

Earnings per Share - Schedule of Earnings Per Share - Basic and Diluted (Details) - Common Class A $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Net income attributable to HLI
Basic EPS of Class A common stock | $	$ 5,464
Assumed exercise and vesting of employee awards | $	83
Diluted EPS of Class A common stock | $	$ 5,547
Weighted-Avg Shares
Weighted-average basic EPS of Class A common stock (in shares) | shares	17,981,601
Weighted-average assumed vesting of employee awards (in shares) | shares	477,814
Weighted-average diluted EPS of Class A common stock (in shares) | shares	18,459,415
Per share amount
Basic EPS of Class A common stock (in dollars per share) | $ / shares	$ 0.30	[1]
Diluted EPS of Class A common stock (in dollars per share) | $ / shares	$ 0.30	[1]
[1]	There were no shares of Class A common stock outstanding prior to March 6, 2017, therefore no earnings or dividends declared per share information has been presented for any period prior to that date.

Earnings per Share - Additional

Earnings per Share - Additional Information (Details) - shares	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Mar. 05, 2017
Class of Stock [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	34,438,669
Common Class A
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	19,265,873	19,036,504	0

Related-Party Transactions - Ad

Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Related Party Transaction [Line Items]
Total management and advisory fees	$ 52,701	$ 39,566
Fees receivable	19,474		$ 12,113
General Partnerships
Related Party Transaction [Line Items]
Total management and advisory fees	33,465	$ 22,446
Fees receivable	$ 7,969		$ 918

Supplemental Financial Inform48

Supplemental Financial Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016
Non-cash financing activities:
Dividends declared but not paid	$ 3,167	$ 0	$ 0
Member distributions declared but not paid	$ 4,598	$ 2,385	$ 15,000

Commitments and Contingencies -

Commitments and Contingencies - Incentive Fees (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Loss Contingencies [Line Items]
Carried Interest still subject to contingencies	$ 266,374	$ 236,857
Deferred incentive fee revenue	45,166	45,166
Incentive fees, unrecorded estimate	56,228	48,849
Carried Interest
Loss Contingencies [Line Items]
Deferred incentive fee revenue	$ 45,166	$ 45,166

Commitments and Contingencies50

Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Aggregate Unfunded Commitment
Other Commitments [Line Items]
Other commitment	$ 84,654	$ 76,908

Management and Advisory Fees -

Management and Advisory Fees - Management and Advisory Fee Revenues by Product Offering (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Investment Advisory, Management and Administrative Fees [Abstract]
Customized separate accounts	$ 18,784	$ 17,504
Specialized funds	25,206	13,752
Advisory and reporting	6,650	5,767
Distribution management	1,044	560
Total management and advisory fees	$ 51,684	$ 37,583

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - Common Class A - $ / shares	Aug. 08, 2017	Jun. 12, 2017
Subsequent Event [Line Items]
Dividends payable (in dollars per share)		$ 0.175
Subsequent Event
Subsequent Event [Line Items]
Dividends payable (in dollars per share)	$ 0.175