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 |