Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Feb. 05, 2018 | |
Entity Registrant Name | Hamilton Lane Incorporated | |
Entity Central Index Key | 1,433,642 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 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 | Q3 | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 19,281,837 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 27,935,255 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 68,677 | $ 32,286 |
Restricted cash | 1,787 | 1,849 |
Fees receivable | 13,287 | 12,113 |
Prepaid expenses | 1,584 | 2,593 |
Due from related parties | 4,275 | 3,313 |
Furniture, fixtures and equipment, net | 4,061 | 4,063 |
Investments | 130,765 | 120,147 |
Deferred income taxes | 39,766 | 61,223 |
Other assets | 8,844 | 3,030 |
Total assets | 273,046 | 240,617 |
Liabilities and Equity | ||
Accounts payable | 1,080 | 1,366 |
Accrued compensation and benefits | 28,051 | 3,417 |
Deferred incentive fee revenue | 31,422 | 45,166 |
Debt | 84,617 | 84,310 |
Accrued members’ distributions | 4,520 | 2,385 |
Dividends payable | 3,172 | 0 |
Payable to related parties pursuant to tax receivable agreement | 6,436 | 10,734 |
Other liabilities | 5,730 | 6,612 |
Total liabilities | 165,028 | 153,990 |
Commitments and Contingencies | ||
Preferred stock, $0.001 par value, 10,000,000 authorized, none issued | 0 | 0 |
Additional paid-in-capital | 62,853 | 61,845 |
Accumulated other comprehensive loss | 0 | (311) |
(Accumulated deficit) retained earnings | (5,057) | 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 | 57,843 | 60,042 |
Total equity | 108,018 | 86,627 |
Total liabilities and equity | 273,046 | 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 | 8,363 | 9,901 |
Hamilton Lane Advisors, L.L.C. | ||
Liabilities and Equity | ||
Stockholders' equity attributable to noncontrolling interest | $ 41,812 | $ 16,684 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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) | 19,287,882 | 19,151,033 |
Common stock, shares outstanding (in shares) | 19,287,882 | 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 | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues | |||||
Management and advisory fees | $ 48,344 | $ 42,009 | $ 146,326 | $ 126,273 | |
Incentive fees | 16,670 | 322 | 20,098 | 6,868 | |
Total revenues | 65,014 | 42,331 | 166,424 | 133,141 | |
Expenses | |||||
Compensation and benefits | 20,006 | 16,739 | 60,247 | 53,161 | |
General, administrative and other | 10,704 | 8,840 | 27,586 | 22,925 | |
Total expenses | 30,710 | 25,579 | 87,833 | 76,086 | |
Other income (expense) | |||||
Equity in income of investees | 2,895 | 3,085 | 13,066 | 8,882 | |
Interest expense | (664) | (2,924) | (5,282) | (8,780) | |
Interest income | 67 | 39 | 472 | 159 | |
Other non-operating income | 4,188 | 222 | 4,169 | 232 | |
Total other income | 6,486 | 422 | 12,425 | 493 | |
Income before income taxes | 40,790 | 17,174 | 91,016 | 57,548 | |
Income tax expense (benefit) | 22,957 | 111 | 29,337 | (264) | |
Net income | 17,833 | 17,063 | 61,679 | 57,812 | |
Net (loss) income attributable to Hamilton Lane Incorporated | $ (6,309) | $ 0 | $ 3,843 | $ 0 | |
Common Class A | |||||
Other income (expense) | |||||
Basic (loss) earnings per share of Class A common stock (in dollars per share) | [1] | $ (0.35) | $ 0 | $ 0.21 | $ 0 |
Diluted (loss) earnings per share of Class A common stock (in dollars per share) | [1] | (0.35) | 0 | 0.21 | 0 |
Dividends declared per share of Class A common stock (in dollars per share) | [1] | $ 0.175 | $ 0 | $ 0.525 | $ 0 |
Common stock, shares outstanding (in shares) | 19,287,882 | 0 | 19,287,882 | 0 | |
General Partnerships | |||||
Other income (expense) | |||||
Less: (Loss) income attributable to non-controlling interests | $ 768 | $ 64 | $ 1,750 | $ 1,024 | |
Hamilton Lane Advisors, L.L.C. | |||||
Other income (expense) | |||||
Less: (Loss) income attributable to non-controlling interests | $ 23,374 | $ 16,999 | $ 56,086 | $ 56,788 | |
[1] | There were no shares of Class A common stock outstanding prior to March 6, 2017, therefore no 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 | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 17,833 | $ 17,063 | $ 61,679 | $ 57,812 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized loss on cash flow hedge | 0 | 0 | 0 | (142) |
Realized loss on cash flow hedge | 0 | 2 | 922 | 2 |
Total other comprehensive income (loss), net of tax | 0 | 2 | 922 | (140) |
Comprehensive income | 17,833 | 17,065 | 62,601 | 57,672 |
Less: | ||||
Total comprehensive (loss) income attributable to Hamilton Lane Incorporated | (6,309) | 0 | 4,154 | 0 |
General Partnerships | ||||
Less: | ||||
Comprehensive income (loss) attributable to non-controlling interests | 768 | 64 | 1,750 | 1,024 |
Hamilton Lane Advisors, L.L.C. | ||||
Less: | ||||
Comprehensive income (loss) attributable to non-controlling interests | $ 23,374 | $ 17,001 | $ 56,697 | $ 56,648 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity - 9 months ended Dec. 31, 2017 - USD ($) $ in Thousands | Total | Class A Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid in Capital | (Accumulated Deficit) 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 | 61,679 | 3,843 | 1,750 | 56,086 | ||||||
Other comprehensive loss | 922 | 311 | 611 | |||||||
Equity-based compensation | 4,344 | 1,519 | 2,825 | |||||||
Retirement of treasury stock | 0 | $ (2,151) | (2,151) | 2,151 | ||||||
Proceeds received from option exercises | 313 | 108 | 205 | |||||||
Issuance of shares for acquisition | 612 | 212 | 400 | |||||||
Repurchase of Class A shares for employee tax withholding | (680) | (234) | (446) | |||||||
Deferred tax adjustment | 1,456 | 1,456 | ||||||||
Dividends declared | (9,512) | (9,512) | ||||||||
Capital contributions from (distributions to) non-controlling interests, net | (3,288) | (3,288) | ||||||||
Member distributions | (34,455) | (34,455) | ||||||||
Equity reallocation between controlling and non-controlling interests | 0 | 98 | (98) | |||||||
Ending balance at Dec. 31, 2017 | $ 108,018 | $ 19 | $ 28 | $ 62,853 | $ (5,057) | $ 0 | $ 0 | $ 8,363 | $ 41,812 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income | $ 61,679 | $ 57,812 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,396 | 1,440 |
Change in deferred income taxes | 22,913 | 0 |
Change in payable to related parties pursuant to tax receivable agreement | (4,298) | 0 |
Amortization of deferred financing costs | 153 | 661 |
Write-off of deferred financing costs | 1,657 | 0 |
Equity-based compensation | 4,272 | 3,506 |
Equity in income of investees | (13,066) | (8,882) |
Proceeds received from investments | 11,337 | 6,825 |
Other | 1,029 | 0 |
Changes in operating assets and liabilities: | ||
Fees receivable | (987) | 1,033 |
Prepaid expenses | 1,016 | (222) |
Due from related parties | (962) | (353) |
Other assets | (311) | (5,132) |
Accounts payable | (286) | 981 |
Accrued compensation and benefits | 24,634 | 20,736 |
Deferred incentive fees | (13,744) | 0 |
Other liabilities | (1,089) | (778) |
Net cash provided by operating activities | 95,343 | 77,627 |
Investing activities: | ||
Purchase of furniture, fixtures and equipment | (1,152) | (719) |
Cash paid for acquisition of business | (5,227) | 0 |
Distributions received from investments | 10,792 | 6,991 |
Contributions to investments | (19,609) | (20,622) |
Net cash used in investing activities | (15,196) | (14,350) |
Financing activities: | ||
Repayments of debt | (86,569) | (1,950) |
Borrowings of debt, net of deferred financing costs | 85,066 | 0 |
Contributions from non-controlling interest in general partnerships | 231 | 489 |
Distributions to non-controlling interest in general partnerships | (3,519) | (2,372) |
Sale of membership interests | 0 | 4,668 |
Repurchase of Class A shares for employee tax withholding | (680) | 0 |
Purchase of membership interests | 0 | (6,059) |
Proceeds received from option exercises | 313 | 879 |
Dividends paid | (6,340) | 0 |
Members’ distributions | (32,320) | (72,467) |
Other | 0 | (611) |
Net cash used in financing activities | (43,818) | (77,423) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 36,329 | (14,146) |
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 | $ 70,464 | $ 56,236 |
Organization
Organization | 9 Months Ended |
Dec. 31, 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 its initial public offering (“IPO”) and related transactions (the “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; • 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 pursuant to which 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 (the “Exchange Agreement”). 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, payable to related parties pursuant to a tax receivable agreement, and dividends payable. As of December 31, 2017 and March 31, 2017, HLI held approximately 34.5% 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 purposes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 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 carrying amount of cash and cash equivalents, fees receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. 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 a full retrospective or modified retrospective approach. The Company plans to adopt the guidance using the modified retrospective approach. 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. The Company is continuing to assess the impact of adoption of the new standard on other revenue-related items, including evaluating the impact of certain revenue related costs, principal versus agent reporting considerations that would affect whether certain transactions are reported gross or net in the consolidated statement of operations, 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 will adopt ASU 2016-15 on April 1, 2018 and the adoption is not expected to have a material impact 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 | 9 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Investments consist of the following: December 31, March 31, 2017 2017 Equity method investments in Partnerships $ 113,485 $ 103,141 Other equity method investments 994 661 Investments carried at cost 16,286 16,345 Total Investments $ 130,765 $ 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, Private Market Connect (“PMC”), 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 $2,895 and $13,066 for the three and nine months ended December 31, 2017 , respectively, and $3,085 and $8,882 for the three and nine months ended December 31, 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 December 31, 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 December 31, 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 | 9 Months Ended |
Dec. 31, 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 $ 16,710 and $ 19,653 as of December 31, 2017 and March 31, 2017 , respectively, and are recorded in Investments in the Condensed Consolidated Balance Sheets. The consolidated VIEs had no liabilities other than deferred incentive fee revenue of $31,422 and $45,166 as of December 31, 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 December 31, 2017 , the total commitments and remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $12,591,114 and $4,744,430 , 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: December 31, March 31, 2017 2017 Investments $ 70,559 $ 60,597 Fees receivable 2,212 430 Due from related parties 2,792 1,742 Total VIE Assets 75,563 62,769 Deferred incentive fee revenue 31,422 45,166 Non-controlling interests (8,363 ) (9,901 ) Maximum Exposure to Loss $ 98,622 $ 98,034 |
Acquisition
Acquisition | 9 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 11, 2017, HLA acquired substantially all the assets of Real Asset Portfolio Management LLC (“RAPM”) for a total aggregate purchase price of approximately $ 5,839 , of which $5,227 was paid in cash with the remainder settled in 27,240 shares of Class A common stock valued at approximately $612 . An additional amount based upon an agreed upon multiple of earnings, which is currently estimated at approximately $3,485 , could be payable to the principals of RAPM who are now employees of HLA if they remain employed by HLA through the expected payment date in October 2018. As the amount is contingent upon future employment, the amount will be recognized as compensation expense over the required performance period. The Company recorded approximately $ 2,948 of intangible assets related to the acquired investment management contracts, which assets will be amortized over eight years, and $ 2,874 of goodwill, which are both recorded in other assets in the Condensed Consolidated Balance Sheets. The remaining assets acquired and liabilities assumed were not material to the condensed consolidated financial statements. Revenue and net income attributable to the acquisition of RAPM were not material for the three and nine months ended December 31, 2017, and pro forma information related to this acquisition is not included because the impact on the Company’s Condensed Consolidated Statements of Income is not considered to be material. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On August 23, 2017, HLA entered into a Term Loan and Security Agreement (the “Term Loan Agreement”) and a Revolving Loan and Security Agreement (the “Revolving Loan Agreement” and, together with the Term Loan Agreement, the “Loan Agreements”) with First Republic Bank (“First Republic”) for $75,000 and $10,450 , respectively. After expenses, the net amount of cash received was $85,066 and was utilized to pay off the outstanding principal amount and accrued interest of the predecessor credit facility. The previous unamortized deferred financing costs of $1,657 were written off and are included in interest expense in the Condensed Consolidated Statements of Income. The Term Loan Agreement provides for a term loan facility in an aggregate principal amount of $75,000 and also contains an accordion feature that allows HLA to increase the commitment under the facility by up to $25,000 under certain conditions (the “Term Loan Facility”). Borrowings under the Term Loan Facility accrue interest at a floating per annum rate equal to the prime rate minus 1.25% , subject to a floor of 2.75% . The Term Loan Facility matures on November 1, 2024. At December 31, 2017 , the Company had an outstanding balance net of deferred financing costs on the Term Loan Facility of $74,167 . The Revolving Loan Agreement provides for a revolving credit facility up to an aggregate principal amount of $25,000 (the “Revolving Loan Facility”). Borrowings under the Revolving Loan Facility accrue interest at a floating per annum rate equal to the prime rate minus 1.50% , subject to a floor of 2.50% . The Revolving Loan Facility matures on August 21, 2020 and requires compliance with conditions precedent that must be satisfied prior to any borrowing. At December 31, 2017 , the Company had an outstanding balance on the Revolving Loan Facility of $10,450 . The Loan Agreements contain covenants that, among other things, limit HLA’s ability to incur indebtedness, transfer or dispose of assets, merge with other companies, create, incur or allow liens, make investments, pay dividends or make distributions, engage in transactions with affiliates and take certain actions with respect to management fees. The Loan Agreements also require HLA to maintain (i) a specified amount of management fees in each fiscal year during the term of each of the Loan Agreements, (ii) adjusted EBITDA, as defined in the Term Loan Agreement, less dividend distributions on a trailing six-month basis of $12,500 or greater, tested semi-annually, and (iii) a specified tangible net worth during each fiscal year during the term of each of the Loan Agreements. The obligations under the Loan Agreements are secured by substantially all of the assets of HLA. The fair value of the outstanding balance of the Term Loan at December 31, 2017 and predecessor credit facility at 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 predecessor credit facility. In October 2016, the Company de-designated its remaining interest rate caps as cash flow hedges and discontinued hedge accounting. In August 2017, in connection with the payoff of the predecessor credit facility with the proceeds from the Loan Agreements, which accrue interest indexed to the prime rate, the amount accumulated in other comprehensive income (loss) was reclassified into earnings through interest expense in the Condensed Consolidated Statements of Income because the cash flows of future interest payments indexed to LIBOR will no longer occur. The changes in the fair value of these interest rate caps are recorded in other non-operating income in the Condensed Consolidated Statements of Income. The fair value of the interest rate caps was $84 and $194 as of December 31, 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 | 9 Months Ended |
Dec. 31, 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 49,357 — Shares issued due to option exercise, net 200,244 — Shares issued in connection with RAPM acquisition 27,240 — Shares repurchased for employee tax withholdings (757 ) — Forfeitures of restricted stock (24,706 ) — December 31, 2017 19,287,882 27,935,255 During the nine months ended December 31, 2017 , the Company retired 114,529 shares of Class A common stock held as treasury stock (that were outstanding as of March 31, 2017) at a total cost of $2,151 and 34,008 shares of Class A common stock at a total cost of $680 , which were purchased from employees to fund statutory tax withholding requirements. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Dec. 31, 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 nine months ended December 31, 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 December 31, 2017 — $ — The intrinsic value of options exercised during the nine months ended December 31, 2017 was $4,350 . Restricted Stock A summary of restricted stock activity for the nine months ended December 31, 2017 is presented below: Total Weighted- March 31, 2017 1,138,521 $ 14.49 Granted 49,357 $ 19.68 Vested (1,835 ) $ 13.76 Forfeited (24,706 ) $ 13.91 December 31, 2017 1,161,337 $ 14.72 As of December 31, 2017 , total unrecognized compensation expense related to restricted stock was $ 11,463 . |
Compensation and Benefits
Compensation and Benefits | 9 Months Ended |
Dec. 31, 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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Base compensation and benefits $ 17,428 $ 15,489 $ 53,397 $ 47,938 Incentive fee compensation 523 81 1,380 1,717 Equity-based compensation 1,284 1,169 4,272 3,506 Contingent compensation related to acquisition 771 — 1,198 — Total compensation and benefits $ 20,006 $ 16,739 $ 60,247 $ 53,161 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 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 certain local taxes assessed at the limited liability company level and 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 certain local and 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 including 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law, which enacts significant changes to U.S. federal income tax laws, including a reduction of the corporate income tax rate from 35% to 21% , limitation of the tax deduction for interest expense, expensing the cost of acquired qualified property, and a one-time transition tax on accumulated, undistributed foreign earnings. As a result of the Tax Act, the estimated annual effective tax rate was revised to reflect the change in the federal statutory rate from 35% to 21% effective January 1, 2018. Consequently, the blended federal statutory tax rate for the Company’s 2018 fiscal year is 31.55% based on the weighted average of a 35% rate for 275 days and 21% for 90 days. The Company’s effective tax rate was 56.3% and 32.2% for the three and nine months ended December 31, 2017 , respectively, and 0.6% and (0.5)% for the three and nine months ended December 31, 2016 , respectively. The increase in the effective income tax rate for the three and nine months ended December 31, 2017 was due to U.S. federal and state corporate income tax expense related to HLI’s allocable share of taxable income from HLA and a provisional discrete tax expense of $21,200 related to the re-measurement of estimated deferred tax assets as of December 31, 2017 due to the tax rate change pursuant to enactment of the Tax Act. The Tax Act also requires taxpayers to pay a one-time transition tax on accumulated, undistributed earnings of certain foreign subsidiaries. The Company recorded a provisional tax liability of $442 for certain of its foreign subsidiaries based on estimated accumulated, undistributed earnings. As a result of the transition tax estimate, the Company reversed $1,100 of a previously recorded deferred tax liability on unremitted earnings of foreign subsidiaries. The Company has not completed its analysis of the new Global Intangible Low-Taxed Income (“GILTI”) tax law, and as a result, is not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, the Company has not yet included any potential GILTI tax in its condensed consolidated financial statements and has not elected the related accounting policy. The Company will continue to analyze the effects of the Tax Act on its consolidated financial statements. Any additional impacts from the enactment of the Tax Act will be recorded as they are identified during the measurement period. The Company evaluates the realizability of its deferred tax asset on a quarterly basis and adjusts the valuation allowance when it is more likely than not that all or a portion of the deferred tax asset may not be realized. As of December 31, 2017 , the Company had no unrecognized tax positions. Tax Receivable Agreement HLI’s purchase of HLA Class A units in connection 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. The payable to related parties pursuant to the TRA decreased to $6,436 as of December 31, 2017 from $10,734 as of March 31, 2017 as a result of being re-measured due to the tax rate change enacted by the Tax Act. The change in liability was recorded to other non-operating income in the Condensed Consolidated Statements of Income. No amounts were paid to TRA Recipients during the nine months ended December 31, 2017 . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share There were no shares of Class A common stock outstanding during the three and nine months ended December 31, 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 Nine Months Ended December 31, 2017 December 31, 2017 Net loss attributable to HLI Weighted-Average Shares Per share amount Net income attributable to HLI Weighted-Average Shares Per share amount Basic EPS of Class A common stock $ (6,309 ) 18,126,532 $ (0.35 ) $ 3,843 18,075,035 $ 0.21 Adjustment to net income: Assumed exercise and vesting of employee awards — 87 Effect of dilutive securities: Assumed exercise and vesting of employee awards — 628,615 Diluted EPS of Class A common stock $ (6,309 ) 18,126,532 $ (0.35 ) $ 3,930 18,703,650 $ 0.21 The calculation of diluted earnings per share for the three months ended December 31, 2017 excludes 1,161,337 shares of restricted stock under the treasury stock method, and the calculations of diluted earnings per share for the three and nine months ended December 31, 2017 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 | 9 Months Ended |
Dec. 31, 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 $43,649 and $104,966 for the three and nine months ended December 31, 2017 , respectively, and $25,503 and $82,208 for the three and nine months ended December 31, 2016 , respectively. The Company entered into a service agreement on June 1, 2017 with PMC pursuant to which it had expenses of $1,115 and $2,478 for the three and nine months ended December 31, 2017 , respectively, which are included in general, administrative and other expenses in the Condensed Consolidated Statements of Income. The Company also has a payable to the joint venture of $372 as of December 31, 2017 , which is included in other liabilities in the Condensed Consolidated Balance Sheets. 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 $3,412 and $918 as of December 31, 2017 and March 31, 2017 , respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Nine Months Ended December 31, 2017 2016 Non-cash investing activities: Shares issued for acquisition of business $ (612 ) $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company may be subject to various legal, regulatory, and/or administrative proceedings from time to time. Although there can be no assurance of the outcome of such proceedings, in the opinion of management, the Company does not believe it is probable that any pending or, to its knowledge, threatened 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 $300,527 and $236,857 , net of amounts attributable to non-controlling interests, at December 31, 2017 and March 31, 2017 , respectively, of which $31,422 and $45,166 at December 31, 2017 and March 31, 2017 , respectively, has been received and deferred by the Company. The Company recognized $13,744 of incentive fee revenue during the three and nine months ended December 31, 2017 that was received and deferred in fiscal 2016. The Company previously recognized incentive fee compensation expense related to the receipts of these carried interest distributions in fiscal 2016. If the Company ultimately receives the unrecognized carried interest, a total of $68,202 and $48,849 as of December 31, 2017 and March 31, 2017 , respectively, would potentially be payable to certain employees and third parties pursuant to compensation arrangements related to carried interest profit-sharing plans. Such amounts have not been recorded in the Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Income as the payment 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 $ 86,942 and $76,908 as of December 31, 2017 and March 31, 2017 , respectively. |
Management and Advisory Fees
Management and Advisory Fees | 9 Months Ended |
Dec. 31, 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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Customized separate accounts $ 19,860 $ 17,826 $ 58,253 $ 52,794 Specialized funds 19,132 17,124 63,582 53,407 Advisory and reporting 7,479 6,021 20,958 17,680 Distribution management 1,873 1,038 3,533 2,392 Total management and advisory fees $ 48,344 $ 42,009 $ 146,326 $ 126,273 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 6, 2018, 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 March 15, 2018. The payment date will be April 5, 2018. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 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 | 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 carrying amount of cash and cash equivalents, fees receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these 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 a full retrospective or modified retrospective approach. The Company plans to adopt the guidance using the modified retrospective approach. 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. The Company is continuing to assess the impact of adoption of the new standard on other revenue-related items, including evaluating the impact of certain revenue related costs, principal versus agent reporting considerations that would affect whether certain transactions are reported gross or net in the consolidated statement of operations, 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 will adopt ASU 2016-15 on April 1, 2018 and the adoption is not expected to have a material impact 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) | 9 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments | Investments consist of the following: December 31, March 31, 2017 2017 Equity method investments in Partnerships $ 113,485 $ 103,141 Other equity method investments 994 661 Investments carried at cost 16,286 16,345 Total Investments $ 130,765 $ 120,147 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Dec. 31, 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: December 31, March 31, 2017 2017 Investments $ 70,559 $ 60,597 Fees receivable 2,212 430 Due from related parties 2,792 1,742 Total VIE Assets 75,563 62,769 Deferred incentive fee revenue 31,422 45,166 Non-controlling interests (8,363 ) (9,901 ) Maximum Exposure to Loss $ 98,622 $ 98,034 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Dec. 31, 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 49,357 — Shares issued due to option exercise, net 200,244 — Shares issued in connection with RAPM acquisition 27,240 — Shares repurchased for employee tax withholdings (757 ) — Forfeitures of restricted stock (24,706 ) — December 31, 2017 19,287,882 27,935,255 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | A summary of option activity for the nine months ended December 31, 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 December 31, 2017 — $ — |
Summary of Restricted Stock Activity | A summary of restricted stock activity for the nine months ended December 31, 2017 is presented below: Total Weighted- March 31, 2017 1,138,521 $ 14.49 Granted 49,357 $ 19.68 Vested (1,835 ) $ 13.76 Forfeited (24,706 ) $ 13.91 December 31, 2017 1,161,337 $ 14.72 |
Compensation and Benefits (Tabl
Compensation and Benefits (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Base compensation and benefits $ 17,428 $ 15,489 $ 53,397 $ 47,938 Incentive fee compensation 523 81 1,380 1,717 Equity-based compensation 1,284 1,169 4,272 3,506 Contingent compensation related to acquisition 771 — 1,198 — Total compensation and benefits $ 20,006 $ 16,739 $ 60,247 $ 53,161 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Dec. 31, 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 Nine Months Ended December 31, 2017 December 31, 2017 Net loss attributable to HLI Weighted-Average Shares Per share amount Net income attributable to HLI Weighted-Average Shares Per share amount Basic EPS of Class A common stock $ (6,309 ) 18,126,532 $ (0.35 ) $ 3,843 18,075,035 $ 0.21 Adjustment to net income: Assumed exercise and vesting of employee awards — 87 Effect of dilutive securities: Assumed exercise and vesting of employee awards — 628,615 Diluted EPS of Class A common stock $ (6,309 ) 18,126,532 $ (0.35 ) $ 3,930 18,703,650 $ 0.21 |
Supplemental Financial Inform31
Supplemental Financial Information (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | Nine Months Ended December 31, 2017 2016 Non-cash investing activities: Shares issued for acquisition of business $ (612 ) $ — |
Management and Advisory Fees (T
Management and Advisory Fees (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Customized separate accounts $ 19,860 $ 17,826 $ 58,253 $ 52,794 Specialized funds 19,132 17,124 63,582 53,407 Advisory and reporting 7,479 6,021 20,958 17,680 Distribution management 1,873 1,038 3,533 2,392 Total management and advisory fees $ 48,344 $ 42,009 $ 146,326 $ 126,273 |
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 | Dec. 31, 2017 | Mar. 31, 2017 |
Class of Stock [Line Items] | |||
Percent of economic interest held | 34.50% | 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 | Dec. 31, 2017 | Mar. 31, 2017 |
Investment [Line Items] | ||
Investments carried at cost | $ 16,286 | $ 16,345 |
Total Investments | 130,765 | 120,147 |
Partnerships | ||
Investment [Line Items] | ||
Equity method investments | 113,485 | 103,141 |
Other Equity Method Investments | ||
Investment [Line Items] | ||
Equity method investments | $ 994 | $ 661 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in income of investees | $ 2,895 | $ 3,085 | $ 13,066 | $ 8,882 |
Partnerships | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent interest in partnerships | 1.00% | 1.00% | ||
Partnerships | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent interest in partnerships | 0.00% | 0.00% | ||
Partnerships | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent interest in partnerships | 7.00% | 7.00% |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Deferred incentive fee revenue | $ 31,422,000 | $ 45,166,000 |
Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 16,710,000 | 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 | Dec. 31, 2017 | Mar. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total commitments from the limited partners and general partners to the unconsolidated VIE | $ 12,591,114 | |
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE | 4,744,430 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Investments | 70,559 | $ 60,597 |
Fees receivable | 2,212 | 430 |
Due from related parties | 2,792 | 1,742 |
Total VIE Assets | 75,563 | 62,769 |
Deferred incentive fee revenue | 31,422 | 45,166 |
Non-controlling interests | (8,363) | (9,901) |
Maximum Exposure to Loss | $ 98,622 | $ 98,034 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Aug. 11, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Cash paid for acquisition of business | $ (5,227) | $ 0 | |
Shares issued in connection with RAPM acquisition, value | $ 0 | ||
RAPM | |||
Business Acquisition [Line Items] | |||
Total aggregate purchase price of acquisition | $ 5,839 | ||
Cash paid for acquisition of business | (5,227) | ||
Shares issued in connection with RAPM acquisition, value | (612) | $ (612) | |
Additional maximum amount payable to principals | 3,485 | ||
Goodwill acquired | $ 2,874 | ||
RAPM | Common Class A | |||
Business Acquisition [Line Items] | |||
Shares issued in connection with RAPM acquisition (in shares) | 27,240 | ||
Customer Contracts | RAPM | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 2,948 | ||
Finite-lived intangible asset useful life | 8 years |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Aug. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jul. 31, 2015 |
Debt Instrument [Line Items] | |||||
Borrowings of debt, net of deferred financing costs | $ 85,066,000 | $ 0 | |||
Write-off of deferred financing costs | 1,657,000 | $ 0 | |||
Interest Rate Cap | Level II | Other Assets | |||||
Debt Instrument [Line Items] | |||||
Fair value of interest rate caps | 84,000 | $ 194,000 | |||
Term Loan Agreement | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Face amount of loan agreement | $ 75,000 | ||||
Term Loan Agreement | Secured Debt | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Accordion feature, increase to commitment | 25,000 | ||||
Remaining borrowing capacity | $ 74,167 | ||||
Maximum borrowing capacity | $ 75,000 | ||||
Term Loan Agreement | Secured Debt | Line of Credit | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Variable interest rate, floor | 2.75% | ||||
Revolving Loan Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of loan agreement | $ 10,450 | ||||
Revolving Loan Agreement | Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 25,000 | ||||
Revolving Loan Agreement | Revolving Credit Facility | Line of Credit | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Variable interest rate, floor | 2.50% | ||||
The Loan Agreements | |||||
Debt Instrument [Line Items] | |||||
Borrowings of debt, net of deferred financing costs | $ 85,066,000 | ||||
Write-off of deferred financing costs | 1,657,000 | ||||
The Loan Agreements | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Minimum EBITDA requirement | $ 12,500,000 | ||||
Credit Agreement | Secured Debt | 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) | 9 Months Ended |
Dec. 31, 2017shares | |
Common Class A | |
Common Stock, Shares Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 19,036,504 |
Restricted stock granted (in shares) | 49,357 |
Shares issued due to option exercise, net (in shares) | 200,244 |
Shares issued in connection with RAPM acquisition (in shares) | 27,240 |
Shares repurchased for employee tax withholdings (in shares) | (757) |
Forfeitures of restricted stock (in shares) | (24,706) |
Outstanding, end of period (in shares) | 19,287,882 |
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 |
Shares issued in connection with RAPM acquisition (in shares) | 0 |
Shares repurchased for employee tax withholdings (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) $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($)shares | |
Class of Stock [Line Items] | |
Treasury stock retired, value | $ 0 |
Common Class A | |
Class of Stock [Line Items] | |
Treasury stock retired (in shares) | shares | 114,529 |
Treasury stock retired, value | $ 2,151 |
Options and restricted stock retired (in shares) | shares | 34,008 |
Options and restricted stock retired, value | $ 680 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Option Activity (Details) - 2017 Equity Incentive Plan $ / shares in Units, $ in Thousands | 9 Months Ended |
Dec. 31, 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 - S44
Equity-Based Compensation - Summary of Restricted Stock (Details) - 2017 Equity Incentive Plan - Restricted Stock $ / shares in Units, $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Total Unvested | |
Unvested at beginning of period (in shares) | shares | 1,138,521 |
Granted (in shares) | shares | 49,357 |
Vested (in shares) | shares | (1,835) |
Forfeited (in shares) | shares | (24,706) |
Unvested at end of period (in shares) | shares | 1,161,337 |
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 | 19.68 |
Vested (in dollars per share) | $ / shares | 13.76 |
Forfeited (in dollars per share) | $ / shares | 13.91 |
Unvested at end of period (in dollars per share) | $ / shares | $ 14.72 |
Total unrecognized compensation expense relating to restricted stock | $ | $ 11,463 |
Compensation and Benefits - Sch
Compensation and Benefits - Schedule of Compensation and Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | ||||
Base compensation and benefits | $ 17,428 | $ 15,489 | $ 53,397 | $ 47,938 |
Incentive fee compensation | 523 | 81 | 1,380 | 1,717 |
Equity-based compensation | 1,284 | 1,169 | 4,272 | 3,506 |
Contingent compensation related to acquisition | 771 | 0 | 1,198 | 0 |
Total compensation and benefits | $ 20,006 | $ 16,739 | $ 60,247 | $ 53,161 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Mar. 06, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 |
Income Tax Contingency [Line Items] | |||||||
Effective tax rate | 56.30% | 0.60% | 32.20% | (0.50%) | |||
Deferred tax asset expense due to remeasurement from Tax Cuts and Jobs Act | $ 21,200 | ||||||
Transition tax, provisional income tax expense (benefit) | 442,000 | ||||||
Revaluation of deferred tax liability, provisional income tax expense (benefit) | 1,100,000 | ||||||
Unrecognized tax positions | $ 0 | 0 | |||||
Amount payable to related parties | 6,436,000 | 6,436,000 | $ 10,734,000 | ||||
TRA Recipients | Tax Receivable Agreement | |||||||
Income Tax Contingency [Line Items] | |||||||
Percentage of cash savings payable | 85.00% | ||||||
Amount payable to related parties | $ 6,436,000 | 6,436,000 | $ 10,734,000 | ||||
Amounts paid to TRA recipients | $ 0 | ||||||
Scenario, Forecast | |||||||
Income Tax Contingency [Line Items] | |||||||
Federal tax at statutory rate | 31.55% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings Per Share - Basic and Diluted (Details) - Common Class A - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net income attributable to HLI | |||||
Basic EPS of Class A common stock | $ (6,309) | $ 3,843 | |||
Assumed exercise and vesting of employee awards | 0 | 87 | |||
Diluted EPS of Class A common stock | $ (6,309) | $ 3,930 | |||
Weighted-Average Shares | |||||
Weighted-average basic EPS of Class A common stock (in shares) | 18,126,532 | 18,075,035 | |||
Weighted-average assumed vesting of employee awards (in shares) | 0 | 628,615 | |||
Weighted-average diluted EPS of Class A common stock (in shares) | 18,126,532 | 18,703,650 | |||
Per share amount | |||||
Basic EPS of Class A common stock (in dollars per share) | [1] | $ (0.35) | $ 0 | $ 0.21 | $ 0 |
Diluted EPS of Class A common stock (in dollars per share) | [1] | $ (0.35) | $ 0 | $ 0.21 | $ 0 |
[1] | There were no shares of Class A common stock outstanding prior to March 6, 2017, therefore no 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 | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 05, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 0 | ||||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 19,287,882 | 19,287,882 | 19,036,504 | 0 | |
Restricted Stock | |||||
Class of Stock [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,161,337 | ||||
Class B and Class C Units of Hamilton Lane Advisors, L.L.C. | |||||
Class of Stock [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,438,669 | 34,438,669 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Total management and advisory fees | $ 65,014 | $ 42,331 | $ 166,424 | $ 133,141 | |
Payable to related parties pursuant to tax receivable agreement | 6,436 | 6,436 | $ 10,734 | ||
Fees receivable | 13,287 | 13,287 | 12,113 | ||
General Partnerships | |||||
Related Party Transaction [Line Items] | |||||
Total management and advisory fees | 43,649 | $ 25,503 | 104,966 | $ 82,208 | |
Fees receivable | 3,412 | 3,412 | $ 918 | ||
Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Payable to related parties pursuant to tax receivable agreement | 372 | 372 | |||
Service Agreement Fees Paid | Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to joint venture | $ 1,115 | $ 2,478 |
Supplemental Financial Inform50
Supplemental Financial Information (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Non-cash investing activities: | |
Shares issued for acquisition of business | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Incentive Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Carried Interest still subject to contingencies | $ 300,527 | $ 300,527 | $ 236,857 |
Deferred incentive fee revenue | 31,422 | 31,422 | 45,166 |
Incentive fee revenue | 13,744 | 13,744 | |
Incentive fees, unrecorded estimate | 68,202 | 68,202 | 48,849 |
Carried Interest | |||
Loss Contingencies [Line Items] | |||
Deferred incentive fee revenue | $ 31,422 | $ 31,422 | $ 45,166 |
Commitments and Contingencies52
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Aggregate Unfunded Commitment | ||
Other Commitments [Line Items] | ||
Other commitment | $ 86,942 | $ 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 | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Advisory, Management and Administrative Fees [Abstract] | ||||
Customized separate accounts | $ 19,860 | $ 17,826 | $ 58,253 | $ 52,794 |
Specialized funds | 19,132 | 17,124 | 63,582 | 53,407 |
Advisory and reporting | 7,479 | 6,021 | 20,958 | 17,680 |
Distribution management | 1,873 | 1,038 | 3,533 | 2,392 |
Total management and advisory fees | $ 48,344 | $ 42,009 | $ 146,326 | $ 126,273 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Feb. 06, 2018$ / shares |
Common Class A | Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends payable (in dollars per share) | $ 0.175 |