Hamilton Lane (HLNE) 10-Q 4 Aug 20 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-38021
Entity Registrant Name	HAMILTON LANE INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-2482738
Entity Address, Address Line One	One Presidential Blvd.,
Entity Address, Address Line Two	4th Floor
Entity Address, City or Town	Bala Cynwyd,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19004
City Area Code	610
Local Phone Number	934-2222
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	HLNE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001433642
Current Fiscal Year End Date	--03-31
Common Class A
Entity Common Stock, Shares Outstanding		32,772,936
Common Class B
Entity Common Stock, Shares Outstanding		19,778,091

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Assets
Cash and cash equivalents	$ 71,091	$ 50,124
Restricted cash	3,147	3,086
Fees receivable	23,679	30,384
Prepaid expenses	5,917	6,988
Due from related parties	2,153	2,605
Furniture, fixtures and equipment, net	7,666	7,402
Lease right-of-use assets, net	9,697	9,577
Investments	194,864	207,747
Deferred income taxes	191,375	137,941
Other assets	16,918	17,675
Total assets	526,507	473,529
Liabilities and Equity
Accounts payable	1,148	1,968
Accrued compensation and benefits	23,443	10,804
Deferred incentive fee revenue	3,704	3,704
Debt	74,538	74,524
Accrued members’ distributions	3,367	5,829
Payable to related parties pursuant to tax receivable agreement	143,370	98,956
Dividends payable	10,102	8,027
Lease liabilities	10,243	10,184
Other liabilities (includes $16,785 and $13,394 at fair value)	23,981	22,132
Total liabilities	293,896	236,128
Commitments and contingencies (Note 13)
Preferred stock, $0.001 par value, 10,000,000 authorized, none issued	0	0
Additional paid-in-capital	126,585	107,727
Accumulated other comprehensive loss	(84)	(78)
Total Hamilton Lane Incorporated stockholders’ equity	166,788	154,791
Total equity	232,611	237,401
Total liabilities and equity	526,507	473,529
Common Class A
Liabilities and Equity
Common stock	33	30
Common Class B
Liabilities and Equity
Common stock	20	22
General Partnerships
Liabilities and Equity
Stockholders' equity attributable to noncontrolling interest	2,655	4,853
Hamilton Lane Advisors, L.L.C.
Liabilities and Equity
Retained earnings	40,234	47,090
Stockholders' equity attributable to noncontrolling interest	$ 63,168	$ 77,757

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Class of Stock [Line Items]
Secured financing	$ 16,785	$ 13,394
Preferred stock, par value (in USD 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
Common Class A
Class of Stock [Line Items]
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	32,772,936	29,842,784
Common stock, shares outstanding (in shares)	32,772,936	29,842,784
Common Class B
Class of Stock [Line Items]
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	19,778,091	22,049,727
Common stock, shares outstanding (in shares)	19,778,091	22,049,727

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues
Total revenues	$ 69,744	$ 64,686
Expenses
Compensation and benefits	30,351	24,104
General, administrative and other	10,560	13,589
Total expenses	40,911	37,693
Other income (expense)
Equity in (loss) income of investees	(21,203)	6,213
Interest expense	(487)	(817)
Interest income	24	280
Non-operating expense	(275)	(879)
Total other income (expense)	(21,941)	4,797
Income before income taxes	6,892	31,790
Income tax expense	1,924	4,337
Net income	4,968	27,453
Net income attributable to Hamilton Lane Incorporated	$ 3,246	$ 11,381
Common Class A
Other income (expense)
Basic earnings per share of Class A common stock (in dollars per share)	$ 0.11	$ 0.43
Diluted earnings per share of Class A common stock (in dollars per share)	0.11	0.42
Dividends declared per share of Class A common stock (in dollars per share)	$ 0.3125	$ 0.2750
General Partnerships
Other income (expense)
Less: (Loss) income attributable to non-controlling interests	$ (2,010)	$ 504
Hamilton Lane Advisors, L.L.C.
Other income (expense)
Less: (Loss) income attributable to non-controlling interests	3,732	15,568
Management and advisory fees
Revenues
Total revenues	67,267	60,551
Incentive fees
Revenues
Total revenues	$ 2,477	$ 4,135

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Net income	$ 4,968	$ 27,453
Other comprehensive income (loss), net of tax
Foreign currency translation	(10)	13
Total other comprehensive income (loss), net of tax	(10)	13
Comprehensive income	4,958	27,466
Less:
Total comprehensive income attributable to Hamilton Lane Incorporated	3,240	11,388
General Partnerships
Less:
Comprehensive income (loss) attributable to non-controlling interests	(2,010)	504
Hamilton Lane Advisors, L.L.C.
Less:
Comprehensive income (loss) attributable to non-controlling interests	$ 3,728	$ 15,574

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	General PartnershipsNoncontrolling Interests	Hamilton Lane Advisors, L.L.C.Noncontrolling Interests
Beginning balance at Mar. 31, 2019	$ 169,722	$ 27	$ 24	$ 92,482	$ 17,686	$ 7	$ 5,716	$ 53,780
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	27,453				11,381		504	15,568
Other comprehensive loss	13					7		6
Equity-based compensation	1,741			875				866
Deferred tax adjustment	4			4
Dividends declared	(7,345)				(7,345)
Capital distributions to non-controlling interests, net	(288)						(288)
Member distributions	(14,149)							(14,149)
Employee Share Purchase Plan share issuance	276			139				137
Equity reallocation between controlling and non-controlling interests	0			(162)				162
Repurchase of Class A shares for employee tax withholding	(17)			(9)				(8)
Issuance of shares for contingent compensation payout	425			214				211
Ending balance at Jun. 30, 2019	177,835	27	24	93,543	21,722	14	5,932	56,573
Beginning balance at Mar. 31, 2020	237,401	30	22	107,727	47,090	(78)	4,853	77,757
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,968				3,246		(2,010)	3,732
Other comprehensive loss	(10)					(6)		(4)
Equity-based compensation	1,758			997				761
Deferred tax adjustment	8,414			8,414
Dividends declared	(10,102)				(10,102)
Capital distributions to non-controlling interests, net	(188)						(188)
Member distributions	(9,967)							(9,967)
Secondary Offering	(2)	3	(2)	9,522				(9,525)
Employee Share Purchase Plan share issuance	339			192				147
Equity reallocation between controlling and non-controlling interests	0			(267)				267
Issuance of shares for contingent compensation payout	0
Ending balance at Jun. 30, 2020	$ 232,611	$ 33	$ 20	$ 126,585	$ 40,234	$ (84)	$ 2,655	$ 63,168

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net income	$ 4,968	$ 27,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,004	802
Change in deferred income taxes	(638)	2,904
Change in payable to related parties pursuant to tax receivable agreement	0	136
Equity-based compensation	1,748	1,727
Equity in loss (income) of investees	21,203	(6,213)
Proceeds received from investments	157	2,194
Other	82	667
Changes in operating assets and liabilities:
Fees receivable	6,707	673
Prepaid expenses	1,071	(88)
Due from related parties	452	(1,831)
Other assets	424	577
Accounts payable	(820)	130
Accrued compensation and benefits	12,639	3,899
Other liabilities	(1,542)	372
Net cash provided by operating activities	47,455	33,402
Investing activities:
Purchase of furniture, fixtures and equipment	(998)	(737)
Purchase of other investments	0	(3,967)
Distributions received from investments	4,162	1,861
Contributions to investments	(9,238)	(7,645)
Net cash used in investing activities	(6,074)	(10,488)
Financing activities:
Proceeds from offering	204,979	0
Purchase of membership interests	(204,979)	0
Repayments of debt	0	(938)
Draw-down on revolver	0	15,000
Repayment of revolver	0	(15,000)
Secured financing	0	15,750
Contributions from non-controlling interest in general partnerships	32	9
Distributions to non-controlling interest in general partnerships	(220)	(297)
Repurchase of Class B common stock	(2)	0
Repurchase of Class A shares for employee tax withholding	0	(17)
Proceeds received from issuance of shares under Employee Share Purchase Plan	339	276
Payments to related parties, pursuant to tax receivable agreement	(36)	0
Dividends paid	(8,027)	(5,673)
Members’ distributions paid	(12,429)	(22,245)
Net cash used in financing activities	(20,343)	(13,135)
Effect of exchange rate changes on cash and cash equivalents	(10)	4
Increase in cash, cash equivalents, and restricted cash	21,028	9,783
Cash, cash equivalents, and restricted cash at beginning of the period	53,210	51,590
Cash, cash equivalents, and restricted cash at end of the period	$ 74,238	$ 61,373

Organization

Organization	3 Months Ended
	Jun. 30, 2020
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 and is a holding company whose principal asset is a controlling equity interest in Hamilton Lane Advisors, L.L.C. (“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 cash, certain deferred tax assets and liabilities, payable to related parties pursuant to a tax receivable agreement, and dividends payable. Unless otherwise specified, “the Company” refers to the consolidated entity of HLI, HLA and subsidiaries throughout the remainder of these notes. As of June 30, 2020 and March 31, 2020, HLI held approximately 60.6% and 55.1%, respectively, of the economic interest in HLA. As future exchanges of HLA units occur pursuant to the exchange agreement in place with HLA’s members, the economic interest in HLA held by HLI will increase. 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 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-owned entities through which it conducts its foreign operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2020
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, 2020 are not necessarily indicative of the results that may be expected for the year ending March 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in HLI’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020. COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) a global pandemic, which has resulted in significant disruption and uncertainty in the global economic markets. Given the amount of uncertainty regarding the scope and duration of the COVID-19 pandemic, it is currently not possible to predict the precise impact it will have on the Company’s financial statements. The Company’s investments in partnerships and unrealized carried interest amounts are reported on a three month lag, as discussed below in “—Accounting for Differing Fiscal Periods”. Accounting for Differing Fiscal Periods The Partnerships primarily have a fiscal year end as of December 31, and the Company accounts for its investments in the Partnerships using a three-month lag due to the timing of financial information received from the investments held by the Partnerships. The Partnerships primarily invest in private equity funds, which generally require at least 90 days following the calendar year end to present audited financial statements. The Company records its share of capital contributions to and distributions from the Partnerships in investments in the Consolidated Balance Sheets during the three month lag period. 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. The carrying amount of the term loan of $74,538 as of June 30, 2020 approximated fair value based on then-current market rates for similar debt instruments and is classified as Level 2 within the fair value hierarchy. Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ”. ASU 2018-13 changes the fair value measurement disclosure requirements. The amendments remove or modify certain disclosures, while others were added. Early adoption of any removed or modified disclosure requirements is permitted upon issuance of ASU 2018-13 and adoption of the additional disclosure requirements may be delayed until the effective date. The Company elected to early adopt the removed or modified disclosure requirements of the standard on October 1, 2018. The Company adopted the remaining requirements on April 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “ Accounting for Financial Instruments - Credit Losses (Topic 326) ”. ASU 2016-13 replaces the incurred loss methodology in current GAAP with a methodology that reflects expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted ASU 2016-13 using the modified retrospective transition method on April 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Revenue

Revenue	3 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table presents revenues disaggregated by product offering, which aligns with the identified performance obligations and the basis for calculating each amount: Three Months Ended June 30, Management and advisory fees 2020 2019 Specialized funds $ 32,231 $ 26,959 Customized separate accounts 23,515 21,963 Advisory 6,765 6,252 Reporting and other 2,836 2,163 Distribution management 1,727 1,359 Fund reimbursement revenue 193 1,855 Total management and advisory fees $ 67,267 $ 60,551 Three Months Ended June 30, Incentive fees 2020 2019 Specialized funds $ 2,218 $ 2,639 Customized separate accounts 259 1,496 Total incentive fees $ 2,477 $ 4,135 Cost to obtain contracts The Company incurs incremental costs related to sales commissions paid to certain employees directly related to customized separate account contracts. These incremental costs are capitalized and amortized over the expected contract length proportionately to the management fee revenue expected to be recognized in each year as a percentage of the total expected revenue for the contract. The contract asset related to the cost to obtain contracts was $1,009 and $994 as of June 30, 2020 and March 31, 2020, respectively, and is included in other assets in the Condensed Consolidated Balance Sheets. Amortization expense related to this contract asset was $128 and $122 for the three months ended June 30, 2020, and 2019, respectively, and is included in compensation and benefits in the Condensed Consolidated Statements of Income.

Investments

Investments	3 Months Ended
	Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Investments	Investments Investments consist of the following: June 30, March 31, 2020 2020 Equity method investments in Partnerships $ 154,431 $ 166,106 Equity method investments in Partnerships held by consolidated VIEs 5,469 9,988 Other equity method investments 1,433 1,168 Other investments 16,785 13,394 Investments valued under the measurement alternative 16,746 17,091 Total Investments $ 194,864 $ 207,747 Equity method investments 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 has a 1% interest in substantially all of the Partnerships. 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 an equity method loss related to its investments in Partnerships and other equity method investments of $21,203 for the three months ended June 30, 2020 and equity method income related to its investments in Partnerships and other equity method investments of $6,213 for the three months ended June 30, 2019. Other investments The Company’s other investments represent investments in private equity funds and direct credit and equity co-investments. The private equity fund investments can only be redeemed through distributions received from the liquidation of underlying investments of the fund, and the timing of distributions is currently indeterminable. The direct credit co-investments are debt securities classified as trading securities. The direct equity co-investments and private equity funds are measured at fair value with unrealized holding gains and losses included in earnings. The Company’s other investments are recorded at estimated fair value utilizing significant unobservable inputs and are therefore classified in Level 3 of the fair value hierarchy. The following is a reconciliation of other investments for which significant unobservable inputs (Level 3) were used in determining value: Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2019 $ 3,734 $ 3,940 $ 4,814 $ 12,488 Contributions 2,092 — 1,875 3,967 Distributions — — — — Net gain 85 73 — 158 Balance as of June 30, 2019 $ 5,911 $ 4,013 $ 6,689 $ 16,613 Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2020 $ 5,786 $ 1,756 $ 5,852 $ 13,394 Contributions 28 — — 28 Distributions (248) (42) — (290) Net gain 998 94 2,561 3,653 Balance as of June 30, 2020 $ 6,564 $ 1,808 $ 8,413 $ 16,785 The valuation methodologies, significant unobservable inputs, range of inputs and the weighted average input determined based upon relative fair value of the investments used in recurring Level 3 fair value measurements of assets were as follows, as of June 30, 2020: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Private equity funds $ 6,564 Adjusted net asset value Selected market return 8.8% - 10.1% 9.1% Direct credit co-investments $ 1,808 Discounted cash flow Market yield 10.8% - 12.3% 11.5% Direct equity co-investments $ 8,413 Market approach EBITDA multiple 7.8x - 12.75x 9.27x Market approach Equity multiple 1.2x 1.2x Market approach Illiquidity discount 3.6% 3.6% For the significant unobservable inputs listed in the table above, (1) a significant increase or decrease in the selected market return would result in a significantly higher or lower fair value measurement, respectively; (2) a significant increase or decrease in the market yield would result in a significantly lower or higher fair value measurement, respectively; (3) a significant increase or decrease in the selected multiple would result in a significantly higher or lower fair value measurement, respectively; and (4) a significant increase or decrease in the selected illiquidity discount would result in a significantly lower or higher fair value measurement, respectively. During the three months ended June 30, 2019, the Company transferred these investments for an agreed amount of cash of $15,750 to a Partnership that is a Variable Interest Entity (“VIE”) of which the Company is the general partner but does not consolidate as the Company is not the primary beneficiary. Due to continuing involvement with these assets at the Partnership, the Company accounted for this transfer as a secured financing as it has not met the criteria in ASC 860, “ Transfers and Servicing ”, to qualify as a sale and therefore has recorded a financial liability for the secured financing which is included in other liabilities in the Condensed Consolidated Balance Sheets. The cash received was recorded as secured financing in financing activities in the Condensed Consolidated Statements of Cash Flows. As of June 30, 2020, all other investments were pledged as collateral on the Company’s secured financing. The Company accounts for this financial liability at fair value under the fair value option. The primary reason for electing the fair value option is to mitigate volatility in earnings from using different measurement attributes. The significant input to the fair value of the secured financing is the fair value of the other investments delivered as collateral. As of June 30, 2020, the secured financing had a fair value of $16,785 and an amortized cost of $12,836. The fair value of the secured financing is estimated using Level 3 inputs with the significant input being the fair value of the other investments utilized as collateral as shown above. The Company recognized a gain on other investments of $3,653 and $158 during the three months ended June 30, 2020 and 2019, respectively, and a loss on the secured financing liability of $3,653 and $863 during the three months ended June 30, 2020 and 2019, respectively, that are recorded in other non-operating loss.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Jun. 30, 2020
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 $5,469 and $9,988 as of June 30, 2020 and March 31, 2020, respectively, and are recorded in investments in the Condensed Consolidated Balance Sheets. The consolidated VIEs had no liabilities as of June 30, 2020 and March 31, 2020 other than deferred incentive fee revenue of $3,704 as of both June 30, 2020 and March 31, 2020. 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 clawback 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 based upon the Company’s equity interest percentage in each of the VIEs. 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, 2020, the total commitments and remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $19,554,065 and $7,295,710, 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, 2020 2020 Investments $ 107,156 $ 118,696 Fees receivable 7,983 8,703 Due from related parties 503 1,194 Total VIE Assets 115,642 128,593 Deferred incentive fee revenue 3,704 3,704 Non-controlling interests (2,655) (4,853) Maximum exposure to loss $ 116,691 $ 127,444

Equity

Equity	3 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Equity	Equity The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2020: Class A Common Stock Class B Common Stock March 31, 2020 29,842,784 22,049,727 Shares issued (repurchased) in connection with registered offering 2,924,515 (2,271,636) Forfeitures (287) — Shares issued pursuant to Employee Share Purchase Plan 5,924 — June 30, 2020 32,772,936 19,778,091 June 2020 Offering In June 2020, the Company and certain selling stockholders completed a registered offering of an aggregate of 2,995,757 shares of Class A common stock at a price of $70.09 per share (the “June 2020 Offering”). The shares sold consisted of 71,242 shares held by the selling stockholders and 2,924,515 shares newly issued by the Company. The Company received approximately $204,979 in net proceeds from the sale of its shares and used all of the proceeds to settle exchanges by certain members of HLA of a total of 2,271,636 Class B units and 652,879 Class C units. In connection with the exchange of the Class B units, the Company also repurchased for par value and canceled a corresponding number of shares of Class B common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholders.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation A summary of restricted stock activity for the three months ended June 30, 2020 is presented below: Total Weighted- March 31, 2020 441,515 $ 36.87 Granted — $ — Vested (2,733) $ 18.96 Forfeited (287) $ 14.33 June 30, 2020 438,495 $ 37.00

Compensation and Benefits

Compensation and Benefits	3 Months Ended
	Jun. 30, 2020
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, 2020 2019 Base compensation and benefits $ 27,986 $ 21,368 Incentive fee compensation 617 1,009 Equity-based compensation 1,748 1,727 Total compensation and benefits $ 30,351 $ 24,104

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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. 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. The Company’s effective tax rate was 27.9% and 13.6% for the three months ended June 30, 2020 and 2019, respectively. These rates were different than the statutory rate due primarily to the portion of income allocated to the non-controlling entities, valuation allowance recorded against deferred tax assets and discrete tax adjustments. In connection with the June 2020 Offering, the Company recorded a deferred tax asset in the amount of $56,314. It is more likely than not that a portion of these tax benefits will not be realized, so a valuation allowance of $3,521 was established as of June 30, 2020. Additionally, in connection with the June 2020 Offering and recording of the deferred tax asset, the Company recorded a payable to related parties pursuant to the tax receivable agreement of $44,450.

Earnings per Share

Earnings per Share	3 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share 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 the Class B units to which the Class B common stock corresponds are exchangeable for shares of Class A common stock on a one-for-one basis, at which time the share of Class B common stock is surrendered in exchange for a payment of its par value. 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 Three Months Ended Net income 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 $ 3,246 30,237,450 $ 0.11 $ 11,381 26,706,719 $ 0.43 Adjustment to net income: Assumed vesting of employee awards 9 71 Effect of dilutive securities: Assumed vesting of employee awards 202,702 335,262 Diluted EPS of Class A common stock $ 3,255 30,440,152 $ 0.11 $ 11,452 27,041,981 $ 0.42 The calculations of diluted earnings per share exclude 21,044,479 outstanding Class B and Class C units of HLA and 26,420,627 outstanding Class B and Class C units of HLA for the three months ended June 30, 2020, and 2019, respectively, 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, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsThe Company has investment management agreements with various specialized funds and customized separate accounts that it manages. The Company earned management and advisory fees from Partnerships of $44,249 and $39,630 for the three months ended June 30, 2020 and 2019, respectively. The Company earned incentive fees from Partnerships of $2,355 and $4,087 for the three months ended June 30, 2020 and 2019, respectively. The Company entered into a service agreement on June 1, 2017 with its joint venture pursuant to which it had expenses of $960 and $1,365 for the three months ended June 30, 2020, and 2019, respectively, that 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 $323 and $428 as of June 30, 2020 and March 31, 2020, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets. Fees receivable from the Partnerships were $11,623 and $16,970 as of June 30, 2020 and March 31, 2020, respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Jun. 30, 2020
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Months Ended June 30, 2020 2019 Shares issued for contingent compensation payment $ — $ 425 Non-cash financing activities: Dividends declared but not paid $ 10,102 $ 7,345 Member distributions declared but not paid $ 3,367 $ 8,985 Establishment of net deferred tax assets related to offerings $ 52,793 $ —

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2020
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 The Partnerships have allocated carried interest still subject to contingencies and that did not meet the Company’s criteria for recognition in the amounts of $310,915 and $441,150, net of amounts attributable to non-controlling interests, at June 30, 2020 and March 31, 2020, respectively, and $3,704 at both June 30, 2020 and March 31, 2020 that has been received and deferred by the Company. If the Company ultimately receives the unrecognized carried interest, a total of $77,729 and $110,288 as of June 30, 2020 and March 31, 2020, 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 Company’s aggregate unfunded commitment to the Partnerships was $143,466 and $143,489 as of June 30, 2020 and March 31, 2020, respectively. Leases The Company’s leases consist primarily of operating leases for office space and office equipment in various locations around the world. These leases have remaining lease terms of one year to six years, some of which have the option to extend for an additional five years or have the option to terminate within one year. Total operating lease costs were $1,202 and $1,205 for the three months ended June 30, 2020 and 2019, respectively. Total variable lease costs were $158 and $134 for the three months ended June 30, 2020 and 2019, respectively. Short-term lease costs were not material for the three months ended June 30, 2020 or 2019. The following table shows other supplemental information related to the Company’s operating leases: Three Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,314 $ 1,282 Weighted average remaining lease term (in years) 3.0 2.9 Weighted average discount rate 4.9 % 5.5 % As of June 30, 2020, the maturities of operating lease liabilities were as follows: Remainder of FY2021 $ 3,630 FY2022 3,615 FY2023 1,909 FY2024 1,047 FY2025 736 Thereafter — Total lease payments 10,937 Less: imputed interest (694) Total operating lease liabilities $ 10,243 In October 2019, the Company executed an agreement to lease office space for its new headquarters in suburban Philadelphia. The lessor is currently building the office space. The Company expects to gain access to the space to build various leasehold improvements in late fiscal 2021. At that time, the Company will establish an ROU asset and a lease liability for the new lease. Upon lease commencement, total future lease payments are expected to be approximately $92,000 over 17 years.

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 4, 2020, the Company declared a quarterly dividend of $0.3125 per share of Class A common stock to record holders at the close of business on September 15, 2020. The payment date will be October 6, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe 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, 2020 are not necessarily indicative of the results that may be expected for the year ending March 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in HLI’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020.
Accounting for Differing Fiscal Periods	Accounting for Differing Fiscal Periods The Partnerships primarily have a fiscal year end as of December 31, and the Company accounts for its investments in the Partnerships using a three-month lag due to the timing of financial information received from the investments held by the Partnerships. The Partnerships primarily invest in private equity funds, which generally require at least 90 days following the calendar year end to present audited financial statements. The Company records its share of capital contributions to and distributions from the Partnerships in investments in the Consolidated Balance Sheets during the three month lag period.
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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ”. ASU 2018-13 changes the fair value measurement disclosure requirements. The amendments remove or modify certain disclosures, while others were added. Early adoption of any removed or modified disclosure requirements is permitted upon issuance of ASU 2018-13 and adoption of the additional disclosure requirements may be delayed until the effective date. The Company elected to early adopt the removed or modified disclosure requirements of the standard on October 1, 2018. The Company adopted the remaining requirements on April 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “ Accounting for Financial Instruments - Credit Losses (Topic 326) ”. ASU 2016-13 replaces the incurred loss methodology in current GAAP with a methodology that reflects expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted ASU 2016-13 using the modified retrospective transition method on April 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents revenues disaggregated by product offering, which aligns with the identified performance obligations and the basis for calculating each amount: Three Months Ended June 30, Management and advisory fees 2020 2019 Specialized funds $ 32,231 $ 26,959 Customized separate accounts 23,515 21,963 Advisory 6,765 6,252 Reporting and other 2,836 2,163 Distribution management 1,727 1,359 Fund reimbursement revenue 193 1,855 Total management and advisory fees $ 67,267 $ 60,551 Three Months Ended June 30, Incentive fees 2020 2019 Specialized funds $ 2,218 $ 2,639 Customized separate accounts 259 1,496 Total incentive fees $ 2,477 $ 4,135

Investments (Tables)

Investments (Tables)	3 Months Ended
	Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Investments	Investments consist of the following: June 30, March 31, 2020 2020 Equity method investments in Partnerships $ 154,431 $ 166,106 Equity method investments in Partnerships held by consolidated VIEs 5,469 9,988 Other equity method investments 1,433 1,168 Other investments 16,785 13,394 Investments valued under the measurement alternative 16,746 17,091 Total Investments $ 194,864 $ 207,747
Reconciliation of Other Investments	The following is a reconciliation of other investments for which significant unobservable inputs (Level 3) were used in determining value: Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2019 $ 3,734 $ 3,940 $ 4,814 $ 12,488 Contributions 2,092 — 1,875 3,967 Distributions — — — — Net gain 85 73 — 158 Balance as of June 30, 2019 $ 5,911 $ 4,013 $ 6,689 $ 16,613 Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2020 $ 5,786 $ 1,756 $ 5,852 $ 13,394 Contributions 28 — — 28 Distributions (248) (42) — (290) Net gain 998 94 2,561 3,653 Balance as of June 30, 2020 $ 6,564 $ 1,808 $ 8,413 $ 16,785
Schedule of Assumptions Used	The valuation methodologies, significant unobservable inputs, range of inputs and the weighted average input determined based upon relative fair value of the investments used in recurring Level 3 fair value measurements of assets were as follows, as of June 30, 2020: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Private equity funds $ 6,564 Adjusted net asset value Selected market return 8.8% - 10.1% 9.1% Direct credit co-investments $ 1,808 Discounted cash flow Market yield 10.8% - 12.3% 11.5% Direct equity co-investments $ 8,413 Market approach EBITDA multiple 7.8x - 12.75x 9.27x Market approach Equity multiple 1.2x 1.2x Market approach Illiquidity discount 3.6% 3.6%

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Jun. 30, 2020
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, 2020 2020 Investments $ 107,156 $ 118,696 Fees receivable 7,983 8,703 Due from related parties 503 1,194 Total VIE Assets 115,642 128,593 Deferred incentive fee revenue 3,704 3,704 Non-controlling interests (2,655) (4,853) Maximum exposure to loss $ 116,691 $ 127,444

Equity (Tables)

Equity (Tables)	3 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Rollforward of Common Stock	The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2020: Class A Common Stock Class B Common Stock March 31, 2020 29,842,784 22,049,727 Shares issued (repurchased) in connection with registered offering 2,924,515 (2,271,636) Forfeitures (287) — Shares issued pursuant to Employee Share Purchase Plan 5,924 — June 30, 2020 32,772,936 19,778,091

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	A summary of restricted stock activity for the three months ended June 30, 2020 is presented below: Total Weighted- March 31, 2020 441,515 $ 36.87 Granted — $ — Vested (2,733) $ 18.96 Forfeited (287) $ 14.33 June 30, 2020 438,495 $ 37.00

Compensation and Benefits (Tabl

Compensation and Benefits (Tables)	3 Months Ended
	Jun. 30, 2020
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, 2020 2019 Base compensation and benefits $ 27,986 $ 21,368 Incentive fee compensation 617 1,009 Equity-based compensation 1,748 1,727 Total compensation and benefits $ 30,351 $ 24,104

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Jun. 30, 2020
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 Three Months Ended Net income 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 $ 3,246 30,237,450 $ 0.11 $ 11,381 26,706,719 $ 0.43 Adjustment to net income: Assumed vesting of employee awards 9 71 Effect of dilutive securities: Assumed vesting of employee awards 202,702 335,262 Diluted EPS of Class A common stock $ 3,255 30,440,152 $ 0.11 $ 11,452 27,041,981 $ 0.42

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Jun. 30, 2020
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Cash Flow Disclosures	Three Months Ended June 30, 2020 2019 Shares issued for contingent compensation payment $ — $ 425 Non-cash financing activities: Dividends declared but not paid $ 10,102 $ 7,345 Member distributions declared but not paid $ 3,367 $ 8,985 Establishment of net deferred tax assets related to offerings $ 52,793 $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Lease Cost, Cash Flows, and Other Supplemental Cash Flow Information Regarding Leases	The following table shows other supplemental information related to the Company’s operating leases: Three Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,314 $ 1,282 Weighted average remaining lease term (in years) 3.0 2.9 Weighted average discount rate 4.9 % 5.5 %
Maturity of Operating Lease Liabilities	As of June 30, 2020, the maturities of operating lease liabilities were as follows: Remainder of FY2021 $ 3,630 FY2022 3,615 FY2023 1,909 FY2024 1,047 FY2025 736 Thereafter — Total lease payments 10,937 Less: imputed interest (694) Total operating lease liabilities $ 10,243

Organization - Narrative (Detai

Organization - Narrative (Details)	Jun. 30, 2020	Mar. 31, 2020
HLA
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percent of economic interest held	60.60%	55.10%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Debt	$ 74,538	$ 74,524
Term Loan
Debt Instrument [Line Items]
Debt	$ 74,538

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 69,744	$ 64,686
Management and advisory fees
Disaggregation of Revenue [Line Items]
Revenues	67,267	60,551
Specialized funds
Disaggregation of Revenue [Line Items]
Revenues	32,231	26,959
Customized separate accounts
Disaggregation of Revenue [Line Items]
Revenues	23,515	21,963
Advisory
Disaggregation of Revenue [Line Items]
Revenues	6,765	6,252
Reporting and other
Disaggregation of Revenue [Line Items]
Revenues	2,836	2,163
Distribution management
Disaggregation of Revenue [Line Items]
Revenues	1,727	1,359
Fund reimbursement revenue
Disaggregation of Revenue [Line Items]
Revenues	193	1,855
Incentive fees
Disaggregation of Revenue [Line Items]
Revenues	2,477	4,135
Specialized funds
Disaggregation of Revenue [Line Items]
Revenues	2,218	2,639
Customized separate accounts
Disaggregation of Revenue [Line Items]
Revenues	$ 259	$ 1,496

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract asset related to the cost to obtain contracts	$ 1,009		$ 994
Contract asset amortization expense	$ 128	$ 122

Investments - Schedule of Inves

Investments - Schedule of Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Schedule of Equity Method Investments [Line Items]
Other investments	$ 16,785	$ 13,394	$ 16,613	$ 12,488
Investments valued under the measurement alternative	16,746	17,091
Total Investments	194,864	207,747
Equity method investments in Partnerships
Schedule of Equity Method Investments [Line Items]
Equity method investments	154,431	166,106
Equity method investments in Partnerships held by consolidated VIEs
Schedule of Equity Method Investments [Line Items]
Equity method investments	5,469	9,988
Other equity method investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 1,433	$ 1,168

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Schedule of Equity Method Investments [Line Items]
Equity in (loss) income of investees	$ (21,203)	$ 6,213
Cash received on transfer of other investments	0	15,750
Secured financing	16,785		$ 13,394
Amortized cost	12,836
Net gain	3,653	158
Unrealized loss on secured borrowings, fair value adjustment	$ 3,653	$ 863
Equity method investments in Partnerships
Schedule of Equity Method Investments [Line Items]
Percent interest in partnerships	1.00%

Investments - Reconciliation of

Investments - Reconciliation of Other Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	$ 13,394	$ 12,488
Contributions	28	3,967
Distributions	(290)	0
Net gain	3,653	158
Other investments, ending balance	16,785	16,613
Private equity funds
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	5,786	3,734
Contributions	28	2,092
Distributions	(248)	0
Net gain	998	85
Other investments, ending balance	6,564	5,911
Direct credit co-investments
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	1,756	3,940
Contributions	0	0
Distributions	(42)	0
Net gain	94	73
Other investments, ending balance	1,808	4,013
Direct equity co-investments
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	5,852	4,814
Contributions	0	1,875
Distributions	0	0
Net gain	2,561	0
Other investments, ending balance	$ 8,413	$ 6,689

Investments - Valuation Methodo

Investments - Valuation Methodologies (Details) $ in Thousands	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)
Schedule of Equity Method Investments [Line Items]
Other investments	$ 16,785	$ 13,394	$ 16,613	$ 12,488
Private equity funds
Schedule of Equity Method Investments [Line Items]
Other investments	6,564	5,786	5,911	3,734
Direct credit co-investments
Schedule of Equity Method Investments [Line Items]
Other investments	1,808	1,756	4,013	3,940
Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Other investments	$ 8,413	$ 5,852	$ 6,689	$ 4,814
Adjusted net asset value | Minimum | Private equity funds
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.088
Adjusted net asset value | Maximum | Private equity funds
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.101
Selected market return | Adjusted net asset value | Weighted Average | Private equity funds
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.091
Market yield | Discounted cash flow | Minimum | Direct credit co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.108
Market yield | Discounted cash flow | Maximum | Direct credit co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.123
Market yield | Discounted cash flow | Weighted Average | Direct credit co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.115
EBITDA multiple | Market approach | Minimum | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	7.8
EBITDA multiple | Market approach | Maximum | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	12.75
EBITDA multiple | Market approach | Weighted Average | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	9.27
Equity multiple | Market approach | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	1.2
Equity multiple | Market approach | Weighted Average | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	1.2
Illiquidity discount | Market approach | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.036
Illiquidity discount | Market approach | Weighted Average | Direct equity co-investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.036

Variable Interest Entities - Co

Variable Interest Entities - Consolidated VIEs (Details) - USD ($)	Jun. 30, 2020	Mar. 31, 2020
Variable Interest Entity [Line Items]
Total VIE Assets	$ 526,507,000	$ 473,529,000
Total liabilities of consolidated VIEs	293,896,000	236,128,000
Deferred incentive fee revenue	3,704,000	3,704,000
Primary Beneficiary
Variable Interest Entity [Line Items]
Total VIE Assets	5,469,000	9,988,000
Total liabilities of consolidated VIEs	0	0
Deferred incentive fee revenue	$ 3,704,000	$ 3,704,000

Variable Interest Entities - Un

Variable Interest Entities - Unconsolidated VIEs (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Variable Interest Entity [Line Items]
Total commitments from the limited partners and general partners to the unconsolidated VIE	$ 19,554,065
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE	7,295,710
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]
Investments	194,864	$ 207,747
Fees receivable	23,679	30,384
Due from related parties	2,153	2,605
Total assets	526,507	473,529
Deferred incentive fee revenue	3,704	3,704
Not Primary Beneficiary
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]
Investments	107,156	118,696
Fees receivable	7,983	8,703
Due from related parties	503	1,194
Total assets	115,642	128,593
Deferred incentive fee revenue	3,704	3,704
Non-controlling interests	(2,655)	(4,853)
Maximum exposure to loss	$ 116,691	$ 127,444

Equity - Shares of Common Stock

Equity - Shares of Common Stock Outstanding (Details)	3 Months Ended
	Jun. 30, 2020shares
Common Class A
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	29,842,784
Shares issued in connection with registered offering (in shares)	2,924,515
Forfeitures (in shares)	(287)
Shares issued pursuant to Employee Share Purchase Plan (in shares)	5,924
Outstanding, end of period (in shares)	32,772,936
Common Class B
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	22,049,727
Stock repurchased in connection with registered offering (in shares)	(2,271,636)
Forfeitures (in shares)	0
Shares issued pursuant to Employee Share Purchase Plan (in shares)	0
Outstanding, end of period (in shares)	19,778,091

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Class of Stock [Line Items]
Proceeds from offering		$ 204,979	$ 0
Common Class A
Class of Stock [Line Items]
Stock sold in connection with secondary public offering (in shares)		2,924,515
June 2020 Offering | Common Class A
Class of Stock [Line Items]
Stock sold in connection with secondary public offering (in shares)	2,995,757
Shares sold in connection with secondary offering (in dollars per share)	$ 70.09	$ 70.09
Proceeds from offering	$ 204,979
June 2020 Offering Current Stockholder Issuance | Common Class A
Class of Stock [Line Items]
Stock sold in connection with secondary public offering (in shares)	71,242
June 2020 Offering New Issuance | Common Class A
Class of Stock [Line Items]
Stock sold in connection with secondary public offering (in shares)	2,924,515
Members’ Equity (Deficit) | Common Class B
Class of Stock [Line Items]
Purchase of interest by parent (in shares)	2,271,636
Members’ Equity (Deficit) | Common Class C
Class of Stock [Line Items]
Purchase of interest by parent (in shares)	652,879

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Restricted Stock (Details) - 2017 Equity Incentive Plan - Restricted Stock $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares
Total Unvested
Unvested at beginning of period (in shares) | shares	441,515
Granted (in shares) | shares	0
Vested (in shares) | shares	(2,733)
Forfeited (in shares) | shares	(287)
Unvested at end of period (in shares) | shares	438,495
Weighted- Average Grant-Date Fair Value of Award
Unvested at beginning of period (in dollars per share) | $ / shares	$ 36.87
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	18.96
Forfeited (in dollars per share) | $ / shares	14.33
Unvested at end of period (in dollars per share) | $ / shares	$ 37
Total unrecognized compensation expense relating to restricted stock | $	$ 14,146

Compensation and Benefits - Sch

Compensation and Benefits - Schedule of Compensation and Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Compensation Related Costs [Abstract]
Base compensation and benefits	$ 27,986	$ 21,368
Incentive fee compensation	617	1,009
Equity-based compensation	1,748	1,727
Total compensation and benefits	$ 30,351	$ 24,104

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Related Party Transaction [Line Items]
Effective tax rate	27.90%	13.60%
Payable to related parties pursuant to tax receivable agreement	$ 143,370,000		$ 98,956,000
Unrecognized tax positions	0
Tax Receivable Agreement
Related Party Transaction [Line Items]
Payable to related parties pursuant to tax receivable agreement	44,450,000
June 2020 Offering
Related Party Transaction [Line Items]
Deferred tax asset	56,314,000
Valuation allowance	$ 3,521,000

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
	Jun. 30, 2020	Jun. 30, 2019
Net income attributable to HLI
Basic EPS of Class A common stock	$ 3,246	$ 11,381
Assumed vesting of employee awards	9	71
Diluted EPS of Class A common stock	$ 3,255	$ 11,452
Weighted-Average Shares
Weighted-average basic EPS of Class A common stock (in shares)	30,237,450	26,706,719
Weighted-average assumed vesting of employee awards (in shares)	202,702	335,262
Weighted-average diluted EPS of Class A common stock (in shares)	30,440,152	27,041,981
Per share amount
Basic EPS of Class A common stock (in dollars per share)	$ 0.11	$ 0.43
Diluted EPS of Class A common stock (in dollars per share)	$ 0.11	$ 0.42

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) - shares	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
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)	21,044,479	26,420,627

Related-Party Transactions - Na

Related-Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Related Party Transaction [Line Items]
Revenues	$ 69,744	$ 64,686
Payable to related parties pursuant to tax receivable agreement	143,370		$ 98,956
Fees receivable	23,679		30,384
General Partnerships
Related Party Transaction [Line Items]
Fees receivable	11,623		16,970
Joint Venture
Related Party Transaction [Line Items]
Payable to related parties pursuant to tax receivable agreement	323		$ 428
Service Agreement Fees Paid | Joint Venture
Related Party Transaction [Line Items]
Fees paid to joint venture	960	1,365
Management and advisory fees
Related Party Transaction [Line Items]
Revenues	67,267	60,551
Management and advisory fees | General Partnerships
Related Party Transaction [Line Items]
Revenues	44,249	39,630
Incentive fees
Related Party Transaction [Line Items]
Revenues	2,477	4,135
Incentive fees | General Partnerships
Related Party Transaction [Line Items]
Revenues	$ 2,355	$ 4,087

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Supplemental Cash Flow Information [Abstract]
Shares issued for contingent compensation payment	$ 0	$ 425
Non-cash financing activities:
Dividends declared but not paid	10,102	7,345	$ 8,027
Member distributions declared but not paid	3,367	8,985	$ 5,829
Establishment of net deferred tax assets related to offerings	$ 52,793	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Incentive Fees (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Carried Interest still subject to contingencies	$ 310,915	$ 441,150
Deferred incentive fee revenue	3,704	3,704
Incentive fees, unrecorded estimate	$ 77,729	$ 110,288

Commitments and Contingencies_2

Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Other commitment	$ 143,466	$ 143,489

Commitments and Contingencies_3

Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Renewal term	5 years
Option to terminate, term	1 year
Operating lease cost	$ 1,202	$ 1,205
Variable lease cost	158	134
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,314	$ 1,282
Weighted average remaining lease term (in years)	3 years	2 years 10 months 24 days
Weighted average discount rate	4.90%	5.50%
Lease not yet commenced, future payments	$ 92
Lease not yet commenced, term	17 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	6 years

Commitments and Contingencies_4

Commitments and Contingencies - Operating Lease Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Remainder of FY2021	$ 3,630
FY2022	3,615
FY2023	1,909
FY2024	1,047
FY2025	736
Thereafter	0
Total lease payments	10,937
Less: imputed interest	(694)
Total operating lease liabilities	$ 10,243	$ 10,184

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - Common Class A - $ / shares	Aug. 04, 2020	Jun. 30, 2020	Jun. 30, 2019
Subsequent Event [Line Items]
Dividends declared per share of Class A common stock (in dollars per share)		$ 0.3125	$ 0.2750
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of Class A common stock (in dollars per share)	$ 0.3125