Hamilton Lane (HLNE) 10-Q 7 Feb 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Dec. 31, 2022	Feb. 03, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2022
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	110 Washington Street,
Entity Address, Address Line Two	Suite 1300
Entity Address, City or Town	Conshohocken,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19428
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	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001433642
Current Fiscal Year End Date	--03-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		37,868,486
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		15,948,744

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Assets
Fees receivable	$ 52,074,000	$ 51,869,000
Prepaid expenses	7,078,000	6,858,000
Due from related parties	7,784,000	1,872,000
Furniture, fixtures and equipment, net	28,348,000	28,842,000
Lease right-of-use assets, net	63,152,000	65,636,000
Investments	514,332,000	503,789,000
Deferred income taxes	230,154,000	245,046,000
Assets of consolidated variable interest entities:
Investments	514,332,000	503,789,000
Total assets	1,124,361,000	1,294,946,000
Liabilities, redeemable non-controlling interests and equity
Accounts payable	2,045,000	2,827,000
Accrued compensation and benefits	65,761,000	20,117,000
Accrued members’ distributions	19,161,000	27,119,000
Accrued dividend	14,810,000	12,947,000
Debt	199,126,000	171,326,000
Payable to related parties pursuant to tax receivable agreement	179,431,000	180,536,000
Lease liabilities	79,549,000	82,244,000
Liabilities of consolidated variable interest entities:
Total liabilities	594,403,000	557,460,000
Commitments and contingencies (Note 16)
Redeemable non-controlling interests	0	276,000,000
Preferred stock, $0.001 par value, 10,000,000 authorized, none issued	0	0
Additional paid-in-capital	166,821,000	161,676,000
Total Hamilton Lane Incorporated stockholders’ equity	394,661,000	346,878,000
Total equity	529,958,000	461,486,000
Total liabilities, redeemable non-controlling interests and equity	1,124,361,000	1,294,946,000
Class A Common Stock
Liabilities of consolidated variable interest entities:
Common stock	38,000	37,000
Class B Common Stock
Liabilities of consolidated variable interest entities:
Common stock	16,000	16,000
Consolidated Entity Excluding Variable Interest Entities (VIE)
Assets
Cash and cash equivalents	146,070,000	72,138,000
Restricted cash	3,116,000	4,023,000
Investments	514,332,000	503,789,000
Other assets	30,755,000	28,162,000
Assets of consolidated variable interest entities:
Cash and cash equivalents	146,070,000	72,138,000
Investments held in trust	3,116,000	4,023,000
Investments	514,332,000	503,789,000
Other assets	30,755,000	28,162,000
Liabilities, redeemable non-controlling interests and equity
Other liabilities (includes $13,954 and $13,818 at fair value)	34,503,000	47,669,000
Liabilities of consolidated variable interest entities:
Other liabilities	34,503,000	47,669,000
Primary Beneficiary
Assets
Cash and cash equivalents	3,909,000	36,000
Restricted cash	0	276,016,000
Investments	37,360,000	10,036,000
Other assets	229,000	623,000
Assets of consolidated variable interest entities:
Cash and cash equivalents	3,909,000	36,000
Investments held in trust	0	276,016,000
Investments	37,360,000	10,036,000
Other assets	229,000	623,000
Liabilities, redeemable non-controlling interests and equity
Other liabilities (includes $13,954 and $13,818 at fair value)	17,000	12,675,000
Liabilities of consolidated variable interest entities:
Other liabilities	17,000	12,675,000
Total liabilities	0	0
General Partnerships
Liabilities of consolidated variable interest entities:
Stockholders' equity attributable to noncontrolling interest	3,653,000	3,423,000
Hamilton Lane Advisors, L.L.C.
Liabilities of consolidated variable interest entities:
Retained earnings	227,786,000	185,149,000
Stockholders' equity attributable to noncontrolling interest	$ 131,644,000	$ 111,185,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Class of Stock [Line Items]
Other liabilities, fair value	$ 13,954	$ 13,818
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
Class A Common Stock
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)	37,868,691	37,280,697
Common stock, shares outstanding (in shares)	37,868,691	37,280,697
Class B Common Stock
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)	15,953,682	16,033,359
Common stock, shares outstanding (in shares)	15,953,682	16,033,359

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenues
Total revenues	$ 127,074	$ 91,704	$ 415,965	$ 267,019
Consolidated variable interest entities related:
Total revenues	127,074	91,704	415,965	267,019
Expenses
Compensation and benefits	45,676	34,004	158,235	94,028
Consolidated variable interest entities related:
Total expenses	68,702	50,658	225,242	143,722
Other income (expense)
Equity in income (loss) of investees	650	12,924	(7,493)	60,181
Interest income	442	26	839	488
Non-operating (expense) income	(27,960)	37,043	(11,878)	65,500
Consolidated variable interest entities related:
Unrealized income			18,578	47,774
Total other income (expense)	(24,700)	50,669	(16,207)	123,914
Income before income taxes	33,672	91,715	174,516	247,211
Income tax expense	11,788	11,519	38,766	37,515
Net income	21,884	80,196	135,750	209,696
Net income attributable to Hamilton Lane Incorporated	9,669	51,849	78,034	132,161
Class A Common Stock
Consolidated variable interest entities related:
Net income attributable to Hamilton Lane Incorporated	$ 9,669	$ 51,849	$ 78,034	$ 132,161
Basic earnings per share of Class A common stock (in dollars per share)	$ 0.32	$ 1.44	$ 2.21	$ 3.64
Diluted earnings per share of Class A common stock (in dollars per share)	0.31	1.40	2.19	3.59
Dividends declared per share of Class A common stock (in dollars per share)	$ 0.40	$ 0.35	$ 1.20	$ 1.05
Consolidated Entity Excluding Variable Interest Entities (VIE)
Expenses
General, administrative and other	$ 22,717	$ 16,332	$ 66,066	$ 48,742
Consolidated variable interest entities related:
General, administrative and other	22,717	16,332	66,066	48,742
Other income (expense)
Interest expense	(2,419)	(1,157)	(6,027)	(3,488)
Primary Beneficiary
Expenses
General, administrative and other	309	322	941	952
Consolidated variable interest entities related:
General, administrative and other	309	322	941	952
Other income (expense)
Interest expense	0	(4)	0	(4)
Interest income	2,111	0	2,989	0
Consolidated variable interest entities related:
Equity in income (loss) of investees	389	(298)	1,030	170
Unrealized income	2,087	2,135	4,333	1,067
General Partnerships
Consolidated variable interest entities related:
Less: (loss) Income attributable to non-controlling interests	422	(119)	773	167
Hamilton Lane Advisors, L.L.C.
Consolidated variable interest entities related:
Less: (loss) Income attributable to non-controlling interests	9,146	26,181	51,326	76,849
Hamilton Lane Alliance Holdings I, Inc.
Consolidated variable interest entities related:
Less: (loss) Income attributable to non-controlling interests	2,647	2,285	5,617	519
Management and advisory fees
Revenues
Total revenues	97,355	79,836	276,182	229,653
Consolidated variable interest entities related:
Total revenues	97,355	79,836	276,182	229,653
Incentive fees
Revenues
Total revenues	29,719	11,868	139,783	37,366
Consolidated variable interest entities related:
Total revenues	29,719	11,868	139,783	37,366
Incentive fees | Consolidated Entity Excluding Variable Interest Entities (VIE)
Revenues
Total revenues	24,075	10,490	132,835	34,217
Consolidated variable interest entities related:
Total revenues	24,075	10,490	132,835	34,217
Incentive fees | Primary Beneficiary
Revenues
Total revenues	5,644	1,378	6,948	3,149
Consolidated variable interest entities related:
Total revenues	$ 5,644	$ 1,378	$ 6,948	$ 3,149

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid in Capital	Retained Earnings	General Partnerships Noncontrolling Interests	Hamilton Lane Advisors, L.L.C. Noncontrolling Interests
Beginning balance at Mar. 31, 2021	$ 314,201	$ 36	$ 17	$ 150,564	$ 87,512	$ 2,211	$ 73,861
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	209,177				132,161	167	76,849
Equity-based compensation	5,706			3,870			1,836
Repurchase of Class A shares for employee tax withholding	(605)			(220)			(385)
Deferred tax adjustment	2,722			2,722
Dividends declared	(38,429)				(38,429)
Capital contributions from non-controlling interests, net	563					563
Member distributions	(32,361)						(32,361)
Secondary offerings	(1)	1	(1)	4,097			(4,098)
Employee Share Purchase Plan share issuance	1,382			936			446
Adjustment of redeemable non-controlling interest to redemption value	520				393		127
Equity reallocation between controlling and non-controlling interests	0			98			(98)
Ending balance at Dec. 31, 2021	462,875	37	16	162,067	181,637	2,941	116,177
Beginning balance at Sep. 30, 2021	404,252	37	16	161,000	141,130	2,904	99,165
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	77,911				51,849	(119)	26,181
Equity-based compensation	1,711			1,179			532
Repurchase of Class A shares for employee tax withholding	0
Deferred tax adjustment	2			2			0
Dividends declared	(12,916)				(12,916)
Capital contributions from non-controlling interests, net	156					156
Member distributions	(11,024)						(11,024)
Secondary offerings	0	0	0				0
Employee Share Purchase Plan share issuance	498			340			158
Adjustment of redeemable non-controlling interest to redemption value	2,285			0	1,574		711
Equity reallocation between controlling and non-controlling interests	0			(454)			454
Ending balance at Dec. 31, 2021	462,875	37	16	162,067	181,637	2,941	116,177
Beginning balance at Mar. 31, 2022	461,486	37	16	161,676	185,149	3,423	111,185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	130,133				78,034	773	51,326
Equity-based compensation	6,816			4,702			2,114
Repurchase of Class A shares for employee tax withholding	(162)			(112)			(50)
Dividends declared	(44,413)				(44,413)
Capital contributions to non-controlling interests, net	(543)					(543)
Member distributions	(37,871)						(37,871)
Employee Share Purchase Plan share issuance	1,441	1		993			447
Adjustment of redeemable non-controlling interest to redemption value	13,071				9,016		4,055
Equity reallocation between controlling and non-controlling interests	0			(438)			438
Ending balance at Dec. 31, 2022	529,958	38	16	166,821	227,786	3,653	131,644
Beginning balance at Sep. 30, 2022	524,978	38	16	164,763	225,957	3,820	130,384
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,237				9,669	422	9,146
Equity-based compensation	2,835			1,956			879
Repurchase of Class A shares for employee tax withholding	(70)			(48)			(22)
Dividends declared	(14,810)				(14,810)
Capital contributions to non-controlling interests, net	(589)					(589)
Member distributions	(12,164)						(12,164)
Employee Share Purchase Plan share issuance	439	0		303			136
Adjustment of redeemable non-controlling interest to redemption value	10,102				6,970		3,132
Equity reallocation between controlling and non-controlling interests	0			(153)			153
Ending balance at Dec. 31, 2022	$ 529,958	$ 38	$ 16	$ 166,821	$ 227,786	$ 3,653	$ 131,644

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating activities:
Net income	$ 135,750	$ 209,696
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,600	3,744
Change in deferred income taxes	14,892	19,941
Change in payable to related parties pursuant to tax receivable agreement	(1,105)	(6,202)
Equity-based compensation	6,816	5,706
Equity in loss (income) of investees	7,493	(60,181)
Gain on sale of investment	(9,783)	(11,936)
Fair value adjustment of other investments	(18,578)	(47,774)
Proceeds received from partnerships	11,877	38,945
Non-cash lease expense	5,370	7,210
Gain on sale of intangible asset	2,771	0
Impairment of other investment	43,289	0
Other	(2,864)	43
Changes in operating assets and liabilities:
Fees receivable	(205)	(17,883)
Prepaid expenses	(220)	263
Due from related parties	(5,911)	479
Other assets	(5,309)	256
Accounts payable	(782)	17
Accrued compensation and benefits	45,644	18,867
Lease liability	(5,581)	(1,410)
Other liabilities	(11,548)	(6,457)
Consolidated variable interest entities related:
Net cash provided by operating activities	213,371	152,512
Investing activities:
Purchase of furniture, fixtures and equipment	(3,261)	(7,788)
Cash paid for acquisition of business	(1,500)	(10,096)
Loans to investees	(2,535)	0
Purchase of other investments	(34,125)	(18,798)
Proceeds from sale of investments	10,000	12,623
Distributions from investments	1,406	12,739
Distributions received from Partnerships	15,990	12,088
Contributions to Partnerships	(63,364)	(56,432)
Sale of investments held in trust	278,954	0
Net cash provided by (used in) investing activities	201,565	(55,664)
Financing activities:
Proceeds from offerings	0	73,833
Purchase of membership interests	0	(73,833)
Borrowings of debt	31,682	0
Repayments of debt	(3,873)	(1,382)
Draw-down on revolver	25,000	0
Repayment of revolver	(25,000)	(15,000)
Repurchase of Class A shares for employee tax withholding	(162)	(605)
Proceeds received from issuance of shares under Employee Share Purchase Plan	1,441	1,382
Payments to related parties, pursuant to tax receivable agreement	0	(15,584)
Dividends paid	(42,550)	(36,714)
Members’ distributions paid	(45,828)	(37,469)
Other	0	(75)
Consolidated variable interest entities related:
Net cash used in financing activities	(338,038)	(104,885)
Increase (decrease) in cash, cash equivalents, and restricted cash	76,898	(8,037)
Cash, cash equivalents, and restricted cash at beginning of the period	76,197	90,377
Cash and cash equivalents, restricted cash, and cash and cash equivalents held at consolidated variable interest entities at end of the period	153,095	82,340
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Condensed Consolidated Balance Sheets:
Total cash and cash equivalents, restricted cash, and cash and cash equivalents held at consolidated variable interest entities	153,095	82,340
Class B Common Stock
Financing activities:
Repurchase of common stock	0	(1)
Consolidated Entity Excluding Variable Interest Entities (VIE)
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Condensed Consolidated Balance Sheets:
Cash and cash equivalents	146,070	78,838
Restricted cash	3,116	3,315
Primary Beneficiary
Adjustments to reconcile net income to net cash provided by operating activities:
Fair value adjustment of other investments	(4,333)	(1,067)
Consolidated variable interest entities related:
Change in warrant liability measured at fair value	(2,883)	(1,067)
Equity in income of investees	(1,030)	(170)
Other assets and liabilities	(332)	425
Consolidated variable interest entities related:
Contributions from non-controlling interest in general partnerships	687	1,053
Distributions to non-controlling interest in general partnerships	(1,230)	(490)
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Condensed Consolidated Balance Sheets:
Cash and cash equivalents	3,909	187
Restricted cash	0
Primary Beneficiary | Class A Common Stock
Financing activities:
Repurchase of common stock	$ (278,205)	$ 0

Organization

Organization	9 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Hamilton Lane Incorporated (“HLI”) 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 December 31, 2022 and March 31, 2022, HLI held approximately 69.0% and 68.9%, 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 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 liability partnerships 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 investments, including investments in debt, equity, and other equity-based instruments. The Company, 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	9 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. 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, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023. 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, 2022. 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 Condensed 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. Recent Accounting Pronouncements In June 2022, the Financial Accounting Standards Board issued Accounting Standard Update ("ASU") 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Revenue

Revenue	9 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	3. 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 Nine Months Ended December 31, Management and advisory fees 2022 2021 2022 2021 Specialized funds $ 53,299 $ 38,233 $ 144,099 $ 107,935 Customized separate accounts 29,571 25,982 87,329 75,416 Advisory 6,613 6,119 19,073 18,781 Reporting and other 6,720 5,992 19,170 16,983 Distribution management 596 3,170 1,863 9,313 Fund reimbursement revenue 556 340 4,648 1,225 Total management and advisory fees $ 97,355 $ 79,836 $ 276,182 $ 229,653 Three Months Ended Nine Months Ended December 31, Incentive fees 2022 2021 2022 2021 Specialized funds $ 8,679 $ 6,765 $ 102,815 $ 23,903 Customized separate accounts 15,396 3,725 30,020 10,314 Consolidated variable interest related: Specialized funds 5,644 1,378 6,948 3,149 Total incentive fees $ 29,719 $ 11,868 $ 139,783 $ 37,366

Investments

Investments	9 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Investments	4. Investments Investments consist of the following: December 31, March 31, 2022 2022 Equity method investments in Partnerships $ 328,311 $ 326,296 Other equity method investments — 1,573 Other investments 20,189 19,820 Investments valued under the measurement alternative 165,832 156,100 Total Investments $ 514,332 $ 503,789 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. During the quarter ended September 30, 2022, the Company sold its ownership interests in its joint venture that automates the collection of fund and underlying portfolio company data from general partners, Private Markets Connect, for $10,000 and recognized a gain of $9,783 which is recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income. Immediately preceding the sale, the Company received a distribution from the joint venture of $1,406. Other investments The Company’s other investments represent a publicly traded security and investments in private equity funds and direct credit and equity investments that are held as collateral on the Company’s secured financing. 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 investments are debt securities classified as trading securities. Other investments are measured at fair value with unrealized holding gains and losses recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income. The Company accounts for its secured financing 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 which are estimated using Level 3 inputs with the significant inputs as shown in Note 5 below. The Company recognized a gain on other investments held as collateral of $821 and $915 during the three and nine months ended December 31, 2022, respectively, and a gain of $2,288 and $3,239 during the three and nine months ended December 31, 2021, respectively, that are recorded in non-operating (expense) income. The Company recognized a loss on the secured financing liability of $821 and $915 during the three and nine months ended December 31, 2022, respectively, and a loss of $2,288 and $3,239 during the three and nine months ended December 31, 2021, respectively, that are recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income. Investments valued under the measurement alternative During the quarter ended June 30, 2022, the Company made investments in two private companies. The Company invested $3,000 in a technology driven platform that provides a digitized token for investors that improves the efficiency of capital raises. Additionally, the Company invested $12,000 in an online financial services platform. Due to the lack of readily determinable fair values for these investments, over which the Company does not have significant influence, the Company values the investments under the measurement alternative. During the quarter ended June 30, 2022, the Company made an additional investment of $5,236 in a company that maintains a platform of solutions designed to aid individual investors and various wealth management platforms with their wealth management needs. As a result of the transaction, the Company marked its original investment to fair value based upon the transaction price, which resulted in total unrealized gain of $6,687 during the three months ended June 30, 2022, that is recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income. Due to the lack of readily determinable fair value for this investment, over which the Company does not have significant influence, the Company will continue to value the investment under the measurement alternative. During the quarter ended September 30, 2022, the Company made investments in two private companies. The Company invested $3,000 in a digital platform that offers financial planning and portfolio management tools to retail and accredited investors. The Company invested $4,000 in a cloud-based treasury and liquidity solution for investment management firms. Due to the lack of readily determinable fair values for these investments, over which the Company does not have significant influence, the Company will value the investments under the measurement alternative. During the quarter ended December 31, 2022, the Company made additional investments in three private companies in which it previously invested. The Company invested an additional $1,228 in a cloud-based treasury and liquidity solution for investment management firms. The Company invested an additional $5,061 in a company that provides environmental, social and governance (“ESG”) reporting metrics and analysis to private market firms and private companies. As a result of the transaction, the Company marked its original investment to fair value based upon the transaction price, which resulted in a total unrealized gain of $11,521 during the three months ended December 31, 2022 that is recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income. The Company invested an additional $600 in a technology company that has developed software to automate manual data entry tasks associated with alternative investment reporting. As part of that funding round, a convertible note issued by the investee to the Company converted into additional shares of the investee with a value of $550. Due to the lack of readily determinable fair values for these investments, over which the Company does not have significant influence, the Company will continue to value these investments under the measurement alternative. The Company performs qualitative impairment assessments at each quarter end on its investments recorded under the measurement alternative. As a result of this assessment as of December 31, 2022, the Company determined that a quantitative assessment was required to be performed for one of its investments given a significant decrease in earnings performance and overall economic and market conditions. The assessment indicated that the fair value was less than the carrying value at December 31, 2022. Prior to the impairment recorded, the carrying value of the investment was $74,189. The impairment amount was $43,289 and is included in non-operating (expense) income in the Condensed Consolidated Statements of Income. The fair value was estimated using Level 3 inputs with the significant input as shown in Note 5 below.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level: As of December 31, 2022 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ 6,235 $ — $ 13,954 $ 20,189 $ 10,703 Total financial assets $ 6,235 $ — $ 13,954 $ 20,189 $ 10,703 Financial liabilities: Secured financing (1) — — 13,954 13,954 Total financial liabilities $ — $ — $ 13,954 $ 13,954 As of March 31, 2022 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ 6,002 $ — $ 13,818 $ 19,820 $ 10,853 Investments held in trust 276,016 — — 276,016 276,000 Total financial assets $ 282,018 $ — $ 13,818 $ 295,836 $ 286,853 Financial liabilities: Warrant liability (2) $ 2,484 $ 399 $ — $ 2,883 Secured financing (1) — — 13,818 13,818 Total financial liabilities $ 2,484 $ 399 $ 13,818 $ 16,701 (1) Secured financing is recorded within other liabilities in the Condensed Consolidated Balance Sheets. (2) Warrant liability is recorded within other liabilities of consolidated variable interests in the Condensed Consolidated Balance Sheets. The following is a reconciliation of other investments for which significant unobservable inputs (Level 3) were used in determining fair value: Private equity funds Direct credit investments Direct equity investments Total other investments Balance as of September 30, 2022 $ 6,252 $ 768 $ 6,060 $ 13,080 Contributions 91 — — 91 Distributions (38) — — (38) Net gain 417 18 386 821 Balance as of December 31, 2022 $ 6,722 $ 786 $ 6,446 $ 13,954 Balance as of March 31, 2022 $ 7,024 $ 774 $ 6,020 $ 13,818 Contributions 114 — — 114 Distributions (893) — — (893) Net gain 477 12 426 915 Balance as of December 31, 2022 $ 6,722 $ 786 $ 6,446 $ 13,954 Private equity funds Direct credit investments Direct equity investments Publicly traded equity security Total other investments Balance as of September 30, 2021 $ 7,159 $ 783 $ 6,068 $ 6,122 $ 20,132 Contributions 204 — — — 204 Distributions (25) — — — (25) Net gain (loss) 1,464 (1) 825 168 2,456 Transfer out — — — (6,290) (6,290) Balance as of December 31, 2021 $ 8,802 $ 782 $ 6,893 $ — $ 16,477 Private equity funds Direct credit investments Direct equity investments Publicly traded equity security Total other investments Balance as of March 31, 2021 $ 6,254 $ 985 $ 6,059 $ — $ 13,298 Contributions 293 — 28 — 321 Distributions (179) (202) — — (381) Net gain (loss) 2,434 (1) 806 (165) 3,074 Transfer in — — — 6,455 6,455 Transfer out — — — (6,290) (6,290) Balance as of December 31, 2021 $ 8,802 $ 782 $ 6,893 $ — $ 16,477 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 financial assets were as follows, as of December 31, 2022: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Other investments: Private equity funds $ 6,722 Adjusted net asset value Selected market return 2.3% - 6.3% 3.2% Direct credit investments $ 786 Discounted cash flow Market yield 12.9% - 12.9% 12.9% Direct equity investments $ 6,446 Market approach EBITDA multiple 8.25 - 14.25x 11.61x Market approach Equity multiple 1.8x 1.8x 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 non-recurring Level 3 fair value measurements of financial assets were as follows, as of December 31, 2022: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Investment valued under the measurement alternative $ 30,900 Market approach Revenue Multiple 3.5x 3.5x For the significant unobservable inputs listed in the tables 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; and (3) a significant increase or decrease in the selected multiple would result in a significantly higher or lower fair value measurement, respectively.

Acquisitions

Acquisitions	9 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	6. Acquisitions On April 1, 2021, the Company acquired substantially all the assets of 361 Capital, LLC for a total aggregate cash amount of $13,096, of which $10,096 was paid on the closing date of the acquisition. The remaining $3,000 will be paid in two equal installments on the first and second anniversaries of the closing. On April 1, 2022, the Company paid the first of the two equal installments. The purchase price based upon the fair value of consideration transferred at the date of acquisition is $12,946. The Company recorded $7,145 of definite lived intangible assets related primarily to the acquired investment management contracts, which will be amortized over seven years, and $5,623 of goodwill, which are both recorded in other assets in the Condensed Consolidated Balance Sheets. The remaining assets acquired and liabilities assumed are not material to the condensed consolidated financial statements. Revenue and net income attributable to the acquisition of 361 Capital, LLC were not material for the three and nine months ended December 31, 2022 and 2021, and therefore, pro forma information related to this acquisition is not presented. In December 2022, the Company finalized the transfer of the advisory arrangement to a third party for an agreed upon percentage of the respective funds’ management fees over two calendar years. The Company recognized a gain of $2,771 on the sale of the advisory agreements that is recorded in non-operating (expense) income in the Condensed Consolidated Statements of Income.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	7. Variable Interest Entities The Company consolidates certain variable interest entities (“VIEs”) in which it is determined that the Company is the primary beneficiary. Consolidated Variable Interest Entities The Company consolidates general partner entities of certain Partnerships and a Partnership in which it is currently the primary beneficiary, which are not wholly-owned by the Company. The total assets of these consolidated VIEs are $41,498 and $10,036 as of December 31, 2022 and March 31, 2022, respectively. The consolidated VIEs had no liabilities as of December 31, 2022 and March 31, 2022. The assets of the consolidated general partner VIEs represent equity method-investments in direct investment funds and customized separate accounts and the assets of the consolidated Partnership VIE represent cash and direct credit investments. The assets may only be used to settle obligations of the respective 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 previously sponsored and consolidated Hamilton Lane Alliance Holdings I, Inc. (“HLAH”) through HL Alliance Holdings Sponsor LLC, an indirect wholly-owned subsidiary of the Company. On January 15, 2021, HLAH completed an IPO raising total gross proceeds of $276,000, which were placed in a trust and could only be utilized for funding a business combination or the redemption of Class A shares of HLAH. In a private placement concurrent with the IPO, HLAH sold warrants to HL Alliance Holdings Sponsor LLC for gross proceeds of $7,520, which were used by HLAH to pay the offering costs and also to provide working capital. On December 15, 2022, HLAH was liquidated, as it was determined that HLAH would be unable to consummate an initial business combination within the time period required by its governing documents. In connection with the liquidation, HLAH redeemed all of the outstanding shares of Class A common stock, cancelled all of the outstanding public and private warrants and settled all other outstanding liabilities. Nonconsolidated Variable Interest Entities 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 December 31, 2022, the total remaining unfunded commitments from the Company’s general partner entities to the nonconsolidated VIEs was $140,691. Investor commitments are the primary source of financing for the nonconsolidated VIEs. The maximum exposure to loss represents the potential loss of assets recognized by the Company relating to these nonconsolidated 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 value of assets and liabilities recognized in the Condensed Consolidated Balance Sheet related to the Company’s interests in these nonconsolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: December 31, March 31, 2022 2022 Investments $ 190,735 $ 191,378 Fees receivable 16,418 9,754 Due from related parties 1,901 778 Total VIE Assets 209,054 201,910 Less: Non-controlling interests (1,534) (1,873) Maximum exposure to loss $ 207,520 $ 200,037

Debt

Debt	9 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	8. Debt The Company’s debt consisted of the following: As of December 31, 2022 As of March 31, 2022 Principal Outstanding Carrying Value Interest Rate Principal Outstanding Carrying Value Interest Rate Term Loan $ 100,000 $ 99,578 6.25 % $ 71,754 $ 71,574 2.25 % 2020 Multi-Draw Facility 100,000 99,548 3.50 % 100,000 99,752 3.50 % Total Debt $ 200,000 $ 199,126 $ 171,754 $ 171,326 In October 2022, the Company modified its existing credit facility with its lender. The modifications took the form of a new 2022 Multi-Draw Term Loan and Security Agreement, as well as amendments to the existing Revolving Loan and Security Agreement, Term Loan and Security Agreement and 2020 Multi-Draw Term Loan and Security Agreement (collectively, the “Loan Agreements”).

Equity

Equity	9 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Equity	9. Equity The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2022: Class A Common Stock Class B Common Stock March 31, 2022 37,280,697 16,033,359 Forfeitures (5,899) (79,677) Shares repurchased for employee tax withholdings (2,311) — Awards granted 569,442 — Shares issued pursuant to Employee Share Purchase Plan 26,762 — December 31, 2022 37,868,691 15,953,682

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	10. Equity Based Compensation Restricted Stock Awards A summary of restricted stock activity for the nine months ended December 31, 2022 is presented below: Total Weighted- March 31, 2022 281,307 $ 67.50 Granted 41,160 $ 66.97 Vested (11,485) $ 77.38 Forfeited (5,899) $ 70.15 December 31, 2022 305,083 $ 67.00 As of December 31, 2022, total unrecognized compensation expense related to restricted stock was $14,950. Performance Awards The Company granted performance stock awards to certain employees that are subject to both a market-based vesting and a service-based vesting condition (“Performance Awards”). The Performance Awards will vest based upon (i) the market price of HLI Class A common stock achieving certain price thresholds from $150 per share to $230 per share and (ii) continued employment through the date the price target is met (with a minimum of five years of service required after the grant date for vesting). If the price target is met prior to the fifth anniversary of the grant date, the vesting date will be the fifth anniversary of the grant date. Holders of the Performance Awards do not participate in dividends until such awards have met both their market-based and service-based vesting requirements. Due to the existence of the service requirement, the vesting period for these awards will vary with each respective tranche as the employees must be employed with the Company at the point in which the market requirement is met with a minimum of five years of service required after the grant date for vesting. As such, compensation expense will be recognized ratably for each vesting tranche from the grant date to the end for the employee’s service period. The fair value of the awards granted are based on a Monte-Carlo simulation valuation model. A summary of Performance Award activity for the nine months ended December 31, 2022 is presented below: Total Weighted- March 31, 2022 — $ — Granted 528,282 $ 29.79 Vested — $ — Forfeited — $ — December 31, 2022 528,282 $ 29.79 Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of the Performance Awards granted September 16, 2022: Grant Date Fair Value $ 29.79 Closing share price as of grant date $ 69.67 Risk Free Rate 3.6% Volatility 37.0% Dividend Yield 2.3% As of December 31, 2022, total estimated unrecognized expense related to the unvested Performance Awards was $14,815, and none of the Performance Awards have met their market price based vesting condition.

Compensation and Benefits

Compensation and Benefits	9 Months Ended
	Dec. 31, 2022
Compensation Related Costs [Abstract]
Compensation and Benefits	11. 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, 2022 2021 2022 2021 Base compensation and benefits $ 35,473 $ 29,340 $ 116,549 $ 79,014 Incentive fee compensation 7,368 2,953 34,870 9,308 Equity-based compensation 2,835 1,711 6,816 5,706 Total compensation and benefits $ 45,676 $ 34,004 $ 158,235 $ 94,028

Income Tax

Income Tax	9 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax	12. Income Tax 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 35.0% and 22.2% for the three and nine months ended December 31, 2022, respectively, and 12.6% and 15.2% for the three and nine months ended December 31, 2021, respectively. The effective tax rates were different from the statutory tax rates due to the portion of income allocated to non-controlling interests, valuation allowance recorded against deferred tax assets and discrete tax adjustments recorded in the periods. As of December 31, 2022, the Company had no unrecognized tax positions and believes there will be no changes to uncertain tax positions within the next 12 months.

Earnings per Share

Earnings per Share	9 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings per Share	13. 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 Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to HLI $ 9,669 $ 51,849 Impact of changes in carrying amount of redeemable NCI 2,095 1,308 Basic EPS of Class A common stock $ 11,764 37,025,416 $ 0.32 $ 53,157 36,902,741 $ 1.44 Adjustment to net income: Assumed vesting of employee awards 5 66 Assumed conversion of Class B and Class C Units 5,058 21,946 Effect of dilutive securities: Assumed vesting of employee awards 68,129 165,569 Assumed conversion of Class B and Class C Units 16,675,834 16,675,834 Diluted EPS of Class A common stock $ 16,827 53,769,379 $ 0.31 $ 75,169 53,744,144 $ 1.40 Nine Months Ended Nine Months Ended Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to HLI $ 78,034 $ 132,161 Impact of changes in carrying amount of redeemable NCI 3,809 358 Basic EPS of Class A common stock $ 81,843 37,004,657 $ 2.21 $ 132,519 36,375,797 $ 3.64 Adjustment to net income: Assumed vesting of employee awards 34 156 Assumed conversion of Class B and Class C Units 35,968 60,083 Effect of dilutive securities: Assumed vesting of employee awards 53,030 138,902 Assumed conversion of Class B and Class C Units 16,675,834 17,192,702 Diluted EPS of Class A common stock $ 117,845 53,733,521 $ 2.19 $ 192,758 53,707,401 $ 3.59 The adjustments to net income for dilutive securities are based upon the additional income that would be allocated to HLI for the change in its ownership percentage due to the dilutive securities and adjusted for the incremental income tax expense related to the additional allocated income. Net income (loss) recorded by HLI on a standalone basis will determine if the Class B and Class C units are dilutive or antidilutive in each respective period. The calculation of diluted earnings per share excludes 528,282 Performance Awards for the three and nine months ended December 31, 2022 as the market condition was not achieved as of December 31, 2022.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related-Party Transactions	14. Related Party Transactions The Company considers its employees, directors, and equity method investments to be related parties. Revenue and Receivables The 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 $70,929 and $198,973 for the three and nine months ended December 31, 2022, respectively, and $53,701 and $150,955 for the three and nine months ended December 31, 2021, respectively. The Company earned incentive fees from Partnerships of $28,652 and $137,545 for the three and nine months ended December 31, 2022, respectively, and $10,335 and $34,669 for the three and nine months ended December 31, 2021, respectively. Fees receivable from the Partnerships were $35,263 and $27,728 as of December 31, 2022 and March 31, 2022, respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Dec. 31, 2022
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	15. Supplemental Cash Flow Nine Months Ended December 31, 2022 2021 Establishment of lease liability in exchange for right of use asset $ 5,401 $ 7,950 Non-cash investing activities: Establishment of receivable for intangible assets sold $ 6,776 $ — Non-cash financing activities: Dividends declared but not paid $ 14,810 $ 12,916 Member distributions declared but not paid $ 19,161 $ 11,769 Establishment of net deferred tax assets related to offerings $ — $ 19,783

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	16. Commitments and Contigencies 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 did not meet the Company’s criteria for revenue recognition in the amounts of $952,188 and $1,191,066, net of amounts attributable to non-controlling interests, at December 31, 2022 and March 31, 2022, respectively. If the Company ultimately receives the unrecognized carried interest, a total of $238,047 and $297,766 as of December 31, 2022 and March 31, 2022, 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 $212,895 and $186,164 as of December 31, 2022 and March 31, 2022, respectively. The Company has an unrealized net gain on its investments valued under the measurement alternative of $29,004 as of December 31, 2022, of which up to 15% may be paid as a discretionary bonus as those gains are realized. Leases The Company’s leases consist primarily of operating leases for office space and office equipment in various locations around the world. Some leases have the option to extend for an additional term or terminate early. Short-term lease costs are not material . The following table shows lease costs and other supplemental information related to the Company’s operating leases: Three Months Ended December 31, Nine Months Ended December 31, 2022 2021 2022 2021 Operating lease costs $ 2,095 $ 2,011 $ 6,199 $ 7,610 Variable lease costs $ 395 $ 416 $ 1,067 $ 980 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,997 $ 1,657 $ 5,858 $ 4,794 Weighted average remaining lease term (in years) 14.0 14.7 Weighted average discount rate 3.3 % 3.2 % As of December 31, 2022, the maturities of operating lease liabilities were as follows: Remainder of FY2023 $ 2,092 FY2024 7,645 FY2025 7,233 FY2026 6,623 FY2027 6,623 Thereafter 70,210 Total lease payments 100,426 Less: imputed interest (20,877) Total operating lease liabilities $ 79,549

Subsequent Events

Subsequent Events	9 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events On February 7, 2023, the Company declared a quarterly dividend of $0.40 per share of Class A common stock to record holders at the close of business on March 15, 2023. The payment date will be April 6, 2023.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2022
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 and nine months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023. 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, 2022.
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 Condensed 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 June 2022, the Financial Accounting Standards Board issued Accounting Standard Update ("ASU") 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Dec. 31, 2022
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 Nine Months Ended December 31, Management and advisory fees 2022 2021 2022 2021 Specialized funds $ 53,299 $ 38,233 $ 144,099 $ 107,935 Customized separate accounts 29,571 25,982 87,329 75,416 Advisory 6,613 6,119 19,073 18,781 Reporting and other 6,720 5,992 19,170 16,983 Distribution management 596 3,170 1,863 9,313 Fund reimbursement revenue 556 340 4,648 1,225 Total management and advisory fees $ 97,355 $ 79,836 $ 276,182 $ 229,653 Three Months Ended Nine Months Ended December 31, Incentive fees 2022 2021 2022 2021 Specialized funds $ 8,679 $ 6,765 $ 102,815 $ 23,903 Customized separate accounts 15,396 3,725 30,020 10,314 Consolidated variable interest related: Specialized funds 5,644 1,378 6,948 3,149 Total incentive fees $ 29,719 $ 11,868 $ 139,783 $ 37,366

Investments (Tables)

Investments (Tables)	9 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Investments	Investments consist of the following: December 31, March 31, 2022 2022 Equity method investments in Partnerships $ 328,311 $ 326,296 Other equity method investments — 1,573 Other investments 20,189 19,820 Investments valued under the measurement alternative 165,832 156,100 Total Investments $ 514,332 $ 503,789

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Financial Assets and Liabilities	The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level: As of December 31, 2022 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ 6,235 $ — $ 13,954 $ 20,189 $ 10,703 Total financial assets $ 6,235 $ — $ 13,954 $ 20,189 $ 10,703 Financial liabilities: Secured financing (1) — — 13,954 13,954 Total financial liabilities $ — $ — $ 13,954 $ 13,954 As of March 31, 2022 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ 6,002 $ — $ 13,818 $ 19,820 $ 10,853 Investments held in trust 276,016 — — 276,016 276,000 Total financial assets $ 282,018 $ — $ 13,818 $ 295,836 $ 286,853 Financial liabilities: Warrant liability (2) $ 2,484 $ 399 $ — $ 2,883 Secured financing (1) — — 13,818 13,818 Total financial liabilities $ 2,484 $ 399 $ 13,818 $ 16,701 (1) Secured financing is recorded within other liabilities in the Condensed Consolidated Balance Sheets. (2) Warrant liability is recorded within other liabilities of consolidated variable interests in the Condensed Consolidated Balance Sheets.
Reconciliation of Other Investments	The following is a reconciliation of other investments for which significant unobservable inputs (Level 3) were used in determining fair value: Private equity funds Direct credit investments Direct equity investments Total other investments Balance as of September 30, 2022 $ 6,252 $ 768 $ 6,060 $ 13,080 Contributions 91 — — 91 Distributions (38) — — (38) Net gain 417 18 386 821 Balance as of December 31, 2022 $ 6,722 $ 786 $ 6,446 $ 13,954 Balance as of March 31, 2022 $ 7,024 $ 774 $ 6,020 $ 13,818 Contributions 114 — — 114 Distributions (893) — — (893) Net gain 477 12 426 915 Balance as of December 31, 2022 $ 6,722 $ 786 $ 6,446 $ 13,954 Private equity funds Direct credit investments Direct equity investments Publicly traded equity security Total other investments Balance as of September 30, 2021 $ 7,159 $ 783 $ 6,068 $ 6,122 $ 20,132 Contributions 204 — — — 204 Distributions (25) — — — (25) Net gain (loss) 1,464 (1) 825 168 2,456 Transfer out — — — (6,290) (6,290) Balance as of December 31, 2021 $ 8,802 $ 782 $ 6,893 $ — $ 16,477 Private equity funds Direct credit investments Direct equity investments Publicly traded equity security Total other investments Balance as of March 31, 2021 $ 6,254 $ 985 $ 6,059 $ — $ 13,298 Contributions 293 — 28 — 321 Distributions (179) (202) — — (381) Net gain (loss) 2,434 (1) 806 (165) 3,074 Transfer in — — — 6,455 6,455 Transfer out — — — (6,290) (6,290) Balance as of December 31, 2021 $ 8,802 $ 782 $ 6,893 $ — $ 16,477
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 financial assets were as follows, as of December 31, 2022: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Other investments: Private equity funds $ 6,722 Adjusted net asset value Selected market return 2.3% - 6.3% 3.2% Direct credit investments $ 786 Discounted cash flow Market yield 12.9% - 12.9% 12.9% Direct equity investments $ 6,446 Market approach EBITDA multiple 8.25 - 14.25x 11.61x Market approach Equity multiple 1.8x 1.8x 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 non-recurring Level 3 fair value measurements of financial assets were as follows, as of December 31, 2022: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Investment valued under the measurement alternative $ 30,900 Market approach Revenue Multiple 3.5x 3.5x

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The carrying value of assets and liabilities recognized in the Condensed Consolidated Balance Sheet related to the Company’s interests in these nonconsolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: December 31, March 31, 2022 2022 Investments $ 190,735 $ 191,378 Fees receivable 16,418 9,754 Due from related parties 1,901 778 Total VIE Assets 209,054 201,910 Less: Non-controlling interests (1,534) (1,873) Maximum exposure to loss $ 207,520 $ 200,037

Debt (Tables)

Debt (Tables)	9 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s debt consisted of the following: As of December 31, 2022 As of March 31, 2022 Principal Outstanding Carrying Value Interest Rate Principal Outstanding Carrying Value Interest Rate Term Loan $ 100,000 $ 99,578 6.25 % $ 71,754 $ 71,574 2.25 % 2020 Multi-Draw Facility 100,000 99,548 3.50 % 100,000 99,752 3.50 % Total Debt $ 200,000 $ 199,126 $ 171,754 $ 171,326

Equity (Tables)

Equity (Tables)	9 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Rollforward of Common Stock	The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2022: Class A Common Stock Class B Common Stock March 31, 2022 37,280,697 16,033,359 Forfeitures (5,899) (79,677) Shares repurchased for employee tax withholdings (2,311) — Awards granted 569,442 — Shares issued pursuant to Employee Share Purchase Plan 26,762 — December 31, 2022 37,868,691 15,953,682

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	A summary of restricted stock activity for the nine months ended December 31, 2022 is presented below: Total Weighted- March 31, 2022 281,307 $ 67.50 Granted 41,160 $ 66.97 Vested (11,485) $ 77.38 Forfeited (5,899) $ 70.15 December 31, 2022 305,083 $ 67.00
Schedule of Performance Units Activity	A summary of Performance Award activity for the nine months ended December 31, 2022 is presented below: Total Weighted- March 31, 2022 — $ — Granted 528,282 $ 29.79 Vested — $ — Forfeited — $ — December 31, 2022 528,282 $ 29.79
Schedule of Valuation Assumptions	Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of the Performance Awards granted September 16, 2022: Grant Date Fair Value $ 29.79 Closing share price as of grant date $ 69.67 Risk Free Rate 3.6% Volatility 37.0% Dividend Yield 2.3%

Compensation and Benefits (Tabl

Compensation and Benefits (Tables)	9 Months Ended
	Dec. 31, 2022
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, 2022 2021 2022 2021 Base compensation and benefits $ 35,473 $ 29,340 $ 116,549 $ 79,014 Incentive fee compensation 7,368 2,953 34,870 9,308 Equity-based compensation 2,835 1,711 6,816 5,706 Total compensation and benefits $ 45,676 $ 34,004 $ 158,235 $ 94,028

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Dec. 31, 2022
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 Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to HLI $ 9,669 $ 51,849 Impact of changes in carrying amount of redeemable NCI 2,095 1,308 Basic EPS of Class A common stock $ 11,764 37,025,416 $ 0.32 $ 53,157 36,902,741 $ 1.44 Adjustment to net income: Assumed vesting of employee awards 5 66 Assumed conversion of Class B and Class C Units 5,058 21,946 Effect of dilutive securities: Assumed vesting of employee awards 68,129 165,569 Assumed conversion of Class B and Class C Units 16,675,834 16,675,834 Diluted EPS of Class A common stock $ 16,827 53,769,379 $ 0.31 $ 75,169 53,744,144 $ 1.40 Nine Months Ended Nine Months Ended Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to Class A Stockholders Weighted-Average Shares Per share amount Net income attributable to HLI $ 78,034 $ 132,161 Impact of changes in carrying amount of redeemable NCI 3,809 358 Basic EPS of Class A common stock $ 81,843 37,004,657 $ 2.21 $ 132,519 36,375,797 $ 3.64 Adjustment to net income: Assumed vesting of employee awards 34 156 Assumed conversion of Class B and Class C Units 35,968 60,083 Effect of dilutive securities: Assumed vesting of employee awards 53,030 138,902 Assumed conversion of Class B and Class C Units 16,675,834 17,192,702 Diluted EPS of Class A common stock $ 117,845 53,733,521 $ 2.19 $ 192,758 53,707,401 $ 3.59

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Dec. 31, 2022
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Cash Flow Disclosures	Nine Months Ended December 31, 2022 2021 Establishment of lease liability in exchange for right of use asset $ 5,401 $ 7,950 Non-cash investing activities: Establishment of receivable for intangible assets sold $ 6,776 $ — Non-cash financing activities: Dividends declared but not paid $ 14,810 $ 12,916 Member distributions declared but not paid $ 19,161 $ 11,769 Establishment of net deferred tax assets related to offerings $ — $ 19,783

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Lease Cost, Cash Flows, and Other Supplemental Cash Flow Information Regarding Leases	The following table shows lease costs and other supplemental information related to the Company’s operating leases: Three Months Ended December 31, Nine Months Ended December 31, 2022 2021 2022 2021 Operating lease costs $ 2,095 $ 2,011 $ 6,199 $ 7,610 Variable lease costs $ 395 $ 416 $ 1,067 $ 980 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,997 $ 1,657 $ 5,858 $ 4,794 Weighted average remaining lease term (in years) 14.0 14.7 Weighted average discount rate 3.3 % 3.2 %
Maturity of Operating Lease Liabilities	As of December 31, 2022, the maturities of operating lease liabilities were as follows: Remainder of FY2023 $ 2,092 FY2024 7,645 FY2025 7,233 FY2026 6,623 FY2027 6,623 Thereafter 70,210 Total lease payments 100,426 Less: imputed interest (20,877) Total operating lease liabilities $ 79,549

Organization - Narrative (Detai

Organization - Narrative (Details)	Dec. 31, 2022	Mar. 31, 2022
HLA
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percent of economic interest held	69%	68.90%

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 127,074	$ 91,704	$ 415,965	$ 267,019
Management and advisory fees
Disaggregation of Revenue [Line Items]
Revenues	97,355	79,836	276,182	229,653
Specialized funds
Disaggregation of Revenue [Line Items]
Revenues	53,299	38,233	144,099	107,935
Customized separate accounts
Disaggregation of Revenue [Line Items]
Revenues	29,571	25,982	87,329	75,416
Advisory
Disaggregation of Revenue [Line Items]
Revenues	6,613	6,119	19,073	18,781
Reporting and other
Disaggregation of Revenue [Line Items]
Revenues	6,720	5,992	19,170	16,983
Distribution management
Disaggregation of Revenue [Line Items]
Revenues	596	3,170	1,863	9,313
Fund reimbursement revenue
Disaggregation of Revenue [Line Items]
Revenues	556	340	4,648	1,225
Incentive fees
Disaggregation of Revenue [Line Items]
Revenues	29,719	11,868	139,783	37,366
Incentive fees | Consolidated Entity Excluding Variable Interest Entities (VIE)
Disaggregation of Revenue [Line Items]
Revenues	24,075	10,490	132,835	34,217
Incentive fees | Primary Beneficiary
Disaggregation of Revenue [Line Items]
Revenues	5,644	1,378	6,948	3,149
Specialized funds | Consolidated Entity Excluding Variable Interest Entities (VIE)
Disaggregation of Revenue [Line Items]
Revenues	8,679	6,765	102,815	23,903
Specialized funds | Primary Beneficiary
Disaggregation of Revenue [Line Items]
Revenues	5,644	1,378	6,948	3,149
Customized separate accounts
Disaggregation of Revenue [Line Items]
Revenues	$ 15,396	$ 3,725	$ 30,020	$ 10,314

Investments - Schedule of Inves

Investments - Schedule of Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Schedule of Equity Method Investments [Line Items]
Other investments	$ 20,189	$ 19,820
Investments valued under the measurement alternative	165,832	156,100
Total Investments	514,332	503,789
Equity method investments in Partnerships
Schedule of Equity Method Investments [Line Items]
Equity method investments	328,311	326,296
Other equity method investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 0	$ 1,573

Investments - Narrative (Detail

Investments - Narrative (Details) $ in Thousands	3 Months Ended				9 Months Ended
	Dec. 31, 2022 USD ($) investment	Sep. 30, 2022 USD ($) investment	Jun. 30, 2022 USD ($) investment	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of equity method investments		$ 10,000
Gain on sale of investment		9,783
Distributions from investments		$ 1,406			$ 1,406	$ 12,739
Net gain (loss)					18,578	47,774
Unrealized gain (loss) on secured borrowings, fair value adjustment	$ 821			$ (2,288)	915	(3,239)
Investments held | investment	3
Investments valued under the measurement alternative	$ 165,832				165,832		$ 156,100
Convertible note converted to equity securities	550				550
Impairment of other investment					43,289	0
Private equity funds
Schedule of Equity Method Investments [Line Items]
Investments held | investment		2	2
Technology Drive Platform
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative			$ 3,000
Online Financial Services Platform
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative			12,000
Individual Investors And Wealth Management Platform
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative			5,236
Digital Platform
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative		$ 3,000
Cloud-based Treasury And Liquidity Solution For Investment Management Firms
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative	1,228	4,000			1,228
ESG Reporting Metrics, Private Market Firms And Private Companies
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative	5,061				5,061
Technology Company
Schedule of Equity Method Investments [Line Items]
Investments valued under the measurement alternative	$ 600				$ 600
Equity method investments in Partnerships
Schedule of Equity Method Investments [Line Items]
Percent interest in partnerships	1%				1%
Investment, Held As Collateral
Schedule of Equity Method Investments [Line Items]
Net gain (loss)	$ 821			$ 2,288	$ 915	$ 3,239
Investment, Measurement Alternative
Schedule of Equity Method Investments [Line Items]
Net gain (loss)	11,521		$ 6,687
Investments valued under the measurement alternative		$ 74,189
Impairment of other investment	$ 43,289

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021
Reported Value Measurement
Financial assets:
Other investments	$ 10,703		$ 10,853
Investments held in trust			276,000
Total financial assets	10,703		286,853
Other investments	20,189		19,820
Investments held in trust			276,016
Total financial assets	20,189		295,836
Financial liabilities:
Warrant liability			2,883
Secured financing	13,954		13,818
Total financial liabilities	13,954		16,701
Level 1
Financial assets:
Other investments	6,235		6,002
Investments held in trust			276,016
Total financial assets	6,235		282,018
Financial liabilities:
Warrant liability			2,484
Secured financing	0		0
Total financial liabilities	0		2,484
Level 2
Financial assets:
Other investments	0		0
Investments held in trust			0
Total financial assets	0		0
Financial liabilities:
Warrant liability			399
Secured financing	0		0
Total financial liabilities	0		399
Level 3
Financial assets:
Other investments	13,954	$ 13,080	13,818	$ 16,477	$ 20,132	$ 13,298
Investments held in trust			0
Total financial assets	13,954		13,818
Financial liabilities:
Warrant liability			0
Secured financing	13,954		13,818
Total financial liabilities	$ 13,954		$ 13,818

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Other Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance			$ 19,820
Net gain (loss)			18,578	$ 47,774
Other investments, ending balance	$ 20,189		20,189
Level 3
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	13,080	$ 20,132	13,818	13,298
Contributions	91	204	114	321
Distributions	(38)	(25)	(893)	(381)
Net gain (loss)	821	2,456	915	3,074
Transfer out		(6,290)		(6,290)
Transfer in				6,455
Other investments, ending balance	13,954	16,477	13,954	16,477
Private equity funds
Reconciliation Of Other Investments [Roll Forward]
Other investments, ending balance	6,722		6,722
Private equity funds | Level 3
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	6,252	7,159	7,024	6,254
Contributions	91	204	114	293
Distributions	(38)	(25)	(893)	(179)
Net gain (loss)	417	1,464	477	2,434
Transfer out		0		0
Transfer in				0
Other investments, ending balance	6,722	8,802	6,722	8,802
Direct credit investments
Reconciliation Of Other Investments [Roll Forward]
Other investments, ending balance	786		786
Direct credit investments | Level 3
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	768	783	774	985
Contributions	0	0	0	0
Distributions	0	0	0	(202)
Net gain (loss)	18	(1)	12	(1)
Transfer out		0		0
Transfer in				0
Other investments, ending balance	786	782	786	782
Direct equity investments
Reconciliation Of Other Investments [Roll Forward]
Other investments, ending balance	6,446		6,446
Direct equity investments | Level 3
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance	6,060	6,068	6,020	6,059
Contributions	0	0	0	28
Distributions	0	0	0	0
Net gain (loss)	386	825	426	806
Transfer out		0		0
Transfer in				0
Other investments, ending balance	$ 6,446	6,893	$ 6,446	6,893
Publicly traded equity security | Level 3
Reconciliation Of Other Investments [Roll Forward]
Other investments, beginning balance		6,122		0
Contributions		0		0
Distributions		0		0
Net gain (loss)		168		(165)
Transfer out		(6,290)		(6,290)
Transfer in				6,455
Other investments, ending balance		$ 0		$ 0

Fair Value Measurements - Valua

Fair Value Measurements - Valuation Methodologies (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Fair Value	$ 20,189	$ 19,820
Investment valued under the measurement alternative	30,900
Private equity funds
Schedule of Equity Method Investments [Line Items]
Fair Value	6,722
Direct credit investments
Schedule of Equity Method Investments [Line Items]
Fair Value	786
Direct equity investments
Schedule of Equity Method Investments [Line Items]
Fair Value	$ 6,446
Selected market return | Adjusted net asset value | Minimum | Private equity funds
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.023
Selected market return | Adjusted net asset value | Maximum | Private equity funds
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.063
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	0.032
Market yield | Discounted cash flow | Minimum | Direct credit investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.129
Market yield | Discounted cash flow | Maximum | Direct credit investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.129
Market yield | Discounted cash flow | Weighted Average | Direct credit investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	0.129
EBITDA multiple | Market approach | Minimum | Direct equity investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	8.25
EBITDA multiple | Market approach | Maximum | Direct equity investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	14.25
EBITDA multiple | Market approach | Weighted Average | Direct equity investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	11.61
Equity multiple | Market approach | Weighted Average | Direct equity investments
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	1.8
Revenue Multiple | Market approach | Weighted Average
Schedule of Equity Method Investments [Line Items]
Range of and weighted-average inputs	3.5

Acquisitions (Details)

Acquisitions (Details) $ in Thousands		9 Months Ended	12 Months Ended
	Apr. 01, 2021 USD ($) installment	Dec. 31, 2022 USD ($)	Apr. 01, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Recognized a gain on the sale of the advisory agreements		$ 2,771
361 Capital, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Aggregate purchase price	$ 13,096
Cash paid for acquisition of business	$ 10,096
Number of installments | installment	2
Preliminary purchase price	$ 12,946
Goodwill	5,623
Scenario, Forecast | 361 Capital, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Cash paid for acquisition of business			$ 3,000
Customer Contracts | 361 Capital, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 7,145
Finite-lived intangible asset useful life	7 years

Variable Interest Entities - Co

Variable Interest Entities - Consolidated VIEs (Details) - USD ($)	Jan. 15, 2021	Dec. 31, 2022	Mar. 31, 2022
Variable Interest Entity [Line Items]
Total VIE Assets		$ 1,124,361,000	$ 1,294,946,000
Total liabilities of consolidated VIEs		594,403,000	557,460,000
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE		140,691,000
Hamilton Lane Alliance Holdings I, Inc.
Variable Interest Entity [Line Items]
Proceeds from offering	$ 276,000,000
Primary Beneficiary
Variable Interest Entity [Line Items]
Total liabilities of consolidated VIEs		0	0
Primary Beneficiary | Investments
Variable Interest Entity [Line Items]
Total VIE Assets		$ 41,498,000	$ 10,036,000
Hamilton Lane Advisors, L.L.C. | Hamilton Lane Alliance Holdings I, Inc.
Variable Interest Entity [Line Items]
Proceeds from offering	$ 7,520,000

Variable Interest Entities - Un

Variable Interest Entities - Unconsolidated VIEs (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Variable Interest Entity [Line Items]
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE	$ 140,691
Statement of Financial Position [Abstract]
Investments	514,332	$ 503,789
Fees receivable	52,074	51,869
Due from related parties	7,784	1,872
Total assets	1,124,361	1,294,946
Not Primary Beneficiary
Statement of Financial Position [Abstract]
Investments	190,735	191,378
Fees receivable	16,418	9,754
Due from related parties	1,901	778
Total assets	209,054	201,910
Less: Non-controlling interests	(1,534)	(1,873)
Maximum exposure to loss	$ 207,520	$ 200,037

Debt (Details)

Debt (Details) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Debt Instrument [Line Items]
Principal Outstanding	$ 200,000,000	$ 171,754,000
Carrying Value	199,126,000	171,326,000
Line of Credit
Debt Instrument [Line Items]
Credit facility, borrowing capacity	325,000,000
Line of Credit | Term Loan
Debt Instrument [Line Items]
Principal Outstanding	100,000,000	71,754,000
Carrying Value	$ 99,578,000	$ 71,574,000
Interest Rate	6.25%	2.25%
Credit facility, borrowing capacity	$ 100,000,000
Line of Credit | 2020 Multi-Draw Facility
Debt Instrument [Line Items]
Principal Outstanding	100,000,000	$ 100,000,000
Carrying Value	$ 99,548,000	$ 99,752,000
Interest Rate	3.50%	3.50%
Debt, fair value	$ 86,782,000

Equity - Shares of Common Stock

Equity - Shares of Common Stock Outstanding (Details)	9 Months Ended
	Dec. 31, 2022 shares
Class A Common Stock
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	37,280,697
Forfeitures (in shares)	(5,899)
Shares repurchased for employee tax withholdings (in shares)	(2,311)
Restricted stock granted (in shares)	569,442
Employee Share Purchase Plan share issuance (in shares)	26,762
Outstanding, end of period (in shares)	37,868,691
Class B Common Stock
Common Stock, Shares Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	16,033,359
Forfeitures (in shares)	(79,677)
Shares repurchased for employee tax withholdings (in shares)	0
Restricted stock granted (in shares)	0
Employee Share Purchase Plan share issuance (in shares)	0
Outstanding, end of period (in shares)	15,953,682

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Restricted Stock (Details) - $ / shares		9 Months Ended
	Sep. 16, 2022	Dec. 31, 2022
Restricted Stock
Total Unvested
Unvested at beginning of period (in shares)		281,307
Granted (in shares)		41,160
Vested (in shares)		(11,485)
Forfeited (in shares)		(5,899)
Unvested at end of period (in shares)		305,083
Weighted- Average Grant-Date Fair Value of Award
Unvested at beginning of period (in dollars per share)		$ 67.50
Granted (in dollars per share)		66.97
Vested (in dollars per share)		77.38
Forfeited (in dollars per share)		70.15
Unvested at end of period (in dollars per share)		$ 67
Performance Shares
Total Unvested
Unvested at beginning of period (in shares)		0
Granted (in shares)		528,282
Vested (in shares)		0
Forfeited (in shares)		0
Unvested at end of period (in shares)		528,282
Weighted- Average Grant-Date Fair Value of Award
Unvested at beginning of period (in dollars per share)		$ 0
Granted (in dollars per share)	$ 29.79	29.79
Vested (in dollars per share)		0
Forfeited (in dollars per share)		0
Unvested at end of period (in dollars per share)		$ 29.79

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Dec. 31, 2022	Sep. 16, 2022
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unrecognized compensation expense	$ 14,950
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unrecognized compensation expense	$ 14,815
Share price (in USD per share)		$ 69.67
Performance Shares | Senior Leadership
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite service period (in years)	5 years
Performance Shares | Senior Leadership | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share price (in USD per share)	$ 150
Performance Shares | Senior Leadership | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share price (in USD per share)	$ 230

Equity-Based Compensation - S_2

Equity-Based Compensation - Summary of the Grant Date Fair Value Based on the Monte Carlo simulation Valuation Model (Details) - Performance Shares - $ / shares		9 Months Ended
	Sep. 16, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in dollars per share)	$ 29.79	$ 29.79
Closing share price as of valuation date (in USD per share)	$ 69.67
Risk Free Rate	3.60%
Volatility	37%
Dividend Yield	2.30%

Compensation and Benefits - Sch

Compensation and Benefits - Schedule of Compensation and Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Compensation Related Costs [Abstract]
Base compensation and benefits	$ 35,473	$ 29,340	$ 116,549	$ 79,014
Incentive fee compensation	7,368	2,953	34,870	9,308
Equity-based compensation	2,835	1,711	6,816	5,706
Total compensation and benefits	$ 45,676	$ 34,004	$ 158,235	$ 94,028

Income Tax (Details)

Income Tax (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	35%	12.60%	22.20%	15.20%
Unrecognized tax positions	$ 0		$ 0

Earnings per Share - Narrative

Earnings per Share - Narrative (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2022 shares	Dec. 31, 2022 shares
Performance Shares
Class of Stock [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	528,282	528,282
Class B Common Stock
Class of Stock [Line Items]
Common stock, conversion ratio	1	1

Earnings per Share - Schedule o

Earnings per Share - Schedule of Earnings Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Net income attributable to Class A Stockholders
Net income attributable to HLI	$ 9,669	$ 51,849	$ 78,034	$ 132,161
Class A Common Stock
Net income attributable to Class A Stockholders
Net income attributable to HLI	9,669	51,849	78,034	132,161
Impact of changes in carrying amount of redeemable NCI	2,095	1,308	3,809	358
Basic EPS of Class A common stock	11,764	53,157	81,843	132,519
Assumed vesting of employee awards	5	66	34	156
Assumed conversion of Class B and Class C Units	5,058	21,946	35,968	60,083
Diluted EPS of Class A common stock	$ 16,827	$ 75,169	$ 117,845	$ 192,758
Weighted-Average Shares
Weighted-average basic EPS of Class A common stock (in shares)	37,025,416	36,902,741	37,004,657	36,375,797
Weighted-average assumed vesting of employee awards (in shares)	68,129	165,569	53,030	138,902
Weighted-average assumed conversion of Class B and Class C units (in shares)	16,675,834	16,675,834	16,675,834	17,192,702
Weighted-average diluted EPS of Class A common stock (in shares)	53,769,379	53,744,144	53,733,521	53,707,401
Per share amount
Basic EPS of Class A common stock (in dollars per share)	$ 0.32	$ 1.44	$ 2.21	$ 3.64
Diluted EPS of Class A common stock (in dollars per share)	$ 0.31	$ 1.40	$ 2.19	$ 3.59

Related-Party Transactions - Na

Related-Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Related Party Transaction [Line Items]
Revenues	$ 127,074	$ 91,704	$ 415,965	$ 267,019
Fees receivable	52,074		52,074		$ 51,869
General Partnerships
Related Party Transaction [Line Items]
Fees receivable	35,263		35,263		$ 27,728
Management and advisory fees
Related Party Transaction [Line Items]
Revenues	97,355	79,836	276,182	229,653
Management and advisory fees | General Partnerships
Related Party Transaction [Line Items]
Revenues	70,929	53,701	198,973	150,955
Incentive fees
Related Party Transaction [Line Items]
Revenues	29,719	11,868	139,783	37,366
Incentive fees | General Partnerships
Related Party Transaction [Line Items]
Revenues	$ 28,652	$ 10,335	$ 137,545	$ 34,669

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Supplemental Cash Flow Information [Abstract]
Establishment of lease liability in exchange for right of use asset	$ 5,401	$ 7,950
Establishment of receivable for intangible assets sold	6,776	0
Non-cash financing activities:
Dividends Payable	14,810	12,916	$ 12,947
Member Distribution Declared	19,161	11,769
Establishment of net deferred tax assets related to offerings	$ 0	$ 19,783

Commitments and Contingencies -

Commitments and Contingencies - Incentive Fees (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Carried interest still subject to contingencies	$ 952,188	$ 1,191,066
Incentive fees, unrecorded estimate	$ 238,047	$ 297,766

Commitments and Contingencies_2

Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Other commitment	$ 212,895		$ 186,164
Loss Contingencies [Line Items]
Other commitment	212,895		$ 186,164
Net gain (loss)	18,578	$ 47,774
Valued Under Measurement Alternative
Loss Contingencies [Line Items]
Net gain (loss)	$ 29,004
Maximum
Loss Contingencies [Line Items]
Accrued discretionary bonus	15%

Commitments and Contingencies_3

Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Operating lease costs	$ 2,095	$ 2,011	$ 6,199	$ 7,610
Variable lease costs	395	416	1,067	980
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,997	$ 1,657	$ 5,858	$ 4,794
Weighted average remaining lease term (in years)	14 years	14 years 8 months 12 days	14 years	14 years 8 months 12 days
Weighted average discount rate	3.30%	3.20%	3.30%	3.20%

Commitments and Contingencies_4

Commitments and Contingencies - Operating Lease Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Remainder of FY2023	$ 2,092
FY2024	7,645
FY2025	7,233
FY2026	6,623
FY2027	6,623
Thereafter	70,210
Total lease payments	100,426
Less: imputed interest	(20,877)
Total operating lease liabilities	$ 79,549	$ 82,244

Subsequent Events (Details)

Subsequent Events (Details) - Class A Common Stock - $ / shares		3 Months Ended		9 Months Ended
	Feb. 07, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Dividends declared per share of Class A common stock (in dollars per share)		$ 0.40	$ 0.35	$ 1.20	$ 1.05
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of Class A common stock (in dollars per share)	$ 0.40