
	March 31,
	2020		2019
Equity method investments in Partnerships	$	166,106	$	122,505
Equity method investments in Partnerships held by consolidated VIEs (See Note 5)	9,988		11,648
Other equity method investments	1,168		1,086
Other investments	13,394		12,488
Investments valued under the measurement alternative	17,091		6,764
Total Investments	$	207,747	$	154,491

The Company’s equity method investments in Partnerships represent its ownership in certain specialized funds and customized separate accounts. The strategies and geographic location of investments within the Partnerships vary by fund. The Company has a 1% interest in substantially all of the Partnerships. The Company’s other equity method investments represent its ownership in a technology company that provides benchmarking and analytics of private equity data and its ownership in a joint venture that automates the collection of fund and underlying portfolio company data from general partners. The Company recognized equity method income related to its investments in Partnerships and other equity method investments of $20,250, $7,202, and $17,102 for the years ended March 31, 2020, 2019, and 2018, respectively.


	March 31,
	2020		2019
Primary funds	$	37,317	$	22,791
Secondary funds	19,872		15,762
Direct/co-investment funds	50,288		35,902
Customized separate accounts	58,629		48,050
Total equity method investments in Partnerships	$	166,106	$	122,505

The Company evaluates each of its equity method investments to determine if any were significant pursuant to the requirements of Regulation S-X. As of and for the years ended March 31, 2020 and 2019, no individual equity method investment held by the Company met the significance criteria, and, as a result, the Company is not required to present separate financial statements for any of its equity method investments.


	March 31,
	2020		2019
Assets
Investments	$	17,577,766	$	13,473,255
Other assets	415,221		349,425
Total assets	$	17,992,987	$	13,822,680
Liabilities and Partners’ Capital
Debt	$	61,114	$	84,530
Other liabilities	107,600		57,772
Total liabilities	168,714		142,302
Partners’ capital	17,824,273		13,680,378
Total liabilities and partners’ capital	$	17,992,987	$	13,822,680

	Year Ended March 31,
	2020		2019		2018
Investment income	$	300,121	$	211,797	$	233,255
Expenses	185,769		149,598		130,771
Net investment income (loss)	114,352		62,199		102,484
Net realized and unrealized gain	1,830,599		618,047		1,647,977
Net income	$	1,944,951	$	680,246	$	1,750,461

The Company’s other investments represent investments in private equity funds and direct credit and equity co-investments. The private equity fund investments can only be redeemed through distributions received from the liquidation of underlying investments of the fund, and the timing of distributions is currently indeterminable. The direct credit co-investments are debt securities classified as trading securities. The Company’s other investments are measured at fair value with unrealized holding gains and losses included in earnings. The Company’s other investments are recorded at estimated fair value utilizing significant unobservable inputs and are, therefore, classified in Level 3 of the fair value hierarchy.


	Private equity funds		Direct credit co-investments		Direct equity co-investments		Total other investments
Balance as of March 31, 2018	$	—	$	—	$	—	$	—
Contributions	3,105		3,864		4,814		11,783
Distributions	—		—		—		—
Net gain	629		76		—		705
Balance as of March 31, 2019	$	3,734	$	3,940	$	4,814	$	12,488
Contributions	2,526		—		1,875		4,401
Distributions	(777)		(1,970)		—		(2,747)
Net gain (loss)	303		(214)		(837)		(748)
Balance as of March 31, 2020	$	5,786	$	1,756	$	5,852	$	13,394

The valuation methodologies, significant unobservable inputs, range of inputs and the weighted average input determined based upon relative fair value of the investments used in recurring Level 3 fair value measurements of assets were as follows, as of March 31, 2020:

Significant

Fair

Valuation

Unobservable

Weighted

Value

Methodology

Inputs

Range

Average

Private equity funds

5,786

Adjusted net asset value

Selected market return

(7.4)%

(3)%

(6.2)%

Direct credit co-investments

1,756

Discounted cash flow

Market yield

11.5%

12.6%

12.5%

Direct equity co-investments

5,852

Market approach

EBITDA multiple

7.25x

12x

9.93x

Market approach

Equity multiple

1.05x

As of March 31, 2019, private equity funds were recorded at estimated fair value based upon the net asset value of the Company’s ownership interest in the underlying fund utilizing the practical expedient under ASC 820, “Fair Value Measurement.” The direct credit and equity co-investments were recorded at recent precedent transactions.

For the significant unobservable inputs listed in the table above, (1) a significant increase or decrease in the selected market return would result in a significantly higher or lower fair value measurement, respectively; (2) a significant increase or decrease in the market yield would result in a significantly lower or higher fair value measurement, respectively; and (3) a significant increase or decrease in the selected multiple would result in a significantly higher or lower fair value measurement, respectively.

During the year ended March 31, 2020, the Company transferred these investments for an agreed amount of cash of $15,750 to a Partnership that is a VIE of which the Company is the general partner but does not consolidate as the Company is not the primary beneficiary. Due to continuing involvement with these assets at the Partnership, the Company accounted for this transfer as a secured financing as it has not met the criteria in ASC 860, “Transfers and Servicing”, to qualify as a sale and, therefore, has recorded a financial liability for the secured financing which is included in other liabilities in the

Consolidated Balance Sheets. The cash received was recorded as secured financing in financing activities in the Consolidated Statements of Cash Flows. As of March 31, 2020, all other investments were pledged as collateral on the Company’s secured financing.

The Company accounts for this financial liability at fair value under the fair value option. The primary reason for electing the fair value option is to mitigate volatility in earnings from using different measurement attributes. The significant input to the fair value of the secured financing is the fair value of the other investments delivered as collateral. As of March 31, 2020, the secured financing had a fair value of $13,394 and an amortized cost of $12,894. The fair value of the secured financing is estimated using Level 3 inputs with the significant input being the fair value of the other investments utilized as collateral as shown above.

The Company recognized a loss of $748 and a gain of $705 on other investments during the years ended March 31, 2020 and 2019, respectively. The Company recognized a gain of $43 on the secured financing liability during the year ended March 31, 2020. Gains and losses related to other investments and the secured financing liability are recorded in non-operating income in the Consolidated Statements of Income.

The Company’s investments valued under the measurement alternative include equity securities in other proprietary investments for which the Company does not have significant influence and fair value is not readily determinable. ASU 2016-01 requires equity securities to be recorded at cost and adjusted to fair value at each reporting period. However, the guidance allows for a measurement alternative, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer.

During the year ended March 31, 2020, the Company made equity investments in two private companies. The Company invested approximately $2,000 in a technology company that has developed software to automate manual data entry tasks associated with alternative investment reporting. The Company invested approximately $10,000 in a technology company which has developed a platform for investing in alternative assets. Due to the lack of readily determinable fair values for these investments, for which the Company does not have significant influence, the Company will hold both of these investments under the measurement alternative at cost less impairment.

On January 31, 2020, an observable price transaction occurred for one of the Company’s investments valued under the measurement alternative. The Company recorded a fair value adjustment of $1,507, which is recorded in non-operating income in the Consolidated Statements of Income for the year ended March 31, 2020.

On July 1, 2019, an acquisition of an entity in which the Company held an investment with a carrying value of $1,446 was completed. The Company received cash proceeds of $6,419 and recorded a gain of approximately $4,973 in connection with the transaction, which was recorded in non-operating income in the Consolidated Statements of Income for the year ended March 31, 2020.

The Company performs qualitative impairment assessments on its investments recorded under the measurement alternative. As of March 31, 2019, the Company determined that a quantitative assessment was required to be performed for one of its technology investments. The assessment indicated that the fair value was less than the carrying value at March 31, 2019. Prior to the impairment recorded, the carrying

value of the investment was $2,990. The impairment amount was $701 and is included in non-operating income. The fair value was determined using both a discounted cash flow approach and a market approach based on guideline public companies, and is a Level 3 fair value measurement as financial projections were utilized.

On August 2, 2018, an acquisition of an entity in which the Company held an investment with a carrying amount of $10,798 was completed. The Company received cash proceeds of $17,724 and recorded a gain of $6,926 in connection with the transaction, which was recorded in non-operating income for the year ended March 31, 2019.

On August 11, 2018, an acquisition of an entity in which the Company held an investment with a carrying amount of $600 was completed. The Company received cash proceeds of $4,807 and recorded a gain of $4,207 in connection with the transaction, which was recorded in non-operating income for the year ended March 31, 2019.