Investments

9 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

4. Investments

Investments consist of the following:


	December 31,		March 31,
	2023		2023
Equity method investments in Partnerships	$	391,884	$	340,603
Other equity method investments	1,795		—
Fair value investments	18,570		21,586
Investments valued under the measurement alternative	175,522		168,732
Total Investments	$	587,771	$	530,921

Investments of consolidated variable interest entities (“VIEs”) consist of the following:


	December 31,		March 31,
	2023		2023
Equity method investments in Partnerships	$	15,855	$	12,292
Fair value investments	—		44,752
Total Investments of Consolidated VIEs	$	15,855	$	57,044

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, representing a general partner interest. The Company’s other equity method investments represent its ownership in a technology company to develop an AI-powered investment assistant for private markets.

Fair value investments

The Company’s fair value investments represent a publicly traded security and investments in private equity funds, 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 amortized cost of the assets held as collateral was $6,430 and $7,429 as of December 31, 2023 and March 31, 2023, respectively. The direct credit investments were debt securities classified as trading securities. Fair value investments are measured at fair value with unrealized gains and losses recorded in non-operating loss 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 fair value 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 of $637 and a loss of $230 on fair value investments held as collateral during the three and nine months ended December 31, 2023, respectively, and a gain of $821 and $915 during the three and nine months ended December 31, 2022, respectively, that are recorded in non-operating (loss) income. The Company recognized a gain of $637 and a loss of $230 on the secured financing liability during the three and nine months ended December 31, 2023, respectively, and a loss of $821 and $915 during the three and nine months ended December 31, 2022, respectively, that are recorded in non-operating (loss) income in the Condensed Consolidated Statements of Income.

Investments valued under the measurement alternative


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Carrying amount beginning of the period	$	175,522	$	190,023	$	168,732	$	156,100
Adjustments related to equity investments:
Purchases	—		7,440		6,312		34,676
Sales / return of capital	—		—		(177)		—
Net unrealized gain (loss)1	—		(31,631)		1,177		(24,944)
Net realized loss	—		—		(522)		—

Carrying amount, end of period	$	175,522	$	165,832	$	175,522	$	165,832

(1) Net unrealized gain (loss) consists of fair value adjustments for observable price changes of identical or similar investments.

The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses related to the Company’s investments under the measurement alternative:


	December 31,		March 31,
	2023		2023
Cumulative gross unrealized gains	$	70,235	$	69,058
Cumulative gross unrealized losses	$	(43,289)	$	(43,289)