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Stockholders' Equity and Redeemable Interests | 12 Months Ended
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Mar. 31, 2024
Equity [Abstract] |
Stockholders' Equity and Redeemable Interests | Stockholders’ Equity and Redeemable Interests Stockholders’ Equity The Company has two classes of common stock outstanding, Class A common stock and Class B common stock. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval. Holders of Class A common stock are entitled to receive dividends when and if declared by the board of directors. Holders of the Class B common stock are not entitled to dividends in respect of their shares of Class B common stock. In connection with the Greenspring Acquisition, the limited partnership agreement of the Partnership was amended to create new Class C limited partnership interests and to admit the new limited partners that received Class C units as consideration for the Greenspring acquisition. The Class C limited partnership interests of the Partnership have substantially the same rights and obligations as are applicable to the existing holders of Class B units of the Partnership. The Company has no ownership interest in the Class C units, which are held by certain employees of the Company. The Company also entered into an agreement with the Class C limited partners of the Partnership (the “Class C Exchange Agreement”) to allow for the exchange of Class C units to shares of Class A common stock of the Company on a one-for-one basis, subject to certain restrictions. The following table shows a rollforward of the Company’s shares of common stock outstanding since March 31, 2023:
| Class A Common Stock |  | Class B Common Stock
March 31, 2023 | 62,834,791 |  |  | 46,420,141 |
Class A common stock issued in exchange for Class B Partnership units | 1,389,182 |  |  | (1,389,182) |
Class A common stock issued in exchange for Class C Partnership units | 661,873 |  |  | — |
Class A common stock issued for vesting of RSUs, net of shares withheld for employee taxes | 729,056 |  |  | — |
March 31, 2024 | 65,614,902 |  |  | 45,030,959 |
The Company has 25,000,000 authorized shares of preferred stock, par value of $0.001 per share, and as of March 31, 2024, no shares of preferred stock were issued or outstanding. The Company records a reallocation adjustment between SSG stockholders’ equity, non-controlling interests in the Partnership and non-controlling interests in subsidiaries to reflect the impact of changes in economic ownership percentages during the period and adjust previously recorded equity transactions to the economic ownership percentage as of the end of each reporting period. In March 2024, the Company issued 1,283,584 shares of Class A common stock to certain limited partners of the Partnership in exchange for 1,283,584 Class B units in accordance with the elective exchange notices submitted pursuant to an agreement with the Class B limited partners (the “Class B Exchange Agreement”) to allow for exchange of Class B units of the Partnership to shares of Class A common stock of the Company on a one-for-one basis, subject to certain restrictions. A corresponding number of shares of Class B common stock were automatically redeemed at par value and canceled in connection with such exchange and a corresponding number of Class A units of the Partnership were issued to the Company. On the same date, the Company also issued 109,919 shares of Class A common stock to certain limited partners of the Partnership in exchange for 109,919 Class C units in accordance with the elective exchange notices submitted pursuant to the Class C Exchange Agreement and a corresponding number of Class A units of the Partnership were issued to the Company. In September 2023, the Company issued 105,598 shares of Class A common stock to certain limited partners of the Partnership in exchange for 105,598 Class B units in accordance with the elective exchange notices submitted pursuant to the Class B Exchange Agreement. A corresponding number of shares of Class B common stock were automatically redeemed at par value and canceled in connection with such exchange and a corresponding number of Class A units of the Partnership were issued to the Company. On the same date, the Company also issued 551,954 shares of Class A common stock to certain limited partners of the Partnership in exchange for 551,954 Class C units in accordance with the elective exchange notices submitted pursuant to the Class C Exchange Agreement and a corresponding number of Class A units of the Partnership were issued to the Company. On February 7, 2024, SSG (or its subsidiary, in the case of the agreement with SPD) entered into agreements (the “Transaction Agreements”) with SRA, SRE and SPD (the “Asset Class Entities”), their respective asset class heads as seller representatives, and the seller parties signatory thereto. The Transaction Agreements provide a path to the Company owning all of the outstanding equity interests of the Asset Class Entities over a defined period of time. The Transaction Agreements provide for, among other things and subject to the terms and conditions therein, the exchange of the sellers’ equity interests in the Asset Class Entities, as applicable, for a combination of (i) newly-created Class D equity interests in the Partnership with terms substantially similar to the Partnership’s existing Class C Units, in the case of SRE and SRA, or shares of the Company’s Class A common stock, in the case of SPD and (ii) cash (at the discretion of the Company for all exchanges except the initial exchange), in up to ten annual exchanges (increased to up to fifteen annual exchanges in certain circumstances in case of the sellers of SRA equity interests). The Transaction Agreements allow for issuance of up to 75 million shares as consideration for settlement of the transaction. The portion of the equity interests to be acquired in each annual exchange is set forth in an exchange schedule attached to each Transaction Agreement and is approximately 5% of each Asset Class Entity on each contemplated annual exchange date. The amount of consideration to be delivered will be calculated using exchange ratios determined each year based on a formula establishing an assumed value of each Asset Class Entity based on its estimated adjusted net income, relative to an adjusted trading multiple for the Company’s Class A common stock relative to the Company’s estimated adjusted net income. The Transaction Agreement specifies a minimum adjusted trading multiple for the exchange to take place, in which case if not met the exchange would be skipped and combined in a subsequent year if and when the minimum adjusted trading multiple was met. Therefore, the non-controlling interests subject to the Transaction Agreements are not mandatorily redeemable as of March 31, 2024. Pursuant to each Transaction Agreement, and subject to receipt of required regulatory and other approvals, the consideration for the first exchange will be calculated using a reference date of April 1, 2024 (the “Initial Reference Date”) and the first exchange will be consummated promptly following the Initial Reference Date upon the satisfaction or waiver of the conditions set forth in such Transaction Agreement applicable to the first exchange, including publication of the Company’s audited financial statements for the fiscal year ending March 31, 2024. The Transaction Agreements also provide for up to nine subsequent annual exchanges (or up to 14 subsequent exchanges in certain circumstances in the case of SRA), in each case with a calculation reference date of April 1 and consummation promptly following satisfaction or waiver of the conditions set forth in such Transaction Agreement, including delivery of audited financial statements of the Company. Each Transaction Agreement provides that beginning after the fifth annual exchange, future exchanges may be accelerated into one final exchange in certain circumstances. On the effective date of the Transaction Agreements, the Company reclassified the carrying value of the non-controlling interests in the Asset Class Entities from permanent equity to redeemable equity and remeasured the non-controlling interests at their redemption value as potential cash settlement could not be attributable to any individual non-controlling interest unit and the Company determined that redemption of the equity instruments was probable. After the notification period 10-days prior to the Initial Reference Date, the individual units subject to the first exchange became irrevocable and the Company separated the carrying value for all of the equity instruments related to the subsequent exchanges to occur after the initial exchange and reclassified these interests into permanent equity at their then carrying value given that settlement of subsequent exchanges is within the Company’s control. The Company accounts for adjustments to the redemption value of a redeemable equity instrument that is currently redeemable by adjusting the carrying value of the equity instrument to the maximum redemption value at each reporting period based on conditions that exist as of the reporting date. If the redeemable equity instrument is probable of becoming redeemable in the near future, the carrying value of a redeemable equity instrument is adjusted to the redemption value immediately as changes occur based on conditions that exist at that date or at each reporting date. For redeemable equity instruments either not redeemable or probable of becoming redeemable in the near future, no adjustment to the carrying value is made until it is probable that the equity instrument will become redeemable. The Company recognizes adjustments to the carrying value of redeemable equity instruments with charges against retained earnings, or to additional paid-in-capital in the absence of retained earnings. As of March 31, 2024, the Company determined that redemption of the redeemable non-controlling interests in subsidiaries was probable and presented the carrying value at the redemption amount based on the conditions that existed as of that date of $115.9 million in the consolidated balance sheets within redeemable non-controlling interests in subsidiaries Dividends and Distributions Dividends and distributions are reflected in the consolidated statements of stockholders’ equity when declared by the board of directors. Dividends are made to Class A common stockholders and distributions are made to limited partners of the Partnership and holders of non-controlling interests in subsidiaries. The following table presents information regarding quarterly dividends on Class A common shares for the periods indicated:
Quarterly Fiscal Period 1 |  | Dividend Payment Date |  | Dividend Per Share of Class A Common Stock
First quarter |  | July 15, 2021 |  | $ | 0.07 |
Second quarter |  | September 15, 2021 |  | 0.07 |
Third quarter |  | December 15, 2021 |  | 0.15 |
Fourth quarter |  | March 15, 2022 |  | 0.15 |
Total dividends paid in FY2022 |  |  |  | $ | 0.44 |
First quarter |  | June 30, 2022 |  | $ | 0.20 |
Second quarter |  | September 15, 2022 |  | 0.20 |
Third quarter |  | December 15, 2022 |  | 0.20 |
Fourth quarter |  | March 15, 2023 |  | 0.20 |
Total dividends paid in FY2023 |  |  |  | $ | 0.80 |
First quarter |  | June 30, 2023 |  | $ | 0.20 |
Supplemental 2 |  | June 30, 2023 |  | 0.25 |
Second quarter |  | September 15, 2023 |  | 0.21 |
Third quarter |  | December 15, 2023 |  | 0.21 |
Fourth quarter |  | March 15, 2024 |  | 0.21 |
Total dividends paid in FY2024 |  |  |  | $ | 1.08 |
_______________________________ (1)Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned. (2)The supplemental cash dividend relates to earnings in respect of our full fiscal year 2023. Redeemable Non-Controlling Interests The following table summarizes the activities associated with the redeemable non-controlling interests in Consolidated Funds:
| Year Ended March 31,
| 2024 |  | 2023
Beginning balance | $ | 24,530 |  |  | $ | — |
Contributions | 62,255 |  |  | 22,754 |
Net income | 15,838 |  |  | 1,776 |
Ending balance | $ | 102,623 |  |  | $ | 24,530 |
The following table summarizes the activities associated with the redeemable non-controlling interests in subsidiaries:
| Year Ended March 31,
| 2024 |  | 2023
Beginning balance | $ | — |  |  | $ | — |
Reclassification from permanent equity at redemption value | 1,086,492 |  |  | — |
Net income | 5,782 |  |  | — |
Reclassification to permanent equity | (976,354) |  |  | — |
Ending balance | $ | 115,920 |  |  | $ | — |

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