
	March 31,
	2021		2020
Equity method investments in Partnerships	$	240,337	$	166,106
Equity method investments in Partnerships held by consolidated VIEs (See Note 5)	4,787		9,988
Other equity method investments	1,297		1,168
Other investments	17,381		13,394
Investments valued under the measurement alternative	109,821		17,091
Investment held in trust	276,003		—
Total Investments	$	649,626	$	207,747

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 $32,389, $20,731, and $7,457 for the years ended March 31, 2021, 2020, and 2019, respectively.

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, 2021 and 2020, 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,
	2021		2020
Assets
Investments	$	22,445,159	$	17,577,766
Other assets	610,672		415,221
Total assets	$	23,055,831	$	17,992,987
Liabilities and Partners’ Capital
Debt	$	11,838	$	61,114
Other liabilities	116,593		107,600
Total liabilities	128,431		168,714
Partners’ capital	22,927,400		17,824,273
Total liabilities and partners’ capital	$	23,055,831	$	17,992,987

	Year Ended March 31,
	2021		2020		2019
Investment income	$	389,571	$	300,121	$	211,797
Expenses	201,791		185,769		149,598
Net investment income	187,780		114,352		62,199
Net realized and unrealized gain	3,232,126		1,830,599		618,047
Net income	$	3,419,906	$	1,944,951	$	680,246

The Company’s other investments represent investments in private equity funds and direct credit and equity co-investments. The private equity fund investments can only be redeemed through distributions received from the liquidation of underlying investments of the fund, and the timing of distributions is currently indeterminable. The direct credit co-investments are debt securities classified as trading securities. The direct equity co-investments and private equity funds are measured at fair value with unrealized holding gains and losses included in earnings. During the year ended March 31, 2021, one of the Company’s direct equity co-investments held through a special purpose vehicle was transferred out of Level 3 and into Level 2 as the lockup restrictions from its initial public offering expired. The special purpose vehicle now predominately attributes its fair value to a publicly traded share price and is therefore classified as Level 2 in the hierarchy. As of March 31, 2021, the fair value of the Company’s investment in the special purpose vehicle was $4,083. The Company’s remaining 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, 2019	$	3,734	$	3,940	$	4,814	$	12,488
Contributions	2,526		—		1,875		4,401
Distributions	(777)		(1,970)		—		(2,747)
Net gain	303		(214)		(837)		(748)
Balance as of March 31, 2020	$	5,786	$	1,756	$	5,852	$	13,394
Contributions	246		—		—		246
Distributions	(1,566)		(1,025)		(949)		(3,540)
Net gain (loss)	1,788		254		5,427		7,469
Transfer out of Level 3	—		—		(4,271)		(4,271)
Balance as of March 31, 2021	$	6,254	$	985	$	6,059	$	13,298

March 31, 2021

Significant

Fair

Valuation

Unobservable

Weighted

Value

Methodology

Inputs

Range

Average

Private equity funds

6,254

Adjusted net asset value

Selected market return

12.4%

4.2%

Direct credit co-investments

985

Discounted cash flow

Market yield

9.3%

Direct equity co-investments

6,059

Market approach

EBITDA multiple

7.75x

14.75x

10.42x

Market approach

Equity multiple

1.52x

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

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.

In May 2019, 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, 2021, 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, 2021, the secured financing had a fair value of $17,381 and an amortized cost of $9,902. The fair value of the secured financing is estimated using Level 3 inputs with the significant input being the fair value of the other investments utilized as collateral as shown above.

The Company recognized a gain (loss) of $7,281, $(748), and $705 on other investments during the years ended March 31, 2021, 2020, and 2019 respectively and recognized a (loss) gain of $(7,281) and $43 on the secured financing liability during the years ended March 31, 2021 and 2020, respectively. 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.

In March 2021, the Company invested approximately $90,000 in Russell Investments Group, Ltd., a leading outsourced CIO (OCIO) provider and global investment solutions firm. Due to the lack of readily determinable fair values for the investment and the Company’s lack of significant influence, the Company will value the investment under the measurement alternative. Additionally, in March 2021, the Company received a distribution of $3,072 from Russell Investments Group, Ltd., which was recorded as a return of capital and decreased the carrying value of the investment.

In December 2020, there was an observable price change for an investment held by the Company and valued under the measurement alternative. As a result of the transaction, the Company marked that investment to fair value based upon the transaction price, which resulted in an unrealized gain of $6,229 that was recorded in non-operating income in the Consolidated Statements of Income for the year ended March 31, 2021.

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 value the investments under the measurement alternative.

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 for the year ended March 31, 2019. 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.