Investments

9 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments consist of the following:


	December 31,		March 31,
	2021		2021
Equity method investments in Partnerships	$	303,149	$	240,337
Other equity method investments	1,502		1,297
Other investments	22,767		17,381
Investments valued under the measurement alternative	155,902		109,821
Total Investments	$	483,320	$	368,836

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. The Company’s other equity method investment represents its ownership in a joint venture that automates the collection of fund and underlying portfolio company data from general partners. The Company recognized an equity method income related to its investments in Partnerships and other equity method investments of $12,924 and $60,181 for the three and nine months ended December 31, 2021, respectively, and $12,138 and $10,938 for the three and nine months ended December 31, 2020, respectively.

Other investments

The Company’s other investments represent a publicly traded security and investments in private equity funds and direct credit and equity co-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 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.

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 below.

The Company recognized a gain on other investments held as collateral of $2,288 and $3,239 during the three and nine months ended December 31, 2021, respectively, and $1,276 and $5,999 during the three and nine months ended December 31, 2020, respectively, that are recorded in non-operating income. The Company recognized a loss on the secured financing liability of $2,288 and $3,239 during the three and nine months ended December 31, 2021, respectively, and $1,276 and $5,999 during the three and nine months ended December 31, 2020, respectively, that are recorded in non-operating income in the Condensed Consolidated Statement of Income.

Investments valued under the measurement alternative

During the nine months ended December 31, 2021, an investment held by the Company launched an initial public offering (“IPO”) and began trading on a public exchange. As part of the IPO, the Company agreed to a lockup restriction on selling or transferring the security for a period of 180 days. As the investment has a readily determinable fair value at the end of each reporting period, it no longer qualifies to be recorded under the measurement alternative. The investment is recorded at fair value with changes in value recorded to net income. As the lockup restriction expired during the quarter ended December 31, 2021, the Company transferred the investment from Level 3 to Level 1 at December 31, 2021.

During the nine months ended December 31, 2021, there were observable price changes in two investments held by the Company. As a result of the transactions, the Company marked the investments to fair value based upon the transaction prices, which resulted in total unrealized gains of $19,768 and $44,484 during the three and nine months ended December 31, 2021, respectively, that are recorded in non-operating income in the Condensed Consolidated Statement of Income.

During the quarter ended December 31, 2021, the Company made investments in two private companies. The Company invested $13,500 in a company maintaining a platform of solutions designed to aid individual investors and various wealth management platforms with their wealth management needs. Additionally, the Company invested $4,500 in a company that provides environmental, social and governance (“ESG”) reporting metrics and analysis to private market firms and private companies. 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, 2021, an entity in which the Company held an investment with a total carrying amount of $687 was sold to a third party. The Company received cash proceeds of $12,623 and recorded a gain of $11,936 in connection with the transaction during the three months ended December 31, 2021 that is recorded in non-operating income in the Condensed Consolidated Statement of Income.