Fair Value Measurement

9 Months Ended

Dec. 31, 2021

The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level:


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total		Amortized Cost
Financial assets:
Other investments	$	6,290	$	—	$	16,477	$	22,767	$	11,369
Investments held in trust	276,009		—		—		276,009		276,000
Total financial assets	$	282,299	$	—	$	16,477	$	298,776	$	287,369
Financial liabilities:
Warrant liability(1)	$	5,429	$	873	$	—	$	6,302
Secured financing(2)	—		—		16,477		16,477
Total financial liabilities	$	5,429	$	873	$	16,477	$	22,779


	As of March 31, 2021
	Level 1		Level 2		Level 3		Total		Amortized Cost
Financial assets:
Other investments	$	—	$	4,083	$	13,298	$	17,381	$	9,902
Investments held in trust	276,003		—		—		276,003		276,000
Total financial assets	$	276,003	$	4,083	$	13,298	$	293,384	$	285,902
Financial liabilities:
Warrant liability(1)	$	6,348	$	1,020	$	—	$	7,368
Secured financing(2)	—		4,083		13,298		17,381
Total financial liabilities	$	6,348	$	5,103	$	13,298	$	24,749

(1) Warrant liability is recorded within other liabilities of consolidated variable interests in the Condensed Consolidated Balance Sheet.

(2) Secured financing is recorded within other liabilities in the Condensed Consolidated Balance Sheet.

The following is a reconciliation of other investments for which significant unobservable inputs (Level 3) were used in determining fair value:


	Private equity funds		Direct credit co-investments		Direct equity co-investments		Publicly traded equity security		Total other investments
Balance as of September 30, 2021	$	7,159	$	783	$	6,068	$	6,122	$	20,132
Contributions	204		—		—		—		204
Distributions	(25)		—		—		—		(25)
Net gain (loss)	1,464		(1)		825		168		2,456
Transfer out	—		—		—		(6,290)		(6,290)
Balance as of December 31, 2021	$	8,802	$	782	$	6,893	$	—	$	16,477

Balance as of March 31, 2021	$	6,254	$	985	$	6,059	$	—	$	13,298
Contributions	293		—		28		—		321
Distributions	(179)		(202)		—		—		(381)
Net gain (loss)	2,434		(1)		806		(165)		3,074
Transfer in	—		—		—		6,455		6,455
Transfer out	—		—		—		$	(6,290)	(6,290)
Balance as of December 31, 2021	$	8,802	$	782	$	6,893	$	—	$	16,477


	Private equity funds		Direct credit co-investments		Direct equity co-investments		Total other investments
Balance as of September 30, 2020	$	6,208	$	1,889	$	9,606	$	17,703
Contributions	218		—		—		218
Distributions	(896)		—		(139)		(1,035)
Net gain (loss)	252		6		1,018		1,276
Transfer out	—		—		(4,271)		(4,271)
Balance as of December 31, 2020	$	5,782	$	1,895	$	6,214	$	13,891

Balance as of March 31, 2020	$	5,786	$	1,756	$	5,852	$	13,394
Contributions	246		—		—		246
Distributions	(1,264)		(74)		(139)		(1,477)
Net gain	1,014		213		4,772		5,999
Transfer out	—		—		(4,271)		(4,271)
Balance as of December 31, 2020	$	5,782	$	1,895	$	6,214	$	13,891

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 financial assets were as follows, as of December 31, 2021:

Significant

Fair

Valuation

Unobservable

Weighted

Value

Methodology

Inputs

Range

Average

Other investments:

Private equity funds

8,802

Adjusted net asset value

Selected market return

4.7%

6.1%

5.9%

Direct credit co-investments

782

Discounted cash flow

Market yield

10.0%

Direct equity co-investments

6,893

Market approach

EBITDA multiple

8.00x

15.25x

11.40x

Market approach

Equity multiple

1.62x

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details