Fair Value Measurement

6 Months Ended

Sep. 30, 2022

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


	As of September 30, 2022
	Level 1		Level 2		Level 3		Total		Amortized Cost
Financial assets:
Other investments	$	4,668	$	—	$	13,080	$	17,748	$	10,673
Investments held in trust	276,592		—		—		276,592		276,000

Total financial assets	$	281,260	$	—	$	13,080	$	294,340	$	286,673

Financial liabilities:
Warrant liability(1)	$	549	$	88	$	—	$	637
Secured financing(2)	—		—		13,080		13,080
Total financial liabilities	$	549	$	88	$	13,080	$	13,717

	As of March 31, 2022
	Level 1		Level 2		Level 3		Total		Amortized Cost
Financial assets:
Other investments	$	6,002	$	—	$	13,818	$	19,820	$	10,853
Investments held in trust	276,016		—		—		276,016		276,000
Total financial assets	$	282,018	$	—	$	13,818	$	295,836	$	286,853

Financial liabilities:
Warrant liability(1)	$	2,484	$	399	$	—	$	2,883
Secured financing(2)	—		—		13,818		13,818
Total financial liabilities	$	2,484	$	399	$	13,818	$	16,701

(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 investments		Direct equity investments		Total other investments
Balance as of June 30, 2022	$	6,404	$	773	$	5,754	$	12,931
Contributions	22		—		—		22
Distributions	(690)		—		—		(690)
Net gain (loss)	516		(5)		306		817

Balance as of September 30, 2022	$	6,252	$	768	$	6,060	$	13,080


	Private equity funds		Direct credit investments		Direct equity investments		Total other investments
Balance as of March 31, 2022	$	7,024	$	774	$	6,020	$	13,818
Contributions	22		—		—		22
Distributions	(854)		—		—		(854)
Net gain (loss)	60		(6)		40		94


Balance as of September 30, 2022	$	6,252	$	768	$	6,060	$	13,080


	Private equity funds		Direct credit investments		Direct equity investments		Publicly traded equity security		Total other investments
Balance as of June 30, 2021	$	6,766	$	795	$	6,312	$	6,455	$	20,328
Contributions	10		—		—		—		10
Distributions	(59)		—		—		—		(59)
Net gain (loss)	442		(12)		(244)		(333)		(147)

Balance as of September 30, 2021	$	7,159	$	783	$	6,068	$	6,122	$	20,132

Balance as of March 31, 2021	$	6,254	$	985	$	6,059	$	—	$	13,298
Contributions	40		—		28		—		68
Distributions	(154)		(202)		—		—		(356)
Net gain (loss)	1,019		—		(19)		(333)		667
Transfer in	—		—		—		6,455		6,455
Balance as of September 30, 2021	$	7,159	$	783	$	6,068	$	6,122	$	20,132

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 September 30, 2022:

Significant

Fair

Valuation

Unobservable

Weighted

Value

Methodology

Inputs

Range

Average

Other investments:

Private equity funds

6,252

Adjusted net asset value

Selected market return

(0.6)%

1.5%

1.1%

Direct credit investments

768

Discounted cash flow

Market yield

13.8%

Direct equity investments

6,060

Market approach

EBITDA multiple

8.00x

13.75x

11.06x

Market approach

Equity multiple

1.52x

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.

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