Fair Value Measurements

3 Months Ended

Jun. 30, 2023

5. Fair Value Measurements

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


	As of June 30, 2023
	Level 1		Level 2		Level 3		NAV(2)		Total
Financial assets:
Fair value investments	$	6,005	$	—	$	14,149	$	—	$	20,154
Consolidated VIEs
Fair value investments	—		—		54,625		20,651		75,276
Total financial assets	$	6,005	$	—	$	68,774	$	20,651	$	95,430

Financial liabilities:
Secured financing(1)	$	—	$	—	$	14,149	$	—	$	14,149
Total financial liabilities	$	—	$	—	$	14,149	$	—	$	14,149

	As of March 31, 2023
	Level 1		Level 2		Level 3		NAV(2)		Total
Financial assets:
Fair value investments	$	7,358	$	—	$	14,228	$	—	$	21,586
Consolidated VIEs
Fair value investments	—		—		21,163		23,589		$	44,752

Total financial assets	$	7,358	$	—	$	35,391	$	23,589	$	66,338

Financial liabilities:

Secured financing(1)	$	—	$	—	$	14,228	$	—	$	14,228
Total financial liabilities	$	—	$	—	$	14,228	$	—	$	14,228

(1) Secured financing is recorded within other liabilities in the Condensed Consolidated Balance Sheets.

(2) Investments are recorded at estimated fair value based upon the net asset value of the fund utilizing the practical expedient under Accounting Standards Codification ASC 820, “Fair Value Measurement.” The fair value amounts presented in this column are intended to permit reconciliation of the fair value hierarchy to the amounts presented in Note 4.

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 March 31, 2023	$	6,664	$	790	$	6,774	$	14,228
Contributions	—		—		—		—
Distributions	(50)		—		—		(50)
Net (loss) gain	(184)		(5)		160		(29)


Balance as of June 30, 2023	$	6,430	$	785	$	6,934	$	14,149


	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	—		—		—		—
Distributions	(164)		—		—		(164)
Net loss	(456)		(1)		(266)		(723)
Balance as of June 30, 2022	$	6,404	$	773	$	5,754	$	12,931

The following is a reconciliation of investments held by our consolidated VIEs for which significant

unobservable inputs (Level 3) were used in determining value:


	Direct credit investments
Balance as of March 31, 2023	$	21,163
Contributions	14,056
Distributions	(40)
Net loss	82
Transfer in	19,364

Balance as of June 30, 2023	$	54,625

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 June 30, 2023:


				Significant
	Fair		Valuation	Unobservable				Weighted
	Value		Methodology	Inputs	Range			Average
Other investments:
Private equity funds	$	6,430	Adjusted net asset value	Selected market return	4.8%	-	7.9%	7.3%
Direct credit investments	$	785	Discounted cash flow	Market yield	13.2%	-	13.2%	13.2%
Direct equity investments	$	6,934	Market approach	EBITDA multiple	8.25x	-	14.75x	12.62x
			Market approach	Equity multiple	1.65x			1.65x
Investments of consolidated VIE:
Direct credit investments	$	16,853	Discounted cash flow	Market yield	8.6%	-	10.2%	9.7%
Direct credit investments	$	37,772	Recent precedent transactions

For the significant unobservable inputs listed in the tables 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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