Commitments and Contingencies

3 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

15. Commitments and Contingencies

Litigation

In the ordinary course of business, the Company may be subject to various legal, regulatory, and/or administrative proceedings from time to time. Although there can be no assurance of the outcome of such proceedings, in the opinion of management, the Company does not believe it is probable that any pending or, to its knowledge, threatened legal proceeding or claim would individually or in the aggregate materially affect its condensed consolidated financial statements.

Incentive Fees

The Partnerships have allocated carried interest still subject to contingencies and did not meet the Company’s criteria for revenue recognition in the amounts of $1,100,591 and $1,022,250, net of amounts attributable to non-controlling interests, at June 30, 2023 and March 31, 2023, respectively.

If the Company ultimately receives the unrecognized carried interest, a total of $275,148 and $255,562 as of June 30, 2023 and March 31, 2023, respectively, would potentially be payable to certain employees and third parties pursuant to compensation arrangements related to carried interest profit-sharing plans. Such amounts have not been recorded in the Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Income as the payment is not yet probable.

Commitments

The Company serves as the investment manager of the Partnerships. The general partner or managing member of each Partnership is generally a separate subsidiary of the Company and has agreed to invest funds on the same basis as the limited partners in most instances. The Company’s aggregate unfunded commitment to the Partnerships was $218,356 and $211,556 as of June 30, 2023 and March 31, 2023, respectively.

The Company has an unrealized net gain on its investments valued under the measurement alternative and a fair value investment of $31,231 as of June 30, 2023, of which up to 15% may be paid as a discretionary bonus as those gains are realized.

The Company offers an Employee Investment Program (“EIP”) through which certain employees are able to invest directly into certain Company managed funds as individual limited partners (“LP”). The employees also have an option to enter into a loan agreement with a third-party lender to fund committed capital. The loan is collateralized by the underlying LP interest in the fund and return of capital distributions are utilized to pay the outstanding loan balance. The Company entered into a separate agreement with the third-party lender to backstop the employee’s performance under the loan with a commitment to purchase the LP interest from the lender at the greater of fair value or the outstanding balance of the loan in the event of a default by the employee. As of June 30, 2023, the total amount of outstanding loans under the EIP was $647, and the Company believes the risk of default by an employee to be remote.

Leases

The Company’s leases consist primarily of operating leases for office space and office equipment in various locations around the world. Some leases have the option to extend for an additional term or terminate early. Short-term lease costs are not material.

The following table shows lease costs and other supplemental information related to the Company’s operating leases:


			Three Months Ended June 30,
						2023		2022
Operating lease costs						$	2,200	$	2,059
Variable lease costs						$	399	$	237
Cash paid for amounts included in the measurement of operating lease liabilities						$	2,088	$	194

Weighted average remaining lease term (in years)	13.4			14.4
Weighted average discount rate	3.4	%		3.2	%

As of June 30, 2023, the maturities of operating lease liabilities were as follows:


Remainder of FY2024	$	6,223
FY2025	8,204
FY2026	7,650
FY2027	7,397
FY2028	6,929
Thereafter	65,141
Total lease payments	101,544
Less: imputed interest	(20,550)
Total operating lease liabilities	$	80,994