Related-Party Transactions

6 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

The Company has investment management agreements with various specialized funds and customized separate accounts that it manages. The Company earned management and advisory fees from Partnerships of $39,170 and $78,799 for the three and six months ended September 30, 2019, respectively, and $32,851 and $63,444 for the three and six months ended September 30, 2018, respectively. The Company earned incentive fees from Partnerships of $5,032 and $9,119 for the three and six months ended September 30, 2019, respectively, and $2,434 and $14,326 for the three and six months ended September 30, 2018, respectively.

The Company entered into a service agreement on June 1, 2017 with its joint venture pursuant to which it had expenses of $1,380 and $2,745 for the three and six months ended September 30, 2019, respectively, and $1,253 and $2,448 for the three and six months ended September 30, 2018, respectively, that are included in general, administrative and other expenses in the Condensed Consolidated Statements of Income. The Company also has a payable to the joint venture of $462 and $450 as of September 30, 2019 and March 31, 2019, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets.

The Company holds a convertible promissory note (the “Note”) issued by one of the Company’s equity method investees. The Note contains an option for the outstanding principal and any accrued interest to be converted to shares of the issuer under certain conditions. The carrying value of the Note was $704 and $678 as of September 30, 2019 and March 31, 2019, respectively, and is recorded in other assets in the Condensed Consolidated Balance Sheets.

Due from related parties in the Condensed Consolidated Balance Sheets consists primarily of advances made on behalf of the Partnerships for the payment of certain operating costs and expenses, for which the Company is subsequently reimbursed, and refundable tax distributions made to members.

Fees receivable from the Partnerships were $8,351 and $8,927 as of September 30, 2019 and March 31, 2019, respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets.

In connection with HLA’s acquisition of Real Asset Portfolio Management LLC (“RAPM”) in 2017, the Company paid the remaining 50% of contingent compensation due to the former principals of RAPM, who are employees of the Company, during the six months ended September 30, 2019. Such compensation was paid $3,824 in cash and $425 by issuing Class A common stock.