Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38021 | |
Entity Registrant Name | HAMILTON LANE INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2482738 | |
Entity Address, Address Line One | 110 Washington Street, | |
Entity Address, Address Line Two | Suite 1300 | |
Entity Address, City or Town | Conshohocken, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19428 | |
City Area Code | 610 | |
Local Phone Number | 934-2222 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | HLNE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001433642 | |
Current Fiscal Year End Date | --03-31 | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 36,289,802 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 16,739,846 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Assets | ||
Restricted cash | $ 3,048,000 | |
Fees receivable | 29,047,000 | $ 29,202,000 |
Prepaid expenses | 5,998,000 | 6,143,000 |
Due from related parties | 2,359,000 | 2,495,000 |
Furniture, fixtures and equipment, net | 27,091,000 | 23,308,000 |
Lease right-of-use assets, net | 61,916,000 | 64,384,000 |
Investments | 377,988,000 | 368,836,000 |
Deferred income taxes | 243,989,000 | 251,949,000 |
Assets of consolidated variable interest entities: | ||
Investments held in trust | 3,048,000 | |
Total assets | 1,139,302,000 | 1,136,519,000 |
Liabilities, redeemable non-controlling interests and equity | ||
Accounts payable | 3,154,000 | 2,173,000 |
Accrued compensation and benefits | 31,604,000 | 29,415,000 |
Accrued members’ distributions | 10,733,000 | 16,877,000 |
Accrued dividend | 12,600,000 | 11,201,000 |
Debt | 147,648,000 | 163,175,000 |
Payable to related parties pursuant to tax receivable agreement | 194,225,000 | 194,764,000 |
Lease liabilities | 76,257,000 | 75,281,000 |
Other liabilities (includes $17,538 and $17,381 at fair value) | 28,160,000 | |
Liabilities of consolidated variable interest entities: | ||
Other liabilities | 28,160,000 | |
Total liabilities | 523,878,000 | 546,318,000 |
Commitments and contingencies (Note 16) | ||
Redeemable non-controlling interests | 276,000,000 | 276,000,000 |
Preferred stock, $0.001 par value, 10,000,000 authorized, none issued | 0 | 0 |
Additional paid-in-capital | 150,345,000 | 150,564,000 |
Total Hamilton Lane Incorporated stockholders’ equity | 253,478,000 | 238,129,000 |
Total equity | 339,424,000 | 314,201,000 |
Total liabilities, redeemable non-controlling interests and equity | 1,139,302,000 | 1,136,519,000 |
Common Class A | ||
Liabilities of consolidated variable interest entities: | ||
Common stock | 36,000 | 36,000 |
Stockholders' equity attributable to noncontrolling interest | 2,561,000 | |
Common Class B | ||
Liabilities of consolidated variable interest entities: | ||
Common stock | 17,000 | 17,000 |
Stockholders' equity attributable to noncontrolling interest | 83,385,000 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Assets | ||
Cash and cash equivalents | 73,124,000 | 87,025,000 |
Restricted cash | 3,048,000 | 3,041,000 |
Investments | 377,988,000 | 368,836,000 |
Other assets | 31,672,000 | 17,821,000 |
Assets of consolidated variable interest entities: | ||
Cash and cash equivalents | 73,124,000 | 87,025,000 |
Investments held in trust | 3,048,000 | 3,041,000 |
Other assets | 31,672,000 | 17,821,000 |
Liabilities, redeemable non-controlling interests and equity | ||
Other liabilities (includes $17,538 and $17,381 at fair value) | 36,122,000 | |
Liabilities of consolidated variable interest entities: | ||
Other liabilities | 36,122,000 | |
Primary Beneficiary | ||
Assets | ||
Cash and cash equivalents | 76,000 | 311,000 |
Restricted cash | 276,019,000 | 276,003,000 |
Other assets | 1,033,000 | 1,214,000 |
Assets of consolidated variable interest entities: | ||
Cash and cash equivalents | 76,000 | 311,000 |
Investments held in trust | 276,019,000 | 276,003,000 |
Investments | 5,942,000 | 4,787,000 |
Other assets | 1,033,000 | 1,214,000 |
Total assets | 5,942,000 | 4,787,000 |
Liabilities, redeemable non-controlling interests and equity | ||
Other liabilities (includes $17,538 and $17,381 at fair value) | 19,497,000 | 17,310,000 |
Liabilities of consolidated variable interest entities: | ||
Other liabilities | 19,497,000 | 17,310,000 |
Total liabilities | 0 | 0 |
General Partnerships | ||
Liabilities of consolidated variable interest entities: | ||
Stockholders' equity attributable to noncontrolling interest | 2,211,000 | |
Hamilton Lane Advisors, L.L.C. | ||
Liabilities of consolidated variable interest entities: | ||
Retained earnings | $ 103,080,000 | 87,512,000 |
Stockholders' equity attributable to noncontrolling interest | $ 73,861,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Class of Stock [Line Items] | ||
Other liabilities, fair value | $ 17,538 | $ 17,381 |
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 36,290,015 | 36,290,183 |
Common stock, shares outstanding (in shares) | 36,290,015 | 36,290,183 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 16,739,846 | |
Common stock, shares outstanding (in shares) | 16,739,846 | 16,739,846 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||
Total revenues | $ 78,995 | $ 69,744 |
Consolidated variable interest entities related: | ||
Total revenues | 78,995 | 69,744 |
Expenses | ||
Compensation and benefits | 26,732 | 30,351 |
Consolidated variable interest entities related: | ||
Total expenses | 43,245 | 40,911 |
Other income (expense) | ||
Equity in income (loss) of investees | 20,049 | (17,045) |
Interest income | 423 | 24 |
Non-operating income (expense) | 3,603 | (275) |
Consolidated variable interest entities related: | ||
Unrealized loss | 3,455 | 0 |
Total other income (expense) | 20,895 | (21,941) |
Income before income taxes | 56,645 | 6,892 |
Income tax expense | 11,964 | 1,924 |
Net income | 44,681 | 4,968 |
Net income attributable to Hamilton Lane Incorporated | $ 28,168 | $ 3,246 |
Common Class A | ||
Consolidated variable interest entities related: | ||
Basic earnings per share of Class A common stock (in dollars per share) | $ 0.78 | $ 0.11 |
Diluted earnings per share of Class A common stock (in dollars per share) | 0.78 | 0.11 |
Dividends declared per share of Class A common stock (in dollars per share) | $ 0.35 | $ 0.3125 |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Expenses | ||
General, administrative and other | $ 16,154 | $ 10,560 |
Consolidated variable interest entities related: | ||
General, administrative and other | 16,154 | 10,560 |
Other income (expense) | ||
Interest expense | (1,165) | (487) |
Primary Beneficiary | ||
Expenses | ||
General, administrative and other | 359 | 0 |
Consolidated variable interest entities related: | ||
General, administrative and other | 359 | 0 |
Consolidated variable interest entities related: | ||
Equity in income (loss) of investees | 229 | (4,158) |
Unrealized loss | (2,244) | 0 |
General Partnerships | ||
Consolidated variable interest entities related: | ||
Less: Income (loss) attributable to non-controlling interests | 213 | (2,010) |
Hamilton Lane Advisors, L.L.C. | ||
Consolidated variable interest entities related: | ||
Less: Income (loss) attributable to non-controlling interests | 19,296 | 3,732 |
Hamilton Lane Alliance Holdings I, Inc. | ||
Consolidated variable interest entities related: | ||
Less: Income (loss) attributable to non-controlling interests | (2,996) | 0 |
Management and advisory fees | ||
Revenues | ||
Total revenues | 73,884 | 67,267 |
Consolidated variable interest entities related: | ||
Total revenues | 73,884 | 67,267 |
Incentive fees | ||
Revenues | ||
Total revenues | 5,111 | 2,477 |
Consolidated variable interest entities related: | ||
Total revenues | 5,111 | 2,477 |
Incentive fees | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Revenues | ||
Total revenues | 2,364 | 2,244 |
Consolidated variable interest entities related: | ||
Total revenues | 2,364 | 2,244 |
Incentive fees | Primary Beneficiary | ||
Revenues | ||
Total revenues | 2,747 | 233 |
Consolidated variable interest entities related: | ||
Total revenues | $ 2,747 | $ 233 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net income | $ 44,681 | $ 4,968 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation | 0 | (10) |
Total other comprehensive income (loss), net of tax | 0 | (10) |
Comprehensive income | 44,681 | 4,958 |
Less: | ||
Total comprehensive income attributable to Hamilton Lane Incorporated | 28,168 | 3,240 |
General Partnerships | ||
Less: | ||
Comprehensive (loss) income attributable to non-controlling interests | 213 | (2,010) |
Hamilton Lane Advisors, L.L.C. | ||
Less: | ||
Comprehensive (loss) income attributable to non-controlling interests | 19,296 | 3,728 |
Hamilton Lane Alliance Holdings I, Inc. | ||
Less: | ||
Comprehensive (loss) income attributable to non-controlling interests | $ (2,996) | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | General PartnershipsNoncontrolling Interests | Hamilton Lane Advisors, L.L.C. | Hamilton Lane Advisors, L.L.C.Noncontrolling Interests |
Beginning balance at Mar. 31, 2020 | $ 237,401 | $ 30 | $ 22 | $ 107,727 | $ 47,090 | $ (78) | $ 4,853 | $ 77,757 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 4,968 | 3,246 | (2,010) | 3,732 | |||||
Equity-based compensation | 1,758 | 997 | 761 | ||||||
Dividends declared | (10,102) | (10,102) | |||||||
Member distributions | (9,967) | (9,967) | |||||||
Employee Share Purchase Plan share issuance | 339 | 192 | 147 | ||||||
Other comprehensive loss | (10) | (6) | (4) | ||||||
Deferred tax adjustment | 8,414 | 8,414 | |||||||
Capital distributions to non-controlling interests, net | (188) | (188) | |||||||
Secondary offerings | (2) | 3 | (2) | 9,522 | $ (9,525) | ||||
Equity reallocation between controlling and non-controlling interests | 0 | (267) | 267 | ||||||
Ending balance at Jun. 30, 2020 | 232,611 | 33 | 20 | 126,585 | 40,234 | (84) | 2,655 | 63,168 | |
Beginning balance at Mar. 31, 2021 | 314,201 | 36 | 17 | 150,564 | 87,512 | 0 | 2,211 | 73,861 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 47,677 | 28,168 | 213 | 19,296 | |||||
Equity-based compensation | 2,341 | 1,573 | 768 | ||||||
Repurchase of Class A shares for employee tax withholding | (68) | (46) | (22) | ||||||
Dividends declared | (12,600) | (12,600) | |||||||
Capital contributions from non-controlling interests, net | 137 | 137 | |||||||
Member distributions | (9,665) | (9,665) | |||||||
Employee Share Purchase Plan share issuance | 397 | 267 | 130 | ||||||
Accretion of redeemable non-controlling interest | (2,996) | (2,013) | $ (983) | ||||||
Other comprehensive loss | 0 | ||||||||
Ending balance at Jun. 30, 2021 | $ 339,424 | $ 36 | $ 17 | $ 150,345 | $ 103,080 | $ 0 | $ 2,561 | $ 83,385 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income | $ 44,681 | $ 4,968 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,378 | 1,004 |
Change in deferred income taxes | 7,960 | (638) |
Change in payable to related parties pursuant to tax receivable agreement | (539) | 0 |
Equity-based compensation | 2,341 | 1,748 |
Equity in (income) loss of investees | (20,049) | 17,045 |
Fair value adjustment of other investment | (3,455) | 0 |
Proceeds received from investments | 3,381 | 157 |
Non-cash lease expense | 3,522 | 822 |
Other | (849) | 23 |
Changes in operating assets and liabilities: | ||
Fees receivable | 155 | 6,707 |
Prepaid expenses | 177 | 1,071 |
Due from related parties | 136 | 452 |
Other assets | (1,613) | 424 |
Accounts payable | 976 | (820) |
Accrued compensation and benefits | 2,189 | 12,639 |
Lease liability | 771 | (763) |
Other liabilities | (10,917) | (1,542) |
Consolidated variable interest entities related: | ||
Net cash provided by operating activities | 32,389 | 47,455 |
Investing activities: | ||
Purchase of furniture, fixtures and equipment | (4,535) | (998) |
Purchase of other investments | (298) | 0 |
Cash paid for acquisition of business | (10,096) | 0 |
Distribution from investment valued under the measurement alternative | 12,739 | 0 |
Distributions received from investments | 13,281 | 4,162 |
Contributions to investments | (15,522) | (9,238) |
Net cash used in investing activities | (4,431) | (6,074) |
Financing activities: | ||
Proceeds from offerings | 0 | 204,979 |
Purchase of membership interests | 0 | (204,979) |
Repayments of debt | (469) | 0 |
Repayment of revolver | (15,000) | 0 |
Repurchase of Class B common stock | 0 | (2) |
Repurchase of Class A shares for employee tax withholding | (68) | 0 |
Proceeds received from issuance of shares under Employee Share Purchase Plan | 397 | 339 |
Payments to related parties, pursuant to tax receivable agreement | 0 | (36) |
Dividends paid | (11,201) | (8,027) |
Other | (74) | 0 |
Members’ distributions paid | (15,809) | (12,429) |
Consolidated variable interest entities related: | ||
Net cash used in financing activities | (42,087) | (20,343) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (10) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (14,129) | 21,028 |
Cash, cash equivalents, and restricted cash at beginning of the period | 90,377 | 53,210 |
Cash, cash equivalents, and restricted cash at end of the period | 76,248 | 74,238 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Restricted cash | 3,048 | 3,147 |
Total cash and cash equivalents, restricted cash, and cash and cash equivalents held at consolidated variable interest entities | 76,248 | 74,238 |
Primary Beneficiary | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Fair value adjustment of other investment | 2,244 | 0 |
Consolidated variable interest entities related: | ||
Unrealized loss on warrants measured at fair value | 2,244 | 0 |
Equity in (income) loss of investees | (229) | 4,158 |
Other assets and liabilities | 129 | 0 |
Consolidated variable interest entities related: | ||
Contributions from non-controlling interest in general partnerships | 232 | 32 |
Distributions to non-controlling interest in general partnerships | (95) | (220) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 76 | 0 |
Restricted cash | 276,019 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 73,124 | $ 71,091 |
Restricted cash | $ 3,048 |
Organization
Organization | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hamilton Lane Incorporated (“HLI”) is a holding company whose principal asset is a controlling equity interest in Hamilton Lane Advisors, L.L.C. (“HLA”). As the sole managing member of HLA, HLI operates and controls all of the business and affairs of HLA, and through HLA, conducts its business. As a result, HLI consolidates HLA’s financial results and reports a non-controlling interest related to the portion of HLA units not owned by HLI. The assets and liabilities of HLA represent substantially all of HLI’s consolidated assets and liabilities with the exception of certain cash, certain deferred tax assets and liabilities, payable to related parties pursuant to a tax receivable agreement, and dividends payable. Unless otherwise specified, “the Company” refers to the consolidated entity of HLI, HLA and subsidiaries throughout the remainder of these notes. As of June 30, 2021 and March 31, 2021, HLI held approximately 67.2% and 67.2%, respectively, of the economic interest in HLA. As future exchanges of HLA units occur pursuant to the exchange agreement in place with HLA’s members, the economic interest in HLA held by HLI will increase. HLA is a registered investment advisor with the United States Securities and Exchange Commission (“SEC”), providing asset management and advisory services, primarily to institutional investors, to design, build and manage private markets portfolios. HLA sponsors the formation, and/or serves as the general partner or managing member, of various limited partnerships or limited liability companies consisting of specialized funds and certain single client separate account entities (“Partnerships”) that acquire interests in third-party managed investment funds that make private equity and equity-related investments. The Partnerships may also make direct co-investments, including investments in debt, equity, and other equity-based instruments. HLA, which includes certain subsidiaries that serve as the general partner or managing member of substantially all of the Partnerships, may invest its own capital in the Partnerships and generally makes all investment and operating decisions for the Partnerships. HLA operates several wholly-owned entities through which it conducts its foreign operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Management believes it has made all necessary adjustments (which consisted of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing the condensed consolidated financial statements are reasonable and prudent. Results of operations for the three months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending March 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in HLI’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021. COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) a global pandemic, which has resulted in significant disruption and uncertainty in the global economic markets. Given the amount of uncertainty regarding the scope and duration of the COVID-19 pandemic, it is currently not possible to predict the precise impact it will have on the Company’s financial statements. In addition, certain impacts may not be reported in the current quarter due to the Company’s investments in partnerships and unrealized carried interest amounts, which are reported on a three-month lag, as discussed below in “Accounting for Differing Fiscal Periods”. Accounting for Differing Fiscal Periods The Partnerships primarily have a fiscal year end as of December 31, and the Company accounts for its investments in the Partnerships using a three-month lag due to the timing of financial information received from the investments held by the Partnerships. The Partnerships primarily invest in private equity funds, which generally require at least 90 days following the calendar year end to present audited financial statements. The Company records its share of capital contributions to and distributions from the Partnerships in investments in the Condensed Consolidated Balance Sheets during the three-month lag period. Fair Value of Financial Instruments The Company utilizes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below: • Level 1: Values are determined using quoted market prices for identical financial instruments in an active market. • Level 2: Values are determined using quoted prices for similar financial instruments and valuation models whose inputs are observable. • Level 3: V alues are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The carrying amount of cash and cash equivalents, fees receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table presents revenues disaggregated by product offering, which aligns with the identified performance obligations and the basis for calculating each amount: Three Months Ended Management and advisory fees 2021 2020 Specialized funds $ 33,388 $ 32,231 Customized separate accounts 24,500 23,515 Advisory 6,366 6,765 Reporting and other 5,282 2,836 Distribution management 4,121 1,727 Fund reimbursement revenue 227 193 Total management and advisory fees $ 73,884 $ 67,267 Three Months Ended Incentive fees 2021 2020 Specialized funds $ 1,659 $ 1,985 Customized separate accounts 705 259 Consolidated variable interest related: Specialized funds 2,747 233 Total incentive fees $ 5,111 $ 2,477 Cost to obtain contracts The Company incurs incremental costs related to sales commissions paid to certain employees directly related to customized separate account contracts. These incremental costs are capitalized and amortized over the expected contract length proportionately to the management fee revenue expected to be recognized in each year as a percentage of the total expected revenue for the contract. The contract asset related to the cost to obtain contracts was $979 and $964 as of June 30, 2021 and March 31, 2021, respectively, and is included in other assets in the Condensed Consolidated Balance Sheets. Amortization expense related to this contract asset was $129 and $128 for the three months ended June 30, 2021 and 2020, respectively, and is included in compensation and benefits in the Condensed Consolidated Statements of Income. |
Investments
Investments | 3 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Investments consist of the following: June 30, March 31, 2021 2021 Equity method investments in Partnerships $ 258,618 $ 240,337 Other equity method investments 1,338 1,297 Other investments 23,993 17,381 Investments valued under the measurement alternative 94,039 109,821 Total Investments $ 377,988 $ 368,836 Equity method investments The Company’s equity method investments in Partnerships represent its ownership in certain specialized funds and customized separate accounts. The strategies and geographic location of investments within the Partnerships vary by fund. The Company has a 1% interest in substantially all of the Partnerships. The Company’s other equity method investments represent its ownership in a technology company that provides benchmarking and analytics of private equity data and its ownership in a joint venture that automates the collection of fund and underlying portfolio company data from general partners. The Company recognized an equity method income (loss) related to its investments in Partnerships and other equity method investments of $20,049 and $(17,045) for the three months ended June 30, 2021 and 2020, respectively. Other investments The Company’s other investments represent a publicly traded security and investments in private equity funds and direct credit and equity co-investments that are held as collateral on the Company’s secured financing. The private equity fund investments can only be redeemed through distributions received from the liquidation of underlying investments of the fund, and the timing of distributions is currently indeterminable. The direct credit co-investments are debt securities classified as trading securities. The direct equity co-investments and private equity funds are measured at fair value with unrealized holding gains and losses included in earnings. The Company accounts for its secured financing at fair value under the fair value option. The primary reason for electing the fair value option is to mitigate volatility in earnings from using different measurement attributes. The significant input to the fair value of the secured financing is the fair value of the other investments delivered as collateral which are estimated using Level 3 inputs with the significant inputs as shown below. The Company recognized a gain on other investments held as collateral of $814 and $3,653 during the three months ended June 30, 2021 and 2020, respectively, that are recorded in other non-operating income. The Company recognized a loss on the secured financing liability of $814 and $3,653 during the three months ended June 30, 2021 and 2020, respectively, that are recorded in other non-operating income in the Condensed Consolidated Statement of Income. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement 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, 2021 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ — $ 3,665 $ 20,328 $ 23,993 $ 12,614 Investments held in trust 276,019 — — 276,019 276,000 Total financial assets $ 276,019 $ 3,665 $ 20,328 $ 300,012 $ 288,614 Financial liabilities Warrant liability (1) $ 8,281 $ 1,331 $ — $ 9,612 Secured financing (2) — 3,665 13,873 17,538 Total financial liabilities $ 8,281 $ 4,996 $ 13,873 $ 27,150 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 March 31, 2021 $ 6,254 $ 985 $ 6,059 $ — $ 13,298 Contributions 30 — 28 — 58 Distributions (95) (202) — — (297) Net gain 577 12 225 — 814 Transfer in/(out) — — — 6,455 6,455 Balance as of June 30, 2021 $ 6,766 $ 795 $ 6,312 $ 6,455 $ 20,328 Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2020 $ 5,786 $ 1,756 $ 5,852 $ 13,394 Contributions 28 — — 28 Distributions (248) (42) — (290) Net gain 998 94 2,561 3,653 Balance as of June 30, 2020 $ 6,564 $ 1,808 $ 8,413 $ 16,785 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, 2021: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Other investments: Private equity funds $ 6,766 Adjusted net asset value Selected market return 5.0% - 5.7% 5.6% Direct credit co-investments $ 795 Discounted cash flow Market yield 9.0% - 9.0% 9.0% Direct equity co-investments $ 6,312 Market approach EBITDA multiple 7.75x - 14.50x 10.29x Market approach Equity multiple 1.5x 1.5x Publicly traded equity security $ 6,455 Market approach Illiquidity discount 7.8% 7.8% 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; (3) a significant increase or decrease in the selected multiple would result in a significantly higher or lower fair value measurement, respectively; and (4) a |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | AcquisitionsOn April 1, 2021, the Company acquired substantially all the assets of 361 Capital, LLC for a total aggregate cash amount of $13,096, of which $10,096 was paid on the closing date of the acquisition. The remaining $3,000 will be paid in two equal installments on the first and second anniversaries of the closing. The purchase price based upon the fair value of consideration transferred at the date of acquisition is $12,946. The Company recorded $7,145 of definite lived intangible assets related primarily to the acquired investment management contracts, which will be amortized over seven years, and $5,623 of goodwill, which are both recorded in other assets in the Condensed Consolidated Balance Sheets. The remaining assets acquired and liabilities assumed are not material to the condensed consolidated financial statements. Revenue and net income attributable to the acquisition of 361 Capital, LLC were not material for the three months ended June 30, 2021 and 2020, and as such, pro forma information related to this acquisition is not presented. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary. Consolidated Variable Interest Entities The Company consolidates general partner entities of certain Partnerships, which are not wholly-owned by the Company. The total assets of the consolidated general partner entities are $5,942 and $4,787 as of June 30, 2021 and March 31, 2021, respectively, and are recorded in investments of consolidated variable interest entities in the Condensed Consolidated Balance Sheets. The consolidated general partner entities had no liabilities as of June 30, 2021 and March 31, 2021. The assets of the consolidated general partner entities represent equity method-investments in direct/co-investment funds and customized separate accounts and may only be used to settle obligations of the consolidated general partner entities, if any. In addition, there is no recourse to the Company for the consolidated general partner entities’ liabilities, except for certain entities in which there could be a clawback of previously distributed carried interest. The Company sponsored and consolidates Hamilton Lane Alliance Holdings I, Inc. (“HLAH”) through HL Alliance Holdings Sponsor LLC, an indirect wholly-owned subsidiary of the Company. On January 15, 2021, HLAH completed an IPO raising total gross proceeds of $276,000 which were placed in a trust and can only be utilized for funding a business combination or the redemption of Class A shares of HLAH. In a private placement concurrent with the IPO, HLAH sold warrants to HL Alliance Holdings Sponsor LLC for gross proceeds of $7,520 which were used by HLAH to pay the offering costs and also to provide working capital. The total assets of HLAH were $277,128 and $277,528 as of June 30, 2021 and March 31, 2021, respectively. The total liabilities of HLAH were $19,497 and $17,310 as of June 30, 2021 and March 31, 2021, respectively. The assets of HLAH held outside of the trust can only be used to settle obligations of HLAH, and there is no recourse to the Company for HLAH’s liabilities. All warrants and Class B common stock of HLAH held by the Company are eliminated in consolidation. Nonconsolidated Variable Interest Entities The Company holds variable interests in certain Partnerships that are VIEs, which are not consolidated, as it is determined that the Company is not the primary beneficiary based upon the Company’s equity interest percentage in each of the VIEs. Certain Partnerships are considered VIEs because limited partners lack the ability to remove the general partner or dissolve the entity without cause, by simple majority vote (i.e. do not have substantive “kick out” or “liquidation” rights). The Company’s involvement with such entities is in the form of direct equity interests in, and fee arrangements with, the Partnerships in which it also serves as the general partner or managing member. In the Company’s role as general partner or managing member, it generally considers itself the sponsor of the applicable Partnership and makes all investment and operating decisions. As of June 30, 2021, the total commitments and remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $24,144,410 and $9,386,316, respectively. These commitments are the primary source of financing for the unconsolidated VIEs. The maximum exposure to loss represents the potential loss of assets recognized by the Company relating to these unconsolidated entities. The Company believes that its maximum exposure to loss is limited because it establishes separate limited partnerships or limited liability companies to serve as the general partner or managing member of the Partnerships. The carrying amount of assets and liabilities recognized in the Condensed Consolidated Balance Sheet related to the Company’s interests in these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: June 30, March 31, 2021 2021 Investments $ 147,701 $ 138,092 Fees receivable 6,081 4,133 Due from related parties 1,014 837 Total VIE Assets 154,796 143,062 Non-controlling interests (2,561) (2,211) Maximum exposure to loss $ 152,235 $ 140,851 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consisted of the following: As of June 30, 2021 As of March 31, 2021 Principal Outstanding Carrying Value Interest Rate Principal Outstanding Carrying Value Interest Rate Term Loan $ 73,125 $ 72,918 2.25 % $ 73,594 $ 73,378 2.25 % Multi-Draw Facility 75,000 74,730 3.50 % 75,000 74,797 3.50 % Revolver — — 2.25 % 15,000 15,000 2.25 % Total Debt $ 148,125 $ 147,648 $ 163,594 $ 163,175 |
Equity
Equity | 3 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2021: Class A Common Stock Class B Common Stock March 31, 2021 36,290,183 16,739,846 Forfeitures (568) — Shares repurchased for employee tax withholdings (5,891) — Restricted stock granted 1,155 — Shares issued pursuant to Employee Share Purchase Plan 5,136 — June 30, 2021 36,290,015 16,739,846 June 2020 Offering In June 2020, the Company and certain selling stockholders completed a registered offering of an aggregate of 2,995,757 shares of Class A common stock at a price to the underwriters of $70.09 per share (the “June 2020 Offering”). The shares sold consisted of 71,242 shares held by the selling stockholders and 2,924,515 shares newly issued by the Company. The Company received approximately $204,979 in net proceeds from the sale of its shares and used all of the proceeds to settle exchanges by certain members of HLA of a total of 2,271,636 Class B units and 652,879 Class C units. In connection with the exchange of the Class B units, the Company also repurchased for par value and canceled a corresponding number of shares of Class B common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholders. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation A summary of restricted stock activity for the three months ended June 30, 2021 is presented below: Total Weighted- March 31, 2021 288,857 $ 55.58 Granted 1,155 $ 82.72 Vested (16,590) $ 47.74 Forfeited (568) $ 61.42 June 30, 2021 272,854 $ 56.16 |
Compensation and Benefits
Compensation and Benefits | 3 Months Ended |
Jun. 30, 2021 | |
Compensation Related Costs [Abstract] | |
Compensation and Benefits | Compensation and Benefits The Company has recorded the following amounts related to compensation and benefits: Three Months Ended June 30, 2021 2020 Base compensation and benefits $ 23,137 $ 27,986 Incentive fee compensation 1,254 617 Equity-based compensation 2,341 1,748 Total compensation and benefits $ 26,732 $ 30,351 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate used for interim periods is based on an estimated annual effective tax rate including the tax effect of items required to be recorded discretely in the interim period in which those items occur. The effective tax rate is dependent on many factors, including the estimated amount of income subject to income tax; therefore, the effective tax rate can vary from period to period. The Company evaluates the realizability of its deferred tax asset on a quarterly basis and adjusts the valuation allowance when it is more likely than not that all or a portion of the deferred tax asset may not be realized. The Company’s effective tax rate was 21.1% and 27.9% for the three months ended June 30, 2021 and 2020, respectively. The effective tax rates were different from the statutory rates due to the portion of income allocated to the non-controlling entities, and valuation allowance recorded against deferred tax assets recorded in the periods. As of June 30, 2021, the Company had no unrecognized tax positions and believes there will be no changes to uncertain tax positions within the next 12 months. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to HLI, and, therefore, are not participating securities. As a result, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included. Shares of the Company’s Class B common stock are, however, considered potentially dilutive to the Class A common stock because the Class B units to which the Class B common stock corresponds are exchangeable for shares of Class A common stock on a one-for-one basis, at which time the share of Class B common stock is surrendered in exchange for a payment of its par value. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Three Months Ended Three Months Ended Net income attributable to HLI Weighted-Average Shares Per share amount Net income attributable to HLI Weighted-Average Shares Per share amount Basic EPS of Class A common stock $ 28,168 36,003,089 $ 0.78 $ 3,246 30,237,450 $ 0.11 Adjustment to net income: Assumed vesting of employee awards 34 9 Effect of dilutive securities: Assumed vesting of employee awards 125,905 202,702 Diluted EPS of Class A common stock $ 28,202 36,128,994 $ 0.78 $ 3,255 30,440,152 $ 0.11 The calculations of diluted earnings per share exclude 17,553,234 outstanding Class B and Class C units of HLA for the three months ended June 30, 2021 and 21,044,479 outstanding Class B and Class C units of HLA for the three months ended June 30, 2020, which are exchangeable into Class A common stock under the “if-converted” method, because the inclusion of such shares would be antidilutive. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions The Company considers its employees, directors, and equity method investments to be related parties. Revenue and Receivables 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 $46,422 and $44,249 for the three months ended June 30, 2021 and 2020, respectively, and earned incentive fees from Partnerships of $4,575 and $2,355 for the three months ended June 30, 2021 and 2020, respectively. Fees receivable from the Partnerships were $14,019 and $14,814 as of June 30, 2021 and March 31, 2021, respectively, and are included in fees receivable in the Condensed Consolidated Balance Sheets. Expenses and Payables The Company maintains a service agreement with its joint venture pursuant to which it had expenses of $1,020 and $960 for the three months ended June 30, 2021 and 2020, 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 $346 and $325 as of June 30, 2021 and March 31, 2021, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended June 30, 2021 2020 Non-cash financing activities: Dividends declared but not paid $ 12,600 $ 10,102 Member distributions declared but not paid $ 3,028 $ 3,367 Establishment of net deferred tax assets related to offerings $ — $ 52,793 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 recognition in the amounts of $808,756 and $648,772, net of amounts attributable to non-controlling interests, at June 30, 2021 and March 31, 2021, respectively. If the Company ultimately receives the unrecognized carried interest, a total of $202,189 and $162,193 as of June 30, 2021 and March 31, 2021, 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 $194,721 and $201,442 as of June 30, 2021 and March 31, 2021, respectively. Leases The Company’s leases consist primarily of operating leases for office space and office equipment in various locations around the world, which have remaining lease terms of one year to 17 years. Some leases have the option to extend for an additional term or terminate early. Short-term lease costs are not material . The Company entered into a 17-year lease agreement for its new headquarters in a newly constructed building. The Company was granted access to the space in October 2020 to begin building various leasehold improvements and moved into the property in June 2021. The following table shows lease costs and other supplemental information related to the Company’s operating leases: Three Months Ended June 30, 2021 2020 Operating lease costs $ 3,382 $ 1,202 Variable lease costs $ 205 $ 158 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,500 $ 1,314 Weighted average remaining lease term (in years) 15.6 3.0 Weighted average discount rate 3.4 % 4.9 % As of June 30, 2021, the maturities of operating lease liabilities were as follows: Remainder of FY2021 $ 4,642 FY2022 6,788 FY2023 6,112 FY2024 5,670 FY2025 5,058 Thereafter 72,654 Total lease payments 100,924 Less: imputed interest (24,667) Total operating lease liabilities $ 76,257 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 3, 2021, the Company declared a quarterly dividend of $0.35 per share of Class A common stock to record holders at the close of business on September 15, 2021. The payment date will be October 6, 2021. In July 2021, there was an observable price change for an investment held by the Company that is valued under the measurement alternative. As a result of the transaction, the Company expects to record an unrealized gain of approximately $23,000 during the second quarter of fiscal 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Management believes it has made all necessary adjustments (which consisted of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing the condensed consolidated financial statements are reasonable and prudent. Results of operations for the three months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending March 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in HLI’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021. |
Accounting for Differing Fiscal Periods | Accounting for Differing Fiscal Periods The Partnerships primarily have a fiscal year end as of December 31, and the Company accounts for its investments in the Partnerships using a three-month lag due to the timing of financial information received from the investments held by the Partnerships. The Partnerships primarily invest in private equity funds, which generally require at least 90 days following the calendar year end to present audited financial statements. The Company records its share of capital contributions to and distributions from the Partnerships in investments in the Condensed Consolidated Balance Sheets during the three-month lag period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company utilizes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below: • Level 1: Values are determined using quoted market prices for identical financial instruments in an active market. • Level 2: Values are determined using quoted prices for similar financial instruments and valuation models whose inputs are observable. • Level 3: V alues are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenues disaggregated by product offering, which aligns with the identified performance obligations and the basis for calculating each amount: Three Months Ended Management and advisory fees 2021 2020 Specialized funds $ 33,388 $ 32,231 Customized separate accounts 24,500 23,515 Advisory 6,366 6,765 Reporting and other 5,282 2,836 Distribution management 4,121 1,727 Fund reimbursement revenue 227 193 Total management and advisory fees $ 73,884 $ 67,267 Three Months Ended Incentive fees 2021 2020 Specialized funds $ 1,659 $ 1,985 Customized separate accounts 705 259 Consolidated variable interest related: Specialized funds 2,747 233 Total incentive fees $ 5,111 $ 2,477 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments | Investments consist of the following: June 30, March 31, 2021 2021 Equity method investments in Partnerships $ 258,618 $ 240,337 Other equity method investments 1,338 1,297 Other investments 23,993 17,381 Investments valued under the measurement alternative 94,039 109,821 Total Investments $ 377,988 $ 368,836 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities | 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, 2021 Level 1 Level 2 Level 3 Total Amortized Cost Financial assets: Other investments $ — $ 3,665 $ 20,328 $ 23,993 $ 12,614 Investments held in trust 276,019 — — 276,019 276,000 Total financial assets $ 276,019 $ 3,665 $ 20,328 $ 300,012 $ 288,614 Financial liabilities Warrant liability (1) $ 8,281 $ 1,331 $ — $ 9,612 Secured financing (2) — 3,665 13,873 17,538 Total financial liabilities $ 8,281 $ 4,996 $ 13,873 $ 27,150 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. |
Reconciliation of Other Investments | 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 March 31, 2021 $ 6,254 $ 985 $ 6,059 $ — $ 13,298 Contributions 30 — 28 — 58 Distributions (95) (202) — — (297) Net gain 577 12 225 — 814 Transfer in/(out) — — — 6,455 6,455 Balance as of June 30, 2021 $ 6,766 $ 795 $ 6,312 $ 6,455 $ 20,328 Private equity funds Direct credit co-investments Direct equity co-investments Total other investments Balance as of March 31, 2020 $ 5,786 $ 1,756 $ 5,852 $ 13,394 Contributions 28 — — 28 Distributions (248) (42) — (290) Net gain 998 94 2,561 3,653 Balance as of June 30, 2020 $ 6,564 $ 1,808 $ 8,413 $ 16,785 |
Schedule of Assumptions Used | 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, 2021: Significant Fair Valuation Unobservable Weighted Value Methodology Inputs Range Average Other investments: Private equity funds $ 6,766 Adjusted net asset value Selected market return 5.0% - 5.7% 5.6% Direct credit co-investments $ 795 Discounted cash flow Market yield 9.0% - 9.0% 9.0% Direct equity co-investments $ 6,312 Market approach EBITDA multiple 7.75x - 14.50x 10.29x Market approach Equity multiple 1.5x 1.5x Publicly traded equity security $ 6,455 Market approach Illiquidity discount 7.8% 7.8% |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The carrying amount of assets and liabilities recognized in the Condensed Consolidated Balance Sheet related to the Company’s interests in these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs were as follows: June 30, March 31, 2021 2021 Investments $ 147,701 $ 138,092 Fees receivable 6,081 4,133 Due from related parties 1,014 837 Total VIE Assets 154,796 143,062 Non-controlling interests (2,561) (2,211) Maximum exposure to loss $ 152,235 $ 140,851 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consisted of the following: As of June 30, 2021 As of March 31, 2021 Principal Outstanding Carrying Value Interest Rate Principal Outstanding Carrying Value Interest Rate Term Loan $ 73,125 $ 72,918 2.25 % $ 73,594 $ 73,378 2.25 % Multi-Draw Facility 75,000 74,730 3.50 % 75,000 74,797 3.50 % Revolver — — 2.25 % 15,000 15,000 2.25 % Total Debt $ 148,125 $ 147,648 $ 163,594 $ 163,175 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Rollforward of Common Stock | The following table shows a rollforward of the Company’s common stock outstanding since March 31, 2021: Class A Common Stock Class B Common Stock March 31, 2021 36,290,183 16,739,846 Forfeitures (568) — Shares repurchased for employee tax withholdings (5,891) — Restricted stock granted 1,155 — Shares issued pursuant to Employee Share Purchase Plan 5,136 — June 30, 2021 36,290,015 16,739,846 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of restricted stock activity for the three months ended June 30, 2021 is presented below: Total Weighted- March 31, 2021 288,857 $ 55.58 Granted 1,155 $ 82.72 Vested (16,590) $ 47.74 Forfeited (568) $ 61.42 June 30, 2021 272,854 $ 56.16 |
Compensation and Benefits (Tabl
Compensation and Benefits (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Compensation Related Costs [Abstract] | |
Schedule of Compensation and Benefits | The Company has recorded the following amounts related to compensation and benefits: Three Months Ended June 30, 2021 2020 Base compensation and benefits $ 23,137 $ 27,986 Incentive fee compensation 1,254 617 Equity-based compensation 2,341 1,748 Total compensation and benefits $ 26,732 $ 30,351 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Three Months Ended Three Months Ended Net income attributable to HLI Weighted-Average Shares Per share amount Net income attributable to HLI Weighted-Average Shares Per share amount Basic EPS of Class A common stock $ 28,168 36,003,089 $ 0.78 $ 3,246 30,237,450 $ 0.11 Adjustment to net income: Assumed vesting of employee awards 34 9 Effect of dilutive securities: Assumed vesting of employee awards 125,905 202,702 Diluted EPS of Class A common stock $ 28,202 36,128,994 $ 0.78 $ 3,255 30,440,152 $ 0.11 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | Three Months Ended June 30, 2021 2020 Non-cash financing activities: Dividends declared but not paid $ 12,600 $ 10,102 Member distributions declared but not paid $ 3,028 $ 3,367 Establishment of net deferred tax assets related to offerings $ — $ 52,793 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Cost, Cash Flows, and Other Supplemental Cash Flow Information Regarding Leases | The following table shows lease costs and other supplemental information related to the Company’s operating leases: Three Months Ended June 30, 2021 2020 Operating lease costs $ 3,382 $ 1,202 Variable lease costs $ 205 $ 158 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,500 $ 1,314 Weighted average remaining lease term (in years) 15.6 3.0 Weighted average discount rate 3.4 % 4.9 % |
Maturity of Operating Lease Liabilities | As of June 30, 2021, the maturities of operating lease liabilities were as follows: Remainder of FY2021 $ 4,642 FY2022 6,788 FY2023 6,112 FY2024 5,670 FY2025 5,058 Thereafter 72,654 Total lease payments 100,924 Less: imputed interest (24,667) Total operating lease liabilities $ 76,257 |
Organization - Narrative (Detai
Organization - Narrative (Details) | Jun. 30, 2021 | Mar. 31, 2021 |
HLA | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Percent of economic interest held | 67.20% | 67.20% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 78,995 | $ 69,744 |
Management and advisory fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 73,884 | 67,267 |
Specialized funds | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 33,388 | 32,231 |
Customized separate accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,500 | 23,515 |
Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,366 | 6,765 |
Reporting and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,282 | 2,836 |
Distribution management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,121 | 1,727 |
Fund reimbursement revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 227 | 193 |
Incentive fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,111 | 2,477 |
Incentive fees | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,364 | 2,244 |
Incentive fees | Primary Beneficiary | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,747 | 233 |
Specialized funds | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,659 | 1,985 |
Specialized funds | Primary Beneficiary | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,747 | 233 |
Customized separate accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 705 | $ 259 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract asset related to the cost to obtain contracts | $ 979 | $ 964 | |
Contract asset amortization expense | $ 129 | $ 128 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Other investments | $ 23,993 | $ 17,381 |
Investments valued under the measurement alternative | 94,039 | 109,821 |
Total Investments | 377,988 | 368,836 |
Equity method investments in Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 258,618 | 240,337 |
Other equity method investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 1,338 | $ 1,297 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity in income (loss) of investees | $ 20,049 | $ (17,045) |
Net gain | 3,455 | 0 |
Unrealized loss on secured borrowings, fair value adjustment | $ 814 | 3,653 |
Equity method investments in Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Percent interest in partnerships | 1.00% | |
Investment, Held As Collateral | ||
Schedule of Equity Method Investments [Line Items] | ||
Net gain | $ 814 | $ 3,653 |
Investment, Measurement Alternative | ||
Schedule of Equity Method Investments [Line Items] | ||
Net gain | $ 3,455 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Financial assets: | ||
Other investments | $ 23,993 | $ 17,381 |
Investments held in trust | 276,019 | 276,003 |
Total financial assets | 300,012 | 293,384 |
Financial liabilities | ||
Warrant liability | 9,612 | 7,368 |
Secured financing | 17,538 | 17,381 |
Total financial liabilities | 27,150 | 24,749 |
Reported Value Measurement | ||
Financial assets: | ||
Other investments | 12,614 | 9,902 |
Investments held in trust | 276,000 | 276,000 |
Total financial assets | 288,614 | 285,902 |
Financial liabilities | ||
Warrant liability | ||
Secured financing | ||
Total financial liabilities | ||
Level 1 | ||
Financial assets: | ||
Other investments | 0 | 0 |
Investments held in trust | 276,019 | 276,003 |
Total financial assets | 276,019 | 276,003 |
Financial liabilities | ||
Warrant liability | 8,281 | 6,348 |
Secured financing | 0 | 0 |
Total financial liabilities | 8,281 | 6,348 |
Level 2 | ||
Financial assets: | ||
Other investments | 3,665 | 4,083 |
Investments held in trust | 0 | 0 |
Total financial assets | 3,665 | 4,083 |
Financial liabilities | ||
Warrant liability | 1,331 | 1,020 |
Secured financing | 3,665 | 4,083 |
Total financial liabilities | 4,996 | 5,103 |
Level 3 | ||
Financial assets: | ||
Other investments | 20,328 | 13,298 |
Investments held in trust | 0 | 0 |
Total financial assets | 20,328 | 13,298 |
Financial liabilities | ||
Warrant liability | 0 | 0 |
Secured financing | 13,873 | 13,298 |
Total financial liabilities | $ 13,873 | $ 13,298 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliation of Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | $ 17,381 | |
Net gain | 3,455 | $ 0 |
Other investments, ending balance | 23,993 | |
Level 3 | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | 13,298 | 13,394 |
Contributions | 58 | 28 |
Distributions | (297) | (290) |
Net gain | 814 | 3,653 |
Transfer in/(out) | 6,455 | |
Other investments, ending balance | 20,328 | 16,785 |
Private equity funds | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | ||
Other investments, ending balance | 6,766 | |
Private equity funds | Level 3 | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | 6,254 | 5,786 |
Contributions | 30 | 28 |
Distributions | (95) | (248) |
Net gain | 577 | 998 |
Transfer in/(out) | 0 | |
Other investments, ending balance | 6,766 | 6,564 |
Direct credit co-investments | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | ||
Other investments, ending balance | 795 | |
Direct credit co-investments | Level 3 | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | 985 | 1,756 |
Contributions | 0 | 0 |
Distributions | (202) | (42) |
Net gain | 12 | 94 |
Transfer in/(out) | 0 | |
Other investments, ending balance | 795 | 1,808 |
Direct equity co-investments | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | ||
Other investments, ending balance | 6,312 | |
Direct equity co-investments | Level 3 | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | 6,059 | 5,852 |
Contributions | 28 | 0 |
Distributions | 0 | 0 |
Net gain | 225 | 2,561 |
Transfer in/(out) | 0 | |
Other investments, ending balance | 6,312 | $ 8,413 |
Publicly traded equity security | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | ||
Other investments, ending balance | 6,455 | |
Publicly traded equity security | Level 3 | ||
Reconciliation Of Other Investments [Roll Forward] | ||
Other investments, beginning balance | 0 | |
Contributions | 0 | |
Distributions | 0 | |
Net gain | 0 | |
Transfer in/(out) | 6,455 | |
Other investments, ending balance | $ 6,455 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Methodologies (Details) $ in Thousands | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Fair Value | $ 23,993 | $ 17,381 |
Private equity funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value | 6,766 | |
Direct credit co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value | 795 | |
Direct equity co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value | 6,312 | |
Publicly traded equity security | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair Value | $ 6,455 | |
Selected market return | Adjusted net asset value | Minimum | Private equity funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.050 | |
Selected market return | Adjusted net asset value | Maximum | Private equity funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.057 | |
Selected market return | Adjusted net asset value | Weighted Average | Private equity funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.056 | |
Market yield | Discounted cash flow | Minimum | Direct credit co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.090 | |
Market yield | Discounted cash flow | Maximum | Direct credit co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.090 | |
Market yield | Discounted cash flow | Weighted Average | Direct credit co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.090 | |
EBITDA multiple | Market approach | Minimum | Direct equity co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 7.75 | |
EBITDA multiple | Market approach | Maximum | Direct equity co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 14.50 | |
EBITDA multiple | Market approach | Weighted Average | Direct equity co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 10.29 | |
Equity multiple | Market approach | Weighted Average | Direct equity co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 1.5 | |
Illiquidity discount | Market approach | Publicly traded equity security | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.078 | |
Illiquidity discount | Market approach | Weighted Average | Publicly traded equity security | ||
Schedule of Equity Method Investments [Line Items] | ||
Range of and weighted-average inputs | 0.078 |
Acquisitions (Details)
Acquisitions (Details) - 361 Capital, LLC $ in Thousands | Apr. 01, 2021USD ($)installment | Apr. 01, 2023USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Aggregate purchase price | $ 13,096 | |
Cash paid for acquisition of business | $ 10,096 | |
Number of installments | installment | 2 | |
Preliminary purchase price | $ 12,946 | |
Goodwill | 5,623 | |
Scenario, Forecast | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cash paid for acquisition of business | $ 3,000 | |
Customer Contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 7,145 | |
Finite-lived intangible asset useful life | 7 years |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) | Jan. 15, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Variable Interest Entity [Line Items] | |||
Total VIE Assets | $ 1,139,302,000 | $ 1,136,519,000 | |
Total liabilities of consolidated VIEs | 523,878,000 | 546,318,000 | |
Other liabilities | 28,160,000 | ||
Hamilton Lane Alliance Holdings I, Inc. | |||
Variable Interest Entity [Line Items] | |||
Proceeds from offering | $ 276,000,000 | ||
Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total VIE Assets | 5,942,000 | 4,787,000 | |
Total liabilities of consolidated VIEs | 0 | 0 | |
Other liabilities | 19,497,000 | 17,310,000 | |
Hamilton Lane Advisors, L.L.C. | Hamilton Lane Alliance Holdings I, Inc. | |||
Variable Interest Entity [Line Items] | |||
Proceeds from offering | $ 7,520,000 | ||
Hamilton Lane Alliance Holdings I, Inc. | |||
Variable Interest Entity [Line Items] | |||
Total VIE Assets | 277,128,000 | 277,528,000 | |
Other liabilities | $ 19,497,000 | $ 17,310,000 |
Variable Interest Entities - Un
Variable Interest Entities - Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Total commitments from the limited partners and general partners to the unconsolidated VIE | $ 24,144,410 | |
Remaining unfunded commitments from the limited partners and general partners to the unconsolidated VIE | 9,386,316 | |
Statement of Financial Position [Abstract] | ||
Investments | 377,988 | $ 368,836 |
Fees receivable | 29,047 | 29,202 |
Due from related parties | 2,359 | 2,495 |
Total assets | 1,139,302 | 1,136,519 |
Not Primary Beneficiary | ||
Statement of Financial Position [Abstract] | ||
Investments | 147,701 | 138,092 |
Fees receivable | 6,081 | 4,133 |
Due from related parties | 1,014 | 837 |
Total assets | 154,796 | 143,062 |
Non-controlling interests | (2,561) | (2,211) |
Maximum exposure to loss | $ 152,235 | $ 140,851 |
Debt (Details)
Debt (Details) - USD ($) | Apr. 22, 2021 | Jun. 30, 2021 | Apr. 21, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 148,125,000 | $ 163,594,000 | ||
Carrying Value | 147,648,000 | 163,175,000 | ||
Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 73,125,000 | 73,594,000 | ||
Carrying Value | $ 72,918,000 | $ 73,378,000 | ||
Interest Rate | 2.25% | 2.25% | ||
Additional borrowing capacity | $ 25,000,000 | |||
Line of Credit | Multi-Draw Facility | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 75,000,000 | $ 75,000,000 | ||
Carrying Value | $ 74,730,000 | $ 74,797,000 | ||
Interest Rate | 3.50% | 3.50% | ||
Maximum commitment amount | $ 100,000,000 | $ 75,000,000 | ||
Line of Credit | Revolver | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 0 | $ 15,000,000 | ||
Carrying Value | $ 0 | $ 15,000,000 | ||
Interest Rate | 2.25% | 2.25% |
Equity - Shares of Common Stock
Equity - Shares of Common Stock Outstanding (Details) | 3 Months Ended |
Jun. 30, 2021shares | |
Common Class A | |
Common Stock, Shares Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 36,290,183 |
Forfeitures (in shares) | (568) |
Shares repurchased for employee tax withholdings (in shares) | (5,891) |
Restricted stock granted (in shares) | 1,155 |
Shares issued pursuant to Employee Share Purchase Plan (in shares) | 5,136 |
Outstanding, end of period (in shares) | 36,290,015 |
Common Class B | |
Common Stock, Shares Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 16,739,846 |
Forfeitures (in shares) | 0 |
Shares repurchased for employee tax withholdings (in shares) | 0 |
Restricted stock granted (in shares) | 0 |
Shares issued pursuant to Employee Share Purchase Plan (in shares) | 0 |
Outstanding, end of period (in shares) | 16,739,846 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
June 2020 Offering | Common Class A | |
Class of Stock [Line Items] | |
Stock sold in connection with secondary public offering (in shares) | 2,995,757 |
Shares sold in connection with secondary offering (in dollars per share) | $ / shares | $ 70.09 |
Proceeds from offering | $ | $ 204,979 |
June 2020 Offering Current Stockholder Issuance | Common Class A | |
Class of Stock [Line Items] | |
Stock sold in connection with secondary public offering (in shares) | 71,242 |
June 2020 Offering New Issuance | Common Class A | |
Class of Stock [Line Items] | |
Stock sold in connection with secondary public offering (in shares) | 2,924,515 |
Members’ Equity (Deficit) | Common Class B | |
Class of Stock [Line Items] | |
Purchase of interest by parent (in shares) | 2,271,636 |
Members’ Equity (Deficit) | Common Class C | |
Class of Stock [Line Items] | |
Purchase of interest by parent (in shares) | 652,879 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Restricted Stock (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Total Unvested | |
Unvested at beginning of period (in shares) | shares | 288,857 |
Granted (in shares) | shares | 1,155 |
Vested (in shares) | shares | (16,590) |
Forfeited (in shares) | shares | (568) |
Unvested at end of period (in shares) | shares | 272,854 |
Weighted- Average Grant-Date Fair Value of Award | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 55.58 |
Granted (in dollars per share) | $ / shares | 82.72 |
Vested (in dollars per share) | $ / shares | 47.74 |
Forfeited (in dollars per share) | $ / shares | 61.42 |
Unvested at end of period (in dollars per share) | $ / shares | $ 56.16 |
Total unrecognized compensation expense relating to restricted stock | $ | $ 13,442 |
Compensation and Benefits - Sch
Compensation and Benefits - Schedule of Compensation and Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Compensation Related Costs [Abstract] | ||
Base compensation and benefits | $ 23,137 | $ 27,986 |
Incentive fee compensation | 1,254 | 617 |
Equity-based compensation | 2,341 | 1,748 |
Total compensation and benefits | $ 26,732 | $ 30,351 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 21.10% | 27.90% |
Unrecognized tax positions | $ 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings Per Share - Basic and Diluted (Details) - Common Class A - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net income attributable to HLI | ||
Basic EPS of Class A common stock | $ 28,168 | $ 3,246 |
Assumed vesting of employee awards | 34 | 9 |
Diluted EPS of Class A common stock | $ 28,202 | $ 3,255 |
Weighted-Average Shares | ||
Weighted-average basic EPS of Class A common stock (in shares) | 36,003,089 | 30,237,450,000 |
Weighted-average assumed vesting of employee awards (in shares) | 125,905 | 202,702,000 |
Weighted-average diluted EPS of Class A common stock (in shares) | 36,128,994 | 30,440,152,000 |
Per share amount | ||
Basic EPS of Class A common stock (in dollars per share) | $ 0.78 | $ 0.11 |
Diluted EPS of Class A common stock (in dollars per share) | $ 0.78 | $ 0.11 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Class B and Class C Units of Hamilton Lane Advisors, L.L.C. | ||
Class of Stock [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 17,553,234 | 21,044,479 |
Related-Party Transactions - Na
Related-Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 78,995 | $ 69,744 | |
Fees receivable | 29,047 | $ 29,202 | |
Payable to related parties pursuant to tax receivable agreement | 194,225 | 194,764 | |
General Partnerships | |||
Related Party Transaction [Line Items] | |||
Fees receivable | 14,019 | 14,814 | |
Joint Venture | |||
Related Party Transaction [Line Items] | |||
Payable to related parties pursuant to tax receivable agreement | 346 | $ 325 | |
Service Agreement Fees Paid | Joint Venture | |||
Related Party Transaction [Line Items] | |||
Fees paid to joint venture | 1,020 | 960 | |
Management and advisory fees | |||
Related Party Transaction [Line Items] | |||
Revenues | 73,884 | 67,267 | |
Management and advisory fees | General Partnerships | |||
Related Party Transaction [Line Items] | |||
Revenues | 46,422 | 44,249 | |
Incentive fees | |||
Related Party Transaction [Line Items] | |||
Revenues | 5,111 | 2,477 | |
Incentive fees | General Partnerships | |||
Related Party Transaction [Line Items] | |||
Revenues | $ 4,575 | $ 2,355 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Non-cash financing activities: | |||
Dividends declared but not paid | $ 12,600 | $ 10,102 | $ 11,201 |
Member distributions declared but not paid | 3,028 | 3,367 | |
Establishment of net deferred tax assets related to offerings | $ 0 | $ 52,793 |
Commitments and Contingencies -
Commitments and Contingencies - Incentive Fees (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Carried interest still subject to contingencies | $ 808,756 | $ 648,772 |
Incentive fees, unrecorded estimate | $ 202,189 | $ 162,193 |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Other commitment | $ 194,721 | $ 201,442 |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Lease not yet commenced, term | 17 years | |
Operating lease costs | $ 3,382 | $ 1,202 |
Variable lease costs | 205 | 158 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,500 | $ 1,314 |
Weighted average remaining lease term (in years) | 15 years 7 months 6 days | 3 years |
Weighted average discount rate | 3.40% | 4.90% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 17 years |
Commitments and Contingencies_4
Commitments and Contingencies - Operating Lease Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of FY2021 | $ 4,642 | |
FY2022 | 6,788 | |
FY2023 | 6,112 | |
FY2024 | 5,670 | |
FY2025 | 5,058 | |
Thereafter | 72,654 | |
Total lease payments | 100,924 | |
Less: imputed interest | (24,667) | |
Total operating lease liabilities | $ 76,257 | $ 75,281 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 03, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Event [Line Items] | ||||
Net gain | $ 3,455 | $ 0 | ||
Investment, Measurement Alternative | ||||
Subsequent Event [Line Items] | ||||
Net gain | $ 3,455 | |||
Investment, Measurement Alternative | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Net gain | $ 23,000 | |||
Common Class A | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of Class A common stock (in dollars per share) | $ 0.35 | $ 0.3125 | ||
Common Class A | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of Class A common stock (in dollars per share) | $ 0.35 |