v3.26.1
Fair Value Measurements
 12 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures certain assets and liabilities at fair value on a recurring basis.
Financial Instruments of the Company
As of March 31, 2026 and 2025, respectively, the Company held no financial instruments within the fair value hierarchy measured at fair value on a recurring basis.
Contingent Consideration
The Company previously held a contingent consideration obligation liability that was measured at fair value on a recurring basis. The fair value of the contingent consideration obligation was based on a discounted cash flow analysis using a probability-weighted average estimate of certain performance targets, including revenue levels. The significant unobservable inputs required to value the contingent consideration obligation primarily related to the future expected revenues and the discount rate applied to the expected future revenues and payments of obligations. The management fee revenue target for calendar year 2024 was achieved resulting in the full earn-out amount of $75.0 million, which was fully paid during the year ended March 31, 2025. In accordance with the contingent consideration arrangement, a portion of the contingent earn-out liability otherwise payable to the sellers included amounts paid to certain of the Company’s employees and former employees during the year ended March 31, 2025. As a result, the contingent consideration liability was settled net of $5.8 million paid. Changes in the fair value of the liabilities are included in general, administrative and other expenses in the consolidated statements of income (loss).
Financial Instruments of Consolidated Funds
As of March 31, 2026
Level ILevel IILevel IIITotal
Assets
Equity securities$— $— $1,800 $1,800 
Debt securities— — 92,096 92,096 
Total assets measured at fair value— — 93,896 93,896 
Assets measured at net asset value(1)
— — — 621,439 
Total assets$— $— $93,896 $715,335 
Liabilities
Debt obligations of Consolidated Funds(2)
$— $— $931,185 $931,185 
Forward foreign currency contracts— 187 — 187 
Total liabilities$— $187 $931,185 $931,372 
_______________________________
(1)Includes investment in funds, which are generally organized as partnership and LLC interests measured using the net asset value (“NAV”) per share equivalent calculated by the investment manager as a practical expedient in determining an independent fair value.
(2)As of March 31, 2026, the carrying value of the debt obligations of Consolidated Funds approximates fair value as the closing date of the fund and issuance of notes payable by the fund occurred near the reporting date.
As of March 31, 2025
Level ILevel IILevel IIITotal
Assets
Equity securities$— $— $63,664 $63,664 
Fund investments
— — 866 866 
Total assets measured at fair value— — 64,530 64,530 
Assets measured at net asset value(1)
— — — 350,481 
Total assets$— $— $64,530 $415,011 
_______________________________
(1)Includes investment in funds, which are generally organized as partnership and LLC interests and equity securities measured using the NAV per share equivalent calculated by the investment manager as a practical expedient in determining an independent fair value.
For the financial instruments presented in the tables above, there were no changes in fair value hierarchy levels during the years ended March 31, 2026 and 2025.
The Company generally values its investment funds, which are generally organized as partnership and LLC interests, using the NAV per share equivalent calculated by the investment manager as a practical expedient in determining an independent fair value. The Company does not categorize within the fair value hierarchy investments where fair value is measured using the net asset value per share practical expedient. As of March 31, 2026 and 2025, investments with a combined fair value of $621.4 million and $350.5 million, respectively, are excluded from presentation in the fair value hierarchy as the fair value of these investments were measured at net asset value.
As of March 31, 2026 and 2025, investments with a combined fair value of $93.9 million and $64.5 million, respectively, were classified as Level III investments. As of March 31, 2026, the significant unobservable input used to value these investments classified as Level III investments may include the yield method or mid probable realization value for debt securities. As of March 31, 2025, the significant unobservable inputs used to value these investments classified as Level III investments may include the enterprise value to revenue multiple or the discounts to recent transaction prices or recent round of financing.
A reconciliation from the beginning balance to the closing balance of Level III financial instruments of Consolidated Funds are set forth below:
As of March 31,
20262025
Financial Assets of Consolidated Funds
Balance, beginning of period:$64,530 $13,694 
Transfers into Level III— 9,289 
Transfers out of Level III— (4,332)
Purchases
10,808 38,369 
Change in fair value
4,441 7,510 
Deconsolidation of fund - Level III derecognition(1)
(77,861)— 
Initial consolidation of funds - Level III recognition(2)
93,896 — 
Settlements
(1,918)— 
Balance, end of period:$93,896 $64,530 
Changes in unrealized gains included in earnings related to financial assets still held at the reporting date
$4,441 $7,510 
_______________________________
(1)During the year ended March 31, 2026, the Company deconsolidated an investment fund that was previously consolidated in the Company’s results as it was determined that the Company no longer held a controlling financial interest. The related investments previously presented as Level III financial assets were derecognized due to the deconsolidation of the fund.
(2)During the year ended March 31, 2026, the Company consolidated four investment funds as it was determined that the Company held a controlling financial interest. Certain investments held by the funds have been presented as Level III financial assets.
As of March 31,
20262025
Financial Liabilities of Consolidated Funds
Balance, beginning of period:$— $— 
Borrowings(1)
931,185 — 
Change in fair value
— — 
Balance, end of period:$931,185 $— 
Changes in unrealized gains included in earnings related to financial liabilities still held at the reporting date
$— $— 
_______________________________
(1)During the year ended March 31, 2026, the Company consolidated a CFE vehicle that issues notes payable that are backed by diversified collateral asset portfolios consisting primarily of equity investments in several of the StepStone Funds. The notes payable have been presented as Level III financial liabilities.