Intangibles and Goodwill
Intangible assets consist of management contracts providing economic rights to management and advisory fees and client relationships related to future fundraising, as obtained through the Company’s acquisitions of other businesses.
Intangible assets, net consists of the following: | | | | | | | | | | | |
| As of March 31, |
| 2026 | | 2025 |
| Management contracts | $ | 352,002 | | | $ | 352,002 | |
| Client relationships | 96,650 | | | 96,650 | |
| | | |
| Less: Accumulated amortization | (225,608) | | | (184,780) | |
| Intangible assets, net | $ | 223,044 | | | $ | 263,872 | |
Amortization expense related to intangible assets was $40.8 million, $41.0 million and $42.4 million for the years ended March 31, 2026, 2025 and 2024, respectively. These amounts are included in general, administrative and other expenses in the consolidated statements of income (loss).
At March 31, 2026, the expected future amortization of finite-lived intangible assets is as follows:
| | | | | |
| Fiscal year ending March 31, | |
| 2027 | $ | 40,759 | |
| 2028 | 40,759 | |
| 2029 | 40,759 | |
| 2030 | 40,759 | |
| 2031 | 40,759 | |
| Thereafter | 19,249 | |
| Total | $ | 223,044 | |
The carrying value of goodwill was $580.5 million as of March 31, 2026 and 2025. The Company determined there was no indication of goodwill impairment as of March 31, 2026 and 2025.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.