Consolidated Company-Sponsored Investment Funds (Tables)

3 Months Ended

Mar. 31, 2018

Variable Interest Entity [Line Items]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of March 31, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
March 31, 2018:
Money markets	$	48,942	$	—	$	—	$	—	$	—	$	48,942
Securities segregated (U.S. Treasury Bills)	—		1,024,529		—		—		—		1,024,529
Derivatives	1,517		12,048		—		—		—		13,565
Investments
U.S. Treasury Bills	—		52,685		—		—		—		52,685
Equity securities	237,169		15,533		117		413		—		253,232
Long exchange-traded options	5,395		—		—		—		—		5,395
Limited partnership hedge funds⁽²⁾	—		—		—		—		39,112		39,112
Private equity	—		—		954		37,057		—		38,011
Time deposits⁽³⁾	—		—		—		—		5,160		5,160
Other investments	—		—		—		—		11,786		11,786
Total investments	242,564		68,218		1,071		37,470		56,058		405,381
Total assets measured at fair value	$	293,023	$	1,104,795	$	1,071	$	37,470	$	56,058	$	1,492,417

Securities sold not yet purchased
Short equities – corporate	$	13,567	$	—	$	—	$	—	$	—	$	13,567
Short exchange-traded options	13,966		—		—		—		—		13,966
Derivatives	1,240		11,866		—		—		—		13,106
Contingent payment arrangements	—		—		10,908		—		—		10,908
Total liabilities measured at fair value	$	28,773	$	11,866	$	10,908	$	—	$	—	$	51,547

December 31, 2017:
Money markets	$	62,071	$	—	$	—	$	—	$	—	$	62,071
Securities segregated (U.S. Treasury Bills)	—		816,350		—		—		—		816,350
Derivatives	948		10,671		—		—		—		11,619
Investments
U.S. Treasury Bills	—		52,609		—		—		—		52,609
Equity securities	276,755		16,618		117		94		—		293,584
Long exchange-traded options	4,981		—		—		—		—		4,981
Limited partnership hedge funds⁽²⁾	—		—		—		—		37,199		37,199
Private equity	—		—		954		37,232		—		38,186
Time deposits⁽³⁾	—		—		—		—		5,138		5,138
Other investments	—		—		—		—		11,892		11,892
Total investments	281,736		69,227		1,071		37,326		54,229		443,589
Total assets measured at fair value	$	344,755	$	896,248	$	1,071	$	37,326	$	54,229	$	1,333,629

Securities sold not yet purchased
Short equities – corporate	$	16,376	$	—	$	—	$	—	$	—	$	16,376



Short exchange-traded options	13,585		—		—		—		—		13,585
Derivatives	2,540		11,783		—		—		—		14,323
Contingent payment arrangements	—		—		10,855		—		—		10,855
Total liabilities measured at fair value	$	32,501	$	11,783	$	10,855	$	—	$	—	$	55,139

⁽¹⁾Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽²⁾ Investments in equity method investees that are not measured at fair value in accordance with GAAP.

⁽³⁾ Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as private equity and trading equity securities, is as follows:



	Three Months Ended March 31,
	2018		2017
	(in thousands)
Balance as of beginning of period	$	1,071	$	5,023
Purchases	—		—
Sales	—		—
Realized gains (losses), net	—		—
Unrealized gains (losses), net	—		3
Balance as of end of period	$	1,071	$	5,026

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of March 31, 2018 and December 31, 2017 was as follows:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments			Cash Collateral Received			Net Amount
	(in thousands)
March 31, 2018:
Securities borrowed	$	48,302	$	—	$	48,302	$	(46,858	)	$	—		$	1,444
Derivatives	$	13,565	$	—	$	13,565	$	—		$	(2,364	)	$	11,201
Long exchange-traded options	$	5,395	$	—	$	5,395	$	—		$	—		$	5,395
December 31, 2017:
Securities borrowed	$	85,371	$	—	$	85,371	$	(82,353	)	$	—		$	3,018
Derivatives	$	11,619	$	—	$	11,619	$	—		$	(519	)	$	11,100
Long exchange-traded options	$	4,981	$	—	$	4,981	$	—		$	—		$	4,981

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of March 31, 2018 and December 31, 2017 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Liabilities Presented in the Statement of Financial Condition		Financial Instruments			Cash Collateral Pledged			Net Amount
	(in thousands)
March 31, 2018:
Securities loaned	$	20,500	$	—	$	20,500	$	(20,500	)	$	—		$	—
Derivatives	$	13,106	$	—	$	13,106	$	—		$	(4,724	)	$	8,382
Short exchange-traded options	$	13,966	$	—	$	13,966	$	—		$	—		$	13,966
December 31, 2017:
Securities loaned	$	37,960	$	—	$	37,960	$	(37,922	)	$	—		$	38
Derivatives	$	14,323	$	—	$	14,323	$	—		$	(8,794	)	$	5,529
Short exchange-traded options	$	13,585	$	—	$	13,585	$	—		$	—		$	13,585

Company-sponsored investment funds

Variable Interest Entity [Line Items]

Balances of Consolidated VIEs and VOEs included in Statement of Financial Condition

The balances of consolidated VIEs and VOEs included in our condensed consolidated statements of financial condition were as follows:



	March 31, 2018						December 31, 2017
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs			Total
Cash and cash equivalents	$	580,239	$	482	$	580,721	$	326,158	$	360		$	326,518
Investments	1,826,576		129,894		1,956,470		1,189,835		56,448			1,246,283
Other assets	40,242		4,250		44,492		33,931		1,466			35,397
Total assets	$	2,447,057	$	134,626	$	2,581,683	$	1,549,924	$	58,274		$	1,608,198

Liabilities	$	1,218,612	$	4,262	$	1,222,874	$	695,997	$	2,104		$	698,101
Redeemable non-controlling interest	981,961		9,641		991,602		596,241		(18		)	596,223
Partners' capital attributable to AB Unitholders	245,774		120,723		366,497		256,929		56,188			313,117
Non-redeemable non-controlling interests in consolidated entities	710		—		710		757		—			757
Total liabilities, redeemable non-controlling interest and partners' capital	$	2,447,057	$	134,626	$	2,581,683	$	1,549,924	$	58,274		$	1,608,198

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of March 31, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
March 31, 2018:
Investments - VIEs	$	1,612,691	$	208,118	$	5,767	$	—	$	1,826,576
Investments - VOEs	77,172		52,588		134		—		129,894
Derivatives - VIEs	769		30,237		—		—		31,006
Derivatives - VOEs	43		595		—		—		638
Total assets measured at fair value	$	1,690,675	$	291,538	$	5,901	$	—	$	1,988,114

Short equities - VIEs	$	1,188,624	$	—	$	—	$	—	$	1,188,624
Derivatives - VIEs	1,027		17,373		—		—		18,400
Derivatives - VOEs	89		587		—		—		676
Total liabilities measured at fair value	$	1,189,740	$	17,960	$	—	$	—	$	1,207,700

December 31, 2017:
Investments - VIEs	$	1,053,824	$	133,796	$	2,205	$	10	$	1,189,835
Investments - VOEs	5,491		50,898		59		—		56,448
Derivatives - VIEs	252		30,384		—		—		30,636
Derivatives - VOEs	49		251		—		—		300
Total assets measured at fair value	$	1,059,616	$	215,329	$	2,264	$	10	$	1,277,219

Short equities - VIEs	$	669,258	$	—	$	—	$	—	$	669,258
Derivatives - VIEs	421		21,820		—		—		22,241
Derivatives - VOEs	12		619		—		—		631
Total liabilities measured at fair value	$	669,691	$	22,439	$	—	$	—	$	692,130

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows:



	Three Months Ended March 31,
	2018			2017
	(in thousands)

Balance as of beginning of period	$	2,264		$	5,741
Transfers (out) in	(13		)	749
Purchases	4,034			4,577
Sales	(333		)	(1,073		)
Realized gains (losses), net	5			(12		)
Unrealized (losses) gains, net	(58		)	271
Accrued discounts	2			20
Balance as of end of period	$	5,901		$	10,273

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2018 and December 31, 2017 was as follows:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Received			Net Amount
	(in thousands)
March 31, 2018:
Derivatives - VIEs	$	31,006	$	—	$	31,006	$	—	$	(2,271	)	$	28,735
Derivatives - VOEs	$	638	$	—	$	638	$	—	$	(47	)	$	591
December 31, 2017:
Derivatives - VIEs	$	30,636	$	—	$	30,636	$	—	$	(194	)	$	30,442
Derivatives - VOEs	$	300	$	—	$	300	$	—	$	(37	)	$	263

Schedule of Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2018 and December 31, 2017 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Liabilities Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Pledged			Net Amount
	(in thousands)
March 31, 2018:
Derivatives - VIEs	$	18,400	$	—	$	18,400	$	—	$	(1,372	)	$	17,028
Derivatives - VOEs	$	676	$	—	$	676	$	—	$	(253	)	$	423
December 31, 2017:
Derivatives - VIEs	$	22,241	$	—	$	22,241	$	—	$	(2,884	)	$	19,357
Derivatives - VOEs	$	631	$	—	$	631	$	—	$	(228	)	$	403