Consolidated Company-Sponsored Investment Funds (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2018:
Money markets	$	85,479	$	—	$	—	$	—	$	—	$	85,479
Securities segregated (U.S. Treasury Bills)	—		1,288,867		—		—		—		1,288,867
Derivatives	2,105		12,008		—		—		—		14,113
Investments
U.S. Treasury Bills	—		47,565		—		—		—		47,565
Equity securities	246,820		7,088		117		400		—		254,425
Long exchange-traded options	8,233		—		—		—		—		8,233
Limited partnership hedge funds⁽²⁾	—		—		—		—		138,216		138,216
Private equity	—		—		—		36,967		—		36,967
Time deposits⁽³⁾	—		—		—		—		8,793		8,793
Other investments	—		—		—		—		11,438		11,438
Total investments	255,053		54,653		117		37,367		158,447		505,637
Total assets measured at fair value	$	342,637	$	1,355,528	$	117	$	37,367	$	158,447	$	1,894,096

Securities sold not yet purchased
Short equities – corporate	$	7,454	$	—	$	—	$	—	$	—	$	7,454
Short exchange-traded options	18,342		—		—		—		—		18,342
Derivatives	985		13,567		—		—		—		14,552
Contingent payment arrangements	—		—		10,960		—		—		10,960
Total liabilities measured at fair value	$	26,781	$	13,567	$	10,960	$	—	$	—	$	51,308

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 June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(in thousands)
Balance as of beginning of period	$	1,071		$	5,026	$	1,071		$	5,023
Purchases	—			—		—			—
Sales	—			—		—			—
Realized gains (losses), net	—			—		—			—
Unrealized gains (losses), net	(954		)	2		(954		)	5
Balance as of end of period	$	117		$	5,028	$	117		$	5,028

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of June 30, 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)
June 30, 2018:
Securities borrowed	$	72,916	$	—	$	72,916	$	(68,096	)	$	—		$	4,820
Derivatives	$	14,113	$	—	$	14,113	$	—		$	(250	)	$	13,863
Long exchange-traded options	$	8,233	$	—	$	8,233	$	—		$	—		$	8,233
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 June 30, 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)
June 30, 2018:
Securities loaned	$	85,805	$	—	$	85,805	$	(84,274	)	$	—		$	1,531
Derivatives	$	14,552	$	—	$	14,552	$	—		$	(3,028	)	$	11,524
Short exchange-traded options	$	18,342	$	—	$	18,342	$	—		$	—		$	18,342
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:



	June 30, 2018						December 31, 2017
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs			Total
Cash and cash equivalents	$	22,881	$	812	$	23,693	$	326,158	$	360		$	326,518
Investments	196,391		105,234		301,625		1,189,835		56,448			1,246,283
Other assets	6,109		2,069		8,178		33,931		1,466			35,397
Total assets	$	225,381	$	108,115	$	333,496	$	1,549,924	$	58,274		$	1,608,198

Liabilities	$	5,141	$	1,831	$	6,972	$	695,997	$	2,104		$	698,101
Redeemable non-controlling interest	92,730		10,430		103,160		596,241		(18		)	596,223
Partners' capital attributable to AB Unitholders	126,806		95,854		222,660		256,929		56,188			313,117
Non-redeemable non-controlling interests in consolidated entities	704		—		704		757		—			757
Total liabilities, redeemable non-controlling interest and partners' capital	$	225,381	$	108,115	$	333,496	$	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 June 30, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
June 30, 2018:
Investments - VIEs	$	19,044	$	171,609	$	5,738	$	—	$	196,391
Investments - VOEs	53,721		51,380		133		—		105,234
Derivatives - VIEs	289		2,339		—		—		2,628
Derivatives - VOEs	60		796		—		—		856
Total assets measured at fair value	$	73,114	$	226,124	$	5,871	$	—	$	305,109

Derivatives - VIEs	111		2,875		—		—		2,986
Derivatives - VOEs	94		437		—		—		531
Total liabilities measured at fair value	$	205	$	3,312	$	—	$	—	$	3,517

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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)

Balance as of beginning of period	$	5,901		$	10,273		$	2,264		$	5,741
Deconsolidated funds	—			(6,697		)	—			(6,697		)
Transfers in (out)	337			(336		)	324			413
Purchases	2,100			435			6,134			5,012
Sales	(2,290		)	(824		)	(2,623		)	(1,897		)
Realized (losses) gains, net	(104		)	8			(99		)	(4		)
Unrealized (losses) gains, net	(75		)	(54		)	(133		)	217
Accrued discounts	2			(8		)	4			12
Balance as of end of period	$	5,871		$	2,797		$	5,871		$	2,797

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of June 30, 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)
June 30, 2018:
Derivatives - VIEs	$	2,628	$	—	$	2,628	$	—	$	(240	)	$	2,388
Derivatives - VOEs	$	856	$	—	$	856	$	—	$	(136	)	$	720
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 June 30, 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)
June 30, 2018:
Derivatives - VIEs	$	2,986	$	—	$	2,986	$	—	$	(1,089	)	$	1,897
Derivatives - VOEs	$	531	$	—	$	531	$	—	$	(531	)	$	—
December 31, 2017:
Derivatives - VIEs	$	22,241	$	—	$	22,241	$	—	$	(2,884	)	$	19,357
Derivatives - VOEs	$	631	$	—	$	631	$	—	$	(228	)	$	403