Consolidated Company-Sponsored Investment Funds (Tables)

9 Months Ended

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



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
September 30, 2018:
Money markets	$	110,654	$	—	$	—	$	—	$	—	$	110,654
Securities segregated (U.S. Treasury Bills)	—		1,262,906		—		—		—		1,262,906
Derivatives	915		10,482		—		—		—		11,397
Investments
U.S. Treasury Bills	—		22,774		—		—		—		22,774
Equity securities	272,053		10,028		117		312		—		282,510
Long exchange-traded options	1,100		—		—		—		—		1,100
Limited partnership hedge funds⁽²⁾	—		—		—		—		116,499		116,499
Private equity	—		—		—		36,450		—		36,450
Time deposits⁽³⁾	—		—		—		—		8,835		8,835
Other investments	—		—		—		—		10,379		10,379
Total investments	273,153		32,802		117		36,762		135,713		478,547
Total assets measured at fair value	$	384,722	$	1,306,190	$	117	$	36,762	$	135,713	$	1,863,504

Securities sold not yet purchased
Short equities – corporate	$	10,162	$	—	$	—	$	—	$	—	$	10,162
Short exchange-traded options	10,799		—		—		—		—		10,799
Derivatives	965		12,972		—		—		—		13,937
Contingent payment arrangements	—		—		11,013		—		—		11,013
Total liabilities measured at fair value	$	21,926	$	12,972	$	11,013	$	—	$	—	$	45,911



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
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 equity securities, is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
	(in thousands)
Balance as of beginning of period	$	117	$	5,028		$	1,071		$	5,023
Purchases	—		—			—			—
Sales	—		—			—			—
Realized gains (losses), net	—		—			—			—
Unrealized gains (losses), net	—		(3,958		)	(954		)	(3,953		)
Balance as of end of period	$	117	$	1,070		$	117		$	1,070

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of September 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)
September 30, 2018:
Securities borrowed	$	46,175	$	—	$	46,175	$	(42,514	)	$	—		$	3,661
Derivatives	$	11,397	$	—	$	11,397	$	—		$	(530	)	$	10,867
Long exchange-traded options	$	1,100	$	—	$	1,100	$	—		$	—		$	1,100
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 September 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)
September 30, 2018:
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	13,937	$	—	$	13,937	$	—		$	(5,279	)	$	8,658
Short exchange-traded options	$	10,799	$	—	$	10,799	$	—		$	—		$	10,799
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:



	September 30, 2018						December 31, 2017
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs			Total
Cash and cash equivalents	$	9,736	$	702	$	10,438	$	326,158	$	360		$	326,518
Investments	186,386		116,915		303,301		1,189,835		56,448			1,246,283
Other assets	5,544		3,551		9,095		33,931		1,466			35,397
Total assets	$	201,666	$	121,168	$	322,834	$	1,549,924	$	58,274		$	1,608,198

Liabilities	$	6,077	$	2,502	$	8,579	$	695,997	$	2,104		$	698,101
Redeemable non-controlling interest	80,436		20,673		101,109		596,241		(18		)	596,223
Partners' capital attributable to AB Unitholders	114,495		97,993		212,488		256,929		56,188			313,117
Non-redeemable non-controlling interests in consolidated entities	658		—		658		757		—			757
Total liabilities, redeemable non-controlling interest and partners' capital	$	201,666	$	121,168	$	322,834	$	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 September 30, 2018 and December 31, 2017 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
September 30, 2018:
Investments - VIEs	$	19,818	$	160,266	$	6,302	$	—	$	186,386
Investments - VOEs	66,384		50,339		192		—		116,915
Derivatives - VIEs	108		2,519		—		—		2,627
Derivatives - VOEs	102		1,003		—		—		1,105
Total assets measured at fair value	$	86,412	$	214,127	$	6,494	$	—	$	307,033

Derivatives - VIEs	519		2,994		—		—		3,513
Derivatives - VOEs	60		455		—		—		515
Total liabilities measured at fair value	$	579	$	3,449	$	—	$	—	$	4,028

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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)

Balance as of beginning of period	$	5,871		$	2,797		$	2,264		$	5,741
Deconsolidated funds	—			—			—			(6,697		)
Transfers (out) in	(406		)	(35		)	(82		)	378
Purchases	1,247			346			7,381			5,358
Sales	(197		)	(1,148		)	(2,820		)	(3,045		)
Realized gains (losses), net	2			5			(97		)	1
Unrealized (losses) gains, net	(25		)	52			(158		)	269
Accrued discounts	2			1			6			13
Balance as of end of period	$	6,494		$	2,018		$	6,494		$	2,018

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of September 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)
September 30, 2018:
Derivatives - VIEs	$	2,627	$	—	$	2,627	$	—	$	(691	)	$	1,936
Derivatives - VOEs	$	1,105	$	—	$	1,105	$	—	$	(115	)	$	990
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 September 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)
September 30, 2018:
Derivatives - VIEs	$	3,513	$	—	$	3,513	$	—	$	(1,948	)	$	1,565
Derivatives - VOEs	$	515	$	—	$	515	$	—	$	(405	)	$	110
December 31, 2017:
Derivatives - VIEs	$	22,241	$	—	$	22,241	$	—	$	(2,884	)	$	19,357
Derivatives - VOEs	$	631	$	—	$	631	$	—	$	(228	)	$	403