Consolidated Company-Sponsored Investment Funds (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
March 31, 2019:
Money markets	$	93,286	$	—	$	—	$	—	$	—	$	93,286
Securities segregated (U.S. Treasury Bills)	—		1,262,178		—		—		—		1,262,178
Derivatives	231		9,823		—		—		—		10,054
Investments
U.S. Treasury Bills	—		—		—		—		—		—
Equity securities	167,346		6,248		115		318		—		174,027
Long exchange-traded options	3,046		—		—		—		—		3,046
Limited partnership hedge funds⁽²⁾	—		—		—		—		77,303		77,303
Time deposits⁽³⁾	—		—		—		—		8,634		8,634
Other investments	5,028		—		—		—		7,155		12,183
Total investments	175,420		6,248		115		318		93,092		275,193
Total assets measured at fair value	$	268,937	$	1,278,249	$	115	$	318	$	93,092	$	1,640,711

Securities sold not yet purchased
Short equities – corporate	$	2,465	$	—	$	—	$	—	$	—	$	2,465
Short exchange-traded options	2,878		—		—		—		—		2,878
Derivatives	1,672		12,718		—		—		—		14,390
Contingent payment arrangements	—		—		7,390		—		—		7,390
Total liabilities measured at fair value	$	7,015	$	12,718	$	7,390	$	—	$	—	$	27,123



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
December 31, 2018:
Money markets	$	102,888	$	—	$	—	$	—	$	—	$	102,888
Securities segregated (U.S. Treasury Bills)	—		1,169,554		—		—		—		1,169,554
Derivatives	1,594		15,485		—		—		—		17,079
Investments
U.S. Treasury Bills	—		392,424		—		—		—		392,424
Equity securities	209,414		8,372		142		315		—		218,243
Long exchange-traded options	2,568		—		—		—		—		2,568
Limited partnership hedge funds⁽²⁾	—		—		—		—		80,699		80,699
Time deposits⁽³⁾	—		—		—		—		8,783		8,783
Other investments	4,269		—		—		—		7,358		11,627
Total investments	216,251		400,796		142		315		96,840		714,344
Total assets measured at fair value	$	320,733	$	1,585,835	$	142	$	315	$	96,840	$	2,003,865

Securities sold not yet purchased
Short equities – corporate	$	4,841	$	—	$	—	$	—	$	—	$	4,841
Short exchange-traded options	3,782		—		—		—		—		3,782
Derivatives	2,534		12,288		—		—		—		14,822
Contingent payment arrangements	—		—		7,336		—		—		7,336
Total liabilities measured at fair value	$	11,157	$	12,288	$	7,336	$	—	$	—	$	30,781

⁽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 March 31,
	2019			2018
	(in thousands)
Balance as of beginning of period	$	142		$	1,071
Purchases	—			—
Sales	—			—
Realized gains (losses), net	—			—
Unrealized gains (losses), net	(27		)	—
Balance as of end of period	$	115		$	1,071

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of March 31, 2019 and December 31, 2018 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, 2019:
Securities borrowed	$	55,031	$	—	$	55,031	$	(54,249	)	$	—		$	782
Derivatives	$	10,054	$	—	$	10,054	$	—		$	(1,141	)	$	8,913
Long exchange-traded options	$	3,046	$	—	$	3,046	$	—		$	—		$	3,046
December 31, 2018:
Securities borrowed	$	64,856	$	—	$	64,856	$	(64,217	)	$	—		$	639
Derivatives	$	17,079	$	—	$	17,079	$	—		$	(4,831	)	$	12,248
Long exchange-traded options	$	2,568	$	—	$	2,568	$	—		$	—		$	2,568

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of March 31, 2019 and December 31, 2018 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, 2019:
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	14,390	$	—	$	14,390	$	—		$	(3,655	)	$	10,735
Short exchange-traded options	$	2,878	$	—	$	2,878	$	—		$	—		$	2,878
December 31, 2018:
Securities loaned	$	59,526	$	—	$	59,526	$	(59,526	)	$	—		$	—
Derivatives	$	14,822	$	—	$	14,822	$	—		$	(4,458	)	$	10,364
Short exchange-traded options	$	3,782	$	—	$	3,782	$	—		$	—		$	3,782

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, 2019						December 31, 2018
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	5,948	$	1,819	$	7,767	$	11,880	$	1,238	$	13,118
Investments	230,755		154,554		385,309		217,840		133,856		351,696
Other assets	12,668		13,522		26,190		6,024		16,816		22,840
Total assets	$	249,371	$	169,895	$	419,266	$	235,744	$	151,910	$	387,654

Liabilities	$	14,050	$	15,598	$	29,648	$	5,215	$	17,395	$	22,610
Redeemable non-controlling interest	116,343		39,642		155,985		117,523		28,398		145,921
Partners' capital attributable to AB Unitholders	118,978		114,655		233,633		113,006		106,117		219,123
Total liabilities, redeemable non-controlling interest and partners' capital	$	249,371	$	169,895	$	419,266	$	235,744	$	151,910	$	387,654

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, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
March 31, 2019:
Investments - VIEs	$	25,109	$	196,275	$	9,371	$	—	$	230,755
Investments - VOEs	86,036		67,628		890		—		154,554
Derivatives - VIEs	837		1,787		—		—		2,624
Derivatives - VOEs	123		4,237		—		—		4,360
Total assets measured at fair value	$	112,105	$	269,927	$	10,261	$	—	$	392,293

Derivatives - VIEs	151		2,629		—		—		2,780
Derivatives - VOEs	343		3,595		—		—		3,938
Total liabilities measured at fair value	$	494	$	6,224	$	—	$	—	$	6,718

December 31, 2018:
Investments - VIEs	$	22,149	$	187,626	$	8,065	$	—	$	217,840
Investments - VOEs	68,063		65,485		308		—		133,856
Derivatives - VIEs	1,486		1,924		—		—		3,410
Derivatives - VOEs	124		3,692		—		—		3,816
Total assets measured at fair value	$	91,822	$	258,727	$	8,373	$	—	$	358,922

Derivatives - VIEs	$	72	$	3,819	$	—	$	—	$	3,891
Derivatives - VOEs	197		3,633		—		—		3,830
Total liabilities measured at fair value	$	269	$	7,452	$	—	$	—	$	7,721

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,
	2019			2018
	(in thousands)

Balance as of beginning of period	$	8,373		$	2,264
Transfers (out) in	(97		)	(13		)
Purchases	2,111			4,034
Sales	(284		)	(333		)
Realized gains (losses), net	2			5
Unrealized gains (losses), net	149			(58		)
Accrued discounts	7			2
Balance as of end of period	$	10,261		$	5,901

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2019 and December 31, 2018 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, 2019:
Derivatives - VIEs	$	2,624	$	—	$	2,624	$	—	$	(958	)	$	1,666
Derivatives - VOEs	$	4,360	$	—	$	4,360	$	—	$	(241	)	$	4,119
December 31, 2018:
Derivatives - VIEs	$	3,410	$	—	$	3,410	$	—	$	(856	)	$	2,554
Derivatives - VOEs	$	3,816	$	—	$	3,816	$	—	$	(225	)	$	3,591

Schedule of Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2019 and December 31, 2018 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, 2019:
Derivatives - VIEs	$	2,780	$	—	$	2,780	$	—	$	(2,089	)	$	691
Derivatives - VOEs	$	3,938	$	—	$	3,938	$	—	$	(913	)	$	3,025
December 31, 2018:
Derivatives - VIEs	$	3,891	$	—	$	3,891	$	—	$	(829	)	$	3,062
Derivatives - VOEs	$	3,830	$	—	$	3,830	$	—	$	(547	)	$	3,283