Consolidated Company-Sponsored Investment Funds (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2019:
Money markets	$	114,136	$	—	$	—	$	—	$	—	$	114,136
Securities segregated (U.S. Treasury Bills)	—		1,109,589		—		—		—		1,109,589
Derivatives	220		11,251		—		—		—		11,471
Investments
U.S. Treasury Bills	—		—		—		—		—		—
Equity securities	126,007		8,378		117		318		—		134,820
Long exchange-traded options	2,291		—		—		—		—		2,291
Limited partnership hedge funds⁽²⁾	—		—		—		—		66,831		66,831
Time deposits⁽³⁾	—		—		—		—		8,487		8,487
Other investments	5,374		—		—		—		6,900		12,274
Total investments	133,672		8,378		117		318		82,218		224,703
Total assets measured at fair value	$	248,028	$	1,129,218	$	117	$	318	$	82,218	$	1,459,899

Securities sold not yet purchased
Short equities – corporate	$	3,227	$	—	$	—	$	—	$	—	$	3,227
Short exchange-traded options	2,177		—		—		—		—		2,177
Derivatives	3,075		18,254		—		—		—		21,329
Contingent payment arrangements	—		—		25,603		—		—		25,603
Total liabilities measured at fair value	$	8,479	$	18,254	$	25,603	$	—	$	—	$	52,336



	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 June 30,					Six Months Ended June 30,
	2019		2018			2019			2018
	(in thousands)
Balance as of beginning of period	$	115	$	1,071		$	142		$	1,071
Purchases	—		—			—			—
Sales	—		—			—			—
Realized gains (losses), net	—		—			—			—
Unrealized gains (losses), net	2		(954		)	(25		)	(954		)
Balance as of end of period	$	117	$	117		$	117		$	117

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of June 30, 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)
June 30, 2019:
Securities borrowed	$	70,481	$	—	$	70,481	$	(69,582	)	$	—		$	899
Derivatives	$	11,471	$	—	$	11,471	$	—		$	(280	)	$	11,191
Long exchange-traded options	$	2,291	$	—	$	2,291	$	—		$	—		$	2,291
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 June 30, 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)
June 30, 2019:
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	21,329	$	—	$	21,329	$	—		$	(6,881	)	$	14,448
Short exchange-traded options	$	2,177	$	—	$	2,177	$	—		$	—		$	2,177
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:



	June 30, 2019						December 31, 2018
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	8,915	$	1,750	$	10,665	$	11,880	$	1,238	$	13,118
Investments	304,067		166,368		470,435		217,840		133,856		351,696
Other assets	14,450		14,169		28,619		6,024		16,816		22,840
Total assets	$	327,432	$	182,287	$	509,719	$	235,744	$	151,910	$	387,654

Liabilities	$	17,536	$	18,047	$	35,583	$	5,215	$	17,395	$	22,610
Redeemable non-controlling interest	166,285		46,461		212,746		117,523		28,398		145,921
Partners' capital attributable to AB Unitholders	143,611		117,779		261,390		113,006		106,117		219,123
Total liabilities, redeemable non-controlling interest and partners' capital	$	327,432	$	182,287	$	509,719	$	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 June 30, 2019 and December 31, 2018 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
June 30, 2019:
Investments - VIEs	$	27,049	$	266,235	$	10,783	$	—	$	304,067
Investments - VOEs	95,439		69,878		1,051		—		166,368
Derivatives - VIEs	1,454		2,575		—		—		4,029
Derivatives - VOEs	145		972		—		—		1,117
Total assets measured at fair value	$	124,087	$	339,660	$	11,834	$	—	$	475,581

Derivatives - VIEs	317		3,686		—		—		4,003
Derivatives - VOEs	345		922		—		—		1,267
Total liabilities measured at fair value	$	662	$	4,608	$	—	$	—	$	5,270

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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(in thousands)

Balance as of beginning of period	$	10,261		$	5,901		$	8,373		$	2,264
Transfers (out) in	(89		)	337			(186		)	324
Purchases	5,680			2,100			7,791			6,134
Sales	(4,065		)	(2,290		)	(4,349		)	(2,623		)
Realized gains (losses), net	21			(104		)	23			(99		)
Unrealized gains (losses), net	20			(75		)	169			(133		)
Accrued discounts	6			2			13			4
Balance as of end of period	$	11,834		$	5,871		$	11,834		$	5,871

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of June 30, 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)
June 30, 2019:
Derivatives - VIEs	$	4,029	$	—	$	4,029	$	—	$	(1,351	)	$	2,678
Derivatives - VOEs	$	1,117	$	—	$	1,117	$	—	$	(422	)	$	695
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 June 30, 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)
June 30, 2019:
Derivatives - VIEs	$	4,003	$	—	$	4,003	$	—	$	(2,690	)	$	1,313
Derivatives - VOEs	$	1,267	$	—	$	1,267	$	—	$	(824	)	$	443
December 31, 2018:
Derivatives - VIEs	$	3,891	$	—	$	3,891	$	—	$	(829	)	$	3,062
Derivatives - VOEs	$	3,830	$	—	$	3,830	$	—	$	(547	)	$	3,283