Consolidated Company-Sponsored Investment Funds (Tables)

9 Months Ended

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

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
September 30, 2019:
Money markets	$	115,022	$	—	$	—	$	—	$	—	$	115,022
Securities segregated (U.S. Treasury Bills)	—		958,149		—		—		—		958,149
Derivatives	1,282		13,428		—		—		—		14,710
Investments
U.S. Treasury Bills	—		74,342		—		—		—		74,342
Equity securities	137,921		12,977		118		309		—		151,325
Long exchange-traded options	5,803		—		—		—		—		5,803
Limited partnership hedge funds(2)	—		—		—		—		60,573		60,573
Time deposits(3)	—		—		—		—		18,070		18,070
Other investments	5,418		—		—		—		7,674		13,092
Total investments	149,142		87,319		118		309		86,317		323,205
Total assets measured at fair value	$	265,446	$	1,058,896	$	118	$	309	$	86,317	$	1,411,086
Securities sold not yet purchased
Short equities – corporate	$	8,538	$	—	$	—	$	—	$	—	$	8,538
Short exchange-traded options	5,152		—		—		—		—		5,152
Derivatives	240		16,418		—		—		—		16,658
Contingent payment arrangements	—		—		26,432		—		—		26,432
Total liabilities measured at fair value	$	13,930	$	16,418	$	26,432	$	—	$	—	$	56,780

	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 September 30,				Nine Months Ended September 30,
	2019		2018		2019			2018
	(in thousands)
Balance as of beginning of period	$	117	$	117	$	142		$	1,071
Purchases	—		—		—			—
Sales	—		—		—			—
Realized gains (losses), net	—		—		—			—
Unrealized gains (losses), net	1		—		(24		)	(954		)
Balance as of end of period	$	118	$	117	$	118		$	117

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of September 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)
September 30, 2019:
Securities borrowed	$	22,596	$	—	$	22,596	$	(22,596	)	$	—		$	—
Derivatives	$	14,710	$	—	$	14,710	$	—		$	(251	)	$	14,459
Long exchange-traded options	$	5,803	$	—	$	5,803	$	—		$	—		$	5,803
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 September 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)
September 30, 2019:
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	16,658	$	—	$	16,658	$	—		$	(1,867	)	$	14,791
Short exchange-traded options	$	5,152	$	—	$	5,152	$	—		$	—		$	5,152
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:

	September 30, 2019						December 31, 2018
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	14,647	$	2,362	$	17,009	$	11,880	$	1,238	$	13,118
Investments	372,668		163,614		536,282		217,840		133,856		351,696
Other assets	20,418		15,982		36,400		6,024		16,816		22,840
Total assets	$	407,733	$	181,958	$	589,691	$	235,744	$	151,910	$	387,654
Liabilities	$	17,892	$	20,181	$	38,073	$	5,215	$	17,395	$	22,610
Redeemable non-controlling interest	244,327		47,197		291,524		117,523		28,398		145,921
Partners' capital attributable to AB Unitholders	145,515		114,579		260,094		113,006		106,117		219,123
Total liabilities, redeemable non-controlling interest and partners' capital	$	407,734	$	181,957	$	589,691	$	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 September 30, 2019 and December 31, 2018 was as follows (in thousands):

	Level 1		Level 2		Level 3		NAV Expedient		Total
September 30, 2019:
Investments - VIEs	$	27,424	$	339,350	$	5,894	$	—	$	372,668
Investments - VOEs	94,725		68,382		507		—		163,614
Derivatives - VIEs	164		4,520		—		—		4,684
Derivatives - VOEs	38		8,089		—		—		8,127
Total assets measured at fair value	$	122,351	$	420,341	$	6,401	$	—	$	549,093
Derivatives - VIEs	521		4,299		—		—		4,820
Derivatives - VOEs	57		5,447		—		—		5,504
Total liabilities measured at fair value	$	578	$	9,746	$	—	$	—	$	10,324
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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in thousands)
Balance as of beginning of period	$	11,834		$	5,871		$	8,373		$	2,264
Transfers (out) in	(3,602		)	(406		)	(3,788		)	(82		)
Purchases	1,187			1,247			8,978			7,381
Sales	(2,996		)	(197		)	(7,345		)	(2,820		)
Realized gains (losses), net	12			2			35			(97		)
Unrealized gains (losses), net	(40		)	(25		)	129			(158		)
Accrued discounts	6			2			19			6
Balance as of end of period	$	6,401		$	6,494		$	6,401		$	6,494

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of September 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)
September 30, 2019:
Derivatives - VIEs	$	4,684	$	—	$	4,684	$	—	$	(1,351	)	$	3,333
Derivatives - VOEs	$	8,127	$	—	$	8,127	$	—	$	(597	)	$	7,530
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 September 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)
September 30, 2019:
Derivatives - VIEs	$	4,820	$	—	$	4,820	$	—	$	(3,368	)	$	1,452
Derivatives - VOEs	$	5,504	$	—	$	5,504	$	—	$	(1,291	)	$	4,213
December 31, 2018:
Derivatives - VIEs	$	3,891	$	—	$	3,891	$	—	$	(829	)	$	3,062
Derivatives - VOEs	$	3,830	$	—	$	3,830	$	—	$	(547	)	$	3,283