Consolidated Company-Sponsored Investment Funds (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 and December 31, 2019 was as follows (in thousands):

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
March 31, 2020:
Money markets	$	123,767	$	—	$	—	$	—	$	—	$	123,767
Securities segregated (U.S. Treasury Bills)	—		2,012,198		—		—		—		2,012,198
Derivatives	1,505		31,061		—		—		—		32,566
Investments
Equity securities	136,573		17,589		118		159		—		154,439
Long exchange-traded options	36,783		—		—		—		—		36,783
Limited partnership hedge funds(2)	—		—		—		—		42,393		42,393
Time deposits(3)	—		—		—		—		17,303		17,303
Other investments	4,637		—		—		—		6,953		11,590
Total investments	177,993		17,589		118		159		66,649		262,508
Total assets measured at fair value	$	303,265	$	2,060,848	$	118	$	159	$	66,649	$	2,431,039
Securities sold not yet purchased
Short equities – corporate	$	11,745	$	—	$	—	$	—	$	—	$	11,745
Short exchange-traded options	15,884		—		—		—		—		15,884
Derivatives	4,895		35,161		—		—		—		40,056
Contingent payment arrangements	—		—		23,704		—		—		23,704
Total liabilities measured at fair value	$	32,524	$	35,161	$	23,704	$	—	$	—	$	91,389

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
December 31, 2019:
Money markets	$	126,401	$	—	$	—	$	—	$	—	$	126,401
Securities segregated (U.S. Treasury Bills)	—		1,094,866		—		—		—		1,094,866
Derivatives	939		12,552		—		—		—		13,491
Investments
Equity securities	170,946		8,952		119		314		—		180,331
Long exchange-traded options	6,931		—		—		—		—		6,931
Limited partnership hedge funds(2)	—		—		—		—		47,361		47,361
Time deposits(3)	—		—		—		—		18,281		18,281
Other investments	5,883		—		—		—		8,007		13,890
Total investments	183,760		8,952		119		314		73,649		266,794
Total assets measured at fair value	$	311,100	$	1,116,370	$	119	$	314	$	73,649	$	1,501,552
Securities sold not yet purchased
Short equities – corporate	$	17,809	$	—	$	—	$	—	$	—	$	17,809
Short exchange-traded options	12,348		—		—		—		—		12,348
Derivatives	871		18,388		—		—		—		19,259
Contingent payment arrangements	—		—		22,911		—		—		22,911
Total liabilities measured at fair value	$	31,028	$	18,388	$	22,911	$	—	$	—	$	72,327

⁽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,
	2020			2019
	(in thousands)
Balance as of beginning of period	$	119		$	142
Purchases	—			—
Sales	—			—
Realized gains (losses), net	—			—
Unrealized gains (losses), net	(1		)	(27		)
Balance as of end of period	$	118		$	115

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of March 31, 2020 and December 31, 2019 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, 2020:
Securities borrowed	$	45,470	$	—	$	45,470	$	(37,959	)	$	—		$	7,511
Derivatives	$	32,566	$	—	$	32,566	$	—		$	(8,479	)	$	24,087
Long exchange-traded options	$	36,783	$	—	$	36,783	$	—		$	—		$	36,783
December 31, 2019:
Securities borrowed	$	38,993	$	—	$	38,993	$	(38,993	)	$	—		$	—
Derivatives	$	13,491	$	—	$	13,491	$	—		$	(251	)	$	13,240
Long exchange-traded options	$	6,931	$	—	$	6,931	$	—		$	—		$	6,931

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of March 31, 2020 and December 31, 2019 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, 2020:
Derivatives	$	40,056	$	—	$	40,056	$	—	$	(9,644	)	$	30,412
Short exchange-traded options	$	15,884	$	—	$	15,884	$	—	$	—		$	15,884
December 31, 2019:
Derivatives	$	19,259	$	—	$	19,259	$	—	$	(4,276	)	$	14,983
Short exchange-traded options	$	12,348	$	—	$	12,348	$	—	$	—		$	12,348

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, 2020						December 31, 2019
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	83,067	$	4,210	$	87,277	$	9,623	$	1,810	$	11,433
Investments	273,445		170,027		443,472		404,624		176,380		581,004
Other assets	20,444		19,094		39,538		9,618		10,192		19,810
Total assets	$	376,956	$	193,331	$	570,287	$	423,865	$	188,382	$	612,247
Liabilities	$	73,325	$	31,550	$	104,875	$	12,147	$	18,870	$	31,017
Redeemable non-controlling interest	179,090		45,810		224,900		273,219		52,342		325,561
Partners' capital attributable to AB Unitholders	124,541		115,971		240,512		138,499		117,170		255,669
Total liabilities, redeemable non-controlling interest and partners' capital	$	376,956	$	193,331	$	570,287	$	423,865	$	188,382	$	612,247

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, 2020 and December 31, 2019 was as follows (in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2020:
Investments - VIEs	$	19,040	$	254,011	$	394	$	273,445
Investments - VOEs	77,460		92,427		140		170,027
Derivatives - VIEs	2,421		5,471		—		7,892
Derivatives - VOEs	187		13,154		—		13,341
Total assets measured at fair value	$	99,108	$	365,063	$	534	$	464,705
Derivatives - VIEs	469		6,134		—		6,603
Derivatives - VOEs	252		12,461		—		12,713
Total liabilities measured at fair value	$	721	$	18,595	$	—	$	19,316
December 31, 2019:
Investments - VIEs	$	28,270	$	375,559	$	795	$	404,624
Investments - VOEs	104,069		72,252		59		176,380
Derivatives - VIEs	139		4,694		—		4,833
Derivatives - VOEs	76		4,263		—		4,339
Total assets measured at fair value	$	132,554	$	456,768	$	854	$	590,176
Derivatives - VIEs	$	835	$	3,724	$	—	$	4,559
Derivatives - VOEs	101		4,982		—		5,083
Total liabilities measured at fair value	$	936	$	8,706	$	—	$	9,642

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,
	2020			2019
	(in thousands)
Balance as of beginning of period	$	854		$	8,373
Transfers (out) in	231			(97		)
Purchases	33			2,111
Sales	(362		)	(284		)
Realized gains (losses), net	—			2
Unrealized gains (losses), net	(224		)	149
Accrued discounts	2			7
Balance as of end of period	$	534		$	10,261

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2020 and December 31, 2019 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, 2020:
Derivatives - VIEs	$	7,892	$	—	$	7,892	$	—	$	(7,892	)	$	—
Derivatives - VOEs	$	13,341	$	—	$	13,341	$	—	$	(580	)	$	12,761
December 31, 2019:
Derivatives - VIEs	$	4,833	$	—	$	4,833	$	—	$	(1,631	)	$	3,202
Derivatives - VOEs	$	4,339	$	—	$	4,339	$	—	$	(534	)	$	3,805

Schedule of Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2020 and December 31, 2019 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, 2020:
Derivatives - VIEs	$	6,603	$	—	$	6,603	$	—	$	(6,603	)	$	—
Derivatives - VOEs	$	12,713	$	—	$	12,713	$	—	$	(2,797	)	$	9,916
December 31, 2019:
Derivatives - VIEs	$	4,559	$	—	$	4,559	$	—	$	(3,155	)	$	1,404
Derivatives - VOEs	$	5,083	$	—	$	5,083	$	—	$	(1,201	)	$	3,882