Consolidated Company-Sponsored Investment Funds (Tables)

6 Months Ended

Jun. 30, 2020

Consolidated Company-Sponsored Investment Funds [Abstract]

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, 2020						December 31, 2019
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	28,657	$	4,419	$	33,076	$	9,623	$	1,810	$	11,433
Investments	128,941		105,155		234,096		404,624		176,380		581,004
Other assets	3,779		4,118		7,897		9,618		10,192		19,810
Total assets	$	161,377	$	113,692	$	275,069	$	423,865	$	188,382	$	612,247
Liabilities	$	6,438	$	19,984	$	26,422	$	12,147	$	18,870	$	31,017
Redeemable non-controlling interest	35,486		15,595		51,081		273,219		52,342		325,561
Partners' capital attributable to AB Unitholders	119,453		78,113		197,566		138,499		117,170		255,669
Total liabilities, redeemable non-controlling interest and partners' capital	$	161,377	$	113,692	$	275,069	$	423,865	$	188,382	$	612,247

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

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
June 30, 2020:
Money markets	$	126,249	$	—	$	—	$	—	$	—	$	126,249
Securities segregated (U.S. Treasury Bills)	—		1,882,188		—		—		—		1,882,188
Derivatives	113		24,111		—		—		—		24,224
Investments
Equity securities	191,831		19,425		114		174		—		211,544
Long exchange-traded options	12,151		—		—		—		—		12,151
Limited partnership hedge funds(2)	—		—		—		—		40,010		40,010
Time deposits(3)	—		—		—		—		17,418		17,418
Other investments	5,675		—		—		—		7,868		13,543
Total investments	209,657		19,425		114		174		65,296		294,666
Total assets measured at fair value	$	336,019	$	1,925,724	$	114	$	174	$	65,296	$	2,327,327
Securities sold not yet purchased
Short equities – corporate	$	6,541	$	—	$	—	$	—	$	—	$	6,541
Short exchange-traded options	9,379		—		—		—		—		9,379
Derivatives	1,126		25,500		—		—		—		26,626
Contingent payment arrangements	—		—		28,910		—		—		28,910
Total liabilities measured at fair value	$	17,046	$	25,500	$	28,910	$	—	$	—	$	71,456

	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.

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of June 30, 2020 and December 31, 2019 was as follows (in thousands):

	Level 1		Level 2		Level 3		Total
June 30, 2020:
Investments - VIEs	$	16,924	$	111,541	$	476	$	128,941
Investments - VOEs	3,185		101,929		41		105,155
Derivatives - VIEs	245		1,087		—		1,332
Derivatives - VOEs	48		650		—		698
Total assets measured at fair value	$	20,402	$	215,207	$	517	$	236,126
Derivatives - VIEs	133		4,176		—		4,309
Derivatives - VOEs	58		1,688		—		1,746
Total liabilities measured at fair value	$	191	$	5,864	$	—	$	6,055
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, classified as private equity and equity securities, is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
	(in thousands)
Balance as of beginning of period	$	118		$	115	$	119		$	142
Purchases	—			—		—			—
Sales	—			—		—			—
Realized gains (losses), net	—			—		—			—
Unrealized gains (losses), net	(4		)	2		(5		)	(25		)
Balance as of end of period	$	114		$	117	$	114		$	117

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,
	2020			2019			2020			2019
	(in thousands)
Balance as of beginning of period	$	534		$	10,261		$	854		$	8,373
Deconsolidated funds	(135		)	—			(135		)	—
Transfers (out) in	340			(89		)	571			(186		)
Purchases	13			5,680			46			7,791
Sales	(82		)	(4,065		)	(444		)	(4,349		)
Realized gains (losses), net	(14		)	21			(14		)	23
Unrealized gains (losses), net	(138		)	20			(362		)	169
Accrued discounts	(1		)	6			1			13
Balance as of end of period	$	517		$	11,834		$	517		$	11,834

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of June 30, 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)
June 30, 2020:
Securities borrowed	$	18,109	$	—	$	18,109	$	(17,539	)	$	—		$	570
Derivatives	$	24,224	$	—	$	24,224	$	—		$	(810	)	$	23,414
Long exchange-traded options	$	12,151	$	—	$	12,151	$	—		$	—		$	12,151
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

Offsetting of derivative assets of consolidated company-sponsored investment funds as of June 30, 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)
June 30, 2020:
Derivatives - VIEs	$	1,332	$	—	$	1,332	$	—	$	(270	)	$	1,062
Derivatives - VOEs	$	698	$	—	$	698	$	—	$	(698	)	$	—
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 liabilities as of June 30, 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)
June 30, 2020:
Securities loaned	$	16,369	$	—	$	16,369	$	(16,155	)	$	—		$	214
Derivatives	$	26,626	$	—	$	26,626	$	—		$	(5,884	)	$	20,742
Short exchange-traded options	$	9,379	$	—	$	9,379	$	—		$	—		$	9,379
December 31, 2019:
Derivatives	$	19,259	$	—	$	19,259	$	—		$	(4,276	)	$	14,983
Short exchange-traded options	$	12,348	$	—	$	12,348	$	—		$	—		$	12,348

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of June 30, 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)
June 30, 2020:
Derivatives - VIEs	$	4,309	$	—	$	4,309	$	—	$	(3,800	)	$	509
Derivatives - VOEs	$	1,746	$	—	$	1,746	$	—	$	(1,746	)	$	—
December 31, 2019:
Derivatives - VIEs	$	4,559	$	—	$	4,559	$	—	$	(3,155	)	$	1,404
Derivatives - VOEs	$	5,083	$	—	$	5,083	$	—	$	(1,201	)	$	3,882