We regularly provide seed capital to new company-sponsored investment funds. As such, we may consolidate or de-consolidate a variety of company-sponsored investment funds each quarter. Due to the similarity of risks related to our involvement with each company-sponsored investment fund, disclosures required under the VIE model are aggregated, such as disclosures regarding the carrying amount and classification of assets.

We are not required to provide financial support to company-sponsored investment funds and only the assets of such funds are available to settle each fund's own liabilities. Our exposure to loss regarding consolidated company-sponsored investment funds is limited to our investment in, and our management fee earned from, such funds. Equity and debt holders of such funds have no recourse to AB’s assets or to the general credit of AB.


	December 31, 2023			December 31, 2022
	(in thousands)
		VIEs			VOEs		Total		VIEs		VOEs		Total


Cash and cash equivalents		$	7,572		$	167	$	7,739	$	19,751	$	—	$	19,751
Investments		286,619			110,555		397,174		516,536		—		516,536
Other assets		15,010			10,289		25,299		44,424		—		44,424
Total assets		$	309,201		$	121,011	$	430,212	$	580,711	$	—	$	580,711
Liabilities		$	9,699		$	2,838	$	12,537	$	55,529	$	—	$	55,529
Redeemable non-controlling interest		202,882			6,538		209,420		368,656		—		368,656
Partners' capital attributable to AB Unitholders		96,620			111,635		208,255		156,526		—		156,526

Total liabilities, redeemable non-controlling interest and partners' capital		$	309,201		$	121,011	$	430,212	$	580,711	$	—	$	580,711

During 2023, we deconsolidated five funds in which we had seed investments totaling approximately $77.3 million as of December 31, 2022 due to no longer having a controlling financial interest.


Redeemable non-controlling interest as of December 31, 2022	$	368,656
Deconsolidated funds	(196,277)
Changes in third-party seed investments in consolidated funds	37,041
Redeemable non-controlling interest as of December 31, 2023	$	209,420

Cash and cash equivalents include cash on hand, demand deposits, overnight commercial paper and highly liquid investments with original maturities of three months or less. Due to the short-term nature of these instruments, the recorded value has been determined to approximate fair value.

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of December 31, 2023 and 2022 was as follows (in thousands):


	Level 1			Level 2			Level 3			Total
December 31, 2023:
Investments - VIEs		$	49,455		$	237,164		$	—		$	286,619
Investments - VOEs		9,036			101,519			—			110,555
Derivatives - VIEs		2,139			2,763			—			4,902
Derivatives - VOEs		—			8,775			—			8,775
Total assets measured at fair value		$	60,630		$	350,221		$	—		$	410,851
Derivatives - VIEs		$	944		$	1,587		$	—		$	2,531

Total liabilities measured at fair value		$	944		$	1,587		$	—		$	2,531
December 31, 2022:
Investments - VIEs		$	129,706		$	386,830		$	—		$	516,536

Derivatives - VIEs		1,529			6,023			—			7,552

Total assets measured at fair value		$	131,235		$	392,853		$	—		$	524,088

Derivatives - VIEs		$	14,932		$	6,608		$	—		$	21,540

Total liabilities measured at fair value		$	14,932		$	6,608		$	—		$	21,540

See Note 9 for a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows:


	December 31
	2023			2022
	(in thousands)
Balance as of beginning of period		$	—		$	3,357
Deconsolidated funds		—			(3,351)
Transfers (out)		—			(6)
Purchases		—			248
Sales		—			(248)



Balance as of end of period		$	—		$	—

The Level 3 securities primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities.

Transfers into and out of all levels of the fair value hierarchy are reflected at end-of-period fair values. Realized and unrealized gains and losses on Level 3 financial instruments are recorded in investment gains and losses in the consolidated statements of income.

As of December 31, 2023 and 2022, the VIEs held $2.4 million and $14.0 million (net), respectively, of futures, forwards, options and swaps within their portfolios. For the years ended December 31, 2023 and 2022, we recognized $0.1 million of gains and $9.4 million of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the consolidated statements of income.

As of December 31, 2023 and 2022, the VIEs held $1.4 million and $2.7 million, respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in the liabilities of consolidated company-sponsored investment funds in our consolidated statements of financial condition.

As of December 31, 2023 and 2022, the VIEs delivered $1.4 million and $5.4 million, respectively, of cash collateral into brokerage accounts. The VIEs report this cash collateral in the consolidated company-sponsored investment funds cash and cash equivalents in our consolidated statements of financial condition.

As of December 31, 2023, the VOEs held $8.8 million of futures, forwards, options and swaps within their portfolios. For the year ended December 31, 2023, we recognized $0.1 million of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the consolidated statements of income.


	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)
December 31, 2023:
Derivatives - VIEs		$	4,902		$	—		$	4,902		$	—		$	(1,415)		$	3,487

December 31, 2022:
Derivatives - VIEs		$	7,552		$	—		$	7,552		$	—		$	(2,731)		$	4,821


	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)
December 31, 2023:
Derivatives - VIEs		$	2,531		$	—		$	2,531		$	—		$	(1,408)		$	1,123

December 31, 2022:
Derivatives - VIEs		$	21,540		$	—		$	21,540		$	—		$	(5,444)		$	16,096

Cash collateral, whether pledged or received on derivative instruments, is not considered material and, accordingly, is not disclosed by counterparty.

As of December 31, 2023, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $54.6 billion; our maximum risk of loss is our investment of $10.3 million in these VIEs and our advisory fees receivable from these VIEs are $114.5 million. As of December 31, 2022, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $46.4 billion; our maximum risk of loss was our investment of $5.7 million in these VIEs and our advisory fees receivable from these VIEs were $54.2 million.