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.


	March 31, 2024						December 31, 2023
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	7,425	$	111	$	7,536	$	7,572	$	167	$	7,739
Investments	171,088		127,040		298,128		286,619		110,555		397,174
Other assets	9,251		1,702		10,953		15,010		10,289		25,299
Total assets	$	187,764	$	128,853	$	316,617	$	309,201	$	121,011	$	430,212

Liabilities	$	10,002	$	4,130	$	14,132	$	9,699	$	2,838	$	12,537
Redeemable non-controlling interest	103,743		21,151		124,894		202,882		6,538		209,420
Partners' capital attributable to AB Unitholders	74,019		103,572		177,591		96,620		111,635		208,255
Total liabilities, redeemable non-controlling interest and partners' capital	$	187,764	$	128,853	$	316,617	$	309,201	$	121,011	$	430,212

During the three-month period ended March 31, 2024, we deconsolidated two funds in which we had a seed investment of approximately $18.5 million as of December 31, 2023, due to no longer having a controlling financial interest.



Redeemable non-controlling interest as of December 31, 2023	$	209,420
Deconsolidated funds	(107,153)
Changes in third-party seed investments in consolidated funds	22,627
Redeemable non-controlling interest as of March 31, 2024	$	124,894

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 March 31, 2024 and December 31, 2023 was as follows (in thousands):


	Level 1		Level 2		Level 3		Total
March 31, 2024:
Investments - VIEs	$	46,870	$	124,218	$	—	$	171,088
Investments - VOEs	16,540		110,500		—		127,040
Derivatives - VIEs	250		5,448		—		5,698

Total assets measured at fair value	$	63,660	$	240,166	$	—	$	303,826

Derivatives - VIEs	88		5,278		—		5,366

Total liabilities measured at fair value	$	88	$	5,278	$	—	$	5,366

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

See Note 11 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:


	Three Months Ended March 31,
		2024		2023
		(in thousands)
Balance as of beginning of period		$	—	$	—
Deconsolidated funds		—		—
Transfers		—		—
Purchases		—		—




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 condensed consolidated statements of income.

As of March 31, 2024 and December 31, 2023, the VIEs held $0.3 million and $2.4 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three months ended March 31, 2024 and March 31, 2023, we recognized $0.5 million of losses and $1.7 million of gains, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed consolidated statements of income.

As of March 31, 2024 and December 31, 2023, the VIEs held $0.7 million and $1.4 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 condensed consolidated statements of financial condition.

As of March 31, 2024 and December 31, 2023, the VIEs delivered $1.7 million and $1.4 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 condensed consolidated statements of financial condition.

As of March 31, 2024 and December 31, 2023, the VOEs held zero and $8.8 million futures, forwards, options or swaps within their portfolios. For the three months ended March 31, 2024 and March 31, 2023, we recognized no gains or losses on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed 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 Collateral		Cash Collateral Received		Net Amount
	(in thousands)
March 31, 2024:
Derivatives - VIEs	$	5,698	$	—	$	5,698	$	—	$	(725)	$	4,973

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


	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 Collateral		Cash Collateral Pledged		Net Amount
	(in thousands)
March 31, 2024:
Derivatives - VIEs	$	5,366	$	—	$	5,366	$	—	$	(1,679)	$	3,687

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

As of March 31, 2024, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $65.5 billion, and our maximum risk of loss is our investment of $22.2 million in these VIEs and our advisory fee receivables from these VIEs is $115.0 million. As of December 31, 2023, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $54.6 billion; our maximum risk of loss was our investment of $10.3 million in these VIEs and our advisory fees receivable from these VIEs was $114.5 million.