Consolidated Company-Sponsored Investment Funds (Tables)

3 Months Ended

Mar. 31, 2024

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:

	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

Schedule of Redeemable Noncontrolling Interest

Changes in the redeemable non-controlling interest balance during the three-month period ended March 31, 2024 are as follows (in thousands):

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

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

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
March 31, 2024:
Money markets	$	155,596	$	—	$	—	$	—	$	—	$	155,596
Securities segregated (U.S. Treasury Bills)	—		865,253		—		—		—		865,253
Derivatives	47		13,810		—		—		—		13,857
Investments:
Equity securities	167,181		6,319		114		30		—		173,644
Limited partnership hedge funds(2)	—		—		—		—		29,235		29,235
Time deposits(3)	—		—		—		—		6,249		6,249
Other investments	8,436		—		—		—		2,704		11,140

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
Total investments	175,617		6,319		114		30		38,188		220,268
Total assets measured at fair value	$	331,260	$	885,382	$	114	$	30	$	38,188	$	1,254,974
Derivatives	$	751	$	11,108	$	—	$	—	$	—	$	11,859
Contingent payment arrangements	—		—		254,108		—		—		254,108
Total liabilities measured at fair value	$	751	$	11,108	$	254,108	$	—	$	—	$	265,967
December 31, 2023:
Money markets	$	146,906	$	—	$	—	$	—	$	—	$	146,906
Securities segregated (U.S. Treasury Bills)	—		867,679		—		—		—		867,679
Derivatives	1		14,517		—		—		—		14,518
Investments:
Equity securities	113,833		32,104		118		1,598		—		147,653
Limited partnership hedge funds(2)	—		—		—		—		78,775		78,775
Time deposits(3)	—		—		—		—		6,517		6,517
Other investments	7,870		—		—		—		2,739		10,609
Total investments	121,703		32,104		118		1,598		88,031		243,554
Total assets measured at fair value	$	268,610	$	914,300	$	118	$	1,598	$	88,031	$	1,272,657
Derivatives	$	3,511	$	14,669	$	—	$	—	$	—	$	18,180
Contingent payment arrangements	—		—		252,690		—		—		252,690
Total liabilities measured at fair value	$	3,511	$	14,669	$	252,690	$	—	$	—	$	270,870

(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 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

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 equity securities, is as follows:

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Balance as of beginning of period	$	118	$	129
Purchases	—		—
Sales	—		—
Realized gains (losses), net	—		—
Unrealized (losses) gains, net	(4)		41
Balance as of end of period	$	114	$	170

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	$	—	$	—

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of March 31, 2024 and December 31, 2023 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 Collateral		Cash Collateral Received		Net Amount
	(in thousands)
March 31, 2024:
Securities borrowed	$	14,719	$	—	$	14,719	$	(14,719)	$	—	$	—
Derivatives	$	13,857	$	—	$	13,857	$	—	$	(7,665)	$	6,192
December 31, 2023:
Securities borrowed	$	23,229	$	—	$	23,229	$	(23,229)	$	—	$	—
Derivatives	$	14,518	$	—	$	14,518	$	—	$	(5,691)	$	8,827

Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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 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

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of March 31, 2024 and December 31, 2023 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 Collateral		Cash Collateral Pledged		Net Amount
	(in thousands)
March 31, 2024:
Securities loaned	$	65,860	$	—	$	65,860	$	(65,860)	$	—	$	—
Derivatives	$	11,859	$	—	$	11,859	$	—	$	(4,031)	$	7,828
December 31, 2023:
Securities loaned	$	125,101	$	—	$	125,101	$	(122,369)	$	—	$	2,732
Derivatives	$	18,180	$	—	$	18,180	$	—	$	(7,795)	$	10,385

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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 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