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.


	June 30, 2024						December 31, 2023
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	3,733	$	124	$	3,857	$	7,572	$	167	$	7,739
Investments	157,618		95,452		253,070		286,619		110,555		397,174
Other assets	2,544		1,132		3,676		15,010		10,289		25,299
Total assets	$	163,895	$	96,708	$	260,603	$	309,201	$	121,011	$	430,212

Liabilities	$	1,142	$	311	$	1,453	$	9,699	$	2,838	$	12,537
Redeemable non-controlling interest	92,498		15,757		108,255		202,882		6,538		209,420
Partners' capital attributable to AB Unitholders	70,255		80,640		150,895		96,620		111,635		208,255
Total liabilities, redeemable non-controlling interest and partners' capital	$	163,895	$	96,708	$	260,603	$	309,201	$	121,011	$	430,212

During the six-month period ended June 30, 2024, we deconsolidated four funds in which we had a seed investment of approximately $46.5 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	(119,231)
Changes in third-party seed investments in consolidated funds	18,066
Redeemable non-controlling interest as of June 30, 2024	$	108,255

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 June 30, 2024 and December 31, 2023 was as follows (in thousands):


	Level 1		Level 2		Level 3		Total
June 30, 2024:
Investments - VIEs	$	16,392	$	141,226	$	—	$	157,618
Investments - VOEs	13,785		81,667		—		95,452
Derivatives - VIEs	457		107		—		564

Total assets measured at fair value	$	30,634	$	223,000	$	—	$	253,634

Derivatives - VIEs	99		60		—		159

Total liabilities measured at fair value	$	99	$	60	$	—	$	159

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.

There were no Level 3 financial instruments carried at fair value within the consolidated company-sponsored investment funds during the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and December 31, 2023, the VIEs held $0.4 million and $2.4 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three and six months ended June 30, 2024, we recognized $0.5 million and $0.9 million of losses, respectively, on these derivatives. For the three and six months ended June 30, 2023, we recognized $1.3 million of losses and $0.4 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 June 30, 2024 and December 31, 2023, the VIEs held $0.8 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 June 30, 2024 and December 31, 2023, the VIEs delivered $1.3 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 June 30, 2024 and December 31, 2023, the VOEs held zero and $8.8 million futures, forwards, options or swaps within their portfolios. For the three and six months ended June 30, 2024 and June 30, 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)
June 30, 2024:
Derivatives - VIEs	$	564	$	—	$	564	$	—	$	(564)	$	—

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)
June 30, 2024:
Derivatives - VIEs	$	159	$	—	$	159	$	—	$	(159)	$	—

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

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

As of June 30, 2024, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $67.0 billion, and our maximum risk of loss is our investment of $14.3 million in these VIEs and our advisory fee receivables from these VIEs is $103.7 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.