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Consolidated Company-Sponsored Investment Funds (Tables)

9 Months Ended

Sep. 30, 2024

Consolidated Company-Sponsored Investment Funds [Abstract]

Schedule of 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:


	September 30, 2024						December 31, 2023
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	5,765	$	48	$	5,813	$	7,572	$	167	$	7,739
Investments	211,994		55,035		267,029		286,619		110,555		397,174
Other assets	3,041		1,694		4,735		15,010		10,289		25,299
Total assets	$	220,800	$	56,777	$	277,577	$	309,201	$	121,011	$	430,212

Liabilities	$	3,631	$	1,302	$	4,933	$	9,699	$	2,838	$	12,537
Redeemable non-controlling interest	120,840		6,377		127,217		202,882		6,538		209,420
Partners' capital attributable to AB Unitholders	96,329		49,098		145,427		96,620		111,635		208,255
Total liabilities, redeemable non-controlling interest and partners' capital	$	220,800	$	56,777	$	277,577	$	309,201	$	121,011	$	430,212

Schedule of Redeemable Noncontrolling Interest

Changes in the redeemable non-controlling interest balance during the nine-month period ended September 30, 2024 are as follows (in thousands):



Redeemable non-controlling interest as of December 31, 2023	$	209,420
Deconsolidated funds	(121,575)
Changes in third-party seed investments in consolidated funds	39,372
Redeemable non-controlling interest as of September 30, 2024	$	127,217

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of September 30, 2024 and December 31, 2023 was as follows (in thousands):


	Level 1		Level 2		Level 3		NAV Expedient(1)		Total
September 30, 2024:
Money markets	$	148,676	$	—	$	—	$	—	$	148,676
Securities segregated (U.S. Treasury Bills)	—		545,928		—		—		545,928
Derivatives	106		12,932		—		—		13,038


Equity securities	192,789		5,921		138		31		198,879




Other investments	8,807		—		—		—		8,807

Total assets measured at fair value	$	350,378	$	564,781	$	138	$	31	$	915,328




Derivatives	$	3,004	$	14,904	$	—	$	—	$	17,908
Contingent payment arrangements	—		—		129,219		—		129,219
Total liabilities measured at fair value	$	3,004	$	14,904	$	129,219	$	—	$	147,127

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

Equity securities	113,833		32,104		118		1,598		147,653




Other investments	7,870		—		—		—		7,870

Total assets measured at fair value	$	268,610	$	914,300	$	118	$	1,598	$	1,184,626




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.

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of September 30, 2024 and December 31, 2023 was as follows (in thousands):


	Level 1		Level 2		Level 3		Total
September 30, 2024:
Investments - VIEs	$	16,337	$	195,564	$	93	$	211,994
Investments - VOEs	458		54,577		—		55,035
Derivatives - VIEs	153		118		—		271

Total assets measured at fair value	$	16,948	$	250,259	$	93	$	267,300

Derivatives - VIEs	74		340		—		414

Total liabilities measured at fair value	$	74	$	340	$	—	$	414

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Balance as of beginning of period	$	116	$	121	$	118	$	129



Unrealized gains (losses), net	22		1		20		(7)
Balance as of end of period	$	138	$	122	$	138	$	122

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Balance as of beginning of period	$	—	$	—	$	—	$	—

Transfers in	73		—		73		—



Unrealized gains, net	20		—		20		—

Balance as of end of period	$	93	$	—	$	93	$	—

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of September 30, 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)
September 30, 2024:
Securities borrowed	$	19,713	$	—	$	19,713	$	(19,679)	$	—	$	34
Derivatives	$	13,038	$	—	$	13,038	$	—	$	(7,812)	$	5,226

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 September 30, 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)
September 30, 2024:
Derivatives - VIEs	$	271	$	—	$	271	$	—	$	(271)	$	—

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

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of September 30, 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)
September 30, 2024:

Derivatives	$	17,908	$	—	$	17,908	$	—	$	(7,072)	$	10,836

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 September 30, 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)
September 30, 2024:
Derivatives - VIEs	$	414	$	—	$	414	$	—	$	(414)	$	—

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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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