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.


	September 30, 2025						December 31, 2024
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	12,027	$	38	$	12,065	$	1,671	$	318	$	1,989
Investments	320,922		32,721		353,643		82,027		58,765		140,792
Other assets	29,235		708		29,943		1,317		13,484		14,801
Total assets	$	362,184	$	33,467	$	395,651	$	85,015	$	72,567	$	157,582

Liabilities	$	33,488	$	557	$	34,045	$	345	$	1,371	$	1,716
Redeemable non-controlling interest	152,494		7,179		159,673		31,670		16,819		48,489
Partners' capital attributable to AB Unitholders	176,202		25,731		201,933		53,000		54,377		107,377
Total liabilities, redeemable non-controlling interest and partners' capital	$	362,184	$	33,467	$	395,651	$	85,015	$	72,567	$	157,582

During the nine-month period ended September 30, 2025, we deconsolidated four funds in which we had a seed investment of approximately $53.9 million as of December 31, 2024, due to no longer having a controlling financial interest.



Redeemable non-controlling interest as of December 31, 2024	$	48,489
Deconsolidated funds	(12,857)
Changes in third-party seed investments in consolidated funds	124,041
Redeemable non-controlling interest as of September 30, 2025	$	159,673

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 September 30, 2025 and December 31, 2024 was as follows (in thousands):


	Level 1		Level 2		Level 3		Total
September 30, 2025:
Investments - VIEs	$	35,276	$	253,736	$	31,910	$	320,922
Investments - VOEs	6,269		26,452		—		32,721
Derivatives - VIEs	1,183		18,728		—		19,911
Derivatives - VOEs	39		—		—		39
Total assets measured at fair value	$	42,767	$	298,916	$	31,910	$	373,593

Derivatives - VIEs	$	1,127	$	18,559	$	—	$	19,686

Total liabilities measured at fair value	$	1,127	$	18,559	$	—	$	19,686

December 31, 2024:
Investments - VIEs	$	15,240	$	66,787	$	—	$	82,027
Investments - VOEs	249		58,516		—		58,765
Derivatives - VIEs	48		53		—		101
Derivatives - VOEs	—		11,483		—		11,483
Total assets measured at fair value	$	15,537	$	136,839	$	—	$	152,376


Derivatives - VIEs	$	72	$	13	$	—	$	85

Total liabilities measured at fair value	$	72	$	13	$	—	$	85

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Balance as of beginning of period	$	—	$	—	$	—	$	—
Newly consolidated funds:
Consumer loan securities	27,347		—		27,347		—
Aviation securities	4,563		—		4,563		—

Transfers in	—		73		—		73



Unrealized gains, net	—		20		—		20

Balance as of end of period	$	31,910	$	93	$	31,910	$	93

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 September 30, 2025 and December 31, 2024, the VIEs held $0.2 million (net) and zero, respectively, of futures, forwards and swaps within their portfolios. For the three and nine months ended September 30, 2025, we recognized $0.1 million of gains and $0.3 million of losses, respectively, on these derivatives. For the three and nine months ended September 30, 2024, we recognized $0.7 million of gains and $0.2 million of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed consolidated statements of income.

As of September 30, 2025 and December 31, 2024, the VIEs held no 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 September 30, 2025 and December 31, 2024, the VIEs delivered $0.4 million and $0.3 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 September 30, 2025 and December 31, 2024, the VOEs held $39 thousand and $11.5 million futures, forwards, options or swaps within their portfolios. For the three and nine months ended September 30, 2025 and September 30, 2024, 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)
September 30, 2025:
Derivatives - VIEs	$	19,911	$	—	$	19,911	$	—	$	(13)	$	19,898
Derivatives - VOEs	$	39	$	—	$	39	$	—	$	—	$	39
December 31, 2024:
Derivatives - VIEs	$	101	$	—	$	101	$	—	$	(2)	$	99
Derivatives - VOEs	11,483		—		11,483		—		—		11,483


	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, 2025:
Derivatives - VIEs	$	19,686	$	—	$	19,686	$	—	$	(404)	$	19,282

December 31, 2024:
Derivatives - VIEs	$	85	$	—	$	85	$	—	$	(85)	$	—