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.


	December 31, 2025			December 31, 2024
	(in thousands)
		VIEs			VOEs		Total		VIEs		VOEs		Total


Cash and cash equivalents		$	17,617		$	109	$	17,726	$	1,671	$	318	$	1,989
Investments		304,035			26,499		330,534		82,027		58,765		140,792
Other assets		24,778			342		25,120		1,317		13,484		14,801
Total assets		$	346,430		$	26,950	$	373,380	$	85,015	$	72,567	$	157,582
Liabilities		$	25,132		$	149	$	25,281	$	345	$	1,371	$	1,716
Redeemable non-controlling interest		169,091			9,876		178,967		31,670		16,819		48,489
Partners' capital attributable to AB Unitholders		152,207			16,925		169,132		53,000		54,377		107,377

Total liabilities, redeemable non-controlling interest and partners' capital		$	346,430		$	26,950	$	373,380	$	85,015	$	72,567	$	157,582

During 2025, we deconsolidated four funds in which we had seed investments totaling 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	143,335
Redeemable non-controlling interest as of December 31, 2025	$	178,967

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


	Level 1			Level 2			Level 3			Total
December 31, 2025:
Investments - VIEs (1)		$	22,477		$	271,558		$	—		$	294,035
Investments - VOEs		225			26,274			—			26,499
Derivatives - VIEs		70			20,007			—			20,077

Total assets measured at fair value		$	22,772		$	317,839		$	—		$	340,611
Derivatives - VIEs		$	112		$	19,972		$	—		$	20,084

Total liabilities measured at fair value		$	112		$	19,972		$	—		$	20,084
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

(1) Investments measured at fair value using NAV (or its equivalent) as a practical expedient are approximately $10.0 million. Total investments in VIEs including those measured at NAV are $304.0 million.

See Note 9 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 years ended December 31, 2025 and 2024.

As of December 31, 2025 and 2024, the VIEs held zero and zero (net), respectively, of futures, forwards, options and swaps within their portfolios. For the years ended December 31, 2025 and 2024, we recognized $0.2 million and zero of losses, respectively, on these derivatives. These losses are recognized in investment gains (losses) in the consolidated statements of income.

As of December 31, 2025 and 2024, the VIEs held zero and zero, 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 consolidated statements of financial condition.

As of December 31, 2025 and 2024, the VIEs delivered $0.5 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 consolidated statements of financial condition.

As of December 31, 2025 and 2024, the VOEs held zero and $11.5 million (net), respectively, of futures, forwards, options and swaps within their portfolios. For the year ended December 31, 2025 and 2024, we recognized zero and zero of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the consolidated 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			Cash Collateral Received			Net Amount
	(in thousands)
December 31, 2025:
Derivatives - VIEs		$	20,077		$	—		$	20,077		$	—		$	—		$	20,077

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			Cash Collateral Pledged			Net Amount
	(in thousands)
December 31, 2025:
Derivatives - VIEs		$	20,084		$	—		$	20,084		$	—		$	(492)		$	19,592

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

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

As of December 31, 2025, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $51.3 billion; our maximum risk of loss is our investment of $40.4 million in these VIEs and our advisory fees receivable from these VIEs are $105.1 million. As of December 31, 2024, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $46.9 billion; our maximum risk of loss was our investment of $17.3 million in these VIEs and our advisory fees receivable from these VIEs were $115.2 million.