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, 2026						December 31, 2025
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	7,979	$	158	$	8,137	$	17,617	$	109	$	17,726
Investments	440,354		26,369		466,723		304,035		26,499		330,534
Other assets	31,702		324		32,026		24,778		342		25,120
Total assets	$	480,035	$	26,851	$	506,886	$	346,430	$	26,950	$	373,380

Liabilities	$	31,108	$	102	$	31,210	$	25,132	$	149	$	25,281
Redeemable non-controlling interest	264,115		10,951		275,066		169,091		9,876		178,967
Partners' capital attributable to AB Unitholders	184,812		15,798		200,610		152,207		16,925		169,132
Total liabilities, redeemable non-controlling interest and partners' capital	$	480,035	$	26,851	$	506,886	$	346,430	$	26,950	$	373,380

During the nine-month period ended September 30, 2026, we deconsolidated two funds in which we had a seed investment of approximately $29.6 million as of December 31, 2025, due to no longer having a controlling financial interest.

Changes in the redeemable non-controlling interest balance during the nine-month period ended September 30, 2026 are as follows (in thousands):



Redeemable non-controlling interest as of December 31, 2025	$	178,967
Deconsolidated funds	(9,807)
Changes in third-party seed investments in consolidated funds	105,906
Redeemable non-controlling interest as of September 30, 2026	$	275,066

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, 2026 and December 31, 2025 was as follows (in thousands):


	Level 1		Level 2		Total
September 30, 2026:
Investments - VIEs	$	76,248	$	364,106	$	440,354
Investments - VOEs	445		25,924		26,369
Derivatives - VIEs	574		23,338		23,912

Total assets measured at fair value	$	77,267	$	413,368	$	490,635

Derivatives - VIEs	$	1,006	$	22,975	$	23,981

Total liabilities measured at fair value	$	1,006	$	22,975	$	23,981

December 31, 2025:
Investments - VIEs	$	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

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,
	2026		2025		2026		2025
	(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	—		—		—		—



Unrealized gains, net	—		—		—		—

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

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, 2026 and December 31, 2025, the VIEs held $0.1 million and zero, respectively, of futures, forwards and swaps within their portfolios. For the three and nine months ended September 30, 2026, we recognized $0.9 million and $0.3 million of losses, respectively, on these derivatives. 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. These gains and losses are recognized in investment gains (losses) in the condensed consolidated statements of income.

As of September 30, 2026 and December 31, 2025, the VIEs held $0.3 million 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 condensed consolidated statements of financial condition.

As of September 30, 2026 and December 31, 2025, the VIEs delivered $1.3 million and $0.5 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, 2026 and December 31, 2025, the VOEs held zero futures, forwards, options or swaps within their portfolios. For the three and nine months ended September 30, 2026, we recognized $0.2 million of losses on these derivatives. For the three and nine months ended September 30, 2025, 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.

Offsetting of derivative assets of consolidated company-sponsored investment funds as of September 30, 2026 and December 31, 2025 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, 2026:
Derivatives - VIEs	$	23,912	$	—	$	23,912	$	—	$	(330)	$	23,582

December 31, 2025:
Derivatives - VIEs	$	20,077	$	—	$	20,077	$	—	$	—	$	20,077

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of September 30, 2026 and December 31, 2025 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, 2026:
Derivatives - VIEs	$	23,981	$	—	$	23,981	$	—	$	(1,330)	$	22,651

December 31, 2025:
Derivatives - VIEs	$	20,084	$	—	$	20,084	$	—	$	(492)	$	19,592

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