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FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Delaware			13-3434400
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

Yes

☒

No

☐

Yes

☒

No

☐

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Yes

☐

No

☒

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Units Rep. Assignments of Beneficial Ownership of LP Interests in AB Holding ("Units")

AB

New York Stock Exchange

						Page
			Part I
			FINANCIAL INFORMATION
Item 1.			Financial Statements
			Condensed Statements of Financial Condition			1
			Condensed Statements of Income			2
			Condensed Statements of Comprehensive Income			3
			Condensed Statements of Changes in Partners' Capital			4
			Condensed Statements of Cash Flows			5
			Notes to Condensed Financial Statements			6
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			13
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			16
Item 4.			Controls and Procedures			16
			Part II
			OTHER INFORMATION
Item 1.			Legal Proceedings			17
Item 1A.			Risk Factors			17
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			17
Item 3.			Defaults Upon Senior Securities			18
Item 4.			Mine Safety Disclosures			18
Item 5.			Other Information			18
Item 6.			Exhibits			19
SIGNATURE						20

			September 30, 2022						December 31, 2021
ASSETS
Investment in AB			$	1,570,356					$	1,623,764
Due from AB			419,357						—
Total assets			$	1,989,713					$	1,623,764
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Acquisition-related liabilities			$	419,357					$	—
Other liabilities			609						2,140
Total liabilities			419,966						2,140
Commitments and contingencies (See Note 8)
Partners’ capital:
General Partner: 100,000 general partnership units issued and outstanding			1,361						1,439
Limited partners: 100,301,044 and 99,171,727 limited partnership units issued and outstanding			1,668,349						1,696,199
AB Holding Units held by AB to fund long-term incentive compensation plans			(40,164)						(43,309)
Accumulated other comprehensive loss			(59,799)						(32,705)
Total partners’ capital			1,569,747						1,621,624
Total liabilities and partners’ capital			$	1,989,713					$	1,623,764

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
Equity in net income attributable to AB Unitholders						$	63,905					$	95,921					$	233,616					$	282,235
Income taxes						7,589						7,245						23,231						21,555
Net income						$	56,316					$	88,676					$	210,385					$	260,680
Net income per unit:
Basic						$	0.56					$	0.89					$	2.11					$	2.61
Diluted						$	0.56					$	0.89					$	2.11					$	2.61

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Net income			$	56,316					$	88,676					$	210,385					$	260,680
Other comprehensive (loss):
Foreign currency translation adjustments, before tax			(11,574)						(3,379)						(27,875)						(5,302)
Income tax benefit			284						99						544						90
Foreign currency translation adjustments, net of tax			(11,290)						(3,280)						(27,331)						(5,212)
Changes in employee benefit related items:
Amortization of prior service cost			(4)						4						4						6
Recognized actuarial (loss) gain			(204)						264						237						202
Changes in employee benefit related items			(208)						268						241						208
Income tax benefit (expense)			3						(2)						(4)						(1)
Employee (expense) benefit related items, net of tax			(205)						266						237						207
Other comprehensive (loss)			(11,495)						(3,014)						(27,094)						(5,005)
Comprehensive income			$	44,821					$	85,662					$	183,291					$	255,675

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
General Partner’s Capital
Balance, beginning of period			$	1,376					$	1,403					$	1,439					$	1,410
Net income			56						89						212						260
Cash distributions to Unitholders			(71)						(90)						(290)						(268)
Balance, end of period			1,361						1,402						1,361						1,402
Limited Partners’ Capital
Balance, beginning of period			1,552,011						1,689,671						1,696,199						1,656,816
Net income			56,260						88,587						210,173						260,420
Cash distributions to Unitholders			(71,269)						(90,478)						(288,698)						(269,608)
Retirement of AB Holding Units			(2,487)						(54,235)						(114,794)						(124,923)
Issuance of AB Holding Units to fund long-term incentive compensation plan awards			995						1,074						32,452						108,512
Issuance of AB Holding Units to fund CarVal acquisition			132,839						—						132,839						—
Exercise of compensatory options to buy AB Holding Units			—						—						178						3,402
Balance, end of period			1,668,349						1,634,619						1,668,349						1,634,619
AB Holding Units held by AB to fund long-term incentive compensation plans
Balance, beginning of period			(43,546)						(50,989)						(43,309)						(20,171)
Change in AB Holding Units held by AB to fund long-term incentive compensation plans			3,382						3,530						3,145						(27,288)
Balance, end of period			(40,164)						(47,459)						(40,164)						(47,459)
Accumulated Other Comprehensive (Loss)
Balance, beginning of period			(48,304)						(35,889)						(32,705)						(33,898)
Foreign currency translation adjustment, net of tax			(11,290)						(3,280)						(27,331)						(5,212)
Changes in employee benefit related items, net of tax			(205)						266						237						207
Balance, end of period			(59,799)						(38,903)						(59,799)						(38,903)
Total Partners’ Capital			$	1,569,747					$	1,549,659					$	1,569,747					$	1,549,659

			Nine Months Ended September 30,
			2022						2021
Cash flows from operating activities:
Net income			$	210,385					$	260,680
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income attributable to AB Unitholders			(233,616)						(282,235)
Cash distributions received from AB			313,438						290,773
Changes in assets and liabilities:
Decrease in other assets			—						92
(Decrease) in other liabilities			(1,531)						(1,348)
Net cash provided by operating activities			288,676						267,962
Cash flows from investing activities:
Acquisition of business, net cash acquired			40,777						—
Contribution of CarVal to AB			(40,777)						—
Investments in AB with proceeds from exercise of compensatory options to buy AB Holding Units			(178)						(3,402)
Net cash used in investing activities			(178)						(3,402)
Cash flows from financing activities:
Cash distributions to Unitholders			(288,988)						(269,876)
Capital contributions from AB			312						1,914
Proceeds from exercise of compensatory options to buy AB Holding Units			178						3,402
Net cash used in financing activities			(288,498)						(264,560)
Change in cash and cash equivalents			—						—
Cash and cash equivalents as of beginning of period			—						—
Cash and cash equivalents as of end of period			$	—					$	—
Non-cash investing activities:
Fair value of assets acquired (less cash acquired of $40.8 million)			$	1,052,062					$	—
Fair value of liabilities assumed			300,381						—
Fair value of redeemable non-controlling interest assumed			13,191						—
Fair value of assets contributed to AB (less cash acquired of $40.8 million)			(1,052,062)						—
Fair value of liabilities contributed to AB			(300,381)						—
Fair value of redeemable non-controlling interest contributed to AB			(13,191)						—
Non-cash financing activities:
Payables recorded under contingent payment arrangements			227,071						—
Equity consideration issued/to be issued in connection with acquisition			552,196						—
Payables contributed to AB under contingent payment arrangements			(227,071)						—
Equity consideration received/to be received from AB in connection with acquisition			(552,196)						—

•Institutional Services – servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. ("EQH") and its subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles.

•Retail Services – servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles.

•Private Wealth Services – servicing its private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles.

•Bernstein Research Services – servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options.

•Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;

•Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;

•Alternative investments, including hedge funds, fund of funds, direct lending and private equity;

•Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and

•Some passive management, including index and enhanced index strategies.

EQH and its subsidiaries			62.8		%
AB Holding			36.5
Unaffiliated holders			0.7
			100.0		%

AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding (“AB Holding Partnership Agreement”), to its Unitholders pro rata in accordance with their percentage interests in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from AB minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow.

On October 28, 2022, the General Partner declared a distribution of $0.64 per unit, representing a distribution of Available Cash Flow for the three months ended September 30, 2022. Each general partnership unit in AB Holding is entitled to receive distributions equal to those received by each AB Holding Unit. The distribution is payable on November 23, 2022 to holders of record at the close of business on November 7, 2022.

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
						(in millions)
Total amount of AB Holding Units Purchased/Retained (1)						—						1.0						2.6						2.9
Total Cash Paid for AB Holding Units Purchased/Retained (1)						$	1.0					$	50.0					$	107.7					$	125.7
Open Market Purchases of AB Holding Units Purchased (1)						—						0.9						2.3						2.3
Total Cash Paid for Open Market Purchases of AB Holding Units (1)						$	—					$	44.9					$	92.7					$	103.7

During the first nine months of 2022 and 2021, AB Holding issued 5,774 and 143,211 AB Holding Units, respectively. AB Holding used the proceeds of $0.1 million and $3.4 million, respectively, received from award recipients as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units.        

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
						(in thousands, except per unit amounts)
Net income – basic						$	56,316					$	88,676					$	210,385					$	260,680
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options						—						2						2						26
Net income – diluted						$	56,316					$	88,678					$	210,387					$	260,706
Weighted average units outstanding – basic						100,466						99,410						99,494						99,903
Dilutive effect of compensatory options						—						3						2						14
Weighted average units outstanding – diluted						100,466						99,413						99,496						99,917
Basic net income per unit						$	0.56					$	0.89					$	2.11					$	2.61
Diluted net income per unit						$	0.56					$	0.89					$	2.11					$	2.61

Investment in AB as of December 31, 2021			$	1,623,764
Equity in net income attributable to AB Unitholders			233,616
Changes in accumulated other comprehensive (loss)			(27,094)
Cash distributions received from AB			(313,438)
Additional investments with proceeds from exercise of compensatory options to buy AB Holding Units			178
Capital contributions (from) AB			(312)
AB Holding Units retired			(114,794)
AB Holding Units issued to fund long-term incentive compensation plans			32,452
AB Holding Units issued to fund CarVal acquisition			132,839
Change in AB Holding Units held by AB for long-term incentive compensation plans			3,145
Investment in AB as of September 30, 2022			$	1,570,356

Outstanding as of December 31, 2021			99,271,727
Options exercised			5,774
Units issued			3,926,169
Units retired			(2,802,626)
Outstanding as of September 30, 2022			100,401,044

						Three Months Ended September 30,																		Nine Months Ended September 30,
						2022						2021						% Change						2022						2021						% Change
																								(in thousands)
Net income attributable to AB Unitholders						$	175,180					$	264,695					(33.8)		%				$	644,676					$	776,396					(17.0)		%
Multiplied by: weighted average equity ownership interest						36.5		%				36.2		%										36.2		%				36.4		%
Equity in net income attributable to AB Unitholders						$	63,905					$	95,921					(33.4)						$	233,616					$	282,235					(17.2)
AB qualifying revenues						$	678,682					$	669,232					1.4						$	2,089,206					$	1,956,095					6.8
Multiplied by: weighted average equity ownership interest for calculating tax						31.3		%				30.2		%										31.1		%				30.6		%
Multiplied by: federal tax						3.5		%				3.5		%										3.5		%				3.5		%
Federal income taxes						7,442						7,073												22,748						20,977
State income taxes						147						172												483						578
Total income taxes						$	7,589					$	7,245					4.7						$	23,231					$	21,555					7.8
Effective tax rate						11.9		%				7.6		%										9.9		%				7.6		%

Management, after consultation with legal counsel, currently believes that the outcome of any individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has the element of uncertainty; management cannot determine whether further developments relating to any individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operations, financial condition or liquidity in any future reporting period.

On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“CarVal”), a global private alternatives investment manager primarily focused on opportunistic and distressed credit, renewable energy infrastructure, specialty finance and transportation investments that, as of the acquisition date, constituted approximately $12.2 billion in AUM. Immediately following the acquisition of CarVal by AB Holding, AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units and a receivable for future consideration to be paid. Post-acquisition, CarVal was rebranded AB CarVal Investors (“AB CarVal”).

AB received 100% equity interest in CarVal from AB Holding and issued approximately 3.2 million AB Units (with a fair value of $132.8 million) and recorded a $419.4 million liability payable to AB Holding for the issuance of additional AB Units on November 1, 2022. AB also recorded a contingent consideration payable of $227.1 million (to be paid predominantly in AB Units) based on CarVal achieving certain performance objectives over a six-year period ending December 31, 2027. The AB Units, as discussed above, were issued, or will be issued, to AB Holding; AB Holding then issued, or will issue, the equal amount of AB Holding Units to CarVal. The excess of the purchase price over the current fair value of identifiable net liabilities acquired of $156.1 million, net cash acquired of $40.8 million, resulted in the recognition of $632.4 million of goodwill and the recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years. As a result of the transfer of equity to AB, AB recorded a net deferred tax asset of $4.8 million, resulting in the recognition of $627.6 million of goodwill. The goodwill recorded is not deductible for tax purposes as the CarVal acquisition was an investment in a partnership.

Summary of purchase consideration:
Fair value of AB Holding units issued			$	552,196
Fair value of contingent consideration			227,071
Total purchase consideration			779,267
Purchase price allocation:
Assets acquired:
Cash and cash equivalents			$	40,777
Receivables, net			82,523
Investments - other			947
Furniture, equipment, and leasehold improvements, net			2,464
Right-of-use assets			16,482
Other assets			14,230
Intangible assets			303,000
Goodwill			632,416
Total assets acquired			1,092,839
Liabilities assumed:
Accounts payable and accrued expenses			(33,134)
Accrued compensation and benefits			(208,015)
Debt			(42,661)
Lease liabilities			(16,571)
Non-redeemable non-controlling interests in consolidated entities			(13,191)
Total liabilities assumed			(313,572)
Net assets acquired			$	779,267

						Three Months Ended September 30,																		Nine Months Ended September 30,
						2022						2021						% Change						2022						2021						% Change
						(in thousands, except per unit amounts)
Net income attributable to AB Unitholders						$	175,180					$	264,695					(33.8)		%				$	644,676					$	776,396					(17.0)		%
Weighted average equity ownership interest						36.5		%				36.2		%										36.2		%				36.4		%
Equity in net income attributable to AB Unitholders						63,905						95,921						(33.4)						233,616						282,235						(17.2)
Income taxes						7,589						7,245						4.7						23,231						21,555						7.8
Net income of AB Holding						$	56,316					$	88,676					(36.5)						$	210,385					$	260,680					(19.3)
Diluted net income per AB Holding Unit						$	0.56					$	0.89					(37.1)						$	2.11					$	2.61					(19.2)
Distribution per AB Holding Unit(1)						$	0.64					$	0.89					(28.1)						$	2.25					$	2.61					(13.8)

(1)Distributions reflect the impact of AB’s non-GAAP adjustments.

AB Holding’s partnership gross income is derived from its interest in AB. AB Holding’s income taxes, which reflect a 3.5% federal tax on its partnership gross income from the active conduct of a trade or business, are computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees, research payments and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB Holding’s effective tax rate was 11.9% during the three months ended September 30, 2022, compared to 7.6% during the three months ended September 30, 2021. AB Holding's effective tax rate during the nine months ended September 30, 2022 was 9.9% compared to 7.6% during the nine months ended September 30, 2021. See Note 7 to the condensed financial statements in Item 1 for the calculation of income tax expense.

As supplemental information, AB provides the performance measures “adjusted net revenues,” “adjusted operating income” and “adjusted operating margin,” which are the principal metrics management uses in evaluating and comparing the period-to-period operating performance of AB. Management principally uses these metrics in evaluating performance because they present a clearer picture of AB's operating performance and allow management to see long-term trends without the distortion primarily caused by long-term incentive compensation-related mark-to-market adjustments, real estate charges and other adjustment items. Similarly, management believes that these management operating metrics help investors better understand the underlying trends in AB's results and, accordingly, provide a valuable perspective for investors. Such measures are not based on generally accepted accounting principles (“non-GAAP measures”). These non-GAAP measures are provided in addition to, and not as substitutes for, net revenues, operating income and operating margin, and they may not be comparable to non-GAAP measures presented by other companies. Management uses both GAAP and non-GAAP measures in evaluating the company’s financial performance. The non-GAAP measures alone may pose limitations because they do not include all of AB’s revenues and expenses. Further, adjusted diluted net income per AB Holding Unit is not a liquidity measure and should not be used in place of cash flow measures. See AB’s MD&A contained in Exhibit 99.1.

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
						(in thousands, except per Unit amounts)
AB non-GAAP adjustments, before taxes						$	23,961					$	(8)					$	41,913					$	(1,702)
AB income tax (expense) benefit on non-GAAP adjustments						(1,057)						(56)						(4,865)						239
AB non-GAAP adjustments, after taxes						22,904						(64)						37,048						(1,463)
AB Holding’s weighted average equity ownership interest in AB						36.5		%				36.2		%				36.2		%				36.4		%
Impact on AB Holding’s net income of AB non-GAAP adjustments						$	8,373					$	(23)					$	13,441					$	(532)
Net income – diluted, GAAP basis						$	56,316					$	88,678					$	210,387					$	260,706
Impact on AB Holding’s net income of AB non-GAAP adjustments						8,373						(23)						13,441						(532)
Adjusted net income – diluted						$	64,689					$	88,655					$	223,828					$	260,174
Diluted net income per AB Holding Unit, GAAP basis						$	0.56					$	0.89					$	2.11					$	2.61
Impact of AB non-GAAP adjustments						0.08						—						0.14						(0.01)
Adjusted diluted net income per AB Holding Unit						$	0.64					$	0.89					$	2.25					$	2.60

AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation. See Note 2 to the condensed financial statements in Item 1 for a description of Available Cash Flow.

Certain statements provided by management in this report and in the portion of AB’s Form 10-Q attached hereto as Exhibit 99.1 are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. We caution readers to carefully consider such factors. Further, these forward-looking statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” in Part I, Item 1A of our Form 10-K for the year ended December 31, 2021 and Part II, Item 1A in this Form 10-Q. Any or all of the forward-looking statements that we make in our Form 10-K, this Form 10-Q, other documents we file with or furnish to the SEC, and any other public statements we issue, may turn out to be wrong. It is important to remember that other factors besides those listed in “Risk Factors” and those listed below could also adversely impact our revenues, financial condition, results of operations and business prospects.

The forward-looking statements referred to in the preceding paragraph, most of which directly affect AB but also affect AB Holding because AB Holding’s principal source of income and cash flow is attributable to its investment in AB, include statements regarding:

•Our belief that the cash flow AB Holding realizes from its investment in AB will provide AB Holding with the resources it needs to meet its financial obligations: AB Holding’s cash flow is dependent on the quarterly cash distributions it receives from AB. Accordingly, AB Holding’s ability to meet its financial obligations is dependent on AB’s cash flow from its operations, which is subject to the performance of the capital markets and other factors beyond our control.

•Our financial condition and ability to access the public and private capital markets providing adequate liquidity for our general business needs: Our financial condition is dependent on our cash flow from operations, which is subject to the performance of the capital markets, our ability to maintain and grow client assets under management and other factors beyond our control. Our ability to access public and private capital markets on reasonable terms may be limited by adverse market conditions, our firm’s credit ratings, our profitability and changes in government regulations, including tax rates and interest rates.

•The outcome of litigation: Litigation is inherently unpredictable, and excessive damage awards do occur. Though we have stated that we do not expect any pending legal proceedings to have a material adverse effect on our results of operations, financial condition or liquidity, any settlement or judgment with respect to a legal proceeding could be significant and could have such an effect.

•The possibility that we will engage in open market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program: The number of AB Holding Units AB may decide to buy in future periods, if any, to help fund incentive compensation awards depends on various factors, some of which are beyond our control, including the fluctuation in the price of an AB Holding Unit (NYSE: AB) and the availability of cash to make these purchases.

•Our determination that adjusted employee compensation expense, excluding the impact of performance-based fees, generally should not exceed 50% of our adjusted annual net revenues: Aggregate employee compensation reflects employee performance and competitive compensation levels.  Fluctuations in our revenues and/or changes in competitive compensation levels could result in adjusted employee compensation expense exceeding 50% of our adjusted annual net revenues.

•The Adverse Impact of COVID-19: The aggregate extent to which COVID-19, including existing and new variants and its impact on the global economy, affects AB’s business, liquidity, results of operations and financial condition, will depend on future COVID-19 developments that are highly uncertain, including the scope and duration of the disease and any recovery period, the emergence, spread and seriousness of COVID-19 variants, the continuing prevalence of severe, unconstrained and/or escalating rates of infection and hospitalization in various countries and regions, the availability, adoption and efficacy of treatments and vaccines, and future actions taken by governmental authorities, central banks and other parties in response to COVID-19.

•The impact of our acquisition of CarVal: These statements concern expected growth, client and stockholder benefits, key assumptions, revenue realization, financial benefits or returns, accretion and integration costs. Actual results may differ materially from future results expressed or implied by our forward-looking statements as a result of similar risks to those that impact our other similar business lines, as well as the risk that we are not able to realize the anticipated benefits of the transaction, including the realization of revenue, accretion, and financial benefits or returns, in full or that we may take longer to realize benefits than expected, due, among other reasons, to the challenges of integrating a new business and personnel. The anticipated benefits may also be adversely impacted by the risk that AB Holding units to be issued after the closing are issued at a price below anticipated levels. We caution readers to carefully consider such factors.

There have been no material changes in AB Holding’s market risk from the information provided under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of AB Holding's Form 10-K for the year ended December 31, 2021.

Each quarter, AB considers whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934 ("Exchange Act"). We did not, however, adopt a plan during the third quarter of 2022. AB may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under the firm's incentive compensation award program and for other corporate purposes. See Note 3 to the condensed financial statements contained in Part 1, Item 1.

ISSUER PURCHASES OF EQUITY SECURITIES

Period						Total Number of AB Holding Units Purchased						Average Price Paid Per AB Holding Unit, net of Commissions						Total Number of AB Holding Units Purchased as Part of Publicly Announced Plans or Programs						Maximum Number (or Approximate Dollar Value) of AB Holding Units that May Yet Be Purchased Under the Plans or Programs
7/1/22 - 7/31/22(1)						15,724						$	41.57					—						—
8/1/22 - 8/31/22						—						—						—						—
9/1/22 - 9/30/22(1)						6,517						43.93						—						—
Total						22,241						$	42.26					—						—

(1)During the third quarter of 2022, AB retained from employees 22,241 AB Holding Units to allow them to fulfill statutory withholding tax requirements at the time of distribution of long-term incentive compensation awards.

ISSUER PURCHASES OF EQUITY SECURITIES

 

Period						Total Number of AB Units Purchased						Average Price Paid Per AB Unit, net of Commissions						Total Number of AB Units Purchased as Part of Publicly Announced Plans or Programs						Maximum Number (or Approximate Dollar Value) of AB Units that May Yet Be Purchased Under the Plans or Programs
7/1/22 - 7/31/22						—						$	—					—						—
8/1/22 - 8/31/22						—						—						—						—
9/1/22 - 9/30/22(1)						1,400						43.30						—						—
Total						1,400						$	43.30					—						—

(1)During September 2022, AB purchased 1,400 AB Units in private transactions.

Item 6.    Exhibits

31.1			Certification of Mr. Bernstein furnished pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Certification of Ms. Burke furnished pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification of Mr. Bernstein furnished for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Certification of Ms. Burke furnished for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1			Part I, Items 1 through 4 of the AllianceBernstein L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.
101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			XBRL Taxonomy Extension Schema.
101.CAL			XBRL Taxonomy Extension Calculation Linkbase.
101.LAB			XBRL Taxonomy Extension Label Linkbase.
101.PRE			XBRL Taxonomy Extension Presentation Linkbase.
101.DEF			XBRL Taxonomy Extension Definition Linkbase.
104			The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL (included in Exhibit 101).

Date: October 28, 2022			ALLIANCEBERNSTEIN HOLDING L.P.
			By:			/s/ Kate Burke
						Kate Burke
						Chief Operating Officer & Chief Financial Officer
			By:			/s/ Bill Siemers
						Bill Siemers
						Controller & Chief Accounting Officer