AllianceBernstein Holding L.P. (AB) Bundle
A Brief History of AllianceBernstein Holding L.P.
Company Overview
AllianceBernstein Holding L.P. (AB Holding), established in 2000, is a publicly traded partnership that primarily focuses on investment management and research services.
Financial Performance in 2024
As of September 30, 2024, AB Holding reported a net income of $127.2 million for the third quarter, compared to $57.0 million in the same period of 2023, representing an increase of 123.2%. For the nine months ending September 30, 2024, the net income reached $317.9 million, up from $185.0 million in 2023, a 71.9% increase.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $127.2 | $57.0 | $317.9 | $185.0 |
| Diluted Net Income per Unit | $1.12 | $0.50 | $2.77 | $1.63 |
| Effective Tax Rate | 6.7% | 13.3% | 7.9% | 12.4% |
Ownership Structure
AB Holding’s weighted average equity ownership interest in AllianceBernstein was 39.4% for the three months ended September 30, 2024, and 39.5% for the nine months ended September 30, 2024.
Cash Distributions
In October 2024, AB Holding declared a distribution of $0.77 per unit for the third quarter ending September 30, 2024. This reflects an increase from $0.65 per unit in 2023.
| Distribution per Unit | Q3 2024 | Q3 2023 |
|---|---|---|
| Distribution Amount | $0.77 | $0.65 |
Investment in AB
As of September 30, 2024, AB Holding's investment in AllianceBernstein was valued at $2.1 billion, an increase from $2.08 billion at the start of the year.
Market Activity
During the third quarter of 2024, AB purchased a total of 1,138,093 AB Holding Units at an average price of $33.76 per unit.
| Market Activity | Units Purchased | Average Price per Unit |
|---|---|---|
| Total Units Purchased | 1,138,093 | $33.76 |
Conclusion of Financial Metrics
AB Holding's financial health remains strong, with significant growth in net income and distributions, reflecting robust performance in the investment management sector.
A Who Owns AllianceBernstein Holding L.P. (AB)
Ownership Structure
As of September 30, 2024, the ownership structure of AllianceBernstein Holding L.P. (AB) is composed of the following entities:
| Entity | Ownership Percentage |
|---|---|
| EQH and its subsidiaries | 60.0% |
| AB Holding | 39.3% |
| Unaffiliated holders | 0.7% |
| Total | 100.0% |
Economic Interest
Including both general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries held approximately 61.6% economic interest in AB as of September 30, 2024.
General Partner Information
AllianceBernstein Corporation, an indirect wholly-owned subsidiary of EQH, serves as the general partner of both AB Holding and AB. It owns 100,000 general partnership units in AB Holding and a 1.0% general partnership interest in AB.
AB Holding Units
As of September 30, 2024, the total outstanding AB Holding Units were 113,335,357, which includes:
| Description | Units |
|---|---|
| Outstanding as of December 31, 2023 | 114,436,091 |
| Units Issued | 859,586 |
| Units Retired | (1,860,320) |
| Outstanding as of September 30, 2024 | 113,335,357 |
Investment in AB
The investment in AB as of September 30, 2024, was valued at $2,098,703,000. This represents an increase from $2,077,540,000 as of December 31, 2023.
Financial Performance Indicators
For the three months ended September 30, 2024, the net income attributable to AB Unitholders was $345,972,000, compared to $167,404,000 in the same period of 2023. The weighted average equity ownership interest was 39.4%.
Cash Distributions
On October 24, 2024, a distribution of $0.77 per unit was declared, representing the distribution of Available Cash Flow for the three months ended September 30, 2024.
Ownership Changes
- In the nine months ended September 30, 2024, AB Holding Units retired amounted to 66,477.
- AB Holding Units issued to fund long-term incentive compensation plans were 20,430.
Tax Information
AB Holding, as a publicly-traded partnership, is subject to a 4.0% New York City unincorporated business tax and a 3.5% federal tax on partnership gross income.
Conclusion on Financial Metrics
In summary, the ownership landscape of AllianceBernstein Holding L.P. reflects significant control by EQH and its subsidiaries, with a robust financial performance and structured cash distributions, highlighting its stability and growth potential in the financial markets.
AllianceBernstein Holding L.P. (AB) Mission Statement
Mission Statement Overview
AllianceBernstein Holding L.P. (AB) is committed to delivering superior investment performance and client service through innovative solutions and a deep understanding of global markets. The firm aims to align its interests with those of its clients, ensuring that their investment objectives are met with integrity and excellence.
Core Values
- Client Focus: Prioritizing clients' needs and building long-term relationships.
- Integrity: Upholding the highest ethical standards in all dealings.
- Innovation: Embracing change and leveraging technology to enhance investment strategies.
- Diversity and Inclusion: Fostering a culture that values diverse perspectives and experiences.
Financial Performance Metrics
As of September 30, 2024, AB's financial performance reflects its commitment to its mission statement:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income Attributable to AB Unitholders | $345,972,000 | $167,404,000 | 106.7% |
| Equity in Net Income Attributable to AB Unitholders | $136,374,000 | $65,761,000 | 107.4% |
| AB Qualifying Revenues | $713,242,000 | $689,323,000 | 3.5% |
| Diluted Net Income per AB Holding Unit | $1.12 | $0.50 | 124.0% |
| Distribution per AB Holding Unit | $0.77 | $0.65 | 18.5% |
Investment Strategy
AB employs a multi-asset investment strategy that focuses on providing clients with access to a range of investment solutions, including:
- Equities
- Fixed Income
- Alternative Investments
- Multi-Asset Solutions
Recent Developments
In 2024, AB has expanded its focus on sustainable investing, integrating environmental, social, and governance (ESG) factors into its investment processes. This aligns with the firm's mission to promote sustainable growth and responsible investment practices.
Market Position
As of September 30, 2024, AllianceBernstein's assets under management (AUM) totaled approximately $700 billion, reflecting its strong market presence and commitment to delivering value to clients.
Client Demographics
AB serves a diverse client base, including:
- Institutional Investors
- Retail Investors
- Private Wealth Clients
- Financial Advisors
Conclusion of Financial Overview
AllianceBernstein continues to demonstrate robust financial growth and a steadfast commitment to its mission statement, focusing on delivering exceptional investment solutions and services to its clients.
How AllianceBernstein Holding L.P. (AB) Works
Overview of Business Operations
AllianceBernstein Holding L.P. (AB) operates primarily as an investment management firm. The company is structured as a publicly traded partnership (PTP) and derives its income from its equity interest in AllianceBernstein L.P. (AB), which provides a range of investment services.
Financial Performance
As of September 30, 2024, AllianceBernstein reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to AB Unitholders | $345,972,000 | $167,404,000 | 106.7% |
| Equity in Net Income | $136,374,000 | $65,761,000 | 107.4% |
| Adjusted Net Income (Diluted) | $87,680,000 | $74,068,000 | 18.5% |
| Basic Net Income per Unit | $1.12 | $0.50 | 124.0% |
| Diluted Net Income per Unit | $1.12 | $0.50 | 124.0% |
| Distributions per Unit | $0.77 | $0.65 | 18.5% |
Ownership and Unit Structure
AB Holding’s weighted average equity ownership interest in AB as of September 30, 2024, was 39.4%. The total number of AB Holding Units outstanding was 113,435,357.
Revenue Sources
AB’s revenue sources primarily consist of:
- Investment advisory fees
- Research payments
- Brokerage commissions
Taxation
AB Holding is subject to a 3.5% federal tax on its partnership gross income. The effective tax rates for the three months ended September 30, 2024, and 2023 were as follows:
| Period | Effective Tax Rate |
|---|---|
| Q3 2024 | 6.7% |
| Q3 2023 | 13.3% |
Cash Flow and Distributions
Net cash provided by operating activities during the nine months ended September 30, 2024, was $253.0 million, compared to $221.2 million in the same period of 2023. Cash distributions to Unitholders for the same period were $253.0 million, reflecting a $30.2 million increase year-over-year.
Investment and Capital Resources
Changes in AB Holding's investment in AB during the nine-month period ended September 30, 2024, are summarized as follows (in thousands):
| Item | Amount |
|---|---|
| Investment in AB as of December 31, 2023 | $2,077,540 |
| Equity in Net Income | $345,360 |
| Cash Distributions Received | $(281,164) |
| Investment in AB as of September 30, 2024 | $2,098,703 |
Long-term Incentive Compensation
During the first nine months of 2024, AB awarded 1.2 million restricted AB Holding Unit awards to employees and Eligible Directors. The total cash paid for AB Holding Units purchased during this period was $71.7 million, compared to $75.7 million in 2023.
Market Activity
AB purchased a total of 1,138,093 AB Holding Units in the open market during the third quarter of 2024 at an average price of $33.76 per unit.
Comprehensive Income
For the nine months ended September 30, 2024, the comprehensive income was $325,061,000 compared to $183,864,000 for the same period in 2023.
Conclusion
AllianceBernstein Holding L.P. continues to show robust financial growth and strong operational metrics as it navigates the complex investment management landscape.
How AllianceBernstein Holding L.P. (AB) Makes Money
Revenue Sources
AllianceBernstein Holding L.P. generates revenue primarily through its investment management services. The main components of its revenue include:
- U.S. investment advisory fees
- Research payments
- Brokerage commissions
As of September 30, 2024, AB reported the following qualifying revenues:
| Period | AB Qualifying Revenues (in thousands) | Percentage Change |
|---|---|---|
| Three Months Ended September 30, 2024 | $713,242 | 3.5% |
| Three Months Ended September 30, 2023 | $689,323 | - |
| Nine Months Ended September 30, 2024 | $2,099,807 | 1.9% |
| Nine Months Ended September 30, 2023 | $2,059,866 | - |
Net Income Performance
AB's financial performance has shown significant growth in net income. For the three months and nine months ended September 30, 2024, the net income attributable to AB Unitholders was:
| Period | Net Income (in thousands) | Percentage Change |
|---|---|---|
| Three Months Ended September 30, 2024 | $345,972 | 106.7% |
| Three Months Ended September 30, 2023 | $167,404 | - |
| Nine Months Ended September 30, 2024 | $873,471 | 62.6% |
| Nine Months Ended September 30, 2023 | $537,292 | - |
Income Tax Obligations
AB Holding is subject to a federal partnership gross income tax rate of 3.5%. As of September 30, 2024, the income tax expenses were detailed as follows:
| Period | Federal Income Taxes (in thousands) | State Income Taxes (in thousands) | Total Income Taxes (in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $8,924 | $255 | $9,179 |
| Three Months Ended September 30, 2023 | $8,593 | $177 | $8,770 |
| Nine Months Ended September 30, 2024 | $26,728 | $692 | $27,420 |
| Nine Months Ended September 30, 2023 | $25,713 | $565 | $26,278 |
Cash Distributions to Unitholders
AB Holding is required to distribute all Available Cash Flow to its Unitholders. The cash distributions declared for the three months ended September 30, 2024, were:
| Period | Distribution per AB Holding Unit |
|---|---|
| Three Months Ended September 30, 2024 | $0.77 |
| Three Months Ended September 30, 2023 | $0.65 |
Investment in AB
As of September 30, 2024, AB Holding's investment in AB was reported as follows:
| Investment Components (in thousands) | Value |
|---|---|
| Investment in AB | $2,098,703 | Cash Distributions Received from AB | $281,164 |
Operating Metrics
AB uses specific metrics to evaluate its operational performance. For the three and nine months ended September 30, 2024, the adjusted operating metrics were:
| Metrics | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Adjusted Net Income (in thousands) | $87,680 | $252,742 |
| Adjusted Diluted Net Income per Unit | $0.77 | $2.21 |
Equity in Net Income
AB Holding's equity in net income attributable to AB Unitholders for the periods ended September 30, 2024, was:
| Period | Equity in Net Income (in thousands) | Percentage Change |
|---|---|---|
| Three Months Ended September 30, 2024 | $136,374 | 107.4% |
| Three Months Ended September 30, 2023 | $65,761 | - |
| Nine Months Ended September 30, 2024 | $345,360 | 63.5% |
| Nine Months Ended September 30, 2023 | $211,264 | - |
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Article updated on 8 Nov 2024
Resources:
- AllianceBernstein Holding L.P. (AB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AllianceBernstein Holding L.P. (AB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AllianceBernstein Holding L.P. (AB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.