Item 1. Financial Statements

Ares Management Corporation

Condensed Consolidated Statements of Financial Condition (Amounts in Thousands, Except Share Data)

			As of
			March 31, 2024						December 31, 2023
			(unaudited)
Assets
Cash and cash equivalents			$	346,331					$	348,274
Investments (includes accrued carried interest of $3,361,519 and $3,413,007 as of March 31, 2024 and December 31, 2023, respectively)			4,484,884						4,624,932
Due from affiliates			809,273						896,746
Other assets			519,292						429,979
Right-of-use operating lease assets			237,019						249,326
Intangible assets, net			1,030,076						1,058,495
Goodwill			1,130,085						1,123,976
Assets of Consolidated Funds:
Cash and cash equivalents			1,199,376						1,149,511
Investments held in trust account			529,887						523,038
Investments, at fair value			13,790,030						14,078,549
Due from affiliates			15,924						14,151
Receivable for securities sold			243,998						146,851
Other assets			77,095						86,672
Total assets			$	24,413,270					$	24,730,500
Liabilities
Accounts payable, accrued expenses and other liabilities			$	262,551					$	233,884
Accrued compensation			217,788						287,259
Due to affiliates			363,308						240,254
Performance related compensation payable			2,449,732						2,514,610
Debt obligations			3,046,182						2,965,480
Operating lease liabilities			308,336						319,572
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities			189,556						189,523
Due to affiliates			12,727						3,554
Payable for securities purchased			548,032						484,117
CLO loan obligations, at fair value			11,906,346						12,345,657
Fund borrowings			78,241						125,241
Total liabilities			19,382,799						19,709,151
Commitments and contingencies
Redeemable interest in Consolidated Funds			529,787						522,938
Redeemable interest in Ares Operating Group entities			23,612						24,098
Non-controlling interests in Consolidated Funds			1,515,302						1,258,445
Non-controlling interests in Ares Operating Group entities			1,194,276						1,322,469
Stockholders’ Equity
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (191,057,860 shares and 187,069,907 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)			1,911						1,871
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of March 31, 2024 and December 31, 2023)			35						35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023)			—						—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (115,120,213 shares and 117,024,758 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)			1,151						1,170
Additional paid-in-capital			2,387,437						2,391,036
Accumulated deficit			(612,560)						(495,083)
Accumulated other comprehensive loss, net of tax			(10,480)						(5,630)
Total stockholders’ equity			1,767,494						1,893,399
Total equity			4,477,072						4,474,313
Total liabilities, redeemable interest, non-controlling interests and equity			$	24,413,270					$	24,730,500

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Operations

(Amounts in Thousands, Except Share Data)

(unaudited)

			Three months ended March 31,
			2024						2023
Revenues
Management fees			$	687,692					$	600,516
Carried interest allocation			(32,478)						151,488
Incentive fees			8,667						8,923
Principal investment income			7,050						22,758
Administrative, transaction and other fees			36,432						29,677
Total revenues			707,363						813,362
Expenses
Compensation and benefits			412,951						360,781
Performance related compensation			(50,532)						111,658
General, administrative and other expenses			170,928						148,345
Expenses of Consolidated Funds			5,146						7,852
Total expenses			538,493						628,636
Other income (expense)
Net realized and unrealized gains on investments			10,516						1,515
Interest and dividend income			5,382						3,839
Interest expense			(37,824)						(24,986)
Other income (expense), net			270						(923)
Net realized and unrealized gains on investments of Consolidated Funds			34,424						10,700
Interest and other income of Consolidated Funds			257,276						222,938
Interest expense of Consolidated Funds			(207,866)						(156,687)
Total other income, net			62,178						56,396
Income before taxes			231,048						241,122
Income tax expense			27,233						33,806
Net income			203,815						207,316
Less: Net income attributable to non-controlling interests in Consolidated Funds			66,716						26,693
Net income attributable to Ares Operating Group entities			137,099						180,623
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities			73						(1,824)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			63,999						88,408
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	73,027					$	94,039
Net income per share of Class A and non-voting common stock:
Basic			$	0.33					$	0.49
Diluted			$	0.33					$	0.49
Weighted-average shares of Class A and non-voting common stock:
Basic			192,622,609						178,976,022
Diluted			192,622,609						178,976,022

Substantially all revenue is earned from affiliated funds of the Company.

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Comprehensive Income

(Amounts in Thousands)

(unaudited)

						Three months ended March 31,
						2024						2023
Net income						$	203,815					$	207,316
Foreign currency translation adjustments, net of tax						(11,647)						6,639
Total comprehensive income						192,168						213,955
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds						63,108						29,083
Less: Comprehensive loss attributable to redeemable interest in Ares Operating Group entities						(184)						(1,972)
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities						61,067						90,164
Comprehensive income attributable to Ares Management Corporation						$	68,177					$	96,680

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)

												Class A Common Stock						Non-voting Common Stock						Class C Common Stock						Additional Paid-in-Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Non-Controlling Interest in Ares Operating Group Entities						Non-Controlling Interest in Consolidated Funds						Total Equity
Balance as of December 31, 2023												$	1,871					$	35					$	1,170					$	2,391,036					$	(495,083)					$	(5,630)					$	1,322,469					$	1,258,445					$	4,474,313
Changes in ownership interests and related tax benefits												39						—						(20)						(62,709)						—						—						(103,599)						51,984						(114,305)
Issuances of common stock												—						—						1						—						—						—						7,723						—						7,724
Capital contributions												—						—						—						—						—						—						1,034						168,673						169,707
Dividends/distributions												—						—						—						—						(190,504)						—						(129,240)						(26,908)						(346,652)
Net income												—						—						—						—						73,027						—						63,999						66,716						203,742
Currency translation adjustment, net of tax												—						—						—						—						—						(4,850)						(2,932)						(3,608)						(11,390)
Equity compensation												—						—						—						57,600						—						—						34,822						—						92,422
Stock option exercises												1						—						—						1,510						—						—						—						—						1,511
Balance as of March 31, 2024												$	1,911					$	35					$	1,151					$	2,387,437					$	(612,560)					$	(10,480)					$	1,194,276					$	1,515,302					$	4,477,072

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)

												Class A Common Stock						Non-voting Common Stock						Class C Common Stock						Additional Paid-in-Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Non-Controlling Interest in Ares Operating Group Entities						Non-Controlling Interest in Consolidated Funds						Total Equity
Balance as of December 31, 2022												$	1,739					$	35					$	1,172					$	1,970,754					$	(369,475)					$	(14,986)					$	1,135,023					$	1,074,356					$	3,798,618
Changes in ownership interests and related tax benefits												19						—						34						(36,777)						—						—						87,541						(4,689)						46,128
Issuances of common stock												14						—						—						115,350						—						—						—						—						115,364
Capital contributions												—						—						—						—						—						—						1,172						93,585						94,757
Dividends/distributions												—						—						—						—						(145,386)						—						(103,363)						(20,933)						(269,682)
Net income												—						—						—						—						94,039						—						88,408						26,693						209,140
Currency translation adjustment, net of tax												—						—						—						—						—						2,641						1,756						2,390						6,787
Equity compensation												—						—						—						41,541						—						—						27,537						—						69,078
Stock option exercises												5						—						—						9,175						—						—						—						—						9,180
Balance as of March 31, 2023												1,777						35						1,206						2,100,043						(420,822)						(12,345)						1,238,074						1,171,402						4,079,370
Changes in ownership interests and related tax benefits												10						—						(9)						(151)						—						—						(4,086)						(322,729)						(326,965)
Issuances of common stock												—						—						—						737						—						—						—						—						737
Capital contributions												—						—						—						—						—						—						1,071						78,632						79,703
Dividends/distributions												—						—						—						—						(149,218)						—						(109,651)						(14,992)						(273,861)
Net income												—						—						—						—						144,514						—						119,326						67,681						331,521
Currency translation adjustment, net of tax												—						—						—						—						—						2,658						1,751						(8,685)						(4,276)
Equity compensation												—						—						—						37,609						—						—						24,672						—						62,281
Stock option exercises												25						—						—						43,935						—						—						—						—						43,960
Balance as of June 30, 2023												1,812						35						1,197						2,182,173						(425,526)						(9,687)						1,271,157						971,309						3,992,470
Changes in ownership interests and related tax benefits												17						—						(16)						15,435						—						—						(14,757)						(7,210)						(6,531)
Capital contributions												—						—						—						—						—						—						148						41,378						41,526
Dividends/distributions												—						—						—						—						(151,648)						—						(97,936)						(21,020)						(270,604)
Net income												—						—						—						—						61,823						—						54,104						80,289						196,216
Currency translation adjustment, net of tax												—						—						—						—						—						(7,578)						(4,994)						(11,313)						(23,885)
Equity compensation												—						—						—						37,856						—						—						24,120						—						61,976
Stock option exercises												15						—						—						27,271						—						—						—						—						27,286
Balance as of September 30, 2023												1,844						35						1,181						2,262,735						(515,351)						(17,265)						1,231,842						1,053,433						4,018,454
Changes in ownership interests and related tax benefits												13						—						(11)						(39,262)						—						—						25,258						20,847						6,845
Issuances of common stock												12						—						—						123,432						—						—						—						—						123,444
Capital contributions												—						—						—						—						—						—						1,496						106,590						108,086
Dividends/distributions												—						—						—						—						(153,682)						—						(116,899)						(44,183)						(314,764)
Net income												—						—						—						—						173,950						—						149,406						99,633						422,989
Currency translation adjustment, net of tax												—						—						—						—						—						11,635						7,510						22,125						41,270
Equity compensation												—						—						—						38,600						—						—						23,856						—						62,456
Stock option exercises												2						—						—						5,531						—						—						—						—						5,533
Balance as of December 31, 2023												$	1,871					$	35					$	1,170					$	2,391,036					$	(495,083)					$	(5,630)					$	1,322,469					$	1,258,445					$	4,474,313

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Cash Flows

(Amounts in Thousands)

(unaudited)

			Three months ended March 31,
			2024						2023
Cash flows from operating activities:
Net income			$	203,815					$	207,316
Adjustments to reconcile net income to net cash provided by operating activities			222,996						121,761
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds			244,182						328,840
Cash flows due to changes in operating assets and liabilities			103,981						7,071
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds			(64,929)						42,584
Net cash provided by operating activities			710,045						707,572
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(26,071)						(8,877)
Acquisitions, net of cash acquired			(8,000)						—
Net cash used in investing activities			(34,071)						(8,877)
Cash flows from financing activities:
Proceeds from Credit Facility			290,000						245,000
Repayments of Credit Facility			(210,000)						(150,000)
Dividends and distributions			(320,046)						(251,632)
Stock option exercises			1,511						9,180
Taxes paid related to net share settlement of equity awards			(186,731)						(113,431)
Other financing activities			1,034						483
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			168,673						93,585
Distributions to non-controlling interests in Consolidated Funds			(26,908)						(20,933)
Redemptions of redeemable interests in Consolidated Funds			—						(538,985)
Borrowings under loan obligations by Consolidated Funds			36,947						2,914
Repayments under loan obligations by Consolidated Funds			(421,112)						(97,325)
Net cash used in financing activities			(666,632)						(821,144)
Effect of exchange rate changes			(11,285)						4,711
Net change in cash and cash equivalents			(1,943)						(117,738)
Cash and cash equivalents, beginning of period			348,274						389,987
Cash and cash equivalents, end of period			$	346,331					$	272,249
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities			$	7,724					$	115,364
Issuance of common stock in connection with settlement of management incentive program			$	—					$	245,647

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

1. ORGANIZATION

Ares Management Corporation (the “Company”), a Delaware corporation, together with its subsidiaries, is a leading global alternative investment manager operating integrated groups across Credit, Real Assets, Private Equity and Secondaries. Information about segments should be read together with “Note 13. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various funds and managed accounts within each investment group (the “Ares Funds”). These subsidiaries provide investment advisory services to the Ares Funds in exchange for management fees.

The accompanying unaudited financial statements include the condensed consolidated results of the Company and its subsidiaries. The Company is a holding company that operates and controls all of the businesses and affairs of and conducts all of its material business activities through Ares Holdings L.P. (“Ares Holdings”). Ares Holdings represents all the activities of the “Ares Operating Group” or “AOG” and may be referred to interchangeably. The Company, indirectly through its wholly owned subsidiary, Ares Holdco LLC, is the general partner of the Ares Operating Group entity.

The Company manages or controls certain entities that have been consolidated in the accompanying financial statements as described in “Note 2. Summary of Significant Accounting Policies.” These entities include Ares funds, co-investment vehicles, collateralized loan obligations or funds (collectively “CLOs”) and special purpose acquisition companies (“SPACs”) (collectively, the “Consolidated Funds”).

Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows within the accompanying unaudited condensed consolidated financial statements. However, the Consolidated Funds results included herein have no direct effect on the net income attributable to Ares Management Corporation or to its Stockholders’ Equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. Instead, economic ownership interests of the investors in the Consolidated Funds are reflected as redeemable and non-controlling interests in Consolidated Funds. Further, cash flows allocable to redeemable and non-controlling interest in Consolidated Funds are specifically identifiable within the Condensed Consolidated Statements of Cash Flows.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments so that the unaudited condensed consolidated financial statements are presented fairly and that estimates made in preparing its unaudited condensed consolidated financial statements are reasonable and prudent, and that all such adjustments are of a normal recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”).

The unaudited condensed consolidated financial statements include the accounts and activities of the Ares Operating Group entities (“AOG entities”), their consolidated subsidiaries and certain Consolidated Funds. All intercompany balances and transactions have been eliminated upon consolidation.

The Company has reclassified certain prior period amounts to conform to the current year presentation.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the Company’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for the Company’s fiscal year ending December 31, 2024 and for the Company’s interim periods beginning with the quarter ended March 31, 2025. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. ASU 2023-09 requires disclosure of disaggregated income taxes paid in both U.S. and foreign jurisdictions, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s fiscal year ending December 31, 2025. Early adoption is permitted and the amendments in this update should be applied on a prospective basis, though retrospective adoption is permitted. The Company is currently evaluating the impact of this guidance.

3. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:

			Weighted Average Amortization Period (in years) as of March 31, 2024						As of March 31,						As of December 31,
						2024						2023
Management contracts			4.2						$	580,635					$	604,242
Client relationships			8.3						200,920						200,920
Other			0.6						500						500
Finite-lived intangible assets									782,055						805,662
Foreign currency translation									(202)						1,126
Total finite-lived intangible assets									781,853						806,788
Less: accumulated amortization									(319,577)						(316,093)
Finite-lived intangible assets, net									462,276						490,695
Indefinite-lived management contracts									567,800						567,800
Intangible assets, net									$	1,030,076					$	1,058,495

During the three months ended March 31, 2023, the Company rebranded and discontinued the use of the SSG trade name acquired through the acquisition of SSG Capital Holdings Limited and its operating subsidiaries (“SSG”) in 2020. As a result, the Company recorded a non-cash impairment charge equal to the SSG trade name’s carrying value of $7.8 million to accelerate the amortization expense for the three months ended March 31, 2023.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $29.2 million and $33.6 million for the three months ended March 31, 2024 and 2023, respectively, and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2024, the Company removed $24.9 million of fully-amortized intangible assets.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:

			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group												Total
Balance as of December 31, 2023			$	256,679					$	277,205					$	172,462					$	417,630											$	1,123,976
Acquisitions			—						6,710						644						—												7,354
Reallocation			55,658						—						(55,658)						—												—
Foreign currency translation			(1,242)						—						—						(3)												(1,245)
Balance as of March 31, 2024			$	311,095					$	283,915					$	117,448					$	417,627											$	1,130,085

In connection with the segment reorganization of the former special opportunities strategy as described in “Note 13. Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach.

There was no impairment of goodwill recorded during the three months ended March 31, 2024 and 2023. The impact of foreign currency translation is reflected within other comprehensive income within the Condensed Consolidated Statements of Comprehensive Income.

4. INVESTMENTS

The following table summarizes the Company’s investments:

			As of												Percentage of total investments as of
			March 31,						December 31,						March 31,						December 31,
			2024						2023						2024						2023
Equity method investments:
Equity method - carried interest			$	3,361,519					$	3,413,007					75.0%						73.8%
Equity method private investment partnership interests - principal			545,153						535,292						12.1						11.6
Equity method private investment partnership interests and other (held at fair value)			420,033						418,778						9.4						9.0
Equity method private investment partnership interests and other			43,498						44,989						1.0						1.0
Total equity method investments			4,370,203						4,412,066						97.5						95.4
Collateralized loan obligations			20,010						20,799						0.4						0.4
Fixed income securities			1,578						105,495						—						2.3
Collateralized loan obligations and fixed income securities, at fair value			21,588						126,294						0.4						2.7
Common stock, at fair value			93,093						86,572						2.1						1.9
Total investments			$	4,484,884					$	4,624,932

Equity Method Investments

The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the three months ended March 31, 2024 and 2023, no individual equity method investment held by the Company met the significance criteria.

The following table presents the Company’s other income, net from its equity method investments, which were included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Condensed Consolidated Statements of Operations:

						Three months ended March 31,
						2024						2023
Total other income, net related to equity method investments						$	10,127					$	23,914

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets.

The following table summarizes the changes in fair value of the Company’s equity method investments held at fair value, which are included within net realized and unrealized gains on investments within the Condensed Consolidated Statements of Operations:

			Three months ended March 31,
			2024						2023
Equity method private investment partnership interests and other (held at fair value)			$	2,479					$	3,099

Investments of the Consolidated Funds

The following table summarizes investments held in the Consolidated Funds:

			Fair Value as of												Percentage of total investments as of
			March 31,						December 31,						March 31,						December 31,
			2024						2023						2024						2023
Fixed income investments:
Loans and securitization vehicles			$	10,147,424					$	10,616,458					70.9%						72.7%
Money market funds and U.S. treasury securities			529,887						523,038						3.7						3.6
Bonds			513,801						578,949						3.6						4.0
Total fixed income investments			11,191,112						11,718,445						78.2						80.3
Partnership interests			1,721,331						1,642,489						12.0						11.2
Equity securities			1,407,474						1,240,653						9.8						8.5
Total investments, at fair value			$	14,319,917					$	14,601,587

As of March 31, 2024 and December 31, 2023, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company’s total assets.

5. FAIR VALUE

Fair Value of Financial Instruments Held by the Company and Consolidated Funds

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of March 31, 2024:

Financial Instruments of the Company						Level I						Level II						Level III						Investments Measured at NAV						Total
Assets, at fair value
Investments:
Common stock and other equity securities						$	—					$	93,093					$	416,874					$	—					$	509,967
Collateralized loan obligations and fixed income securities						—						—						21,588						—						21,588
Partnership interests						—						—						—						3,159						3,159
Total investments, at fair value						—						93,093						438,462						3,159						534,714
Derivatives-foreign currency forward contracts						—						1,623						—						—						1,623
Total assets, at fair value						$	—					$	94,716					$	438,462					$	3,159					$	536,337
Liabilities, at fair value
Derivatives-foreign currency forward contracts						$	—					$	(1,365)					$	—					$	—					$	(1,365)
Total liabilities, at fair value						$	—					$	(1,365)					$	—					$	—					$	(1,365)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Financial Instruments of the Consolidated Funds						Level I						Level II						Level III						Investments Measured at NAV						Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles						$	—					$	9,508,106					$	639,318					$	—					$	10,147,424
Money market funds and U.S. treasury securities						529,887						—						—						—						529,887
Bonds						—						513,801						—						—						513,801
Total fixed income investments						529,887						10,021,907						639,318						—						11,191,112
Partnership interests						—						—						—						1,721,331						1,721,331
Equity securities						38,620						2,390						1,366,464						—						1,407,474
Total investments, at fair value						568,507						10,024,297						2,005,782						1,721,331						14,319,917
Derivatives-foreign currency forward contracts						—						5,590						—						—						5,590
Total assets, at fair value						$	568,507					$	10,029,887					$	2,005,782					$	1,721,331					$	14,325,507
Liabilities, at fair value
Loan obligations of CLOs						$	—					$	(11,906,346)					$	—					$	—					$	(11,906,346)
Derivatives:
Foreign currency forward contracts						—						(5,541)						—						—						(5,541)
Asset swaps						—						—						(1,574)						—						(1,574)
Total derivative liabilities, at fair value						—						(5,541)						(1,574)						—						(7,115)
Total liabilities, at fair value						$	—					$	(11,911,887)					$	(1,574)					$	—					$	(11,913,461)

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2023:

Financial Instruments of the Company						Level I						Level II						Level III						Investments Measured at NAV						Total
Assets, at fair value
Investments:
Common stock and other equity securities						$	—					$	86,572					$	412,491					$	—					$	499,063
Collateralized loan obligations and fixed income securities						—						—						126,294						—						126,294
Partnership interests						—						—						—						6,287						6,287
Total investments, at fair value						—						86,572						538,785						6,287						631,644
Derivatives-foreign currency forward contracts						—						1,129						—						—						1,129
Total assets, at fair value						$	—					$	87,701					$	538,785					$	6,287					$	632,773
Liabilities, at fair value
Derivatives-foreign currency forward contracts						$	—					$	(2,645)					$	—					$	—					$	(2,645)
Total liabilities, at fair value						$	—					$	(2,645)					$	—					$	—					$	(2,645)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Financial Instruments of the Consolidated Funds						Level I						Level II						Level III						Investments Measured at NAV						Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles						$	—					$	9,879,915					$	736,543					$	—					$	10,616,458
Bonds						—						575,379						3,570						—						578,949
Money market funds and U.S. treasury securities						523,038						—						—						—						523,038
Total fixed income investments						523,038						10,455,294						740,113						—						11,718,445
Partnership interests						—						—						—						1,642,489						1,642,489
Equity securities						47,503						2,750						1,190,400						—						1,240,653
Total investments, at fair value						570,541						10,458,044						1,930,513						1,642,489						14,601,587
Derivatives-foreign currency forward contracts						—						9,126						—						—						9,126
Total assets, at fair value						$	570,541					$	10,467,170					$	1,930,513					$	1,642,489					$	14,610,713
Liabilities, at fair value
Loan obligations of CLOs						$	—					$	(12,345,657)					$	—					$	—					$	(12,345,657)
Derivatives:
Foreign currency forward contracts						—						(9,491)						—						—						(9,491)
Asset swaps						—						—						(1,291)						—						(1,291)
Total derivative liabilities, at fair value						—						(9,491)						(1,291)						—						(10,782)
Total liabilities, at fair value						$	—					$	(12,355,148)					$	(1,291)					$	—					$	(12,356,439)

The following tables set forth a summary of changes in the fair value of the Level III measurements:

Level III Assets of the Company						Equity Securities						Fixed Income																		Total
Balance as of December 31, 2023						$	412,491					$	126,294																	$	538,785
Purchases(1)						30						2,266																		2,296
Sales/settlements(2)						(782)						(108,360)																		(109,142)
Realized and unrealized appreciation, net						5,135						1,388																		6,523
Balance as of March 31, 2024						$	416,874					$	21,588																	$	438,462
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date						$	5,135					$	1,388																	$	6,523

Level III Net Assets of Consolidated Funds						Equity Securities						Fixed Income												Derivatives, Net						Total
Balance as of December 31, 2023						$	1,190,400					$	740,113											$	(1,291)					$	1,929,222
Transfer in						—						91,729												—						91,729
Transfer out						—						(172,358)												—						(172,358)
Purchases(1)						154,475						263,706												46						418,227
Sales/settlements(2)						—						(285,911)												—						(285,911)
Realized and unrealized appreciation (depreciation), net						21,589						2,039												(329)						23,299
Balance as of March 31, 2024						$	1,366,464					$	639,318											$	(1,574)					$	2,004,208
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date						$	22,225					$	1,420											$	(380)					$	23,265

(1)Purchases include paid-in-kind interest and securities received in connection with restructurings.

(2)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables set forth a summary of changes in the fair value of the Level III measurements:

Level III Assets of the Company						Equity Securities						Fixed Income																								Total
Balance as of December 31, 2022						$	121,785					$	76,934																							$	198,719
Purchases(1)						52						1,194																								1,246
Sales/settlements(2)						45						(1,536)																								(1,491)
Realized and unrealized appreciation (depreciation), net						3,191						(1,423)																								1,768
Balance as of March 31, 2023						$	125,073					$	75,169																							$	200,242
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date						$	2,978					$	(1,211)																							$	1,767

Level III Net Assets of Consolidated Funds						Equity Securities						Fixed Income						Partnership Interests						Derivatives, Net						Total
Balance as of December 31, 2022						$	730,880					$	869,668					$	368,655					$	(3,556)					$	1,965,647
Transfer in						—						284,198						—						—						284,198
Transfer out						—						(447,536)						—						—						(447,536)
Purchases(1)						180,372						188,232						49,000						—						417,604
Sales/settlements(2)						(122)						(173,502)						(48,889)						—						(222,513)
Realized and unrealized appreciation, net						21,505						11,744						5,283						1,858						40,390
Balance as of March 31, 2023						$	932,635					$	732,804					$	374,049					$	(1,698)					$	2,037,790
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date						$	21,436					$	(20,602)					$	5,283					$	1,848					$	7,965

(1)Purchases include paid-in-kind interest and securities received in connection with restructurings.

(2)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs either from independent pricing services or multiple brokers. Transfers into Level III were generally attributable to certain investments that experienced a less significant level of market activity during the period and thus were only able to obtain one or fewer quotes from a broker or independent pricing service.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of March 31, 2024:

Level III Measurements of the Company						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	160,318					Discounted cash flow						Discount rate						18.5% - 30.0%						25.0%
						117,952						Market approach						Multiple of book value						1.3x - 1.4x						1.3x
						100,000						Transaction price(1)						N/A						N/A						N/A
						6,179						Market approach						Enterprise value / Earnings multiple						15.4x						15.4x
						32,425						Other						N/A						N/A						N/A
Fixed income investments
						20,010						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						1,578						Other						N/A						N/A						N/A
Total assets						$	438,462

Level III Measurements of the Consolidated Funds						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	774,504					Discounted cash flow						Discount rate						10.0% - 16.0%						13.0%
						587,252						Market approach						Multiple of book value						1.0x - 1.7x						1.3x
						3,704						Market approach						EBITDA multiple(2)						5.4x - 35.3x						9.8x
						871						Transaction price(1)						N/A						N/A						N/A
						133						Other						N/A						N/A						N/A
Fixed income investments
						500,420						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						128,212						Market approach						Yield						8.8% - 17.1%						11.8%
						6,410						Transaction price(1)						N/A						N/A						N/A
						3,876						Discounted cash flow						Discount rate						12.3% - 12.7%						12.7%
						400						Other						N/A						N/A						N/A
Total assets						$	2,005,782
Liabilities
Derivative instruments						$	(1,574)					Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
Total liabilities						$	(1,574)

(1)Transaction price consists of securities purchased or restructured. The Company determined that there was no change to the valuation based on the underlying assumptions used at the closing of such transactions.

(2)“EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of December 31, 2023:

Level III Measurements of the Company						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	154,460					Discounted cash flow						Discount rate						20.0% - 30.0%						25.0%
						118,846						Market approach						Multiple of book value						1.3x - 1.6x						1.5x
						100,000						Transaction price(1)						N/A						N/A						N/A
						6,447						Market approach						Enterprise value / Earnings multiple						15.4x						15.4x
						32,738						Other						N/A						N/A						N/A
Fixed income investments
						83,000						Transaction price(1)						N/A						N/A						N/A
						20,799						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						22,495						Other						N/A						N/A						N/A
Total assets						$	538,785

Level III Measurements of the Consolidated Funds						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	648,581					Discounted cash flow						Discount rate						10.0% - 16.0%						13.0%
						537,733						Market approach						Multiple of book value						1.0x - 1.7x						1.3x
						3,909						Market approach						EBITDA multiple(2)						4.5x - 32.4x						8.9x
						177						Other						N/A						N/A						N/A
Fixed income investments
						548,264						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						188,322						Market approach						Yield						8.3% - 24.1%						12.2%
						2,974						Market approach						EBITDA multiple(2)						4.5x - 32.4x						9.0x
						104						Discounted cash flow						Discount rate						12.3%						12.3%
						449						Other						N/A						N/A						N/A
Total assets						$	1,930,513
Liabilities
Derivative instruments						$	(1,291)					Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
Total liabilities						$	(1,291)

(1)Transaction price consists of securities purchased or restructured. The Company determined that there has been no change to the valuation based on the underlying assumptions used at the closing of such transactions.

(2)“EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

The Consolidated Funds have limited partnership interests in private equity funds managed by the Company that are valued using net asset value (“NAV”) per share. The terms and conditions of these funds do not allow for redemptions without certain events or approvals that are outside the Company’s control.

The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share:

						As of March 31, 2024						As of December 31, 2023
Investments (held at fair value)						$	1,721,331					$	1,642,489
Unfunded commitments						1,079,881						738,621

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

6. DEBT

The following table summarizes the Company’s and its subsidiaries’ debt obligations:

																					As of March 31, 2024												As of December 31, 2023
			Debt Origination Date						Maturity						Original Borrowing Amount						Carrying Value						Interest Rate						Carrying Value						Interest Rate
Credit Facility(1)			Revolving						3/31/2029						N/A						$	975,000					6.38%						$	895,000					6.37%
2024 Senior Notes(2)			10/8/2014						10/8/2024						$	250,000					249,612						4.21						249,427						4.21
2028 Senior Notes(3)			11/10/2023						11/10/2028						500,000						495,121						6.42						494,863						6.42
2030 Senior Notes(4)			6/15/2020						6/15/2030						400,000						397,162						3.28						397,050						3.28
2052 Senior Notes(5)			1/21/2022						2/1/2052						500,000						484,299						3.77						484,199						3.77
2051 Subordinated Notes(6)			6/30/2021						6/30/2051						450,000						444,988						4.13						444,941						4.13
Total debt obligations																					$	3,046,182											$	2,965,480

(1)On March 28, 2024, the Company amended the Credit Facility to, among other things, increase the revolver commitments from $1.325 billion to $1.400 billion, with an accordion feature of $600.0 million, and extend the maturity date from March 2027 to March 2029. Ares Holdings is the borrower under the Credit Facility. The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain environmental, social and governance (“ESG”)-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2024, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero. Due to the achievement of the ESG-related targets in the second quarter of 2023, the Company’s base rate and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through June 2024.

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 Senior Notes.

(3)The 2028 Senior Notes were issued in November 2023 by the Company, at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the 2028 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2028 Senior Notes.

(4)The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Senior Notes.

(5)The 2052 Senior Notes were issued in January 2022 by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the 2052 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2052 Senior Notes.

(6)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. Beginning June 30, 2026, the interest rate will reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the 2051 Subordinated Notes prior to maturity or defer interest payments up to five consecutive years, subject to the terms of the indenture governing the 2051 Subordinated Notes.

As of March 31, 2024, the Company and its subsidiaries were in compliance with all covenants under the debt obligations.

The Company typically incurs and pays debt issuance costs when entering into a new debt obligation or when amending an existing debt agreement. Debt issuance costs related to the 2024, 2028, 2030 and 2052 Senior Notes (the “Senior Notes”) and 2051 Subordinated Notes are recorded as a reduction of the corresponding debt obligation, and debt issuance costs related to the Credit Facility are included within other assets within the Condensed Consolidated Statements of Financial Condition. All debt issuance costs are amortized over the remaining term of the related obligation into interest expense within the Condensed Consolidated Statements of Operations.

The following table presents the activity of the Company’s debt issuance costs:

			Credit Facility						Senior Notes						Subordinated Notes
Unamortized debt issuance costs as of December 31, 2023			$	4,213					$	11,784					$	5,059
Debt issuance costs incurred			1,784						—						—
Amortization of debt issuance costs			(329)						(410)						(46)
Unamortized debt issuance costs as of March 31, 2024			$	5,668					$	11,374					$	5,013

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Loan Obligations of the Consolidated CLOs

Loan obligations of the Consolidated Funds that are CLOs (“Consolidated CLOs”) represent amounts due to holders of debt securities issued by the Consolidated CLOs. The Company measures the loan obligations of the Consolidated CLOs using the fair value of the financial assets of its Consolidated CLOs.

The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:

									As of March 31, 2024																					As of December 31, 2023
									Fair Value of Loan Obligations						Weighted Average Interest Rate						Weighted Average Remaining Maturity (in years)									Fair Value of Loan Obligations						Weighted Average Interest Rate						Weighted Average Remaining Maturity (in years)
Senior secured notes									$	11,162,856					6.66%						8.0									$	11,606,289					6.64%						8.2
Subordinated notes(1)									743,490						N/A						6.6									739,368						N/A						6.9
Total loan obligations of Consolidated CLOs									$	11,906,346																				$	12,345,657

(1)The notes do not have contractual interest rates; instead, holders of the notes receive distributions from the excess cash flows generated by each Consolidated CLO.

Loan obligations of the Consolidated CLOs are collateralized by the assets held by the Consolidated CLOs, consisting of cash and cash equivalents, corporate loans, corporate bonds and other securities. The assets of one Consolidated CLO may not be used to satisfy the liabilities of another Consolidated CLO. Loan obligations of the Consolidated CLOs include floating rate notes, deferrable floating rate notes, revolving lines of credit and subordinated notes. Amounts borrowed under the notes are repaid based on available cash flows subject to priority of payments under each Consolidated CLO’s governing documents. Based on the terms of these facilities, the creditors of the facilities have no recourse to the Company.

Credit Facilities of the Consolidated Funds

Certain Consolidated Funds maintain credit facilities to fund investments between capital drawdowns. These facilities generally are collateralized by the unfunded capital commitments of the Consolidated Funds’ limited partners, bear an annual commitment fee based on unfunded commitments and contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments and portfolio asset dispositions. The creditors of these facilities have no recourse to the Company and only have recourse to a subsidiary of the Company to the extent the debt is guaranteed by such subsidiary. As of March 31, 2024 and December 31, 2023, the Consolidated Funds were in compliance with all covenants under such credit facilities.

The Consolidated Funds had the following revolving bank credit facilities outstanding:

																		As of March 31, 2024												As of December 31, 2023
						Maturity Date						Total Capacity						Outstanding Loan**(1)**						Effective Rate						Outstanding Loan**(1)**						Effective Rate
Credit Facilities:
						7/1/2024						$	18,000					$	15,241					6.88%						$	15,241					6.88%
						7/23/2024						125,000						63,000						8.29						110,000						8.29
						9/24/2026						150,000						—						N/A						—						N/A
						9/12/2027						54,000						—						N/A						—						N/A
Total borrowings of Consolidated Funds																		$	78,241											$	125,241

(1)The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

7. COMMITMENTS AND CONTINGENCIES

Indemnification Arrangements

Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Condensed Consolidated Statements of Financial Condition. As of March 31, 2024, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Commitments

As of March 31, 2024 and December 31, 2023, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $986.3 million and $1,030.6 million, respectively.

Guarantees

The Company has entered into agreements with financial institutions to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund. As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure to losses from guarantees was $16.4 million and $122.3 million, respectively.

Contingent Liabilities

The Company acquired the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) during the fourth quarter of 2023. In connection with the Crescent Point Acquisition, the Company established a management incentive program (the “Crescent Point MIP”) with certain professionals. The Crescent Point MIP represents a contingent liability not to exceed $75.0 million and is based on the achievement of revenue targets from the fundraising of a future private equity fund during the measurement period.

The Company expects to settle the liability with a combination of 33% cash and 67% equity awards. Expense associated with the cash and equity components are recognized ratably over the measurement period, which represents the service period and will end on the final fundraising date for the fund. The Crescent Point MIP is remeasured each period with incremental changes in fair value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following the measurement period end date, the cash component will be paid and the equity component will be settled with shares of the Company’s Class A common stock and granted at fair value.

As of March 31, 2024 and December 31, 2023, the contingent liability was $75.0 million. As of March 31, 2024 and December 31, 2023, the Company has recorded $10.0 million and $5.0 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $5.0 million for the three months ended March 31, 2024 is presented within compensation and benefits within the Condensed Consolidated Statements of Operations.

In connection with the acquisition of AMP Capital’s infrastructure debt platform (the “Infrastructure Debt Acquisition”) during the first quarter of 2022, the Company established a management incentive program (the “Infrastructure Debt MIP”) with certain professionals. The Infrastructure Debt MIP represents a contingent liability not to exceed $48.5 million and is based on the achievement of revenue targets from the fundraising of certain infrastructure debt funds during the measurement periods.

The Company expects to settle each portion of the liability with a combination of 15% cash and 85% equity awards. Expense associated with the cash components are recognized ratably over the respective measurement periods, which will end on the final fundraising date for each of the infrastructure debt funds included in the Infrastructure Debt MIP agreement. Expense associated with the equity component is recognized ratably over the service periods, which will continue for four years beyond each of the measurement period end dates. The Infrastructure Debt MIP is remeasured each period with incremental changes in value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following each of the measurement period end dates, the cash component will be paid and restricted units for the

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

portion of the Infrastructure Debt MIP award earned will be granted at fair value. The unpaid liability at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital and any difference between the Infrastructure Debt MIP award earned at the respective measurement period end date and the previously recorded compensation expense will be recognized over the remaining four year service period as equity-based compensation expense.

The revenue target was achieved for one of the infrastructure debt funds during the fourth quarter of 2022 and the associated liability for this portion of the award was settled during the first quarter of 2023. As of March 31, 2024, the maximum contingent liability associated with the remaining Infrastructure Debt MIP was $15.0 million. As of March 31, 2024 and December 31, 2023, the contingent liability was $13.6 million. As of March 31, 2024 and December 31, 2023, the Company has recorded $4.9 million and $4.4 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense associated with the remaining Infrastructure Debt MIP of $0.5 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations.

Carried Interest

Carried interest is affected by changes in the fair values of the underlying investments in the funds that are advised by the Company. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, public equity market volatility, industry trading multiples and interest rates. Generally, if at the termination of a fund (and increasingly at interim points in the life of a fund), the fund has not achieved investment returns that (in most cases) exceed the preferred return threshold or (in all cases) the general partner receives net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement, the Company will be obligated to repay carried interest that was received by the Company in excess of the amounts to which the Company is entitled. This contingent obligation is normally reduced by income taxes paid by the Company related to its carried interest.

Senior professionals of the Company who have received carried interest distributions are responsible for funding their proportionate share of any contingent repayment obligations. However, the governing agreements of certain of the Company’s funds provide that if a current or former professional does not fund his or her respective share for such fund, then the Company may have to fund additional amounts beyond what was received in carried interest, although the Company will generally retain the right to pursue any remedies under such governing agreements against those carried interest recipients who fail to fund their obligations.

Additionally, at the end of the life of the funds there could be a payment due to a fund by the Company if the Company has recognized more carried interest than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of the fund.

As of March 31, 2024 and December 31, 2023, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $77.7 million and $78.5 million, respectively, of which approximately $53.9 million and $54.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest. Management believes the possibility of all of the investments becoming worthless is remote. As of March 31, 2024 and December 31, 2023, if the funds were liquidated at their fair values, there would be no contingent repayment obligation or liability.

Litigation

From time to time, the Company is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Leases

The Company leases primarily consists of operating leases for office space and certain office equipment. The Company’s leases have remaining lease terms of one to 12 years. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:

Maturity of operating lease liabilities									As of March 31, 2024
2024									$	36,831
2025									51,927
2026									48,234
2027									37,498
2028									27,364
Thereafter									179,735
Total future payments									381,589
Less: interest									73,253
Total operating lease liabilities									$	308,336

												Three months ended March 31,
Classification within general, administrative and other expenses																		2024						2023
Operating lease expense																		$	15,210					$	11,888

						Three months ended March 31,
Supplemental information on the measurement of operating lease liabilities						2024						2023
Operating cash flows for operating leases						$	12,765					$	10,911
Leased assets obtained in exchange for new operating lease liabilities						705						12,047

									As of March 31,						As of December 31,
Lease term and discount rate									2024						2023
Weighted-average remaining lease terms (in years)									8.4						8.4
Weighted-average discount rate									4.4%						4.3%

8. RELATED PARTY TRANSACTIONS

Substantially all of the Company’s revenue is earned from its affiliates. The related accounts receivable are included within due from affiliates within the Condensed Consolidated Statements of Financial Condition, except that accrued carried interest, which is predominantly due from affiliated funds, is presented separately within investments within the Condensed Consolidated Statements of Financial Condition.

The Company has investment management agreements with the Ares Funds that it manages. In accordance with these agreements, these Ares Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Ares Funds.

The Company is reimbursed for expenses incurred in providing administrative services to certain related parties, including publicly-traded and non-traded vehicles. In addition, certain private funds pay administrative fees based on invested capital. The Company is also party to agreements with certain funds which pay fees to the Company to provide various property-related services, such as acquisition, development and property management as well as fees for the sale and distribution of fund shares in non-traded vehicles.

Employees and other related parties may be permitted to participate in co-investment vehicles that generally invest in Ares Funds alongside fund investors. Participation is limited by law to individuals who qualify under applicable securities laws. These co-investment vehicles generally do not require these individuals to pay management fees, carried interest or incentive fees.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Carried interest and incentive fees from the funds can be distributed to professionals or their related entities on a current basis, subject, in the case of carried interest programs, to repayment by the subsidiary of the Company that acts as general partner of the relevant fund in the event that certain specified return thresholds are not ultimately achieved. The professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several, and not joint, and are limited to distributions received by the relevant recipient.

The Company considers its professionals and non-consolidated funds to be affiliates. Amounts due from and to affiliates were composed of the following:

			As of March 31,						As of December 31,
			2024						2023
Due from affiliates:
Management fees receivable from non-consolidated funds			$	589,231					$	560,629
Incentive fee receivable from non-consolidated funds			17,454						159,098
Payments made on behalf of and amounts due from non-consolidated funds and employees			202,588						177,019
Due from affiliates—Company			$	809,273					$	896,746
Amounts due from non-consolidated funds			$	15,924					$	14,151
Due from affiliates—Consolidated Funds			$	15,924					$	14,151
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds			$	11,006					$	9,585
Tax receivable agreement liability			236,135						191,299
Undistributed carried interest and incentive fees			110,672						33,374
Payments made by non-consolidated funds on behalf of and payable by the Company			5,495						5,996
Due to affiliates—Company			$	363,308					$	240,254
Amounts due to portfolio companies and non-consolidated funds			$	12,727					$	3,554
Due to affiliates—Consolidated Funds			$	12,727					$	3,554

Due from and Due to Ares Funds and Portfolio Companies

In the normal course of business, the Company pays certain expenses on behalf of Consolidated Funds and non-consolidated funds for which it is reimbursed. Conversely, Consolidated Funds and non-consolidated funds may pay certain expenses that are reimbursed by the Company. Certain expenses initially paid by the Company, primarily professional services, travel and other costs associated with particular portfolio company holdings, are subject to reimbursement by the portfolio companies.

9. INCOME TAXES

The Company’s income tax provision includes corporate income taxes and other entity level income taxes, as well as income taxes incurred by certain affiliated funds that are consolidated in these financial statements. The following table presents the income tax expense for the period:

									Three months ended March 31,
															2024						2023
Income tax expense															$	27,233					$	33,806

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s unaudited condensed consolidated financial statements. For the three months ended March 31, 2024 and 2023, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate.

The income tax effects of temporary differences give rise to significant portions of deferred tax assets and liabilities, which are presented on a net basis. As of March 31, 2024 and December 31, 2023, the Company recorded a net deferred tax

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

asset of $87.2 million and $21.5 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is generally no longer subject to corporate income tax audits by taxing authorities for any years prior to 2020. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements.

10. EARNINGS PER SHARE

The Company has Class A and non-voting common stock outstanding. The non-voting common stock has the same economic rights as the Class A common stock; therefore, earnings per share is presented on a combined basis. Income of the Company has been allocated on a proportionate basis to the two common stock classes.

Basic earnings per share of Class A and non-voting common stock is computed by using the two-class method. Diluted earnings per share of Class A and non-voting common stock is computed using the more dilutive method of either the two-class method or the treasury stock method.

For the three months ended March 31, 2024 and 2023, the two-class method was the more dilutive method.

The following table presents the computation of basic and diluted earnings per common share:

			Three months ended March 31,
			2024						2023
Basic earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	73,027					$	94,039
Dividends declared and paid on Class A and non-voting common stock			(180,929)						(138,420)
Distributions on unvested restricted units			(7,272)						(5,314)
Dividends in excess of earnings available to Class A and non-voting common stockholders			$	(115,174)					$	(49,695)
Basic weighted-average shares of Class A and non-voting common stock			192,622,609						178,976,022
Dividends in excess of earnings per share of Class A and non-voting common stock			$	(0.60)					$	(0.28)
Dividend declared and paid per Class A and non-voting common stock			0.93						0.77
Basic earnings per share of Class A and non-voting common stock			$	0.33					$	0.49
Diluted earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	73,027					$	94,039
Distributions on unvested restricted units			(7,272)						(5,314)
Net income available to Class A and non-voting common stockholders			$	65,755					$	88,725
Effect of dilutive shares:
Restricted units			—						—
Options			—						—
Diluted weighted-average shares of Class A and non-voting common stock			192,622,609						178,976,022
Diluted earnings per share of Class A and non-voting common stock			$	0.33					$	0.49

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

11. EQUITY COMPENSATION

Equity Incentive Plan

Equity-based compensation is granted under the Company’s 2023 Equity Incentive Plan (the “Equity Incentive Plan”). The total number of shares available to be issued under the Equity Incentive Plan resets based on a formula defined in the Equity Incentive Plan and may increase on January 1 of each year. On January 1, 2024, the total number of shares available for issuance under the Equity Incentive Plan reset to 69,122,318 shares and as of March 31, 2024, 63,123,821 shares remained available for issuance.

Generally, unvested restricted units are forfeited upon termination of employment in accordance with the Equity Incentive Plan. The Company recognizes forfeitures as a reversal of previously recognized compensation expense in the period the forfeiture occurs.

Equity-based compensation expense, net of forfeitures, recorded by the Company for restricted units is presented in the following table:

			Three months ended March 31,
			2024						2023
Restricted units			$	92,422					$	69,252

Restricted Units

Each restricted unit represents an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The restricted units generally vest and are settled in shares of Class A common stock at a rate of either: (i) one-third per year, beginning on the third anniversary of the grant date; (ii) one-quarter per year, beginning on the second anniversary of the grant date or the holder’s employment commencement date; or (iii) one-third per year, beginning on the first anniversary of the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions). Compensation expense associated with restricted units is recognized on a straight-line basis over the requisite service period of the award.

Restricted units are delivered net of the holder’s payroll related taxes upon vesting. For the three months ended March 31, 2024, 3.5 million restricted units vested and 1.9 million shares of Class A common stock were delivered to the holders. For the three months ended March 31, 2023, 3.3 million restricted units vested and 1.9 million shares of Class A common stock were delivered to the holders.

The holders of restricted units, other than awards that have not yet been issued as described in the subsequent sections, generally have the right to receive as current compensation an amount in cash equal to: (i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by; and (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”). When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense within the Condensed Consolidated Statements of Operations.

The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the three months ended March 31, 2024:

Record Date						Dividends Per Share						Dividend Equivalents Paid
March 15, 2024						$	0.93					$	16,294

During the first quarter of 2024, the Company approved the future grant of restricted units to certain senior executives in each of 2025 and 2026, subject to the holder’s continued employment and acceleration in certain instances. These restricted awards vest before July 1, 2029, at a rate of either: (i) one-quarter per year, beginning on the first anniversary of the grant date; or (ii) one-third per year, beginning on the first anniversary of the grant date. Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period. The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents unvested restricted units’ activity:

			Restricted Units						Weighted Average Grant Date Fair Value Per Unit
Balance as of December 31, 2023			17,359,829						$	59.20
Granted			4,581,087						121.09
Vested			(3,492,988)						51.99
Forfeited			(309,590)						85.96
Balance as of March 31, 2024			18,138,338						$	75.77

The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $1,087.5 million as of March 31, 2024 and is expected to be recognized over the remaining weighted average period of 3.9 years.

Options

Upon exercise, each option entitles the holders to purchase from the Company one share of Class A common stock at the stated exercise price.

A summary of options activity during the three months ended March 31, 2024 is presented below:

			Options						Weighted Average Exercise Price						Weighted Average Remaining Life (in years)						Aggregate Intrinsic Value
Balance as of December 31, 2023			79,524						$	19.00					0.3						$	7,946
Exercised			(79,524)						19.00						—						—
Balance as of March 31, 2024			—						$	—					0.0						$	—
Exercisable as of March 31, 2024			—						$	—					0.0						$	—

Net cash proceeds from exercises of stock options were $1.5 million for the three months ended March 31, 2024. The Company realized tax benefits of approximately $1.4 million from those exercises.

12. EQUITY AND REDEEMABLE INTEREST

Common Stock

The Company’s common stock consists of Class A, Class B, Class C and non-voting common stock, each $0.01 par value per share. The non-voting common stock has the same economic rights as the Class A common stock. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting common stock. The Class B common stock and Class C common stock are non-economic and holders are not entitled to dividends from the Company or to receive any assets of the Company in the event of any dissolution, liquidation or winding up of the Company. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock.

In January 2024, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2025. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the three months ended March 31, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the changes in each class of common stock:

			Class A Common Stock						Non-Voting Common Stock						Class B Common Stock						Class C Common Stock						Total
Balance as of December 31, 2023			187,069,907						3,489,911						1,000						117,024,758						307,585,576
Issuance of common stock(1)			—						—						—						63,179						63,179
Exchanges of common stock			1,967,724						—						—						(1,967,724)						—
Stock option exercises			79,524						—						—						—						79,524
Vesting of restricted stock awards, net of shares withheld for tax			1,940,705						—						—						—						1,940,705
Balance as of March 31, 2024			191,057,860						3,489,911						1,000						115,120,213						309,668,984

(1) Issuances of Class C common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

The following table presents each partner’s Ares Operating Group Units (“AOG Units”) and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities:

																														Daily Average Ownership
						As of March 31, 2024												As of December 31, 2023												Three months ended March 31,
						AOG Units						Direct Ownership Interest						AOG Units						Direct Ownership Interest						2024						2023
Ares Management Corporation						194,547,771						62.82		%				190,559,818						61.95		%				62.32		%				60.14		%
Ares Owners Holdings, L.P.						115,120,213						37.18						117,024,758						38.05						37.68						39.86
Total						309,667,984						100.00		%				307,584,576						100.00		%

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in AOG entities:

			Total
Balance as of December 31, 2022			$	93,129
Changes in ownership interests and related tax benefits			(66,506)
Net loss			(1,824)
Currency translation adjustment, net of tax			(148)
Equity compensation			174
Distributions			(2,883)
Balance as of March 31, 2023			21,942
Net income			734
Currency translation adjustment, net of tax			(159)
Balance as of June 30, 2023			22,517
Net income			758
Currency translation adjustment, net of tax			(99)
Balance as of September 30, 2023			23,176
Net income			558
Currency translation adjustment, net of tax			364
Balance as of December 31, 2023			24,098
Net income			73
Currency translation adjustment, net of tax			(257)
Distributions			(302)
Balance as of March 31, 2024			$	23,612

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:

			Total
Balance as of December 31, 2022			$	1,013,282
Change in redemption value			10,504
Redemptions from Class A ordinary shares of Ares Acquisition Corporation (formerly NYSE: AAC) (“AAC I”)			(538,985)
Balance as of March 31, 2023			484,801
Gross proceeds from the initial public offering of Ares Acquisition Corporation II (NYSE: AACT) (“AAC II”)			500,000
Change in redemption value			15,948
Balance as of June 30, 2023			1,000,749
Change in redemption value			16,571
Redemptions from Class A ordinary shares of AAC I			(14,733)
Balance as of September 30, 2023			1,002,587
Change in redemption value			12,507
Redemptions from Class A ordinary shares of AAC I			(492,156)
Balance as of December 31, 2023			522,938
Change in redemption value			6,849
Balance as of March 31, 2024			$	529,787

As of March 31, 2024 and December 31, 2023, 50,000,000 of AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition.

13. SEGMENT REPORTING

The Company operates through its distinct operating segments. On January 1, 2024, the Company changed its segment composition. The special opportunities strategy, historically part of the Private Equity Group, is now referred to as opportunistic credit and is presented within the Credit Group. The Company has modified historical results to conform with its current presentation. The Company operating segments are summarized below:

Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit.

Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments.

Private Equity Group: The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.

Secondaries Group: The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.

Other: Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually do not meet reporting thresholds. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; and (ii) the SPACs sponsored by the Company, among others.

The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management and distribution. The OMG includes Ares Wealth Management Solutions, LLC (“AWMS”) that facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Segment Profit Measures: These measures supplement and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

Fee related earnings (“FRE”) is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income from Ares Funds and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments.

Realized income (“RI”) is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations.

Management makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds. Consequently, all segment data excludes the assets, liabilities and operating results related to the Consolidated Funds and non-consolidated funds. Total assets by segments is not disclosed because such information is not used by the Company’s chief operating decision maker in evaluating the segments.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables present the financial results for the Company’s operating segments, as well as the OMG:

			Three months ended March 31, 2024
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	510,966					$	93,814					$	34,933					$	44,421					$	9,231					$	693,365					$	—					$	693,365
Fee related performance revenues			755						—						—						2,962						—						3,717						—						3,717
Other fees			9,911						5,075						439						4						114						15,543						4,333						19,876
Compensation and benefits			(134,849)						(37,918)						(14,785)						(12,714)						(5,592)						(205,858)						(94,157)						(300,015)
General, administrative and other expenses			(34,366)						(14,453)						(5,216)						(9,068)						(1,690)						(64,793)						(50,480)						(115,273)
Fee related earnings			352,417						46,518						15,371						25,605						2,063						441,974						(140,304)						301,670
Performance income—realized			16,766						3,677						2,738						—						—						23,181						—						23,181
Performance related compensation—realized			(8,734)						(2,228)						(2,194)						—						—						(13,156)						—						(13,156)
Realized net performance income			8,032						1,449						544						—						—						10,025						—						10,025
Investment income (loss)—realized			(398)						(457)						120						—						—						(735)						—						(735)
Interest and other investment income—realized			4,930						3,835						184						210						6,409						15,568						452						16,020
Interest expense			(9,013)						(5,949)						(5,889)						(2,698)						(14,235)						(37,784)						(40)						(37,824)
Realized net investment income (loss)			(4,481)						(2,571)						(5,585)						(2,488)						(7,826)						(22,951)						412						(22,539)
Realized income			$	355,968					$	45,396					$	10,330					$	23,117					$	(5,763)					$	429,048					$	(139,892)					$	289,156
			Three months ended March 31, 2023
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	430,467					$	97,470					$	29,840					$	39,863					$	4,979					$	602,619					$	—					$	602,619
Fee related performance revenues			600						—						—						3,271						—						3,871						—						3,871
Other fees			9,149						6,462						394						—						50						16,055						4,640						20,695
Compensation and benefits			(121,900)						(37,986)						(16,626)						(13,412)						(3,140)						(193,064)						(84,967)						(278,031)
General, administrative and other expenses			(26,676)						(12,284)						(4,485)						(4,292)						(608)						(48,345)						(46,172)						(94,517)
Fee related earnings			291,640						53,662						9,123						25,430						1,281						381,136						(126,499)						254,637
Performance income—realized			7,410						6,086						17,640						—						—						31,136						—						31,136
Performance related compensation—realized			(5,881)						(3,758)						(14,220)						—						—						(23,859)						—						(23,859)
Realized net performance income			1,529						2,328						3,420						—						—						7,277						—						7,277
Investment income (loss)—realized			506						(1,772)						879						—						170						(217)						—						(217)
Interest and other investment income (expense)—realized			8,113						1,821						166						1,225						6,348						17,673						(92)						17,581
Interest expense			(8,630)						(3,896)						(4,805)						(2,305)						(5,324)						(24,960)						(26)						(24,986)
Realized net investment income (loss)			(11)						(3,847)						(3,760)						(1,080)						1,194						(7,504)						(118)						(7,622)
Realized income			$	293,158					$	52,143					$	8,783					$	24,350					$	2,475					$	380,909					$	(126,617)					$	254,292

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income:

			Three months ended March 31,
			2024						2023
Segment revenues
Management fees			$	693,365					$	602,619
Fee related performance revenues			3,717						3,871
Other fees			15,543						16,055
Performance income—realized			23,181						31,136
Total segment revenues			$	735,806					$	653,681
Segment expenses
Compensation and benefits			$	205,858					$	193,064
General, administrative and other expenses			64,793						48,345
Performance related compensation—realized			13,156						23,859
Total segment expenses			$	283,807					$	265,268
Segment realized net investment expense
Investment loss—realized			$	(735)					$	(217)
Interest and other investment income —realized			15,568						17,673
Interest expense			(37,784)						(24,960)
Total segment realized net investment expense			$	(22,951)					$	(7,504)

The following table reconciles the Company’s consolidated revenues to segment revenue:

			Three months ended March 31,
			2024						2023
Total consolidated revenue			$	707,363					$	813,362
Performance (income) loss—unrealized			45,476						(127,713)
Management fees of Consolidated Funds eliminated in consolidation			12,453						11,601
Performance income of Consolidated Funds eliminated in consolidation			5,925						3,545
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation			113						4,843
Administrative fees(1)			(16,407)						(13,650)
OMG revenue			(4,333)						(4,640)
Principal investment income, net of eliminations			(7,050)						(22,758)
Net revenue of non-controlling interests in consolidated subsidiaries			(7,734)						(10,909)
Total consolidation adjustments and reconciling items			28,443						(159,681)
Total segment revenue			$	735,806					$	653,681

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table reconciles the Company’s consolidated expenses to segment expenses:

			Three months ended March 31,
			2024						2023
Total consolidated expenses			$	538,493					$	628,636
Performance related compensation-unrealized			64,514						(85,150)
Expenses of Consolidated Funds added in consolidation			(17,708)						(19,641)
Expenses of Consolidated Funds eliminated in consolidation			12,995						12,132
Administrative fees(1)			(16,407)						(13,277)
OMG expenses			(144,637)						(131,139)
Acquisition and merger-related expense			(10,578)						(4,955)
Equity compensation expense			(92,422)						(69,077)
Acquisition-related compensation expense(2)			(5,504)						(642)
Placement fee adjustment			(5,540)						3,232
Depreciation and amortization expense			(36,644)						(45,659)
Expense of non-controlling interests in consolidated subsidiaries			(2,755)						(9,192)
Total consolidation adjustments and reconciling items			(254,686)						(363,368)
Total segment expenses			$	283,807					$	265,268

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

(2)Represents contingent obligations (“earnouts”) resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations.

The following table reconciles the Company’s consolidated other income to segment realized net investment income:

			Three months ended March 31,
			2024						2023
Total consolidated other income			$	62,178					$	56,396
Investment income—unrealized			(3,685)						(28,985)
Interest and other investment (income) loss—unrealized			(602)						208
Other income, net from Consolidated Funds added in consolidation			(79,977)						(62,917)
Other expense, net from Consolidated Funds eliminated in consolidation			902						(4,451)
OMG other (income) expense			(549)						651
Principal investment income (loss)			(2,666)						35,457
Other expense, net			131						91
Other (income) loss of non-controlling interests in consolidated subsidiaries			1,317						(3,954)
Total consolidation adjustments and reconciling items			(85,129)						(63,900)
Total segment realized net investment expense			$	(22,951)					$	(7,504)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE:

			Three months ended March 31,
			2024						2023
Income before taxes			$	231,048					$	241,122
Adjustments:
Depreciation and amortization expense			36,644						45,659
Equity compensation expense			92,421						68,704
Acquisition-related compensation expense(1)			5,504						642
Acquisition and merger-related expense			10,578						4,955
Placement fee adjustment			5,540						(3,232)
OMG expense, net			139,755						127,150
Other expense, net			131						91
Income before taxes of non-controlling interests in consolidated subsidiaries			(3,662)						(5,671)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations			(65,586)						(27,171)
Total performance (income) loss—unrealized			45,476						(127,713)
Total performance related compensation—unrealized			(64,514)						85,150
Total investment income—unrealized			(4,287)						(28,777)
Realized income			429,048						380,909
Total performance income—realized			(23,181)						(31,136)
Total performance related compensation—realized			13,156						23,859
Total investment loss—realized			22,951						7,504
Fee related earnings			$	441,974					$	381,136

(1)Represents earnouts resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

14. CONSOLIDATION

Investments in Consolidated Variable Interest Entities

The Company consolidates entities in which the Company has a variable interest and as the general partner or investment manager, has both the power to direct the most significant activities and a potentially significant economic interest. Investments in the consolidated variable interest entities (“VIEs”) are reported at fair value and represent the Company’s maximum exposure to loss.

Investments in Non-Consolidated Variable Interest Entities

The Company holds interests in certain VIEs that are not consolidated as the Company is not the primary beneficiary. The Company’s interest in such entities generally is in the form of direct equity interests, fixed fee arrangements or both. The maximum exposure to loss represents the potential loss of assets by the Company relating to its direct investments in these non-consolidated entities. Investments in the non-consolidated VIEs are carried at fair value.

The Company’s interests in consolidated and non-consolidated VIEs, as presented within the Condensed Consolidated Statements of Financial Condition, its respective maximum exposure to loss relating to non-consolidated VIEs, and its net income attributable to non-controlling interests related to consolidated VIEs, as presented within the Condensed Consolidated Statements of Operations, are as follows:

			As of March 31,						As of December 31,
			2024						2023
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)			$	399,885					$	503,376
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)			908,198						910,600
Assets of consolidated VIEs			15,335,745						15,484,962
Liabilities of consolidated VIEs			13,058,395						13,409,257

(1)As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure of loss for CLO securities was equal to the cumulative fair value of the Company’s capital interest in CLOs and totaled $83.2 million and $83.1 million, respectively.

			Three months ended March 31,
			2024						2023
Net income attributable to non-controlling interests related to consolidated VIEs			$	58,356					$	37,131

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Consolidating Schedules

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company’s financial condition, results from operations and cash flows:

			As of March 31, 2024
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	346,331					$	—					$	—					$	346,331
Investments (includes $3,361,519 of accrued carried interest)			5,410,366						—						(925,482)						4,484,884
Due from affiliates			981,917						—						(172,644)						809,273
Other assets			519,292						—						—						519,292
Right-of-use operating lease assets			237,019						—						—						237,019
Intangible assets, net			1,030,076						—						—						1,030,076
Goodwill			1,130,085						—						—						1,130,085
Assets of Consolidated Funds
Cash and cash equivalents			—						1,199,376						—						1,199,376
Investments held in trust account			—						529,887						—						529,887
Investments, at fair value			—						13,790,030						—						13,790,030
Due from affiliates			—						27,358						(11,434)						15,924
Receivable for securities sold			—						243,998						—						243,998
Other assets			—						77,095						—						77,095
Total assets			$	9,655,086					$	15,867,744					$	(1,109,560)					$	24,413,270
Liabilities
Accounts payable, accrued expenses and other liabilities			$	273,985					$	—					$	(11,434)					$	262,551
Accrued compensation			217,788						—						—						217,788
Due to affiliates			363,308						—						—						363,308
Performance related compensation payable			2,449,732						—						—						2,449,732
Debt obligations			3,046,182						—						—						3,046,182
Operating lease liabilities			308,336						—						—						308,336
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities			—						189,556						—						189,556
Due to affiliates			—						185,371						(172,644)						12,727
Payable for securities purchased			—						548,032						—						548,032
CLO loan obligations, at fair value			—						12,020,005						(113,659)						11,906,346
Fund borrowings			—						78,241						—						78,241
Total liabilities			6,659,331						13,021,205						(297,737)						19,382,799
Commitments and contingencies
Redeemable interest in Consolidated Funds			—						529,787						—						529,787
Redeemable interest in Ares Operating Group entities			23,612						—						—						23,612
Non-controlling interest in Consolidated Funds			—						2,316,752						(801,450)						1,515,302
Non-controlling interest in Ares Operating Group entities			1,198,132						—						(3,856)						1,194,276
Stockholders’ Equity
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (191,057,860 shares issued and outstanding)			1,911						—						—						1,911
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)			35						—						—						35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding)			—						—						—						—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (115,120,213 shares issued and outstanding)			1,151						—						—						1,151
Additional paid-in-capital			2,393,954						—						(6,517)						2,387,437
Accumulated deficit			(612,560)						—						—						(612,560)
Accumulated other comprehensive loss, net of tax			(10,480)						—						—						(10,480)
Total stockholders’ equity			1,774,011						—						(6,517)						1,767,494
Total equity			2,972,143						2,316,752						(811,823)						4,477,072
Total liabilities, redeemable interest, non-controlling interests and equity			$	9,655,086					$	15,867,744					$	(1,109,560)					$	24,413,270

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

			As of December 31, 2023
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	348,274					$	—					$	—					$	348,274
Investments (includes $3,413,007 of accrued carried interest)			5,546,209						—						(921,277)						4,624,932
Due from affiliates			1,068,089						—						(171,343)						896,746
Other assets			429,979						—						—						429,979
Right-of-use operating lease assets			249,326						—						—						249,326
Intangible assets, net			1,058,495						—						—						1,058,495
Goodwill			1,123,976						—						—						1,123,976
Assets of Consolidated Funds
Cash and cash equivalents			—						1,149,511						—						1,149,511
Investments held in trust account			—						523,038						—						523,038
Investments, at fair value			—						14,078,549						—						14,078,549
Due from affiliates			—						25,794						(11,643)						14,151
Receivable for securities sold			—						146,851						—						146,851
Other assets			—						86,672						—						86,672
Total assets			$	9,824,348					$	16,010,415					$	(1,104,263)					$	24,730,500
Liabilities
Accounts payable, accrued expenses and other liabilities			$	245,526					$	—					$	(11,642)					$	233,884
Accrued compensation			287,259						—						—						287,259
Due to affiliates			240,254						—						—						240,254
Performance related compensation payable			2,514,610						—						—						2,514,610
Debt obligations			2,965,480						—						—						2,965,480
Operating lease liabilities			319,572						—						—						319,572
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities			—						189,523						—						189,523
Due to affiliates			—						174,897						(171,343)						3,554
Payable for securities purchased			—						484,117						—						484,117
CLO loan obligations, at fair value			—						12,458,266						(112,609)						12,345,657
Fund borrowings			—						125,241						—						125,241
Total liabilities			6,572,701						13,432,044						(295,594)						19,709,151
Commitments and contingencies
Redeemable interest in Consolidated Funds			—						522,938						—						522,938
Redeemable interest in Ares Operating Group entities			24,098						—						—						24,098
Non-controlling interest in Consolidated Funds			—						2,055,433						(796,988)						1,258,445
Non-controlling interest in Ares Operating Group entities			1,326,913						—						(4,444)						1,322,469
Stockholders’ Equity
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (187,069,907 shares issued and outstanding)			1,871						—						—						1,871
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)			35						—						—						35
Class B common stock, $0.01 par value, 1,000 shares authorized ($1,000 shares issued and outstanding)			—						—						—						—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (117,024,758 shares issued and outstanding)			1,170						—						—						1,170
Additional paid-in-capital			2,398,273						—						(7,237)						2,391,036
Accumulated deficit			(495,083)						—						—						(495,083)
Accumulated other comprehensive loss, net of tax			(5,630)						—						—						(5,630)
Total stockholders’ equity			1,900,636						—						(7,237)						1,893,399
Total equity			3,227,549						2,055,433						(808,669)						4,474,313
Total liabilities, redeemable interest, non-controlling interests and equity			$	9,824,348					$	16,010,415					$	(1,104,263)					$	24,730,500

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

			Three months ended March 31, 2024
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Revenues
Management fees			$	700,145					$	—					$	(12,453)					$	687,692
Carried interest allocation			(26,550)						—						(5,928)						(32,478)
Incentive fees			8,664						—						3						8,667
Principal investment income (loss)			(2,665)						—						9,715						7,050
Administrative, transaction and other fees			36,545						—						(113)						36,432
Total revenues			716,139						—						(8,776)						707,363
Expenses
Compensation and benefits			412,951						—						—						412,951
Performance related compensation			(50,532)						—						—						(50,532)
General, administrative and other expense			171,361						—						(433)						170,928
Expenses of the Consolidated Funds			—						17,708						(12,562)						5,146
Total expenses			533,780						17,708						(12,995)						538,493
Other income (expense)
Net realized and unrealized gains on investments			12,357						—						(1,841)						10,516
Interest and dividend income			8,092						—						(2,710)						5,382
Interest expense			(37,824)						—						—						(37,824)
Other income, net			478						—						(208)						270
Net realized and unrealized gains on investments of the Consolidated Funds			—						32,352						2,072						34,424
Interest and other income of the Consolidated Funds			—						257,067						209						257,276
Interest expense of the Consolidated Funds			—						(209,442)						1,576						(207,866)
Total other income (expense), net			(16,897)						79,977						(902)						62,178
Income before taxes			165,462						62,269						3,317						231,048
Income tax expense (benefit)			28,363						(1,130)						—						27,233
Net income			137,099						63,399						3,317						203,815
Less: Net income attributable to non-controlling interests in Consolidated Funds			—						63,399						3,317						66,716
Net income attributable to Ares Operating Group entities			137,099						—						—						137,099
Less: Net income attributable to redeemable interest in Ares Operating Group entities			73						—						—						73
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			63,999						—						—						63,999
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	73,027					$	—					$	—					$	73,027

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

			Three months ended March 31, 2023
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Revenues
Management fees			$	612,117					$	—					$	(11,601)					$	600,516
Carried interest allocation			154,895						—						(3,407)						151,488
Incentive fees			9,061						—						(138)						8,923
Principal investment income			35,457						—						(12,699)						22,758
Administrative, transaction and other fees			34,520						—						(4,843)						29,677
Total revenues			846,050						—						(32,688)						813,362
Expenses
Compensation and benefits			360,781						—						—						360,781
Performance related compensation			111,658						—						—						111,658
General, administrative and other expense			148,688						—						(343)						148,345
Expenses of the Consolidated Funds			—						19,641						(11,789)						7,852
Total expenses			621,127						19,641						(12,132)						628,636
Other income (expense)
Net realized and unrealized gains on investments			7,852						—						(6,337)						1,515
Interest and dividend income			7,176						—						(3,337)						3,839
Interest expense			(24,986)						—						—						(24,986)
Other expense, net			(1,014)						—						91						(923)
Net realized and unrealized gains (losses) on investments of the Consolidated Funds			—						(2,069)						12,769						10,700
Interest and other income of the Consolidated Funds			—						223,029						(91)						222,938
Interest expense of the Consolidated Funds			—						(158,043)						1,356						(156,687)
Total other income (expense), net			(10,972)						62,917						4,451						56,396
Income before taxes			213,951						43,276						(16,105)						241,122
Income tax expense			33,328						478						—						33,806
Net income			180,623						42,798						(16,105)						207,316
Less: Net income attributable to non-controlling interests in Consolidated Funds			—						42,798						(16,105)						26,693
Net income attributable to Ares Operating Group entities			180,623						—						—						180,623
Less: Net loss attributable to redeemable interest in Ares Operating Group entities			(1,824)						—						—						(1,824)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			88,408						—						—						88,408
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	94,039					$	—					$	—					$	94,039

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

			Three months ended March 31, 2024
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Cash flows from operating activities:
Net income			$	137,099					$	63,399					$	3,317					$	203,815
Adjustments to reconcile net income to net cash provided by operating activities			224,720						—						(1,724)						222,996
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds			—						246,254						(2,072)						244,182
Cash flows due to changes in operating assets and liabilities			96,544						—						7,437						103,981
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds			—						(14,577)						(50,352)						(64,929)
Net cash provided by operating activities			458,363						295,076						(43,394)						710,045
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(26,071)						—						—						(26,071)
Acquisitions, net of cash acquired			(8,000)						—						—						(8,000)
Net cash used in investing activities			(34,071)						—						—						(34,071)
Cash flows from financing activities:
Proceeds from Credit Facility			290,000						—						—						290,000
Repayments of Credit Facility			(210,000)						—						—						(210,000)
Dividends and distributions			(320,046)						—						—						(320,046)
Stock option exercises			1,511						—						—						1,511
Taxes paid related to net share settlement of equity awards			(186,731)						—						—						(186,731)
Other financing activities			1,034						—						—						1,034
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			—						180,559						(11,886)						168,673
Distributions to non-controlling interests in Consolidated Funds			—						(32,323)						5,415						(26,908)
Borrowings under loan obligations by Consolidated Funds			—						36,947						—						36,947
Repayments under loan obligations by Consolidated Funds			—						(421,112)						—						(421,112)
Net cash used in financing activities			(424,232)						(235,929)						(6,471)						(666,632)
Effect of exchange rate changes			(2,003)						(9,282)						—						(11,285)
Net change in cash and cash equivalents			(1,943)						49,865						(49,865)						(1,943)
Cash and cash equivalents, beginning of period			348,274						1,149,511						(1,149,511)						348,274
Cash and cash equivalents, end of period			$	346,331					$	1,199,376					$	(1,199,376)					$	346,331
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities			$	7,724					$	—					$	—					$	7,724

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

			Three months ended March 31, 2023
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Cash flows from operating activities:
Net income			$	180,623					$	42,798					$	(16,105)					$	207,316
Adjustments to reconcile net income to net cash provided by operating activities			100,469						—						21,292						121,761
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds			—						341,609						(12,769)						328,840
Cash flows due to changes in operating assets and liabilities			(132,777)						—						139,848						7,071
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds			—						202,877						(160,293)						42,584
Net cash provided by operating activities			148,315						587,284						(28,027)						707,572
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(8,877)						—						—						(8,877)
Net cash used in investing activities			(8,877)						—						—						(8,877)
Cash flows from financing activities:
Proceeds from Credit Facility			245,000						—						—						245,000
Repayments of Credit Facility			(150,000)						—						—						(150,000)
Dividends and distributions			(251,632)						—						—						(251,632)
Stock option exercises			9,180						—						—						9,180
Taxes paid related to net share settlement of equity awards			(113,431)						—						—						(113,431)
Other financing activities			483						—						—						483
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds			—						103,808						(10,223)						93,585
Distributions to non-controlling interests in Consolidated Funds			—						(28,890)						7,957						(20,933)
Redemptions of redeemable interests in Consolidated Funds			—						(538,985)						—						(538,985)
Borrowings under loan obligations by Consolidated Funds			—						2,914						—						2,914
Repayments under loan obligations by Consolidated Funds			—						(97,325)						—						(97,325)
Net cash used in financing activities			(260,400)						(558,478)						(2,266)						(821,144)
Effect of exchange rate changes			3,224						1,487						—						4,711
Net change in cash and cash equivalents			(117,738)						30,293						(30,293)						(117,738)
Cash and cash equivalents, beginning of period			389,987						724,641						(724,641)						389,987
Cash and cash equivalents, end of period			$	272,249					$	754,934					$	(754,934)					$	272,249
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities			$	115,364					$	—					$	—					$	115,364
Issuance of common stock in connection with settlement of management incentive program			$	245,647					$	—					$	—					$	245,647

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

15. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after March 31, 2024 through the date the unaudited condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure:

In May 2024, the Company’s board of directors declared a quarterly dividend of $0.93 per share of Class A and non-voting common stock payable on June 28, 2024 to common stockholders of record at the close of business on June 14, 2024.

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