Item 1. Financial Statements

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Item 1. Financial Statements

Ares Management Corporation

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




	As of
	September 30, 2024		December 31, 2023
	(unaudited)
Assets
Cash and cash equivalents	$	350,138	$	348,274
Investments (includes accrued carried interest of $3,486,892 and $3,413,007 as of September 30, 2024 and December 31, 2023, respectively)	4,692,520		4,624,932
Due from affiliates	870,779		896,746
Other assets	641,120		429,979
Right-of-use operating lease assets	426,483		249,326
Intangible assets, net	969,976		1,058,495
Goodwill	1,133,074		1,123,976
Assets of Consolidated Funds:
Cash and cash equivalents	1,315,914		1,149,511
Investments held in trust account	544,254		523,038
Investments, at fair value	13,310,098		14,078,549

Receivable for securities sold	176,475		146,851
Other assets	91,819		100,823
Total assets	$	24,522,650	$	24,730,500
Liabilities
Accounts payable, accrued expenses and other liabilities	$	328,883	$	233,884
Accrued compensation	401,035		287,259
Due to affiliates	416,041		240,254
Performance related compensation payable	2,518,898		2,514,610
Debt obligations	2,542,358		2,965,480
Operating lease liabilities	535,686		319,572
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities	179,928		189,523
Due to affiliates	—		3,554
Payable for securities purchased	377,026		484,117
CLO loan obligations, at fair value	11,070,261		12,345,657
Fund borrowings	273,000		125,241
Total liabilities	18,643,116		19,709,151
Commitments and contingencies
Redeemable interest in Consolidated Funds	544,154		522,938
Redeemable interest in Ares Operating Group entities	25,111		24,098
Non-controlling interests in Consolidated Funds	1,948,946		1,258,445
Non-controlling interests in Ares Operating Group entities	1,285,248		1,322,469
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (198,334,674 shares and 187,069,907 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively)	1,983		1,871
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of September 30, 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 September 30, 2024 and December 31, 2023)	—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (111,175,156 shares and 117,024,758 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively)	1,112		1,170
Additional paid-in-capital	2,856,893		2,391,036
Accumulated deficit	(792,398)		(495,083)
Accumulated other comprehensive income (loss), net of tax	8,450		(5,630)
Total stockholders’ equity	2,076,075		1,893,399
Total equity	5,310,269		4,474,313
Total liabilities, redeemable interest, non-controlling interests and equity	$	24,522,650	$	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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Revenues
Management fees	$	753,597	$	637,517	$	2,162,970	$	1,853,304
Carried interest allocation	277,651		(28,126)		194,006		541,828
Incentive fees	48,638		16,454		105,039		33,327
Principal investment income	8,036		9,339		44,547		38,985
Administrative, transaction and other fees	41,817		36,071		119,222		110,459
Total revenues	1,129,739		671,255		2,625,784		2,577,903
Expenses
Compensation and benefits	435,876		367,502		1,268,685		1,095,833
Performance related compensation	219,697		(25,448)		140,180		401,990
General, administrative and other expenses	197,019		211,842		537,379		501,340

Expenses of Consolidated Funds	2,295		7,064		11,680		28,171
Total expenses	854,887		560,960		1,957,924		2,027,334
Other income (expense)
Net realized and unrealized gains (losses) on investments	(5,074)		(1,770)		13,781		5,226
Interest and dividend income	7,553		4,752		19,952		11,281
Interest expense	(29,733)		(25,975)		(105,057)		(76,800)
Other income (expense), net	(18,805)		5,742		(19,473)		(1,068)
Net realized and unrealized gains on investments of Consolidated Funds	64,831		79,591		192,778		188,717
Interest and other income of Consolidated Funds	234,681		255,600		732,316		712,992
Interest expense of Consolidated Funds	(201,199)		(201,363)		(626,678)		(540,954)
Total other income, net	52,254		116,577		207,619		299,394
Income before taxes	327,106		226,872		875,479		849,963
Income tax expense	46,453		29,898		114,760		113,418
Net income	280,653		196,974		760,719		736,545
Less: Net income attributable to non-controlling interests in Consolidated Funds	64,241		80,289		236,446		174,663
Net income attributable to Ares Operating Group entities	216,412		116,685		524,273		561,882
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities	1,319		758		1,005		(332)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	96,633		54,104		236,843		261,838



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	118,460	$	61,823	$	286,425	$	300,376
Net income per share of Class A and non-voting common stock:
Basic	$	0.55	$	0.30	$	1.31	$	1.54
Diluted	$	0.55	$	0.30	$	1.31	$	1.54
Weighted-average shares of Class A and non-voting common stock:
Basic	200,724,068		186,218,638		196,526,832		182,757,955
Diluted	200,724,068		186,218,638		196,526,832		182,757,955

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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net income	$	280,653	$	196,974	$	760,719	$	736,545
Foreign currency translation adjustments, net of tax	37,167		(23,984)		23,608		(21,780)
Total comprehensive income	317,820		172,990		784,327		714,765
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds	70,798		68,976		237,476		157,055

Less: Comprehensive income (loss) attributable to redeemable interest in Ares Operating Group entities	1,933		659		1,315		(738)
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities	107,698		49,110		245,031		260,351
Comprehensive income attributable to Ares Management Corporation	$	137,391	$	54,245	$	300,505	$	298,097

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

Changes in ownership interests and related tax benefits	19		—		(18)		(75,616)		—		—		103,129		(35,192)		(7,678)
Issuances of common stock	27		—		—		354,368		—		—		—		—		354,395
Capital contributions	—		—		—		—		—		—		269		342,937		343,206
Dividends/distributions	—		—		—		—		(195,234)		—		(116,980)		(20,696)		(332,910)
Net income	—		—		—		—		94,938		—		76,211		105,489		276,638
Currency translation adjustment, net of tax	—		—		—		—		—		(1)		55		(1,919)		(1,865)
Equity compensation	—		—		—		55,791		—		—		32,441		—		88,232

Balance as of June 30, 2024	1,957		35		1,133		2,721,980		(712,856)		(10,481)		1,289,401		1,905,921		5,197,090

Changes in ownership interests and related tax benefits	23		—		(21)		27,103		—		—		(3,663)		(31,559)		(8,117)
Issuances of common stock	3		—		—		52,838		—		—		—		—		52,841
Capital contributions	—		—		—		—		—		—		269		32,684		32,953
Dividends/distributions	—		—		—		—		(198,002)		—		(139,098)		(28,898)		(365,998)
Net income	—		—		—		—		118,460		—		96,633		64,241		279,334
Currency translation adjustment, net of tax	—		—		—		—		—		18,931		11,065		6,557		36,553
Equity compensation	—		—		—		54,972		—		—		30,641		—		85,613

Balance as of September 30, 2024	$	1,983	$	35	$	1,112	$	2,856,893	$	(792,398)	$	8,450	$	1,285,248	$	1,948,946	$	5,310,269

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)


	Nine months ended September 30,
	2024		2023
Cash flows from operating activities:
Net income	$	760,719	$	736,545
Adjustments to reconcile net income to net cash provided by operating activities	429,097		312,180








Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	835,340		(948,908)






Cash flows due to changes in operating assets and liabilities	258,389		135,660





Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	(300,009)		91,314




Net cash provided by operating activities	1,983,536		326,791
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(82,203)		(44,177)
Acquisitions	(13,683)		—
Net cash used in investing activities	(95,886)		(44,177)
Cash flows from financing activities:
Net proceeds from issuance of Class A common stock	407,236		—
Proceeds from Credit Facility	970,000		735,000


Repayments of Credit Facility	(1,395,000)		(670,000)

Dividends and distributions	(969,360)		(760,085)



Stock option exercises	1,511		80,426
Taxes paid related to net share settlement of equity awards	(211,615)		(145,421)
Other financing activities	485		902
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	544,294		735,944
Distributions to non-controlling interests in Consolidated Funds	(76,502)		(56,945)
Redemptions of redeemable interests in Consolidated Funds	—		(553,718)
Borrowings under loan obligations by Consolidated Funds	323,540		549,664
Repayments under loan obligations by Consolidated Funds	(1,504,344)		(257,370)
Net cash used in financing activities	(1,909,755)		(341,603)
Effect of exchange rate changes	23,969		(19,171)
Net change in cash and cash equivalents	1,864		(78,160)
Cash and cash equivalents, beginning of period	348,274		389,987
Cash and cash equivalents, end of period	$	350,138	$	311,827
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	7,724	$	116,101
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 September 30, 2024		As of September 30,			As of December 31,
		2024			2023
Management contracts	3.9		$	563,675		$	604,242
Client relationships	7.8		200,920			200,920

Other	0.1		500			500
Finite-lived intangible assets			765,095			805,662
Foreign currency translation			2,615			1,126
Total finite-lived intangible assets			767,710			806,788
Less: accumulated amortization			(365,534)			(316,093)
Finite-lived intangible assets, net			402,176			490,695


Indefinite-lived management contracts			567,800			567,800
Intangible assets, net			$	969,976		$	1,058,495

During the three and nine months ended September 30, 2024, the Company recorded a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group. The primary indicator of impairment was the lower than expected future fee revenue generated from these funds.

During the three and nine months ended September 30, 2023, the Company recorded non-cash impairment charges of $65.7 million and $78.6 million, respectively, primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”). The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $28.9 million and $31.0 million for the three months ended September 30, 2024 and 2023, respectively, and $87.1 million and $95.0 million for the nine months ended September 30, 2024 and 2023, respectively, and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2024, the Company removed $47.5 million of fully-amortized management contracts.

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		685		—		7,395
Reallocation	55,658		—		(55,658)		—		—
Foreign currency translation	1,694		—		—		9		1,703
Balance as of September 30, 2024	$	314,031	$	283,915	$	117,489	$	417,639	$	1,133,074

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 in the first quarter of 2024.

There was no impairment of goodwill recorded during the three and nine months ended September 30, 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

	September 30,		December 31,		September 30,	December 31,
	2024		2023		2024	2023
Equity method investments:
Equity method - carried interest	$	3,486,892	$	3,413,007	74.4%	73.8%
Equity method private investment partnership interests - principal	555,390		535,292		11.8	11.6
Equity method private investment partnership interests and other (held at fair value)	379,408		418,778		8.1	9.0
Equity method private investment partnership interests and other	58,215		44,989		1.2	1.0
Total equity method investments	4,479,905		4,412,066		95.5	95.4
Collateralized loan obligations	20,601		20,799		0.4	0.4
Fixed income securities	89,392		105,495		1.9	2.3
Collateralized loan obligations and fixed income securities, at fair value	109,993		126,294		2.3	2.7
Common stock, at fair value	102,622		86,572		2.2	1.9
Total investments	$	4,692,520	$	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 and nine months ended September 30, 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 (losses) on investments, and interest and dividend income within the Condensed Consolidated Statements of Operations:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Total other income, net related to equity method investments	$	8,093	$	1,845	$	51,633	$	34,900

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 (losses) on investments within the Condensed Consolidated Statements of Operations:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Equity method private investment partnership interests and other (held at fair value)	$	(5,542)	$	(7,462)	$	(3,494)	$	(1,426)

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

	September 30,		December 31,		September 30,	December 31,
	2024		2023		2024	2023
Fixed income investments:
Loans and securitization vehicles	$	9,120,015	$	10,616,458	65.8%	72.7%
Money market funds and U.S. treasury securities	544,254		523,038		3.9	3.6
Bonds	486,781		578,949		3.5	4.0
Total fixed income investments	10,151,050		11,718,445		73.2	80.3
Partnership interests	1,934,868		1,642,489		14.0	11.2
Equity securities	1,768,434		1,240,653		12.8	8.5
Total investments, at fair value	$	13,854,352	$	14,601,587

As of September 30, 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 September 30, 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	$	—	$	102,622	$	377,087	$	—	$	479,709
Collateralized loan obligations and fixed income securities	—		—		109,993		—		109,993
Partnership interests	—		—		—		2,321		2,321
Total investments, at fair value	—		102,622		487,080		2,321		592,023
Derivatives-foreign currency forward contracts	—		752		—		—		752
Total assets, at fair value	$	—	$	103,374	$	487,080	$	2,321	$	592,775
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(3,162)	$	—	$	—	$	(3,162)

Total liabilities, at fair value	$	—	$	(3,162)	$	—	$	—	$	(3,162)

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	$	—	$	8,362,059	$	757,956	$	—	$	9,120,015
Money market funds and U.S. treasury securities	544,254		—		—		—		544,254
Bonds	—		486,781		—		—		486,781

Total fixed income investments	544,254		8,848,840		757,956		—		10,151,050
Partnership interests	—		—		—		1,934,868		1,934,868
Equity securities	33,709		3,162		1,731,563		—		1,768,434
Total investments, at fair value	577,963		8,852,002		2,489,519		1,934,868		13,854,352

Derivatives-foreign currency forward contracts	—		5,904		—		—		5,904


Total assets, at fair value	$	577,963	$	8,857,906	$	2,489,519	$	1,934,868	$	13,860,256
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(11,070,261)	$	—	$	—	$	(11,070,261)
Derivatives:

Foreign currency forward contracts	—		(6,056)		—		—		(6,056)
Asset swaps	—		—		(1,903)		—		(1,903)


Total derivative liabilities, at fair value	—		(6,056)		(1,903)		—		(7,959)
Total liabilities, at fair value	$	—	$	(11,076,317)	$	(1,903)	$	—	$	(11,078,220)

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 June 30, 2024	$	379,443	$	92,374	$	471,817



Purchases(1)	859		18,240		19,099

Sales/settlements(2)	1,093		(2,430)		(1,337)
Realized and unrealized appreciation (depreciation), net	(4,308)		1,809		(2,499)
Balance as of September 30, 2024	$	377,087	$	109,993	$	487,080
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(5,041)	$	2,218	$	(2,823)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of June 30, 2024	$	1,586,854	$	803,497	$	(1,615)	$	2,388,736

Transfer in	—		143,738		—		143,738
Transfer out	(508)		(227,541)		—		(228,049)
Purchases(1)	136,313		250,554		—		386,867
Sales/settlements(2)	(111)		(213,489)		—		(213,600)
Realized and unrealized appreciation (depreciation), net	9,015		1,197		(288)		9,924
Balance as of September 30, 2024	$	1,731,563	$	757,956	$	(1,903)	$	2,487,616
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	9,300	$	(425)	$	(222)	$	8,653

(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)


Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Total
Balance as of June 30, 2023	$	165,371	$	73,777	$	239,148

Purchases(1)	7		1,499		1,506
Sales/settlements(2)	(350)		(1,047)		(1,397)

Realized and unrealized appreciation (depreciation), net	(10,116)		986		(9,130)
Balance as of September 30, 2023	$	154,912	$	75,215	$	230,127
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(10,116)	$	986	$	(9,130)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of June 30, 2023	$	1,066,065	$	648,131	$	(2,693)	$	1,711,503

Transfer in	848		63,379		—		64,227
Transfer out	(36,064)		(149,624)		—		(185,688)
Purchases(1)	65,220		150,370		26		215,616
Sales/settlements(2)	(2,364)		(165,177)		—		(167,541)

Realized and unrealized appreciation, net	17,888		4,949		522		23,359
Balance as of September 30, 2023	$	1,111,593	$	552,028	$	(2,145)	$	1,661,476
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	17,950	$	(23,157)	$	426	$	(4,781)

(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.


Level III Assets of the Company	Equity Securities		Fixed Income		Total
Balance as of December 31, 2023	$	412,491	$	126,294	$	538,785


Transfer in	—		60,917		60,917
Transfer out	(37,587)		—		(37,587)
Purchases(1)	2,539		283,913		286,452
Sales/settlements(2)	(1,478)		(362,164)		(363,642)

Realized and unrealized appreciation, net	1,122		1,033		2,155
Balance as of September 30, 2024	$	377,087	$	109,993	$	487,080
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,260)	$	1,975	$	715


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	—		199,112		—		199,112
Transfer out	(35)		(305,887)		—		(305,922)
Purchases(1)	482,424		711,190		114		1,193,728
Sales/settlements(2)	(111)		(585,977)		—		(586,088)

Realized and unrealized appreciation (depreciation), net	58,885		(595)		(726)		57,564
Balance as of September 30, 2024	$	1,731,563	$	757,956	$	(1,903)	$	2,487,616
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	60,995	$	(2,921)	$	(664)	$	57,410

(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)



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)	38,267		3,465		41,732
Sales/settlements(2)	(1,186)		(3,424)		(4,610)

Realized and unrealized depreciation, net	(3,954)		(1,760)		(5,714)
Balance as of September 30, 2023	$	154,912	$	75,215	$	230,127
Change in net unrealized depreciation included in earnings related to financial assets still held at the reporting date	$	(4,167)	$	(1,547)	$	(5,714)


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 out due to changes in consolidation	(2,076)		(4,563)		(374,049)		—		(380,688)
Transfer in	—		192,359		—		—		192,359
Transfer out	(36,681)		(553,638)		—		—		(590,319)
Purchases(1)	295,030		484,574		49,000		—		828,604
Sales/settlements(2)	(2,490)		(451,426)		(48,889)		(122)		(502,927)

Realized and unrealized appreciation, net	126,930		15,054		5,283		1,533		148,800
Balance as of September 30, 2023	$	1,111,593	$	552,028	$	—	$	(2,145)	$	1,661,476
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	127,001	$	(15,704)	$	—	$	1,283	$	112,580

(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 September 30, 2024:


Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	123,859	Market approach	Multiple of book value	1.4x - 1.5x	1.4x
	112,565		Discounted cash flow	Discount rate	18.5% - 30.0%	25.0%
	100,000		Market approach	Yield	8.0%	8.0%
	7,220		Market approach	Earnings multiple	15.4x	15.4x
	33,444		Other	N/A	N/A	N/A


Fixed income investments
	88,542		Market approach	Yield	10.0% - 12.0%	11.0%
	20,601		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	849		Other	N/A	N/A	N/A
Total assets	$	487,080


Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	914,196	Discounted cash flow	Discount rate	10.0% - 18.7%	13.0%
	793,106		Market approach	Multiple of book value	1.0x - 1.7x	1.4x
	22,636		Market approach	EBITDA multiple(1)	1.0x - 34.6x	14.4x



	871		Transaction price(2)	N/A	N/A	N/A
	754		Other	N/A	N/A	N/A

Fixed income investments
	502,042		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	253,514		Market approach	Yield	6.0% - 23.2%	10.3%

	2,363		Market approach	EBITDA multiple(1)	5.0x - 34.6x	10.8x
	37		Other	N/A	N/A	N/A

Total assets	$	2,489,519
Liabilities
Derivative instruments	$	(1,903)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(1,903)

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

(2)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.

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 September 30, 2024		As of December 31, 2023
Investments (held at fair value)	$	1,934,868	$	1,642,489
Unfunded commitments	1,000,749		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 September 30, 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		$	470,000	5.90%	$	895,000	6.37%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	249,990		4.21	249,427		4.21
2028 Senior Notes(3)	11/10/2023	11/10/2028	500,000		495,401		6.42	494,863		6.42
2030 Senior Notes(4)	6/15/2020	6/15/2030	400,000		397,388		3.28	397,050		3.28
2052 Senior Notes(5)	1/21/2022	2/1/2052	500,000		484,500		3.77	484,199		3.77
2051 Subordinated Notes(6)	6/30/2021	6/30/2051	450,000		445,079		4.13	444,941		4.13
Total debt obligations					$	2,542,358		$	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 September 30, 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 ESG-related targets, the Company’s base rate and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through June 2025.

(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. On October 8, 2024 the Company repaid the 2024 Senior Notes at maturity.

(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 September 30, 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	1,832		292		—
Amortization of debt issuance costs	(901)		(1,282)		(138)

Unamortized debt issuance costs as of September 30, 2024	$	5,144	$	10,794	$	4,921

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 September 30, 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	$	10,328,010	6.64%	7.9	$	11,606,289	6.64%	8.2
Subordinated notes(1)	742,251		N/A	5.8	739,368		N/A	6.9
Total loan obligations of Consolidated CLOs	$	11,070,261			$	12,345,657

(1)The notes do not have contractual interest rates; instead, holders of the notes receive a variable rate of interest amounting to 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 net assets of the Consolidated Funds or 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 September 30, 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 September 30, 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	(2)	N/A		N/A	$	15,241	6.88%
	9/25/2025	150,000			$	121,000	8.00%	N/A		N/A
	9/24/2026	150,000			—		—	—		N/A
	6/26/2027	200,000			152,000		8.15	110,000		8.29
	9/12/2027	54,000			—		—	—		N/A
Total borrowings of Consolidated Funds					$	273,000		$	125,241

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

(2)Represents a credit facility of a Consolidated Fund that was repaid on maturity date. The amount represents the total capacity as of December 31, 2023.

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 September 30, 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 September 30, 2024 and December 31, 2023, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $1,178.4 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 September 30, 2024 and December 31, 2023, the Company’s maximum exposure to losses from guarantees was $1.1 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 September 30, 2024 and December 31, 2023, the contingent liability was $75.0 million. As of September 30, 2024 and December 31, 2023, the Company has recorded $20.0 million and $5.0 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $5.0 million and $15.0 million for the three and nine months ended September 30, 2024, respectively, 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 September 30, 2024, the maximum contingent liability associated with the remaining Infrastructure Debt MIP was $15.0 million. As of September 30, 2024 and December 31, 2023, the contingent liability was $13.6 million. As of September 30, 2024 and December 31, 2023, the Company has recorded $5.8 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 $0.4 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively, and $1.4 million and $1.8 million for the nine months ended September 30, 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 September 30, 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 $70.0 million and $78.5 million, respectively, of which approximately $47.8 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 September 30, 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 19 years. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:


Maturity of operating lease liabilities	As of September 30, 2024
2024	$	11,646
2025	57,292
2026	55,053
2027	45,612
2028	58,612
Thereafter	592,526
Total future payments	820,741
Less: interest	285,055
Total operating lease liabilities	$	535,686


	Three months ended September 30,				Nine months ended September 30,
Classification within general, administrative and other expenses	2024		2023		2024		2023
Operating lease expense	$	16,920	$	10,135	$	47,505	$	32,434



	Nine months ended September 30,
Supplemental information on the measurement of operating lease liabilities	2024		2023
Operating cash flows for operating leases	$	41,740	$	32,733



Leased assets obtained in exchange for new operating lease liabilities	210,551		166,941


	As of September 30,	As of December 31,

Lease term and discount rate	2024	2023

Weighted-average remaining lease terms (in years)	13.2	8.4


Weighted-average discount rate	5.6%	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 September 30,		As of December 31,

	2024		2023
Due from affiliates:
Management fees receivable from non-consolidated funds	$	596,288	$	560,629
Incentive fee receivable from non-consolidated funds	46,388		159,098
Payments made on behalf of and amounts due from non-consolidated funds and employees	228,103		177,019
Due from affiliates—Company	$	870,779	$	896,746


Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	9,159	$	9,585
Tax receivable agreement liability	353,899		191,299
Carried interest and incentive fees payable	45,361		33,374
Payments made by non-consolidated funds on behalf of and payable by the Company	7,622		5,996
Due to affiliates—Company	$	416,041	$	240,254
Amounts due to portfolio companies and non-consolidated funds	$	—	$	3,554
Due to affiliates—Consolidated Funds	$	—	$	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.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Income tax expense	$	46,453	$	29,898	$	114,760	$	113,418

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 and nine months ended September 30, 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 September 30, 2024 and December 31, 2023, the Company recorded a net deferred tax asset of $203.3 million and $21.5 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition. As of September 30, 2024, a deferred tax liability of $6.8 million was recorded and presented as a liability for the Consolidated Funds within accounts payable, accrued expenses and other liabilities 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.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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 three and nine months ended September 30, 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 September 30,				Nine months ended September 30,
	2024		2023		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	$	118,460	$	61,823	$	286,425	$	300,376
Dividends declared and paid on Class A and non-voting common stock	(187,696)		(144,623)		(553,867)		(425,263)
Distributions on unvested restricted units	(7,829)		(5,337)		(22,692)		(15,969)

Dividends in excess of earnings available to Class A and non-voting common stockholders	$	(77,065)	$	(88,137)	$	(290,134)	$	(140,856)
Basic weighted-average shares of Class A and non-voting common stock	200,724,068		186,218,638		196,526,832		182,757,955
Dividends in excess of earnings per share of Class A and non-voting common stock	$	(0.38)	$	(0.47)	$	(1.48)	$	(0.77)
Dividend declared and paid per Class A and non-voting common stock	0.93		0.77		2.79		2.31
Basic earnings per share of Class A and non-voting common stock	$	0.55	$	0.30	$	1.31	$	1.54

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	$	118,460	$	61,823	$	286,425	$	300,376
Distributions on unvested restricted units	(7,829)		(5,337)		(22,692)		(15,969)
Net income available to Class A and non-voting common stockholders	$	110,631	$	56,486	$	263,733	$	284,407




Diluted weighted-average shares of Class A and non-voting common stock	200,724,068		186,218,638		196,526,832		182,757,955
Diluted earnings per share of Class A and non-voting common stock	$	0.55	$	0.30	$	1.31	$	1.54

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 September 30, 2024, 62,694,495 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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Restricted units	$	85,613	$	61,976	$	266,267	$	193,509

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 nine months ended September 30, 2024, 4.0 million restricted units vested and 2.2 million shares of Class A common stock were delivered to the holders. For the nine months ended September 30, 2023, 3.6 million restricted units vested and 2.1 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 (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 nine months ended September 30, 2024:


Record Date	Dividends Per Share		Dividend Equivalents Paid
March 15, 2024	$	0.93	$	16,294
June 14, 2024	0.93		16,008
September 16, 2024	0.93		16,242

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	5,087,137	124.08
Vested	(3,961,789)	51.98
Forfeited	(386,314)	85.07
Balance as of September 30, 2024	18,098,863	$	78.45

The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $984.1 million as of September 30, 2024 and is expected to be recognized over the remaining weighted average period of 3.6 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 nine months ended September 30, 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 September 30, 2024	—	$	—	0.0	$	—
Exercisable as of September 30, 2024	—	$	—	0.0	$	—

Net cash proceeds from exercises of options were $1.5 million for the nine months ended September 30, 2024. The Company realized tax benefits of approximately $1.4 million from the exercise of the remaining options during the first quarter of 2024.

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. 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.

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 nine months ended September 30, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program.

The Company entered into an underwriting agreement pursuant to which the Company agreed to issue and sell 2,650,000 shares of Class A common stock in June 2024 and an additional 397,500 shares of Class A common stock following the subsequent exercise of the underwriters’ 30-day option to purchase additional shares in July 2024 (the “Offering”). The Offering resulted in net proceeds of approximately $407.2 million (after deducting underwriting discounts and offering expenses).

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
Issuances of common stock(1)	3,047,500	—	—	63,179	3,110,679
Exchanges of common stock	5,912,781	—	—	(5,912,781)	—

Stock option exercises	79,524	—	—	—	79,524

Vesting of restricted stock awards, net of shares withheld for tax	2,224,962	—	—	—	2,224,962

Balance as of September 30, 2024	198,334,674	3,489,911	1,000	111,175,156	313,000,741

(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 September 30, 2024			As of December 31, 2023			Three months ended September 30,				Nine months ended September 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest		2024		2023		2024		2023
Ares Management Corporation	201,824,585	64.48	%	190,559,818	61.95	%	64.14	%	61.03	%	63.23	%	60.52	%
Ares Owners Holdings, L.P.	111,175,156	35.52		117,024,758	38.05		35.86		38.97		36.77		39.48
Total	312,999,741	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

Net loss	(387)
Currency translation adjustment, net of tax	(47)


Balance as of June 30, 2024	23,178

Net income	1,319
Currency translation adjustment, net of tax	614


Balance as of September 30, 2024	$	25,111

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

Change in redemption value	6,959
Balance as of June 30, 2024	536,746
Change in redemption value	7,408

Balance as of September 30, 2024	$	544,154

As of September 30, 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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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.

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 September 30, 2024
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	557,450	$	105,733	$	34,621	$	48,084	$	11,374	$	757,262	$	—	$	757,262
Fee related performance revenues	41,761		—		—		2,508		—		44,269		—		44,269
Other fees	10,520		7,263		372		58		114		18,327		5,253		23,580
Compensation and benefits	(179,987)		(42,360)		(13,877)		(14,432)		(7,245)		(257,901)		(102,112)		(360,013)
General, administrative and other expenses	(41,046)		(14,118)		(4,576)		(8,464)		(1,459)		(69,663)		(56,124)		(125,787)
Fee related earnings	388,698		56,518		16,540		27,754		2,784		492,294		(152,983)		339,311
Performance income—realized	6,192		15,441		475		—		—		22,108		—		22,108
Performance related compensation—realized	(3,451)		(9,403)		(380)		—		—		(13,234)		—		(13,234)
Realized net performance income	2,741		6,038		95		—		—		8,874		—		8,874
Investment income—realized	916		2,003		197		—		732		3,848		—		3,848
Interest and other investment income—realized	7,083		1,971		333		96		6,477		15,960		496		16,456
Interest expense	(7,625)		(4,511)		(4,862)		(2,191)		(10,409)		(29,598)		(135)		(29,733)

Realized net investment income (loss)	374		(537)		(4,332)		(2,095)		(3,200)		(9,790)		361		(9,429)
Realized income	$	391,813	$	62,019	$	12,303	$	25,659	$	(416)	$	491,378	$	(152,622)	$	338,756

	Three months ended September 30, 2023
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	470,609	$	92,754	$	29,799	$	42,949	$	7,538	$	643,649	$	—	$	643,649
Fee related performance revenues	44		—		—		2,168		—		2,212		—		2,212
Other fees	7,202		6,308		430		8		83		14,031		5,717		19,748
Compensation and benefits	(131,172)		(37,608)		(13,145)		(16,066)		(3,233)		(201,224)		(90,347)		(291,571)
General, administrative and other expenses	(28,093)		(10,318)		(3,470)		(4,541)		(924)		(47,346)		(52,460)		(99,806)
Fee related earnings	318,590		51,136		13,614		24,518		3,464		411,322		(137,090)		274,232
Performance income—realized	12,223		5,589		(15)		—		—		17,797		—		17,797
Performance related compensation—realized	(7,181)		(3,338)		15		—		—		(10,504)		—		(10,504)
Realized net performance income	5,042		2,251		—		—		—		7,293		—		7,293
Investment income (loss)—realized	1,475		(875)		(4,631)		—		—		(4,031)		—		(4,031)
Interest and other investment income—realized	5,601		3,148		214		552		3,305		12,820		114		12,934
Interest expense	(5,825)		(3,985)		(4,313)		(2,020)		(9,809)		(25,952)		(23)		(25,975)
Realized net investment income (loss)	1,251		(1,712)		(8,730)		(1,468)		(6,504)		(17,163)		91		(17,072)
Realized income	$	324,883	$	51,675	$	4,884	$	23,050	$	(3,040)	$	401,452	$	(136,999)	$	264,453

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2024
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	1,603,080	$	299,156	$	103,126	$	140,650	$	30,726	$	2,176,738	$	—	$	2,176,738
Fee related performance revenues	48,920		—		—		20,633		—		69,553		—		69,553
Other fees	30,912		18,783		1,258		116		396		51,465		15,066		66,531
Compensation and benefits	(457,494)		(119,403)		(42,737)		(47,971)		(17,937)		(685,542)		(294,639)		(980,181)
General, administrative and other expenses	(116,022)		(43,857)		(15,282)		(26,428)		(5,041)		(206,630)		(160,514)		(367,144)
Fee related earnings	1,109,396		154,679		46,365		87,000		8,144		1,405,584		(440,087)		965,497
Performance income—realized	121,214		24,324		9,032		361		—		154,931		—		154,931
Performance related compensation—realized	(73,127)		(15,134)		(7,235)		110		—		(95,386)		—		(95,386)
Realized net performance income	48,087		9,190		1,797		471		—		59,545		—		59,545
Investment income (loss)—realized	(1)		1,671		505		—		2,382		4,557		—		4,557
Interest and other investment income—realized	23,609		1,280		794		454		38,803		64,940		1,588		66,528
Interest expense	(25,412)		(17,189)		(16,519)		(7,467)		(38,190)		(104,777)		(280)		(105,057)

Realized net investment income (loss)	(1,804)		(14,238)		(15,220)		(7,013)		2,995		(35,280)		1,308		(33,972)
Realized income	$	1,155,679	$	149,631	$	32,942	$	80,458	$	11,139	$	1,429,849	$	(438,779)	$	991,070

	Nine months ended September 30, 2023
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	1,349,434	$	285,463	$	89,461	$	124,597	$	19,065	$	1,868,020	$	—	$	1,868,020
Fee related performance revenues	866		334		—		5,737		—		6,937		—		6,937
Other fees	25,810		24,616		1,245		13		268		51,952		18,205		70,157
Compensation and benefits	(382,929)		(116,232)		(43,184)		(46,101)		(9,759)		(598,205)		(261,325)		(859,530)
General, administrative and other expenses	(82,345)		(33,465)		(11,556)		(12,984)		(2,120)		(142,470)		(148,099)		(290,569)
Fee related earnings	910,836		160,716		35,966		71,262		7,454		1,186,234		(391,219)		795,015
Performance income—realized	106,162		14,412		63,534		5,460		—		189,568		—		189,568
Performance related compensation—realized	(68,792)		(8,764)		(51,238)		(4,678)		—		(133,472)		—		(133,472)
Realized net performance income	37,370		5,648		12,296		782		—		56,096		—		56,096
Investment income (loss)—realized	19,546		(4,196)		(1,668)		—		170		13,852		—		13,852
Interest and other investment income—realized	21,058		7,362		571		1,959		11,492		42,442		350		42,792
Interest expense	(23,072)		(11,987)		(14,237)		(6,776)		(20,668)		(76,740)		(60)		(76,800)
Realized net investment income (loss)	17,532		(8,821)		(15,334)		(4,817)		(9,006)		(20,446)		290		(20,156)
Realized income	$	965,738	$	157,543	$	32,928	$	67,227	$	(1,552)	$	1,221,884	$	(390,929)	$	830,955

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 (loss):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Segment revenues
Management fees	$	757,262	$	643,649	$	2,176,738	$	1,868,020
Fee related performance revenues	44,269		2,212		69,553		6,937
Other fees	18,327		14,031		51,465		51,952
Performance income—realized	22,108		17,797		154,931		189,568
Total segment revenues	$	841,966	$	677,689	$	2,452,687	$	2,116,477
Segment expenses
Compensation and benefits	$	257,901	$	201,224	$	685,542	$	598,205
General, administrative and other expenses	69,663		47,346		206,630		142,470
Performance related compensation—realized	13,234		10,504		95,386		133,472
Total segment expenses	$	340,798	$	259,074	$	987,558	$	874,147
Segment realized net investment income (loss)
Investment income (loss)—realized	$	3,848	$	(4,031)	$	4,557	$	13,852
Interest and other investment income —realized	15,960		12,820		64,940		42,442
Interest expense	(29,598)		(25,952)		(104,777)		(76,740)

Total segment realized net investment loss	$	(9,790)	$	(17,163)	$	(35,280)	$	(20,446)

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


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Total consolidated revenue	$	1,129,739	$	671,255	$	2,625,784	$	2,577,903
Performance (income) loss—unrealized	(263,553)		31,400		(95,759)		(384,533)
Management fees of Consolidated Funds eliminated in consolidation	11,660		12,181		36,115		35,787
Performance income of Consolidated Funds eliminated in consolidation	1,032		1,874		18,484		9,365
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	128		83		409		7,061
Administrative fees(1)	(18,093)		(16,154)		(52,201)		(46,692)
OMG revenue	(5,252)		(5,717)		(15,066)		(18,205)


Principal investment income, net of eliminations	(8,036)		(9,339)		(44,547)		(38,985)
Net revenue of non-controlling interests in consolidated subsidiaries	(5,659)		(7,894)		(20,532)		(25,224)
Total consolidation adjustments and reconciling items	(287,773)		6,434		(173,097)		(461,426)
Total segment revenue	$	841,966	$	677,689	$	2,452,687	$	2,116,477

(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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Total consolidated expenses	$	854,887	$	560,960	$	1,957,924	$	2,027,334
Performance related compensation-unrealized	(180,174)		38,650		(8,478)		(261,996)
Expenses of Consolidated Funds added in consolidation	(14,083)		(19,329)		(48,200)		(64,365)
Expenses of Consolidated Funds eliminated in consolidation	11,355		12,297		36,520		36,600
Administrative fees(1)	(18,093)		(16,154)		(52,201)		(46,321)
OMG expenses	(158,236)		(142,807)		(455,153)		(409,424)
Acquisition and merger-related expense	(25,166)		(2,414)		(39,394)		(10,126)
Equity compensation expense	(85,613)		(61,976)		(266,267)		(193,335)
Acquisition-related compensation expense(2)	(5,435)		(589)		(16,374)		(1,831)
Placement fee adjustment	4,485		(944)		(825)		6,032
Depreciation and amortization expense	(46,005)		(105,524)		(118,900)		(194,174)
Expense of non-controlling interests in consolidated subsidiaries	2,876		(3,096)		(1,094)		(14,247)
Total consolidation adjustments and reconciling items	(514,089)		(301,886)		(970,366)		(1,153,187)
Total segment expenses	$	340,798	$	259,074	$	987,558	$	874,147

(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 (loss):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Total consolidated other income	$	52,254	$	116,577	$	207,619	$	299,394
Investment (income) loss—unrealized	(4,950)		(31,246)		13,836		(104,170)
Interest and other investment (income) loss—unrealized	15,258		(5,720)		15,093		(1,202)
Other income, net from Consolidated Funds added in consolidation	(87,804)		(125,857)		(276,107)		(335,708)
Other expense, net from Consolidated Funds eliminated in consolidation	194		(383)		(137)		(15,326)
OMG other (income) expense	(220)		(591)		(1,002)		1,213

Principal investment income	14,101		29,980		12,038		130,679
Other (income) expense, net	3,389		286		(7,910)		589
Other (income) loss of non-controlling interests in consolidated subsidiaries	(2,012)		(209)		1,290		4,085
Total consolidation adjustments and reconciling items	(62,044)		(133,740)		(242,899)		(319,840)
Total segment realized net investment loss	$	(9,790)	$	(17,163)	$	(35,280)	$	(20,446)

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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Income before taxes	$	327,106	$	226,872	$	875,479	$	849,963
Adjustments:
Depreciation and amortization expense	46,005		105,524		118,900		194,174
Equity compensation expense	85,612		61,976		266,267		192,964
Acquisition-related compensation expense(1)	5,435		589		16,374		1,831

Acquisition and merger-related expense	25,166		2,414		39,394		10,126
Placement fee adjustment	(4,485)		944		825		(6,032)
OMG expense, net	152,763		136,499		439,085		392,432
Other (income) expense, net	3,389		286		(7,910)		589
Income before taxes of non-controlling interests in consolidated subsidiaries	(10,544)		(5,007)		(18,148)		(6,892)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(65,998)		(84,429)		(242,065)		(179,362)
Total performance (income) loss—unrealized	(263,553)		31,400		(95,759)		(384,533)
Total performance related compensation—unrealized	180,174		(38,650)		8,478		261,996
Total investment (income) loss—unrealized	10,308		(36,966)		28,929		(105,372)
Realized income	491,378		401,452		1,429,849		1,221,884
Total performance income—realized	(22,108)		(17,797)		(154,931)		(189,568)
Total performance related compensation—realized	13,234		10,504		95,386		133,472
Total investment loss—realized	9,790		17,163		35,280		20,446
Fee related earnings	$	492,294	$	411,322	$	1,405,584	$	1,186,234

(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

Deconsolidation of Funds

Certain funds that have historically been consolidated in the financial statements that are no longer consolidated because, as of the reporting period: (i) such funds have been liquidated or dissolved; or (ii) the Company is no longer deemed to be the primary beneficiary of the variable interest entities (“VIEs”) as it no longer has a significant economic interest. During the nine months ended September 30, 2024, the Company did not deconsolidate any entity. During the nine months ended September 30, 2023, one private fund experienced a significant change in ownership that resulted in deconsolidation of the entity.

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 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 September 30,		As of December 31,

	2024		2023
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)	$	384,552	$	503,376
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)	784,102		910,600
Assets of consolidated VIEs	14,892,869		15,484,962
Liabilities of consolidated VIEs	12,180,936		13,409,257

(1)As of September 30, 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 $96.1 million and $83.1 million, respectively.


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net income attributable to non-controlling interests related to consolidated VIEs	$	57,289	$	66,526	$	216,614	$	165,118

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 September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	350,138	$	—	$	—	$	350,138
Investments (includes $3,486,892 of accrued carried interest)	5,517,542		—		(825,022)		4,692,520
Due from affiliates	1,048,857		—		(178,078)		870,779
Other assets	641,120		—		—		641,120
Right-of-use operating lease assets	426,483		—		—		426,483
Intangible assets, net	969,976		—		—		969,976
Goodwill	1,133,074		—		—		1,133,074
Assets of Consolidated Funds
Cash and cash equivalents	—		1,315,914		—		1,315,914
Investments held in trust account	—		544,254		—		544,254
Investments, at fair value	—		13,310,098		—		13,310,098

Receivable for securities sold	—		176,475		—		176,475
Other assets	—		91,819		—		91,819
Total assets	$	10,087,190	$	15,438,560	$	(1,003,100)	$	24,522,650
Liabilities
Accounts payable, accrued expenses and other liabilities	$	329,181	$	—	$	(298)	$	328,883
Accrued compensation	401,035		—		—		401,035
Due to affiliates	415,608		—		433		416,041
Performance related compensation payable	2,518,898		—		—		2,518,898
Debt obligations	2,542,358		—		—		2,542,358

Operating lease liabilities	535,686		—		—		535,686
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		179,928		—		179,928
Due to affiliates	—		177,508		(177,508)		—
Payable for securities purchased	—		377,026		—		377,026
CLO loan obligations, at fair value	—		11,196,594		(126,333)		11,070,261
Fund borrowings	—		273,000		—		273,000
Total liabilities	6,742,766		12,204,056		(303,706)		18,643,116
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		544,154		—		544,154
Redeemable interest in Ares Operating Group entities	25,111		—		—		25,111
Non-controlling interest in Consolidated Funds	—		2,690,350		(741,404)		1,948,946
Non-controlling interest in Ares Operating Group entities	1,270,326		—		14,922		1,285,248
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (198,334,674 shares issued and outstanding)	1,983		—		—		1,983
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 (111,175,156 shares issued and outstanding)	1,112		—		—		1,112
Additional paid-in-capital	2,829,805		—		27,088		2,856,893
Accumulated deficit	(792,398)		—		—		(792,398)
Accumulated other comprehensive loss, net of tax	8,450		—		—		8,450
Total stockholders’ equity	2,048,987		—		27,088		2,076,075
Total equity	3,319,313		2,690,350		(699,394)		5,310,269
Total liabilities, redeemable interest, non-controlling interests and equity	$	10,087,190	$	15,438,560	$	(1,003,100)	$	24,522,650

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

Receivable for securities sold	—		146,851		—		146,851
Other assets	—		112,466		(11,643)		100,823
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 September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	765,257	$	—	$	(11,660)	$	753,597
Carried interest allocation	278,683		—		(1,032)		277,651
Incentive fees	48,638		—		—		48,638
Principal investment income	14,100		—		(6,064)		8,036
Administrative, transaction and other fees	41,945		—		(128)		41,817
Total revenues	1,148,623		—		(18,884)		1,129,739
Expenses
Compensation and benefits	435,876		—		—		435,876
Performance related compensation	219,697		—		—		219,697
General, administrative and other expense	196,586		—		433		197,019
Expenses of the Consolidated Funds	—		14,083		(11,788)		2,295
Total expenses	852,159		14,083		(11,355)		854,887
Other income (expense)
Net realized and unrealized gains (losses) on investments	3,034		—		(8,108)		(5,074)
Interest and dividend income	9,809		—		(2,256)		7,553
Interest expense	(29,733)		—		—		(29,733)
Other expense, net	(18,466)		—		(339)		(18,805)
Net realized and unrealized gains on investments of the Consolidated Funds	—		55,015		9,816		64,831
Interest and other income of the Consolidated Funds	—		234,351		330		234,681
Interest expense of the Consolidated Funds	—		(201,562)		363		(201,199)
Total other income (expense), net	(35,356)		87,804		(194)		52,254
Income before taxes	261,108		73,721		(7,723)		327,106
Income tax expense	44,696		1,757		—		46,453
Net income	216,412		71,964		(7,723)		280,653
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		71,964		(7,723)		64,241
Net income attributable to Ares Operating Group entities	216,412		—		—		216,412
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,319		—		—		1,319
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	96,633		—		—		96,633



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	118,460	$	—	$	—	$	118,460

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 September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	649,698	$	—	$	(12,181)	$	637,517
Carried interest allocation	(26,252)		—		(1,874)		(28,126)
Incentive fees	16,454		—		—		16,454
Principal investment income	29,980		—		(20,641)		9,339
Administrative, transaction and other fees	36,154		—		(83)		36,071
Total revenues	706,034		—		(34,779)		671,255
Expenses
Compensation and benefits	367,502		—		—		367,502
Performance related compensation	(25,448)		—		—		(25,448)
General, administrative and other expense	211,874		—		(32)		211,842
Expenses of the Consolidated Funds	—		19,329		(12,265)		7,064
Total expenses	553,928		19,329		(12,297)		560,960
Other income (expense)
Net realized and unrealized gains (losses) on investments	4,209		—		(5,979)		(1,770)
Interest and dividend income	6,574		—		(1,822)		4,752
Interest expense	(25,975)		—		—		(25,975)
Other income, net	5,529		—		213		5,742
Net realized and unrealized gains on investments of the Consolidated Funds	—		71,666		7,925		79,591
Interest and other income of the Consolidated Funds	—		255,813		(213)		255,600
Interest expense of the Consolidated Funds	—		(201,622)		259		(201,363)
Total other income (expense), net	(9,663)		125,857		383		116,577
Income before taxes	142,443		106,528		(22,099)		226,872
Income tax expense	25,758		4,140		—		29,898
Net income	116,685		102,388		(22,099)		196,974
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		102,388		(22,099)		80,289
Net income attributable to Ares Operating Group entities	116,685		—		—		116,685
Less: Net income attributable to redeemable interest in Ares Operating Group entities	758		—		—		758
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	54,104		—		—		54,104



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	61,823	$	—	$	—	$	61,823

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	2,199,085	$	—	$	(36,115)	$	2,162,970
Carried interest allocation	212,493		—		(18,487)		194,006
Incentive fees	105,036		—		3		105,039
Principal investment income	12,038		—		32,509		44,547
Administrative, transaction and other fees	119,631		—		(409)		119,222
Total revenues	2,648,283		—		(22,499)		2,625,784
Expenses
Compensation and benefits	1,268,685		—		—		1,268,685
Performance related compensation	140,180		—		—		140,180
General, administrative and other expense	537,379		—		—		537,379
Expenses of the Consolidated Funds	—		48,200		(36,520)		11,680
Total expenses	1,946,244		48,200		(36,520)		1,957,924
Other income (expense)
Net realized and unrealized gains on investments	28,390		—		(14,609)		13,781
Interest and dividend income	27,953		—		(8,001)		19,952
Interest expense	(105,057)		—		—		(105,057)
Other expense, net	(19,911)		—		438		(19,473)
Net realized and unrealized gains on investments of the Consolidated Funds	—		173,486		19,292		192,778
Interest and other income of the Consolidated Funds	—		732,316		—		732,316
Interest expense of the Consolidated Funds	—		(629,695)		3,017		(626,678)
Total other income (expense), net	(68,625)		276,107		137		207,619
Income before taxes	633,414		227,907		14,158		875,479
Income tax expense	109,141		5,619		—		114,760
Net income	524,273		222,288		14,158		760,719
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		222,288		14,158		236,446
Net income attributable to Ares Operating Group entities	524,273		—		—		524,273
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,005		—		—		1,005
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	236,843		—		—		236,843



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	286,425	$	—	$	—	$	286,425

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,889,091	$	—	$	(35,787)	$	1,853,304
Carried interest allocation	551,055		—		(9,227)		541,828
Incentive fees	33,465		—		(138)		33,327
Principal investment income	130,679		—		(91,694)		38,985
Administrative, transaction and other fees	117,520		—		(7,061)		110,459
Total revenues	2,721,810		—		(143,907)		2,577,903
Expenses
Compensation and benefits	1,095,833		—		—		1,095,833
Performance related compensation	401,990		—		—		401,990
General, administrative and other expense	501,746		—		(406)		501,340
Expenses of the Consolidated Funds	—		64,365		(36,194)		28,171
Total expenses	1,999,569		64,365		(36,600)		2,027,334
Other income (expense)
Net realized and unrealized gains on investments	7,506		—		(2,280)		5,226
Interest and dividend income	19,237		—		(7,956)		11,281
Interest expense	(76,800)		—		—		(76,800)
Other expense, net	(1,583)		—		515		(1,068)
Net realized and unrealized gains on investments of the Consolidated Funds	—		165,885		22,832		188,717
Interest and other income of the Consolidated Funds	—		713,507		(515)		712,992
Interest expense of the Consolidated Funds	—		(543,684)		2,730		(540,954)
Total other income (expense), net	(51,640)		335,708		15,326		299,394
Income before taxes	670,601		271,343		(91,981)		849,963
Income tax expense	108,719		4,699		—		113,418
Net income	561,882		266,644		(91,981)		736,545
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		266,644		(91,981)		174,663
Net income attributable to Ares Operating Group entities	561,882		—		—		561,882
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(332)		—		—		(332)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	261,838		—		—		261,838



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	300,376	$	—	$	—	$	300,376

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	524,273	$	222,288	$	14,158	$	760,719
Adjustments to reconcile net income to net cash provided by operating activities	543,839		—		(114,742)		429,097








Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		854,632		(19,292)		835,340




Cash flows due to changes in operating assets and liabilities	221,389		—		37,000		258,389





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(121,365)		(178,644)		(300,009)




Net cash provided by operating activities	1,289,501		955,555		(261,520)		1,983,536
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(82,203)		—		—		(82,203)
Acquisitions	(13,683)		—		—		(13,683)
Net cash used in investing activities	(95,886)		—		—		(95,886)
Cash flows from financing activities:
Net proceeds from issuance of Class A common stock	407,236		—		—		407,236
Proceeds from Credit Facility	970,000		—		—		970,000

Repayments of Credit Facility	(1,395,000)		—		—		(1,395,000)

Dividends and distributions	(969,360)		—		—		(969,360)

Stock option exercises	1,511		—		—		1,511
Taxes paid related to net share settlement of equity awards	(211,615)		—		—		(211,615)
Other financing activities	485		—		—		485
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		473,091		71,203		544,294
Distributions to non-controlling interests in Consolidated Funds	—		(100,416)		23,914		(76,502)

Borrowings under loan obligations by Consolidated Funds	—		323,540		—		323,540
Repayments under loan obligations by Consolidated Funds	—		(1,504,344)		—		(1,504,344)
Net cash used in financing activities	(1,196,743)		(808,129)		95,117		(1,909,755)
Effect of exchange rate changes	4,992		18,977		—		23,969
Net change in cash and cash equivalents	1,864		166,403		(166,403)		1,864
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	350,138	$	1,315,914	$	(1,315,914)	$	350,138
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)


	Nine months ended September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	561,882	$	266,644	$	(91,981)	$	736,545
Adjustments to reconcile net income to net cash provided by (used in) operating activities	23,920		—		288,260		312,180







Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds	—		(926,076)		(22,832)		(948,908)





Cash flows due to changes in operating assets and liabilities	139,111		—		(3,451)		135,660





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		228,877		(137,563)		91,314




Net cash provided by (used in) operating activities	724,913		(430,555)		32,433		326,791
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(44,177)		—		—		(44,177)

Net cash used in investing activities	(44,177)		—		—		(44,177)
Cash flows from financing activities:

Proceeds from Credit Facility	735,000		—		—		735,000


Repayments of Credit Facility	(670,000)		—		—		(670,000)
Dividends and distributions	(760,085)		—		—		(760,085)


Stock option exercises	80,426		—		—		80,426
Taxes paid related to net share settlement of equity awards	(145,421)		—		—		(145,421)
Other financing activities	902		—		—		902
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		944,485		(208,541)		735,944
Distributions to non-controlling interests in Consolidated Funds	—		(72,375)		15,430		(56,945)
Redemptions of redeemable interests in Consolidated Funds	—		(553,718)		—		(553,718)
Borrowings under loan obligations by Consolidated Funds	—		549,664		—		549,664
Repayments under loan obligations by Consolidated Funds	—		(257,370)		—		(257,370)
Net cash provided by (used in) financing activities	(759,178)		610,686		(193,111)		(341,603)
Effect of exchange rate changes	282		(19,453)		—		(19,171)
Net change in cash and cash equivalents	(78,160)		160,678		(160,678)		(78,160)
Cash and cash equivalents, beginning of period	389,987		724,641		(724,641)		389,987
Cash and cash equivalents, end of period	$	311,827	$	885,319	$	(885,319)	$	311,827
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	116,101	$	—	$	—	$	116,101
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 September 30, 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 October 2024, the Company entered into a definitive agreement to acquire the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), and existing capital commitments to certain managed funds (such acquisition of GCP International and the capital commitments, the “GCP Acquisition”). The total initial consideration for the GCP Acquisition is approximately $3.7 billion, comprised of approximately $1.8 billion of cash consideration and approximately $1.9 billion of equity consideration, in each case subject to certain adjustments. The sellers are also eligible to additional variable consideration in the form of an earn-out provision not to exceed $1.5 billion.

In October 2024, the Company issued 30,000,000 shares of its Series B mandatory convertible preferred stock, par value $0.01 per share (the “Series B Mandatory Convertible Preferred Stock”) (including 3,000,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares), for total proceeds of $1,462.5 million (after deducting underwriting discounts but before offering expenses). The Series B Mandatory Convertible Preferred Stock will accumulate dividends at a rate per annum equal to 6.75% on the liquidation preference thereof, and will be payable when, as and if declared by the Company’s board of directors, out of funds legally available for their payment to the extent paid in cash, quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2025 and ending on, and including, October 1, 2027. In connection with this issuance, the Company amended and restated the limited partnership agreement for Ares Holdings to provide for preferred units with economic terms designed to mirror to those of the Series B Mandatory Convertible Preferred Stock.

In October 2024, the Company issued $750.0 million in aggregate principal amount of 5.60% senior notes with a maturity date of October 2054 (the “2054 Senior Notes”). The 2054 Senior Notes bear interest at a rate of 5.60% per annum, paid semi-annually and accruing from October 11, 2024.

In October 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 December 31, 2024 to common stockholders of record at the close of business on December 17, 2024.

In October 2024, the Company’s board of directors declared a quarterly dividend of $0.759375 per share of Series B Mandatory Convertible Preferred Stock payable on January 1, 2025 to preferred stockholders of record at the close of business on December 15, 2024.

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