Item 1. Financial Statements

Ares Management Corporation

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

			As of
			March 31, 2025						December 31, 2024
			(unaudited)
Assets
Cash and cash equivalents			$	618,536					$	1,507,976
Investments (includes accrued carried interest of $3,557,277 and $3,495,115 as of March 31, 2025 and December 31, 2024, respectively)			4,892,289						4,644,775
Due from affiliates			1,122,790						1,056,608
Other assets			863,339						774,654
Right-of-use operating lease assets			546,814						511,319
Intangible assets, net			2,276,847						975,828
Goodwill			3,499,341						1,162,636
Assets of Consolidated Funds:
Cash and cash equivalents			1,184,275						1,227,489
Investments held in trust account			556,498						550,800
Investments, at fair value			11,419,808						12,187,044
Receivable for securities sold			142,902						202,782
Other assets			58,329						82,397
Total assets			$	27,181,768					$	24,884,308
Liabilities
Accounts payable, accrued expenses and other liabilities			$	855,831					$	363,872
Accrued compensation			300,756						280,894
Due to affiliates			721,848						500,480
Performance related compensation payable			2,599,227						2,537,203
Debt obligations			3,544,527						2,558,914
Operating lease liabilities			686,038						641,864
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities			140,953						323,100
Payable for securities purchased			415,332						332,406
CLO loan obligations, at fair value			8,522,002						9,672,189
Fund borrowings			603,307						275,000
Total liabilities			18,389,821						17,485,922
Commitments and contingencies (Note 8)
Redeemable interest in Consolidated Funds			556,398						550,700
Redeemable interest in Ares Operating Group entities			23,710						23,496
Non-controlling interests in Consolidated Funds			2,140,044						2,025,666
Non-controlling interests in Ares Operating Group entities			1,617,688						1,254,878
Stockholders’ Equity
Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding as of March 31, 2025)			1,459,918						1,458,771
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (214,895,604 shares and 199,872,571 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively)			2,149						1,999
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of March 31, 2025 and December 31, 2024)			35						35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024)			—						—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (108,114,920 shares and 109,806,689 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively)			1,081						1,098
Additional paid-in-capital			4,040,708						2,936,794
Accumulated deficit			(1,074,128)						(837,294)
Accumulated other comprehensive income (loss), net of tax			24,344						(17,757)
Total stockholders’ equity			4,454,107						3,543,646
Total equity			8,211,839						6,824,190
Total liabilities, redeemable interest, non-controlling interests and equity			$	27,181,768					$	24,884,308

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Operations

(Amounts in Thousands, Except Share Data) (unaudited)

			Three months ended March 31,
			2025						2024
Revenues
Management fees			$	816,987					$	687,692
Carried interest allocation			160,008						(32,478)
Incentive fees			32,048						8,667
Principal investment income			21,998						7,050
Administrative, transaction and other fees			57,764						36,432
Total revenues			1,088,805						707,363
Expenses
Compensation and benefits			657,125						412,951
Performance related compensation			122,633						(50,532)
General, administrative and other expenses			227,914						170,928
Expenses of Consolidated Funds			6,656						5,146
Total expenses			1,014,328						538,493
Other income (expense)
Net realized and unrealized gains on investments			268						10,516
Interest and dividend income			17,656						5,382
Interest expense			(36,387)						(37,824)
Other income (expense), net			(10,714)						270
Net realized and unrealized gains on investments of Consolidated Funds			88,406						34,424
Interest and other income of Consolidated Funds			160,072						257,276
Interest expense of Consolidated Funds			(152,740)						(207,866)
Total other income, net			66,561						62,178
Income before taxes			141,038						231,048
Income tax expense			17,537						27,233
Net income			123,501						203,815
Less: Net income attributable to non-controlling interests in Consolidated Funds			55,977						66,716
Net income attributable to Ares Operating Group entities			67,524						137,099
Less: Net income attributable to redeemable interest in Ares Operating Group entities			316						73
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			20,038						63,999
Net income attributable to Ares Management Corporation			47,170						73,027
Less: Series B mandatory convertible preferred stock dividends declared			25,313						—
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	21,857					$	73,027
Net income per share of Class A and non-voting common stock:
Basic			$	0.00					$	0.33
Diluted			$	0.00					$	0.33
Weighted-average shares of Class A and non-voting common stock:
Basic			209,350,849						192,622,609
Diluted			209,350,849						192,622,609

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

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Comprehensive Income

(Amounts in Thousands) (unaudited)

						Three months ended March 31,
						2025						2024
Net income						$	123,501					$	203,815
Foreign currency translation adjustments, net of tax						70,571						(11,647)
Total comprehensive income						194,072						192,168
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds						62,315						63,108
Less: Comprehensive income (loss) attributable to redeemable interest in Ares Operating Group entities						514						(184)
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities						41,972						61,067
Comprehensive income attributable to Ares Management Corporation						$	89,271					$	68,177

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)

												Series B Mandatory Convertible Preferred Stock						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, 2024												$	1,458,771					$	1,999					$	35					$	1,098					$	2,936,794					$	(837,294)					$	(17,757)					$	1,254,878					$	2,025,666					$	6,824,190
Changes in ownership interests and related tax benefits												—						47						—						(20)						(707,255)						—						—						354,253						(34,832)						(387,807)
Adjustment to issuance costs of Series B mandatory convertible preferred stock												1,147						—						—						—						—						—						—						—						—						1,147
Issuances of common stock												—						103						—						—						1,642,214						—						—						—						—						1,642,317
Issuances of AOG Units												—						—						—						3						—						—						—						15,561						—						15,564
Capital contributions												—						—						—						—						—						—						—						120						405,068						405,188
Dividends/distributions												(25,313)						—						—						—						—						(258,691)						—						(138,003)						(318,173)						(740,180)
Net income												25,313						—						—						—						—						21,857						—						20,038						55,977						123,185
Currency translation adjustment, net of tax												—						—						—						—						—						—						42,101						21,934						6,338						70,373
Equity compensation												—						—						—						—						168,955						—						—						88,907						—						257,862
Balance as of March 31, 2025												$	1,459,918					$	2,149					$	35					$	1,081					$	4,040,708					$	(1,074,128)					$	24,344					$	1,617,688					$	2,140,044					$	8,211,839

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)

												Series B Mandatory Convertible Preferred Stock						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
Changes in ownership interests and related tax benefits												—						15						—						(14)						23,944						—						—						(19,708)						(16,187)						(11,950)
Issuance of Series B mandatory convertible preferred stock												1,458,771						—						—						—						—						—						—						—						—						1,458,771
Issuances of common stock												—						1						—						—						(113)						—						—						1						—						(111)
Capital contributions												—						—						—						—						—						—						—						1,801						94,860						96,661
Dividends/distributions												(22,781)						—						—						—						—						(199,432)						—						(142,104)						(47,519)						(411,836)
Net income												22,781						—						—						—						—						154,536						—						114,275						59,326						350,918
Currency translation adjustment, net of tax												—						—						—						—						—						—						(26,207)						(15,149)						(13,760)						(55,116)
Equity compensation												—						—						—						—						56,070						—						—						30,514						—						86,584
Balance as of December 31, 2024												$	1,458,771					$	1,999					$	35					$	1,098					$	2,936,794					$	(837,294)					$	(17,757)					$	1,254,878					$	2,025,666					$	6,824,190

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Cash Flows

(Amounts in Thousands)

(unaudited)

			Three months ended March 31,
			2025						2024
Cash flows from operating activities:
Net income			$	123,501					$	203,815
Adjustments to reconcile net income to net cash provided by operating activities			310,333						222,996
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds			968,969						244,182
Cash flows due to changes in operating assets and liabilities			227,706						103,981
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds			363,694						(64,929)
Net cash provided by operating activities			1,994,203						710,045
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(21,975)						(26,071)
Acquisitions, net of cash acquired			(1,722,715)						(8,000)
Net cash used in investing activities			(1,744,690)						(34,071)
Cash flows from financing activities:
Proceeds from Credit Facility			1,125,000						290,000
Repayments of Credit Facility			(140,000)						(210,000)
Dividends and distributions			(445,088)						(320,046)
Stock option exercises			—						1,511
Taxes paid related to net share settlement of equity awards			(396,722)						(186,731)
Other financing activities			457						1,034
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			89,080						168,673
Distributions to non-controlling interests in Consolidated Funds			(318,174)						(26,908)
Borrowings under loan obligations by Consolidated Funds			172,606						36,947
Repayments under loan obligations by Consolidated Funds			(1,264,886)						(421,112)
Net cash used in financing activities			(1,177,727)						(666,632)
Effect of exchange rate changes			38,774						(11,285)
Net change in cash and cash equivalents			(889,440)						(1,943)
Cash and cash equivalents, beginning of period			1,507,976						348,274
Cash and cash equivalents, end of period			$	618,536					$	346,331
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities			$	1,657,881					$	7,724

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 14. 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, 2024 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 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.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disaggregated disclosure of certain expenses in the notes to the consolidated financial statements, including purchases of inventory, employee compensation, depreciation and intangible asset amortization. The amendments in this update also require disclosure of: (i) the expense captions from the Condensed Consolidated Statements of Operations that include each of the relevant expense categories; (ii) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (iii) total selling expenses and a definition of such expenses. ASU 2024-03 is effective for the Company’s fiscal year ending December 31, 2027. Early adoption is permitted and the amendments in this update may be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of this guidance.

3. BUSINESS COMBINATIONS

Acquisition of GCP International

On March 1, 2025, the Company completed the acquisition of 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 GCP Acquisition adds complementary real estate and digital infrastructure investment capabilities and expands the Company’s geographic presence. The activities of GCP International are included within the Real Assets Group segment.

The acquisition date fair value of the consideration transferred totaled $3.9 billion, which consisted of the following:

Cash			$	1,794,641
Equity(1)			1,657,881
Contingent consideration(2)			465,080
Total			$	3,917,602

(1)9.5 million shares of Class A common stock, excluding 0.1 million shares held in escrow for future issuance, and 0.1 million Ares Operating Group Units (“AOG Units”) were issued in connection with the GCP Acquisition purchase consideration.

(2)See “Note 8. Commitments and Contingencies” for a further description of the contingent consideration from the GCP Acquisition.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

The following is a summary of the fair values of assets acquired and liabilities assumed for the GCP Acquisition as of March 1, 2025, based upon third party valuations of certain intangible assets. The fair value of assets acquired and liabilities assumed are estimated to be:

Cash			$	66,682
Other tangible assets			456,224
Intangible assets:
Management contracts			473,300
Client relationships			107,200
Finite-lived intangible assets			580,500
Indefinite-lived management contracts			749,600
Total intangible assets			1,330,100
Total identifiable assets acquired			1,853,006
Accounts payable, accrued expenses and other liabilities			233,015
Net identifiable assets acquired			1,619,991
Goodwill			2,297,611
Net assets acquired			$	3,917,602

Certain management contracts were determined to have indefinite useful lives at the time of the GCP Acquisition and are not subject to amortization. As of March 1, 2025, the remaining management contracts and client relationships had a weighted average amortization period of 5.8 years and 7.6 years, respectively.

As of March 1, 2025, the carrying value of goodwill associated with GCP Acquisition was $2.3 billion, of which $1.1 billion is deductible for tax purposes. The goodwill is entirely allocated to the Real Assets Group segment and is attributable primarily to expected synergies and the assembled workforce of GCP International.

In connection with the GCP Acquisition, various components of the agreed upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became employees of the Company following the GCP Acquisition. Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration. During the three months ended March 31, 2025, $8.8 million of acquisition related compensation costs were expensed and recorded within compensation and benefits within the Condensed Consolidated Statements of Operations. Because the purchase price included components of cash and equity, the individuals that became employees of the Company also received a portion of their sales proceeds in the form of equity, which was recorded as equity compensation expense. During the three months ended March 31, 2025, $108.8 million of equity compensation expense was recognized from the immediate vesting of 0.6 million restricted units, of which 0.2 million shares were withheld for taxes. As of March 1, 2025, there were 2.3 million unvested equity awards and 0.2 million unvested AOG Unit awards related to these arrangements (collectively, the “Unvested GCP Equity Purchase Price”). During the three months ended March 31, 2025, $10.3 million of equity compensation expense was recognized in connection with the Unvested GCP Equity Purchase Price. The total compensation expense expected to be recognized in all future periods associated with the Unvested GCP Equity Purchase Price is approximately $411.5 million as of March 31, 2025 and is expected to be recognized over the remaining weighted average period of 3.6 years.

The Company has incurred $69.2 million of acquisition related costs, of which $33.7 million was incurred during the three months ended March 31, 2025. These acquisition related costs were expensed and reported within general, administrative and other expenses.

GCP International’s revenues and net income of $38.8 million and $7.6 million, respectively, are included in the Condensed Consolidated Statements of Operations before giving effect to corporate level taxes for the period from March 1, 2025 through March 31, 2025. The Company did not acquire all of the assets or assume all of the liabilities of the legacy business. GCP International represents an aggregation of various businesses and components of other businesses that operate in different jurisdictions, each that historically used a different basis of accounting. There are no historical financial statements that apply consistent management assumptions and use a consistent basis of accounting. Therefore, it is impracticable to provide pro forma information on revenues and earnings for the GCP Acquisition.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

4. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

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

			Weighted Average Amortization Period (in years) as of March 31, 2025						As of March 31,						As of December 31,
						2025						2024
Management contracts			5.2						$	1,034,593					$	590,675
Client relationships			7.5						317,920						210,720
Other			0.0						—						500
Finite-lived intangible assets									1,352,513						801,895
Foreign currency translation									7,737						(789)
Total finite-lived intangible assets									1,360,250						801,106
Less: accumulated amortization									(400,803)						(393,078)
Finite-lived intangible assets, net									959,447						408,028
Indefinite-lived management contracts									1,317,400						567,800
Intangible assets, net									$	2,276,847					$	975,828

Amortization expense associated with intangible assets was $37.3 million, and $29.2 million for the three months ended March 31, 2025 and 2024, respectively, and has been presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2025, the Company removed $29.9 million of fully-amortized management contracts.

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, 2024			$	312,032					$	311,569					$	121,408					$	417,627											$	1,162,636
Acquisitions			—						2,297,710						—						—												2,297,710
Reallocation			—						—						—						—												—
Foreign currency translation			194						38,796						—						5												38,995
Balance as of March 31, 2025			$	312,226					$	2,648,075					$	121,408					$	417,632											$	3,499,341

There was no impairment of goodwill recorded during the three months ended March 31, 2025 and 2024. The impact of foreign currency translation adjustments is reflected within the Condensed Consolidated Statements of Comprehensive Income.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

5. INVESTMENTS

The following table summarizes the Company’s investments:

			As of												Percentage of total investments as of
			March 31,						December 31,						March 31,						December 31,
			2025						2024						2025						2024
Equity method investments:
Equity method - carried interest			$	3,557,277					$	3,495,115					72.7%						75.2%
Equity method private investment partnership interests - principal			604,691						536,912						12.4						11.6
Equity method private investment partnership interests and other (held at fair value)			426,613						411,417						8.7						8.9
Equity method private investment partnership interests and other			66,896						55,461						1.4						1.2
Total equity method investments			4,655,477						4,498,905						95.2						96.9
Collateralized loan obligations			18,492						19,040						0.4						0.4
Fixed income securities			170						22,793						—						0.5
Collateralized loan obligations and fixed income securities, at fair value			18,662						41,833						0.4						0.9
Common stock, at fair value			218,150						104,037						4.5						2.2
Total investments			$	4,892,289					$	4,644,775

Equity Method Investments

The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the three months ended March 31, 2025 and 2024, no individual equity method investment held by the Company met the significance criteria.

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

												Three months ended March 31,
																		2025						2024
Total other income, net related to equity method investments																		$	30,964					$	10,127

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.

Equity Method Investments Held at Fair Value

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

									Three months ended March 31,
															2025						2024
Equity method private investment partnership interests and other (held at fair value)															$	4,281					$	2,479

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Investments of the Consolidated Funds

The following table summarizes investments held in the Consolidated Funds:

			Fair Value as of												Percentage of total investments as of
			March 31,						December 31,						March 31,						December 31,
			2025						2024						2025						2024
Fixed income investments:
Loans and securitization vehicles			$	6,880,718					$	7,907,449					57.4%						62.1%
Money market funds and U.S. treasury securities			556,498						550,800						4.6						4.3
Bonds			344,140						418,069						2.9						3.3
Total fixed income investments			7,781,356						8,876,318						64.9						69.7
Partnership interests			2,318,557						2,000,380						19.4						15.7
Equity securities			1,876,393						1,861,146						15.7						14.6
Total investments, at fair value			$	11,976,306					$	12,737,844

As of March 31, 2025 and December 31, 2024, 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.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

6. FAIR VALUE

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

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of March 31, 2025:

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						$	77,066					$	141,084					$	426,377					$	—					$	644,527
Collateralized loan obligations and fixed income securities						—						—						18,662						—						18,662
Partnership interests						—						—						—						238						238
Total investments, at fair value						77,066						141,084						445,039						238						663,427
Derivatives-foreign currency forward contracts						—						1,496						—						—						1,496
Total assets, at fair value						$	77,066					$	142,580					$	445,039					$	238					$	664,923
Liabilities, at fair value
Derivatives-foreign currency forward contracts						$	—					$	(902)					$	—					$	—					$	(902)
Contingent consideration						—						—						(484,954)						—						(484,954)
Total liabilities, at fair value						$	—					$	(902)					$	(484,954)					$	—					$	(485,856)

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						$	—					$	6,302,334					$	578,384					$	—					$	6,880,718
Money market funds						556,498						—						—						—						556,498
Bonds						—						341,532						2,608						—						344,140
Total fixed income investments						556,498						6,643,866						580,992						—						7,781,356
Partnership interests						—						—						—						2,318,557						2,318,557
Equity securities						29,484						2,002						1,844,907						—						1,876,393
Total investments, at fair value						585,982						6,645,868						2,425,899						2,318,557						11,976,306
Derivatives-foreign currency forward contracts						—						9,668						—						—						9,668
Total assets, at fair value						$	585,982					$	6,655,536					$	2,425,899					$	2,318,557					$	11,985,974
Liabilities, at fair value
Loan obligations of CLOs						$	—					$	(8,522,002)					$	—					$	—					$	(8,522,002)
Derivatives:
Foreign currency forward contracts						—						(9,890)						—						—						(9,890)
Asset swaps						—						—						(749)						—						(749)
Total derivative liabilities, at fair value						—						(9,890)						(749)						—						(10,639)
Total liabilities, at fair value						$	—					$	(8,531,892)					$	(749)					$	—					$	(8,532,641)

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 financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2024:

Financial Instruments of the Company						Level I						Level II						Level III						Investments Measured at NAV						Total
Assets, at fair value
Cash equivalents:
Money market funds						$	1,071,071					$	—					$	—					$	—					$	1,071,071
Investments:
Common stock and other equity securities						—						104,037						411,179						—						515,216
Collateralized loan obligations and fixed income securities						—						—						41,833						—						41,833
Partnership interests						—						—						—						238						238
Total investments, at fair value						—						104,037						453,012						238						557,287
Derivatives-foreign currency forward contracts						—						3,737						—						—						3,737
Total assets, at fair value						$	1,071,071					$	107,774					$	453,012					$	238					$	1,632,095
Liabilities, at fair value
Derivatives-foreign currency forward contracts						$	—					$	(216)					$	—					$	—					$	(216)
Contingent consideration						—						—						(17,550)						—						(17,550)
Total liabilities, at fair value						$	—					$	(216)					$	(17,550)					$	—					$	(17,766)

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						$	—					$	7,313,632					$	593,817					$	—					$	7,907,449
U.S. treasury securities						550,800						—						—						—						550,800
Bonds						—						418,069						—						—						418,069
Total fixed income investments						550,800						7,731,701						593,817						—						8,876,318
Partnership interests						—						—						—						2,000,380						2,000,380
Equity securities						28,603						2,615						1,829,928						—						1,861,146
Total investments, at fair value						579,403						7,734,316						2,423,745						2,000,380						12,737,844
Derivatives-foreign currency forward contracts						—						2,995						—						—						2,995
Total assets, at fair value						$	579,403					$	7,737,311					$	2,423,745					$	2,000,380					$	12,740,839
Liabilities, at fair value
Loan obligations of CLOs						$	—					$	(9,672,189)					$	—					$	—					$	(9,672,189)
Derivatives:
Foreign currency forward contracts						—						(2,888)						—						—						(2,888)
Asset swaps						—						—						(1,846)						—						(1,846)
Total derivative liabilities, at fair value						—						(2,888)						(1,846)						—						(4,734)
Total liabilities, at fair value						$	—					$	(9,675,077)					$	(1,846)					$	—					$	(9,676,923)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

Level III Assets of the Company						Equity Securities						Fixed Income												Contingent Consideration						Total
Balance as of December 31, 2024						$	411,179					$	41,833											$	(17,550)					$	435,462
Established in connection with acquisition (see Note 8)						—						—												(465,080)						(465,080)
Purchases(1)						10,546						1,530												—						12,076
Sales/settlements(2)						—						(23,657)												—						(23,657)
Change in fair value						—						—												(2,324)						(2,324)
Realized and unrealized appreciation (depreciation), net						4,652						(1,044)												—						3,608
Balance as of March 31, 2025						$	426,377					$	18,662											$	(484,954)					$	(39,915)
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date						$	4,652					$	(372)											$	(2,324)					$	1,956

Level III Net Assets of Consolidated Funds						Equity Securities						Fixed Income												Derivatives, Net						Total
Balance as of December 31, 2024						$	1,829,927					$	593,817											$	(1,846)					$	2,421,898
Transfer in(3)						1						82,478												—						82,479
Transfer out(3)						—						(72,264)												—						(72,264)
Purchases(1)						285						247,859												124						248,268
Sales/settlements(2)						(88)						(267,745)												—						(267,833)
Realized and unrealized appreciation (depreciation), net						14,782						(3,153)												973						12,602
Balance as of March 31, 2025						$	1,844,907					$	580,992											$	(749)					$	2,425,150
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date						$	15,102					$	(2,824)											$	851					$	13,129

(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.

(3)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds.

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

Level III Net Assets of Consolidated Funds						Equity Securities						Fixed Income												Derivatives, Net						Total
Balance as of December 31, 2023						$	1,190,400					$	740,113											$	(1,291)					$	1,929,222
Transfer in(3)						—						91,729												—						91,729
Transfer out(3)						—						(172,358)												—						(172,358)
Purchases(1)						154,475						263,706												46						418,227
Sales/settlements(2)						—						(285,911)												—						(285,911)
Realized and unrealized appreciation (depreciation), net						21,589						2,039												(329)						23,299
Balance as of March 31, 2024						$	1,366,464					$	639,318											$	(1,574)					$	2,004,208
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date						$	22,225					$	1,420											$	(380)					$	23,265

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

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

(3)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds.

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of March 31, 2025:

Level III Measurements of the Company						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	180,220					Transaction price(1)						N/A						N/A						N/A
						100,000						Market yield analysis						Market interest rate						8.0%						8.0%
						60,856						Market approach						Multiple of book value						1.3x - 1.5x						1.4x
						56,273						Market approach						Multiple of book value						0.7x - 0.9x						0.8x
												Discounted cash flow						Discount rate						11.0% - 15.0%						13.0%
						19,344						Option pricing model						Volatility						35.0%						35.0%
						9,684						Market approach						Earnings multiple						15.4x						15.4x
Fixed income investments
						18,492						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						170						Other						N/A						N/A						N/A
Total assets						$	445,039
Liabilities
Contingent consideration						$	(484,954)					Monte Carlo simulation						Discount rate						6.6% - 7.0%						7.0%
																		Volatility						11.1% - 15.1%						14.9%
Total liabilities						$	(484,954)

Level III Measurements of the Consolidated Funds						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	968,124					Discounted cash flow						Discount rate						10.0% - 20.0%						12.0%
						869,412						Market approach						Multiple of book value						1.0x - 1.7x						1.3x
						6,584						Market approach						EBITDA multiple(2)						5.3x - 35.0x						9.2x
						787						Market approach						Yield						6.4% - 23.7%						9.8%
Fixed income investments
						291,675						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						287,874						Market approach						Yield						6.4% - 23.7%						9.9%
						1,443						Discounted cash flow						Discount rate						14.5% - 20.0%						12.8%
Total assets						$	2,425,899
Liabilities
Derivative instruments						$	(749)					Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
Total liabilities						$	(749)

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

Level III Measurements of the Company						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	168,387					Transaction price(1)						N/A						N/A						N/A
						100,000						Market approach						Yield						8.0%						8.0%
						57,659						Market approach						Multiple of book value						1.0x - 1.1x						1.0x
												Discounted cash flow						Discount rate						10.0% - 14.0%						12.0%
						56,918						Market approach						Multiple of book value						1.2x - 1.7x						1.4x
						19,205						Option pricing model						Volatility						35.0%						35.0%
						8,489						Market approach						Earnings multiple						15.4x						15.4x
						521						Discounted cash flow						Discount rate						18.5% - 21.5%						20.0%
Fixed income investments
						22,283						Transaction price(1)						N/A						N/A						N/A
						19,040						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						510						Other						N/A						N/A						N/A
Total assets						$	453,012
Liabilities
Contingent consideration						$	(17,550)					Monte Carlo simulation						Discount rate						6.6% - 6.9%						6.8%
																		Volatility						11.1%						11.1%
Total liabilities						$	(17,550)

Level III Measurements of the Consolidated Funds						Fair Value						Valuation Technique(s)						Significant Unobservable Input(s)						Range						Weighted Average
Assets
Equity securities
						$	985,109					Discounted cash flow						Discount rate						10.0% - 20.0%						13.0%
						835,432						Market approach						Multiple of book value						1.0x - 1.7x						1.4x
						8,598						Market approach						EBITDA multiple(2)						5.6x - 34.6x						10.7x
						789						Other						N/A						N/A						N/A
Fixed income investments
						308,675						Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
						284,950						Market approach						Yield						7.4% - 28.6%						9.9%
						192						Other						N/A						N/A						N/A
Total assets						$	2,423,745
Liabilities
Derivative instruments						$	(1,846)					Broker quotes and/or 3rd party pricing services						N/A						N/A						N/A
Total liabilities						$	(1,846)

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

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

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

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

						As of March 31, 2025						As of December 31, 2024
Investments (held at fair value)						$	2,318,557					$	2,000,380
Unfunded commitments						1,088,937						932,473

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

7. DEBT

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

																					As of March 31, 2025												As of December 31, 2024
			Debt Origination Date						Maturity						Original Borrowing Amount						Carrying Value						Interest Rate						Carrying Value						Interest Rate
Credit Facility(1)			Revolving						3/31/2029						N/A						$	985,000					5.37%						$	—					—%
2028 Senior Notes(2)			11/10/2023						11/10/2028						500,000						495,952						6.42						495,677						6.42
2030 Senior Notes(3)			6/15/2020						6/15/2030						400,000						397,614						3.28						397,501						3.28
2052 Senior Notes(4)			1/21/2022						2/1/2052						500,000						484,702						3.77						484,601						3.77
2054 Senior Notes(5)			10/11/2024						10/11/2054						750,000						736,087						5.65						736,010						5.65
2051 Subordinated Notes(6)			6/30/2021						6/30/2051						450,000						445,172						4.13						445,125						4.13
Total debt obligations																					$	3,544,527											$	2,558,914

(1)As of March 31, 2025, the revolver commitments were $1.400 billion, with an accordion feature of $600.0 million. 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 targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.10%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero. Due to the achievement of the certain targets, the Company’s applicable margin and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through April 2025. In April 2025, the Company amended its Credit Facility to, among other things: (i) extend the maturity to April 22, 2030; (ii) increase commitments to $1.840 billion, with an accordion feature of $660.0 million; and (iii) provide a sub-limit for the issuance of swingline loans up to an aggregate amount of $75.0 million (with the amount available for borrowing under the Credit Facility amendment being reduced by any swingline loans issued). As of May 12, 2025, 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 0.09% per annum.

(2)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.

(3)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.

(4)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.

(5)The 2054 Senior Notes were issued in October 2024 by the Company at 99.24% of the face amount with interest paid semi-annually. The Company may redeem the 2054 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2054 Senior Notes.

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

As of March 31, 2025, 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 various senior notes (the “Senior Notes”) and the subordinated notes (the “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, 2024			$	4,858					$	18,725					$	4,875
Debt issuance costs incurred			—						11						—
Amortization of debt issuance costs			(286)						(436)						(46)
Unamortized debt issuance costs as of March 31, 2025			$	4,572					$	18,300					$	4,829

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Loan Obligations of the Consolidated CLOs

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

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

									As of March 31, 2025																					As of December 31, 2024
									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									$	7,806,027					5.77%						8.0									$	8,937,972					6.08%						8.0
Subordinated notes(1)									715,975						N/A						5.2									734,217						N/A						5.6
Total loan obligations of Consolidated CLOs									$	8,522,002																				$	9,672,189

(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 March 31, 2025 and December 31, 2024, the Consolidated Funds were in compliance with all covenants under such credit facilities.

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

																		As of March 31, 2025												As of December 31, 2024
						Maturity Date						Total Capacity						Outstanding Loan**(1)**						Effective Rate						Outstanding Loan**(1)**						Effective Rate
Credit Facilities:
						9/25/2025						$	150,000					$	121,000					8.00%						$	121,000					8.00%
						1/28/2026						100,000						81,300						6.51						N/A						N/A
						9/24/2026						150,000						—						N/A						—						N/A
						6/26/2027						200,000						200,000						7.15						154,000						7.15
						9/12/2027						54,000						—						N/A						—						N/A
						6/23/2032						201,007						201,007						7.23						N/A						N/A
Total borrowings of Consolidated Funds																		$	603,307											$	275,000

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

8. COMMITMENTS AND CONTINGENCIES

Indemnification Arrangements

Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Condensed Consolidated Statements of Financial Condition. As of March 31, 2025, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Commitments

As of March 31, 2025 and December 31, 2024, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $1,554.3 million and $1,451.4 million, respectively.

Guarantees

The guarantee agreements that the Company enters into with financial institutions are primarily to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund. As of March 31, 2025 and December 31, 2024, the Company’s maximum exposure to losses from guarantees was $7.4 million and $1.1 million, respectively.

Contingent Liabilities

GCP International

In connection with the GCP Acquisition during the first quarter of 2025, the Company established two arrangements with the sellers and with certain of its professionals that became employees of the Company, including (i) an earnout arrangement related to the data center business (“DC Earnout”) based on the achievement of certain revenue targets associated with certain digital infrastructure funds; and (ii) an earnout arrangement related to the Japan business (“Japan Earnout”) based on the achievement of fundraising targets of certain Japanese real estate equity funds. The DC Earnout and Japan Earnout represent contingent liabilities not to exceed $1.0 billion and $0.5 billion, respectively.

The portion of the DC Earnout and Japan Earnout attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. As of March 1, 2025, the fair value of these contingent liabilities was $465.1 million and was recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. The contingent liabilities are subject to change over the measurement periods, which will end no later than June 30, 2028. Changes in fair value from the acquisition date will be recorded within other income (expense), net within the Condensed Consolidated Statements of Operations. The Company expects to settle the contingent liabilities at the Company's discretion with no less than 15.0% cash and the remaining balance in equity awards.

The portion of the DC Earnout and Japan Earnout attributable to the professionals that became employees of the Company requires continued service through the measurement periods. The Company expects to settle the contingent liabilities at the Company's discretion with no less than 15.0% cash and the remaining balance in equity awards. The DC Earnout and Japan Earnout are remeasured each period with incremental changes in fair value for the cash and equity components of these liabilities recognized within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following the measurement period end dates, the cash components will be paid and the equity awards will be granted at fair value for the balance of the liability. As of March 31, 2025, the fair value of the contingent liabilities was $199.4 million. Compensation expense of $4.3 million for the three months ended March 31, 2025 is presented within compensation and benefits within the Condensed Consolidated Statements of Operations with an equal offset presented within accrued compensation within the Condensed Consolidated Statements of Financial Condition. The unpaid liabilities at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital. Any compensation expense associated with the DC Earnout and Japan Earnout that was not previously recorded through the final measurement period end date will be recognized as equity-based compensation expense over the remaining service periods ranging from three to six years, measured from the GCP Acquisition close date.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Other Arrangements

The Company also entered into various other contingent arrangements in connection with acquisitions. The maximum exposure for these contingent arrangements was $215.0 million and $155.0 million as of March 31, 2025 and December 31, 2024, respectively.

Certain portions of these contingent arrangements require continued service through the measurement periods. As of March 31, 2025 and December 31, 2024, the fair value of these contingent liabilities was $137.6 million and $99.6 million, respectively, and the Company has recorded $38.9 million and $29.9 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $9.0 million and $5.5 million for the three months ended March 31, 2025 and 2024, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations.

The remaining portions of these contingent arrangements did not require continued service through the measurement periods and were classified as contingent consideration. As of March 31, 2025 and December 31, 2024, the fair value of these contingent liabilities was $19.9 million and $17.6 million, respectively, and recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. Other expense of $2.3 million for the three months ended March 31, 2025 is presented within other income (expense), net 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 exceed the preferred return threshold or the general partner has received net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement, the Company will be obligated to repay carried interest that was received by the Company in excess of the amounts to which the Company is entitled. This contingent obligation is normally reduced by income taxes paid by the Company related to its carried interest.

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

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

As of March 31, 2025 and December 31, 2024, 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 $70.8 million and $59.6 million, respectively, of which approximately $24.0 million and $39.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest. Management believes the possibility of all of the investments becoming worthless is remote. As of March 31, 2025 and December 31, 2024, 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 and other matters 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’s leases primarily consists of operating leases for office space and certain office equipment. The Company’s leases have remaining lease terms of one to 18 years. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:

Maturity of operating lease liabilities									As of March 31, 2025
2025									$	49,208
2026									74,422
2027									68,277
2028									78,393
2029									72,411
Thereafter									713,478
Total future payments									1,056,189
Less: interest									370,151
Total operating lease liabilities									$	686,038

												Three months ended March 31,
Classification within general, administrative and other expenses																		2025						2024
Operating lease expense																		$	20,955					$	15,210

						Three months ended March 31,
Supplemental information on the measurement of operating lease liabilities						2025						2024
Operating cash flows for operating leases						$	14,347					$	12,765
Leased assets obtained in exchange for new operating lease liabilities						44,118						705

									As of March 31,						As of December 31,
Lease term and discount rate									2025						2024
Weighted-average remaining lease terms (in years)									13.3						14.1
Weighted-average discount rate									5.8%						5.8%

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

9. 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.

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.

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

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

			As of March 31,						As of December 31,
			2025						2024
Due from affiliates:
Management fees receivable from non-consolidated funds			$	750,092					$	636,835
Incentive fee receivable from non-consolidated funds			16,094						172,235
Payments made on behalf of and amounts due from non-consolidated funds and employees			356,604						247,538
Due from affiliates—Company			$	1,122,790					$	1,056,608
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds			$	4,038					$	5,767
Tax receivable agreement liability			475,121						402,359
Carried interest and incentive fees payable			221,792						78,692
Payments made by non-consolidated funds on behalf of and payable by the Company			20,897						13,662
Due to affiliates—Company			$	721,848					$	500,480

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)

10. INCOME TAXES

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

			Three months ended March 31,
			2025						2024
Income tax expense			$	17,537					$	27,233

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s unaudited condensed consolidated financial statements. For the three months ended March 31, 2025 and 2024, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate.

The income tax effects of temporary differences give rise to significant portions of deferred tax assets and liabilities, which are presented on a net basis. As of March 31, 2025 and December 31, 2024, the Company recorded a net deferred tax asset of $281.7 million and $241.9 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition. As of March 31, 2025 and December 31, 2024, a deferred tax liability of $10.2 million and $8.4 million, respectively, 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 2021. 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)

11. 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 and if-converted methods.

For the three months ended March 31, 2025 and 2024, the two-class method was the more dilutive method.

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

			Three months ended March 31,
			2025						2024
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			$	21,857					$	73,027
Dividends declared and paid on Class A and non-voting common stock			(244,588)						(180,929)
Distributions on unvested restricted units			(10,794)						(7,272)
Dividends in excess of earnings available to Class A and non-voting common stockholders			$	(233,525)					$	(115,174)
Basic weighted-average shares of Class A and non-voting common stock			209,350,849						192,622,609
Dividends in excess of earnings per share of Class A and non-voting common stock			$	(1.12)					$	(0.60)
Dividend declared and paid per Class A and non-voting common stock			1.12						0.93
Basic earnings per share of Class A and non-voting common stock			$	0.00					$	0.33
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			$	21,857					$	73,027
Distributions on unvested restricted units			(10,794)						(7,272)
Net income available to Class A and non-voting common stockholders			$	11,063					$	65,755
Diluted weighted-average shares of Class A and non-voting common stock			209,350,849						192,622,609
Diluted earnings per share of Class A and non-voting common stock			$	0.00					$	0.33

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

12. EQUITY COMPENSATION

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

			Three months ended March 31,
			2025						2024
Unvested awards			$	256,902					$	92,422
AOG Unit awards			960						—
Total equity-based compensation expense			$	257,862					$	92,422

Equity Incentive Plan

Equity-based compensation is generally granted under the 2023 Ares Management Corporation 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, 2025, the total number of shares available for issuance under the Equity Incentive Plan reset to 51,846,506 shares and as of March 31, 2025, 44,401,224 shares remained available for issuance.

Generally, unvested awards 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.

Unvested Awards

Each unvested award represents either a share of the Company’s Class A common stock that is subject to restriction or a restricted unit, representing an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The unvested awards vest and the restrictions lapse or are settled in shares of Class A common stock, as applicable, over service periods generally ranging from immediate vesting to five years from 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 unvested awards is recognized on a straight-line basis over the requisite service period of the award.

Restricted units are delivered net of the holder’s payroll-related taxes upon vesting. For the three months ended March 31, 2025, 4.8 million restricted units vested and 2.7 million shares of Class A common stock were delivered to the holders. For the three months ended March 31, 2024, 3.5 million restricted units vested and 1.9 million shares of Class A common stock were delivered to the holders.

The holders of restricted units, other than awards that have not yet been issued, 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”).

The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the three months ended March 31, 2025:

Record Date						Dividends Per Share						Dividend Equivalents Paid
March 17, 2025						$	1.12					$	21,489

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 awards’ activity:

			Unvested Awards						Weighted Average Grant Date Fair Value Per Unvested Award
Balance as of December 31, 2024			17,968,940						$	79.11
Granted			7,072,634						186.23
Vested			(4,755,400)						79.14
Forfeited			(8,852)						111.79
Balance as of March 31, 2025			20,277,322						$	116.44

The total compensation expense expected to be recognized in all future periods associated with unvested awards is approximately $1,968.5 million as of March 31, 2025 and is expected to be recognized over the remaining weighted average period of 3.9 years.

Other Equity-based Compensation

In connection with the GCP Acquisition, the Company granted 0.3 million AOG Unit awards to certain professionals. Of the total AOG Unit awards granted, 0.1 million units vested on the close date of the GCP Acquisition and the remaining 0.2 million units vest in three equal installments on each of the first three anniversaries of the GCP Acquisition close date, subject to the holder’s continued employment as of the applicable vesting dates. The weighted average grant date fair value per unvested AOG Unit award was $170.94. The total compensation expense expected to be recognized in all future periods associated with unvested AOG Unit awards is approximately $35.4 million as of March 31, 2025 and is expected to be recognized over the remaining weighted average period of 2.9 years.

13. 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. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock.

In February 2025, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $750.0 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 2026. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the three months ended March 31, 2025 and 2024, the Company did not repurchase any shares as part of the stock repurchase program.

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, 2024			199,872,571						3,489,911						1,000						109,806,689						313,170,171
Issuances of common stock			10,312,965						—						—						303,500						10,616,465
Exchanges of common stock			1,995,269						—						—						(1,995,269)						—
Vesting of restricted unit awards, net of shares withheld for tax			2,714,799						—						—						—						2,714,799
Balance as of March 31, 2025			214,895,604						3,489,911						1,000						108,114,920						326,501,435

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 each partner’s AOG Units and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities:

																														Daily Average Ownership
						As of March 31, 2025												As of December 31, 2024												Three months ended March 31,
						AOG Units						Direct Ownership Interest						AOG Units						Direct Ownership Interest						2025						2024
Ares Management Corporation						218,385,515						66.89		%				203,362,482						64.94		%				65.77		%				62.32		%
Ares Owners Holdings, L.P.						108,114,920						33.11						109,806,689						35.06						34.23						37.68
Total						326,500,435						100.00		%				313,169,171						100.00		%

Preferred Stock

As of March 31, 2025 and December 31, 2024, the Company had 30,000,000 shares of Series B mandatory convertible preferred stock outstanding. When, as and if declared by the Company’s board of directors, dividends on the Series B mandatory convertible preferred stock are payable quarterly at a rate per annum equal to 6.75%. Dividends on Series B mandatory convertible preferred stock are cumulative and the Series B mandatory convertible preferred stock, unless previously converted or redeemed, will automatically convert into the Company’s Class A common stock on October 1, 2027. Unless converted earlier in accordance with its terms, each share of Series B mandatory convertible preferred stock will automatically convert on the mandatory conversion date into between 0.2717 and 0.3260 shares of the Company’s Class A common stock, in each case, subject to customary anti-dilution adjustments. The conversion rate that will apply to mandatory conversions will be determined based on the average of the daily volume-weighted average prices over the 20 consecutive trading days beginning on, and including, the 21st scheduled trading day immediately before October 1, 2027.

Holders of shares of Series B mandatory convertible preferred stock have the option to convert all or any portion of their shares of Series B mandatory convertible preferred stock at any time. The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Series B mandatory convertible preferred stock for certain unpaid accumulated dividends.

Redeemable Interest

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

			Total
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
Net loss			(902)
Currency translation adjustment, net of tax			(713)
Balance as of December 31, 2024			23,496
Net income			316
Currency translation adjustment, net of tax			198
Distributions			(300)
Balance as of March 31, 2025			$	23,710

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, 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
Change in redemption value			6,546
Balance as of December 31, 2024			550,700
Change in redemption value			5,698
Balance as of March 31, 2025			$	556,398

As of March 31, 2025 and December 31, 2024, 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.

14. SEGMENT REPORTING

The Company operates through its distinct operating segments. 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; (ii) the SPACs sponsored by the Company; and (iii) a venture capital business with fund strategies that are focused on applied artificial intelligence, 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, including Ares Wealth Management Solutions, LLC (“AWMS”). AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which may 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 Measure: Realized income (“RI”), which includes fee related earnings (“FRE”) as a component, supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

RI, a non-GAAP measure, 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.

FRE, a non-GAAP measure that is a component of RI, 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.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM 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 CODM in evaluating the segments.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

			Three months ended March 31, 2025
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	585,396					$	130,453					$	31,998					$	57,650					$	12,879					$	818,376					$	—					$	818,376
Fee related performance revenues			18,395						—						—						9,656						—						28,051						—						28,051
Other fees			10,598						21,380						397						122						136						32,633						5,537						38,170
Compensation and benefits			(164,747)						(56,702)						(13,831)						(18,371)						(7,063)						(260,714)						(116,468)						(377,182)
General, administrative and other expenses			(41,048)						(20,852)						(4,257)						(8,473)						(1,483)						(76,113)						(64,026)						(140,139)
Fee related earnings			408,594						74,279						14,307						40,584						4,469						542,233						(174,957)						367,276
Performance income—realized			54,112						65,305						6,031						—						—						125,448						—						125,448
Performance related compensation—realized			(34,258)						(46,807)						(3,351)						—						—						(84,416)						—						(84,416)
Realized net performance income			19,854						18,498						2,680						—						—						41,032						—						41,032
Investment income (loss)—realized			5,379						7,919						(4,602)						138						2,530						11,364						331						11,695
Interest income			4,420						2,618						2,022						957						11,688						21,705						603						22,308
Interest expense(1)			(6,308)						(15,717)						(4,180)						(2,008)						(7,918)						(36,131)						(256)						(36,387)
Realized net investment income (loss)			3,491						(5,180)						(6,760)						(913)						6,300						(3,062)						678						(2,384)
Realized income			$	431,939					$	87,597					$	10,227					$	39,671					$	10,769					$	580,203					$	(174,279)					$	405,924
			Three months ended March 31, 2024
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	510,966					$	93,814					$	34,933					$	44,421					$	9,231					$	693,365					$	—					$	693,365
Fee related performance revenues			755						—						—						2,962						—						3,717						—						3,717
Other fees			9,911						5,075						439						4						114						15,543						4,333						19,876
Compensation and benefits			(134,849)						(37,918)						(14,785)						(12,714)						(5,592)						(205,858)						(94,157)						(300,015)
General, administrative and other expenses			(34,366)						(14,453)						(5,216)						(9,068)						(1,690)						(64,793)						(50,480)						(115,273)
Fee related earnings			352,417						46,518						15,371						25,605						2,063						441,974						(140,304)						301,670
Performance income—realized			16,766						3,677						2,738						—						—						23,181						—						23,181
Performance related compensation—realized			(8,734)						(2,228)						(2,194)						—						—						(13,156)						—						(13,156)
Realized net performance income			8,032						1,449						544						—						—						10,025						—						10,025
Investment income—realized			1,765						2,678						298						187						2,000						6,928						11						6,939
Interest income			2,767						700						6						23						4,409						7,905						441						8,346
Interest expense(1)			(8,753)						(7,406)						(4,662)						(8,229)						(8,734)						(37,784)						(40)						(37,824)
Realized net investment income (loss)			(4,221)						(4,028)						(4,358)						(8,019)						(2,325)						(22,951)						412						(22,539)
Realized income			$	356,228					$	43,939					$	11,557					$	17,586					$	(262)					$	429,048					$	(139,892)					$	289,156

(1) Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments. Beginning in the first quarter of 2025, the Company changed its interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of its balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.

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 March 31,
			2025						2024
Segment revenues
Management fees			$	818,376					$	693,365
Fee related performance revenues			28,051						3,717
Other fees			32,633						15,543
Performance income—realized			125,448						23,181
Total segment revenues			$	1,004,508					$	735,806
Segment expenses
Compensation and benefits			$	260,714					$	205,858
General, administrative and other expenses			76,113						64,793
Performance related compensation—realized			84,416						13,156
Total segment expenses			$	421,243					$	283,807
Segment realized net investment income (loss)
Investment income—realized			$	11,364					$	6,928
Interest income			21,705						7,905
Interest expense			(36,131)						(37,784)
Total segment realized net investment loss			$	(3,062)					$	(22,951)

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

			Three months ended March 31,
			2025						2024
Total consolidated revenue			$	1,088,805					$	707,363
Performance (income) loss—unrealized			(64,443)						45,476
Management fees of Consolidated Funds eliminated in consolidation			9,894						12,453
Performance income of Consolidated Funds eliminated in consolidation			5,128						5,925
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation			124						113
Administrative fees(1)			(19,728)						(16,407)
OMG revenue			(5,537)						(4,333)
Principal investment income, net of eliminations			(21,998)						(7,050)
Net (revenue) expense of non-controlling interests in consolidated subsidiaries			12,263						(7,734)
Total consolidation adjustments and reconciling items			(84,297)						28,443
Total segment revenue			$	1,004,508					$	735,806

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

			Three months ended March 31,
			2025						2024
Total consolidated expenses			$	1,014,328					$	538,493
Performance related compensation-unrealized			(40,550)						64,514
Expenses of Consolidated Funds added in consolidation			(16,684)						(17,708)
Expenses of Consolidated Funds eliminated in consolidation			10,028						12,995
Administrative fees(1)			(19,728)						(16,407)
OMG expenses			(180,494)						(144,637)
Acquisition and merger-related expense			(34,608)						(10,578)
Equity compensation expense			(257,862)						(92,422)
Acquisition-related compensation expense(2)			(21,999)						(5,504)
Placement fee adjustment			6						(5,540)
Depreciation and amortization expense			(48,229)						(36,644)
Expense of non-controlling interests in consolidated subsidiaries			17,035						(2,755)
Total consolidation adjustments and reconciling items			(593,085)						(254,686)
Total segment expenses			$	421,243					$	283,807

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

(2)Represents bonus payments, contingent liabilities (“earnouts”) and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 8. Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

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

			Three months ended March 31,
			2025						2024
Total consolidated other income			$	66,561					$	62,178
Investment income—unrealized			(21,638)						(3,685)
Interest and other investment (income) loss—unrealized			3,774						(602)
Other income, net from Consolidated Funds added in consolidation			(86,422)						(79,977)
Other expense, net from Consolidated Funds eliminated in consolidation			1,800						902
OMG other (income) expense			4,197						(549)
Principal investment income (loss)			26,839						(2,666)
Other expense, net			2,526						131
Other (income) loss of non-controlling interests in consolidated subsidiaries			(699)						1,317
Total consolidation adjustments and reconciling items			(69,623)						(85,129)
Total segment realized net investment loss			$	(3,062)					$	(22,951)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

			Three months ended March 31,
			2025						2024
Income before taxes			$	141,038					$	231,048
Adjustments:
Depreciation and amortization expense			48,229						36,644
Equity compensation expense			257,862						92,421
Acquisition-related compensation expense(1)			21,999						5,504
Acquisition and merger-related expense			34,608						10,578
Placement fee adjustment			(6)						5,540
OMG expense, net			179,154						139,755
Other expense, net			2,526						131
Income before taxes of non-controlling interests in consolidated subsidiaries			(5,471)						(3,662)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations			(57,979)						(65,586)
Total performance (income) loss—unrealized			(64,443)						45,476
Total performance related compensation—unrealized			40,550						(64,514)
Total net investment income—unrealized			(17,864)						(4,287)
Realized income			580,203						429,048
Total performance income—realized			(125,448)						(23,181)
Total performance related compensation—realized			84,416						13,156
Total net investment loss—realized			3,062						22,951
Fee related earnings			$	542,233					$	441,974

(1)Represents bonus payments, earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 8. Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

15. CONSOLIDATION

Investments in Consolidated Variable Interest Entities

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

Investments in Non-Consolidated Variable Interest Entities

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

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

			As of March 31,						As of December 31,
			2025						2024
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs			$	481,856					$	386,927
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs			831,767						791,133
Assets of consolidated VIEs			12,804,566						13,698,611
Liabilities of consolidated VIEs			9,805,049						10,879,735

			Three months ended March 31,
			2025						2024
Net income attributable to non-controlling interests related to consolidated VIEs			$	52,976					$	58,356

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Consolidating Schedules

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

			As of March 31, 2025
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	618,536					$	—					$	—					$	618,536
Investments (includes $3,557,277 of accrued carried interest)			5,786,946						—						(894,657)						4,892,289
Due from affiliates			1,146,479						—						(23,689)						1,122,790
Other assets			863,339						—						—						863,339
Right-of-use operating lease assets			546,814						—						—						546,814
Intangible assets, net			2,276,847						—						—						2,276,847
Goodwill			3,499,341						—						—						3,499,341
Assets of Consolidated Funds
Cash and cash equivalents			—						1,184,275						—						1,184,275
Investments held in trust account			—						556,498						—						556,498
Investments, at fair value			—						11,419,808						—						11,419,808
Receivable for securities sold			—						142,902						—						142,902
Other assets			—						58,329						—						58,329
Total assets			$	14,738,302					$	13,361,812					$	(918,346)					$	27,181,768
Liabilities
Accounts payable, accrued expenses and other liabilities			$	856,109					$	—					$	(278)					$	855,831
Accrued compensation			300,756						—						—						300,756
Due to affiliates			721,848						—						—						721,848
Performance related compensation payable			2,599,227						—						—						2,599,227
Debt obligations			3,544,527						—						—						3,544,527
Operating lease liabilities			686,038						—						—						686,038
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities			—						141,625						(672)						140,953
Due to affiliates			—						22,521						(22,521)						—
Payable for securities purchased			—						415,332						—						415,332
CLO loan obligations, at fair value			—						8,647,925						(125,923)						8,522,002
Fund borrowings			—						603,307						—						603,307
Total liabilities			8,708,505						9,830,710						(149,394)						18,389,821
Commitments and contingencies
Redeemable interest in Consolidated Funds			—						556,398						—						556,398
Redeemable interest in Ares Operating Group entities			23,710						—						—						23,710
Non-controlling interest in Consolidated Funds			—						2,974,704						(834,660)						2,140,044
Non-controlling interest in Ares Operating Group entities			1,595,930						—						21,758						1,617,688
Stockholders’ Equity
Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)			1,459,918						—						—						1,459,918
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (214,895,604 shares issued and outstanding)			2,149						—						—						2,149
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 (108,114,920 shares issued and outstanding)			1,081						—						—						1,081
Additional paid-in-capital			3,996,758						—						43,950						4,040,708
Accumulated deficit			(1,074,128)						—						—						(1,074,128)
Accumulated other comprehensive loss, net of tax			24,344						—						—						24,344
Total stockholders’ equity			4,410,157						—						43,950						4,454,107
Total equity			6,006,087						2,974,704						(768,952)						8,211,839
Total liabilities, redeemable interest, non-controlling interests and equity			$	14,738,302					$	13,361,812					$	(918,346)					$	27,181,768

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, 2024
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	1,507,976					$	—					$	—					$	1,507,976
Investments (includes $3,495,115 of accrued carried interest)			5,485,012						—						(840,237)						4,644,775
Due from affiliates			1,236,450						—						(179,842)						1,056,608
Other assets			774,654						—						—						774,654
Right-of-use operating lease assets			511,319						—						—						511,319
Intangible assets, net			975,828						—						—						975,828
Goodwill			1,162,636						—						—						1,162,636
Assets of Consolidated Funds
Cash and cash equivalents			—						1,227,489						—						1,227,489
Investments held in trust account			—						550,800						—						550,800
Investments, at fair value			—						12,187,044						—						12,187,044
Receivable for securities sold			—						202,782						—						202,782
Other assets			—						82,397						—						82,397
Total assets			$	11,653,875					$	14,250,512					$	(1,020,079)					$	24,884,308
Liabilities
Accounts payable, accrued expenses and other liabilities			$	364,152					$	—					$	(280)					$	363,872
Accrued compensation			280,894						—						—						280,894
Due to affiliates			500,480						—						—						500,480
Performance related compensation payable			2,537,203						—						—						2,537,203
Debt obligations			2,558,914						—						—						2,558,914
Operating lease liabilities			641,864						—						—						641,864
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities			—						323,566						(466)						323,100
Due to affiliates			—						178,409						(178,409)						—
Payable for securities purchased			—						332,406						—						332,406
CLO loan obligations, at fair value			—						9,793,645						(121,456)						9,672,189
Fund borrowings			—						275,000						—						275,000
Total liabilities			6,883,507						10,903,026						(300,611)						17,485,922
Commitments and contingencies
Redeemable interest in Consolidated Funds			—						550,700						—						550,700
Redeemable interest in Ares Operating Group entities			23,496						—						—						23,496
Non-controlling interest in Consolidated Funds			—						2,796,786						(771,120)						2,025,666
Non-controlling interest in Ares Operating Group entities			1,236,767						—						18,111						1,254,878
Stockholders’ Equity
Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)			1,458,771						—						—						1,458,771
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (199,872,571 shares issued and outstanding)			1,999						—						—						1,999
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 (109,806,689 shares issued and outstanding)			1,098						—						—						1,098
Additional paid-in-capital			2,903,253						—						33,541						2,936,794
Accumulated deficit			(837,294)						—						—						(837,294)
Accumulated other comprehensive loss, net of tax			(17,757)						—						—						(17,757)
Total stockholders’ equity			3,510,105						—						33,541						3,543,646
Total equity			4,746,872						2,796,786						(719,468)						6,824,190
Total liabilities, redeemable interest, non-controlling interests and equity			$	11,653,875					$	14,250,512					$	(1,020,079)					$	24,884,308

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

			Three months ended March 31, 2025
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Revenues
Management fees			$	826,881					$	—					$	(9,894)					$	816,987
Carried interest allocation			165,126						—						(5,118)						160,008
Incentive fees			32,058						—						(10)						32,048
Principal investment income			26,839						—						(4,841)						21,998
Administrative, transaction and other fees			57,888						—						(124)						57,764
Total revenues			1,108,792						—						(19,987)						1,088,805
Expenses
Compensation and benefits			657,125						—						—						657,125
Performance related compensation			122,633						—						—						122,633
General, administrative and other expense			227,914						—						—						227,914
Expenses of the Consolidated Funds			—						16,684						(10,028)						6,656
Total expenses			1,007,672						16,684						(10,028)						1,014,328
Other income (expense)
Net realized and unrealized gains on investments			10,631						—						(10,363)						268
Interest and dividend income			18,203						—						(547)						17,656
Interest expense			(36,387)						—						—						(36,387)
Other expense, net			(10,508)						—						(206)						(10,714)
Net realized and unrealized gains on investments of the Consolidated Funds			—						83,727						4,679						88,406
Interest and other income of the Consolidated Funds			—						160,072						—						160,072
Interest expense of the Consolidated Funds			—						(157,377)						4,637						(152,740)
Total other income (expense), net			(18,061)						86,422						(1,800)						66,561
Income before taxes			83,059						69,738						(11,759)						141,038
Income tax expense			15,535						2,002						—						17,537
Net income			67,524						67,736						(11,759)						123,501
Less: Net income attributable to non-controlling interests in Consolidated Funds			—						67,736						(11,759)						55,977
Net income attributable to Ares Operating Group entities			67,524						—						—						67,524
Less: Net income attributable to redeemable interest in Ares Operating Group entities			316						—						—						316
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			20,038						—						—						20,038
Net income attributable to Ares Management Corporation			47,170						—						—						47,170
Less: Series B mandatory convertible preferred stock dividends declared			25,313						—						—						25,313
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	21,857					$	—					$	—					$	21,857

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

			Three months ended March 31, 2025
			Consolidated Company Entities						Consolidated Funds						Eliminations						Consolidated
Cash flows from operating activities:
Net income			$	67,524					$	67,736					$	(11,759)					$	123,501
Adjustments to reconcile net income to net cash provided by operating activities			267,697												42,636						310,333
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds			—						980,313						(11,344)						968,969
Cash flows due to changes in operating assets and liabilities			372,073												(144,367)						227,706
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds									164,586						199,108						363,694
Net cash provided by operating activities			707,294						1,212,635						74,274						1,994,203
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(21,975)						—						—						(21,975)
Acquisitions, net of cash acquired			(1,722,715)						—						—						(1,722,715)
Net cash used in investing activities			(1,744,690)						—						—						(1,744,690)
Cash flows from financing activities:
Net proceeds from issuance of Series B mandatory convertible preferred stock			—						—						—						—
Net proceeds from issuance of Class A common stock			—						—						—						—
Proceeds from Credit Facility			1,125,000						—						—						1,125,000
Repayments of Credit Facility			(140,000)						—						—						(140,000)
Dividends and distributions			(445,088)						—						—						(445,088)
Taxes paid related to net share settlement of equity awards			(396,722)						—						—						(396,722)
Other financing activities			457						—						—						457
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			—						123,707						(34,627)						89,080
Distributions to non-controlling interests in Consolidated Funds			—						(321,741)						3,567						(318,174)
Borrowings under loan obligations by Consolidated Funds			—						172,606						—						172,606
Repayments under loan obligations by Consolidated Funds			—						(1,264,886)						—						(1,264,886)
Net cash provided by (used in) financing activities			143,647						(1,290,314)						(31,060)						(1,177,727)
Effect of exchange rate changes			4,309						34,465						—						38,774
Net change in cash and cash equivalents			(889,440)						(43,214)						43,214						(889,440)
Cash and cash equivalents, beginning of period			1,507,976						1,227,489						(1,227,489)						1,507,976
Cash and cash equivalents, end of period			$	618,536					$	1,184,275					$	(1,184,275)					$	618,536
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities			$	1,657,881					$	—					$	—					$	1,657,881

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

16. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after March 31, 2025 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 April 2025, the Company’s board of directors declared a quarterly dividend of $1.12 per share of Class A and non-voting common stock payable on June 30, 2025 to common stockholders of record at the close of business on June 16, 2025.

In April 2025, the Company’s board of directors declared a quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock payable on July 1, 2025 to preferred stockholders of record on June 15, 2025.