Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Ares Management Corporation is a Delaware corporation. Unless the context otherwise requires, references to “Ares,” “we,” “us,” “our,” and the “Company” are intended to mean the business and operations of Ares Management Corporation and its consolidated subsidiaries. The following discussion analyzes the financial condition and results of operations of the Company. “Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under U.S. GAAP to be consolidated in our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. Additional terms used by the Company are defined in the Glossary and throughout the Management’s Discussion and Analysis in this Quarterly Report on Form 10-Q.

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements of Ares Management Corporation and the related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and the related notes included in the 2024 Annual Report on Form 10-K of Ares Management Corporation. We have reclassified certain prior period amounts to conform to the current year presentation.

Amounts and percentages presented throughout our discussion and analysis of financial condition and results of operations may reflect rounded results in thousands (unless otherwise indicated) and consequently, totals may not appear to sum. In addition, illustrative charts may not be presented at scale.

The changes from current year compared to prior year may be deemed to be not meaningful and are designated as “NM” within the discussion and analysis of financial condition and results of operations.

Trends Affecting Our Business

We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles. For the three months ended June 30, 2025, 91% of our management fees were derived from perpetual capital vehicles or long-dated funds. Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility. However, our results from operations, including the fair value of our AUM, are affected by a variety of factors. Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).

The following table presents returns of selected market indices:

																		Returns (%)
Type of Index						Name of Index						Region						Three months ended June 30, 2025						Six months ended June 30, 2025
High yield bonds						ICE BAML High Yield Master II Index						U.S.						3.6						4.6
High yield bonds						ICE BAML European Currency High Yield Index						Europe						2.1						2.8
Leveraged loans						S&P UBS Leveraged Loan Index						U.S.						2.3						3.0
Leveraged loans						S&P UBS Western European Leveraged Loan Index						Europe						1.4						2.4
Equities						S&P 500 Index						U.S.						10.9						6.2
Equities						MSCI All Country World Ex-U.S. Index						Non-U.S.						12.3						18.3
Infrastructure equities						S&P Global Infrastructure Index						Global						10.4						15.5
Real estate equities						FTSE NAREIT All Equity REITs Index						U.S.						(2.0)						(0.2)
Real estate equities						FTSE EPRA/NAREIT Developed Europe Index						Europe						8.4						6.4
Real estate equities						Tokyo Stock Exchange REIT Index						APAC						5.2						7.6

During the second quarter of 2025, global equity and debt markets experienced volatility driven by shifting trade policies and geopolitical uncertainty. Despite the volatility, global markets largely performed well during the quarter. The U.S. public equity markets recovered as investor sentiment regarding the impact of the proposed tariffs remained stable, while international markets continued to outperform with recent interest rate cuts in key regions outside of the U.S. driving positive momentum. Globally, positive performance across markets was supported by positive trade developments, resilient macroeconomic indicators and optimism for heightened deal activity going into the second half of the year.

The commercial real estate markets experienced mixed performance with transaction volumes continuing to increase and property valuations and capitalization rates remaining steady. The European real estate markets began to recover, with interest rate cuts from European central banks driving positive momentum. However, the U.S. real estate markets slightly declined during the quarter primarily due to the uncertainty in interest rates and trade policy. While performance varies by

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sector and geography, we believe multifamily and industrial properties will continue to benefit from favorable long-term structural trends. In addition, renewable energy continues to scale and transaction volume remained strong, which has supported elevated renewable energy revenue contract prices amid the positive momentum in demand. The climate infrastructure market remained resilient, supported by clean energy deployment and digital infrastructure expansion. The convergence of digital infrastructure and artificial intelligence adoption, paired with surging power demand expectations continue to support infrastructure investment opportunities.

Following a strong start to the year, private equity transaction volume slowed during the quarter as the macroeconomic and global trade environment weighed on exit activity. This environment has contributed to heightened focus on disciplined underwriting and on companies with strong organic growth and attractive strategic transaction opportunities. We believe that shifting towards value creation strategies emphasizing operational improvements, talent optimization and digital transformation is essential to ensure long-term competitiveness.

We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 85% of our debt assets and 52% of our total assets were floating rate instruments as of June 30, 2025.

Managing Business Performance

Operating Metrics

We measure our business performance using certain operating metrics that are common to the alternative investment management industry and are discussed below.

Assets Under Management

AUM refers to the assets we manage and is viewed as a metric to measure our investment and fundraising performance as it reflects assets generally at fair value plus available uncalled capital.

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The tables below present rollforwards of our total AUM by segment ($ in millions):

						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total AUM
Balance at 3/31/2025						$	359,076					$	124,187					$	24,727					$	31,312					$	6,571					$	545,873
Net new par/equity commitments						8,922						2,094						—						2,519						1,921						15,456
Net new debt commitments						9,161						1,619						—						—						—						10,780
Capital reductions						(3,862)						(386)						(19)						—						—						(4,267)
Distributions						(5,000)						(1,719)						(1,056)						(160)						(410)						(8,345)
Redemptions						(944)						(131)						—						(40)						(7)						(1,122)
Net allocations among investment strategies						185						50						—						72						(307)						—
Change in fund value						9,568						4,060						114						246						22						14,010
Balance at 6/30/2025						$	377,106					$	129,774					$	23,766					$	33,949					$	7,790					$	572,385
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total AUM
Balance at 3/31/2024						$	308,639					$	64,104					$	24,476					$	25,641					$	5,479					$	428,339
Net new par/equity commitments						11,200						2,491						15						866						1,097						15,669
Net new debt commitments						8,592						1,703						—						—						—						10,295
Capital reductions						(5,110)						(207)						(2)						—						—						(5,319)
Distributions						(2,817)						(736)						(29)						(285)						(238)						(4,105)
Redemptions						(655)						(291)						—						—						—						(946)
Net allocations among investment strategies						610						—						—						—						(610)						—
Change in fund value						2,664						628						120						81						(194)						3,299
Balance at 6/30/2024						$	323,123					$	67,692					$	24,580					$	26,303					$	5,534					$	447,232
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total AUM
Balance at 12/31/2024						$	348,858					$	75,298					$	24,041					$	29,153					$	7,096					$	484,446
Acquisitions						—						45,281						—						—						—						45,281
Net new par/equity commitments						14,865						4,556						975						4,807						3,017						28,220
Net new debt commitments						13,982						4,233						—						—						—						18,215
Capital reductions						(7,275)						(1,154)						(54)						(58)						—						(8,541)
Distributions						(8,271)						(3,177)						(1,205)						(399)						(548)						(13,600)
Redemptions						(1,326)						(290)						—						(63)						(7)						(1,686)
Net allocations among investment strategies						1,494						50						—						72						(1,616)						—
Change in fund value						14,779						4,977						9						437						(152)						20,050
Balance at 6/30/2025						$	377,106					$	129,774					$	23,766					$	33,949					$	7,790					$	572,385
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total AUM
Balance at 12/31/2023						$	299,350					$	65,413					$	24,551					$	24,760					$	4,772					$	418,846
Acquisitions						—						—						—						—						71						71
Net new par/equity commitments						18,933						2,899						330						1,835						2,612						26,609
Net new debt commitments						14,704						1,703						—						—						—						16,407
Capital reductions						(6,595)						(335)						(4)						—						—						(6,934)
Distributions						(6,381)						(1,582)						(64)						(449)						(373)						(8,849)
Redemptions						(3,171)						(725)						(2)						—						—						(3,898)
Net allocations among investment strategies						1,325						—						(47)						—						(1,278)						—
Change in fund value						4,958						319						(184)						157						(270)						4,980
Balance at 6/30/2024						$	323,123					$	67,692					$	24,580					$	26,303					$	5,534					$	447,232

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The components of our AUM are presented below ($ in billions):

			AUM: $572.4						AUM: $447.2

			FPAUM						Non-fee paying(1)						AUM not yet paying fees

(1) Includes $13.8 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of June 30, 2025 and 2024, respectively, and includes $5.6 billion and $4.2 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.

Please refer to “— Results of Operations by Segment” for a more detailed presentation of AUM by segment for each of the periods presented.

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Fee Paying Assets Under Management

FPAUM refers to AUM from which we directly earn management fees and is equal to the sum of all the individual fee bases of our funds that directly contribute to our management fees.

The tables below present rollforwards of our total FPAUM by segment ($ in millions):

						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total
Balance at 3/31/2025						$	218,231					$	76,425					$	11,352					$	23,470					$	5,590					$	335,068
Commitments						5,858						880						—						688						1,747						9,173
Deployment/subscriptions/increase in leverage						6,973						1,287						16						409						—						8,685
Capital reductions						(1,601)						(136)						(11)						—						—						(1,748)
Distributions						(5,314)						(1,308)						—						(11)						(410)						(7,043)
Redemptions						(944)						(131)						—						(40)						—						(1,115)
Net allocations among investment strategies						452						50						—						72						(574)						—
Change in fund value						4,498						2,924						2						(53)						28						7,399
Change in fee basis						—						(496)						(366)						—						—						(862)
Balance at 6/30/2025						$	228,153					$	79,495					$	10,993					$	24,535					$	6,381					$	349,557
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total
Balance at 3/31/2024						$	189,826					$	40,836					$	12,565					$	19,891					$	3,998					$	267,116
Commitments						6,081						1,224						—						606						1,081						8,992
Deployment/subscriptions/increase in leverage						7,185						865						25						40						154						8,269
Capital reductions						(3,111)						—						—						—						—						(3,111)
Distributions						(4,033)						(563)						—						(132)						(238)						(4,966)
Redemptions						(1,173)						(291)						—						—						—						(1,464)
Net allocations among investment strategies						613						—						—						—						(613)						—
Change in fund value						787						(38)						(9)						3						31						774
Change in fee basis						913						(410)						(316)						53						(1)						239
Balance at 6/30/2024						$	197,088					$	41,623					$	12,265					$	20,461					$	4,412					$	275,849
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total
Balance at 12/31/2024						$	209,145					$	44,088					$	11,427					$	22,401					$	5,492					$	292,553
Acquisitions						—						30,467						—						—						—						30,467
Commitments						12,336						1,947						—						1,740						2,784						18,807
Deployment/subscriptions/increase in leverage						14,706						2,797						32						666						253						18,454
Capital reductions						(5,212)						(178)						(11)						—						—						(5,401)
Distributions						(8,605)						(2,711)						—						(69)						(548)						(11,933)
Redemptions						(1,392)						(290)						—						(63)						—						(1,745)
Net allocations among investment strategies						1,624						50						—						72						(1,746)						—
Change in fund value						5,914						3,204						2						(212)						146						9,054
Change in fee basis						(363)						121						(457)						—						—						(699)
Balance at 6/30/2025						$	228,153					$	79,495					$	10,993					$	24,535					$	6,381					$	349,557
						Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other Businesses						Total
Balance at 12/31/2023						$	185,280					$	41,338					$	13,124					$	19,040					$	3,575					$	262,357
Acquisitions						—						—						—						—						55						55
Commitments						9,859						1,520						—						1,506						2,402						15,287
Deployment/subscriptions/increase in leverage						14,409						1,729						25						102						154						16,419
Capital reductions						(5,875)						(12)						—						—						—						(5,887)
Distributions						(7,696)						(867)						—						(231)						(373)						(9,167)
Redemptions						(3,322)						(725)						(2)						—						—						(4,049)
Net allocations among investment strategies						1,499						—						—						—						(1,499)						—
Change in fund value						1,328						(446)						(28)						—						99						953
Change in fee basis						1,606						(914)						(854)						44						(1)						(119)
Balance at 6/30/2024						$	197,088					$	41,623					$	12,265					$	20,461					$	4,412					$	275,849

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The charts below present FPAUM by its fee bases ($ in billions):

			FPAUM: $349.6						FPAUM: $275.8

			Invested capital/other(1)						Market value /reported value(2)						Collateral balances (at par)						Capital commitments						GAV

(1)Other consists of Ares Commercial Real Estate Corporation’s (NYSE: ACRE) (“ACRE”) FPAUM, which is based on ACRE’s stockholders’ equity.

(2)Includes $81.2 billion and $64.6 billion from funds that primarily invest in illiquid strategies as of June 30, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

Please refer to “— Results of Operations by Segment” for detailed information by segment of the activity affecting total FPAUM for each of the periods presented.

Perpetual Capital Assets Under Management

The chart below presents our perpetual capital AUM by segment and type ($ in billions):

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Management Fees By Type

We view the duration of funds we manage as a metric to measure the stability of our future management fees. For the three months ended June 30, 2025 and 2024, 91% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.

The charts below present the composition of our segment management fees by the initial fund duration:

			Perpetual Capital - Publicly-Traded Vehicles						Perpetual Capital - Perpetual Wealth Vehicles						Perpetual Capital - Private Commingled Vehicles						Perpetual Capital - Managed Accounts						Long-Dated Funds(1)						Other

(1) Long-dated funds generally have a contractual life of five years or more at inception.

Available Capital and Assets Under Management Not Yet Paying Fees

The charts below present our available capital and AUM not yet paying fees by segment ($ in billions):

			Credit						Real Assets						Private Equity						Secondaries						Other Businesses

As of June 30, 2025, AUM Not Yet Paying Fees includes $86.8 billion of AUM available for future deployment that could generate approximately $822.7 million in potential incremental annual management fees, which represents 30% embedded gross base management fee growth from the last twelve month period upon deployment. Development assets not yet stabilized represents fund assets that are in the development stage. Upon completion of development, management fees

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generally increase with a change in fee base, in fee rate or both. As of June 30, 2025, development assets not yet stabilized could generate approximately $22.9 million in potential incremental annual management fees.

Incentive Eligible Assets Under Management and Incentive Generating Assets Under Management

The charts below present our IEAUM and IGAUM by segment ($ in billions):

			Credit						Real Assets						Private Equity						Secondaries						Other Businesses

Fee related performance revenues are not recognized by us until such fees are crystallized and no longer subject to reversal. As of June 30, 2025, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $30.2 billion, composed of $19.8 billion within the Credit Group, $7.3 billion within the Real Assets Group and $3.1 billion within the Secondaries Group. As of June 30, 2024, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $19.8 billion, composed of $18.3 billion within the Credit Group and $1.5 billion within the Secondaries Group.

Fund Performance Metrics

Fund performance information for our funds considered to be “significant funds” is included throughout this discussion with analysis to facilitate an understanding of our results of operations for the periods presented. Our significant funds are commingled funds that either contributed at least 1% of our total management fees or comprised at least 1% of our total FPAUM for each of the last two consecutive quarters. In addition to management fees, each of our significant funds may generate carried interest or incentive fees upon the achievement of performance hurdles. The fund performance information reflected in this discussion and analysis is not indicative of our overall performance. An investment in Ares is not an investment in any of our funds. Past performance is not indicative of future results. As with any investment, there is always the potential for gains as well as the possibility of losses. There can be no assurance that any of these funds or our other existing and future funds will achieve similar returns.

Fund performance metrics for significant funds may be marked as “NM” as they may not be considered meaningful due to the limited time since the initial investment and/or early stage of capital deployment.

To further facilitate an understanding of the impact a significant fund may have on our results, we present our drawdown funds as either harvesting investments or deploying capital to indicate the fund’s stage in its life cycle. A fund harvesting investments is past its investment period and opportunistically seeking to monetize investments, while a fund deploying capital is generally seeking new investment opportunities.

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Components of Consolidated Results of Operations

GCP Acquisition Overview

On March 1, 2025, we 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 GCP Acquisition adds geographic exposure in Asia with a significant logistics platform in Japan, logistics platforms in emerging economies such as Brazil and Vietnam and an expanded presence in Europe and the U.S. The GCP Acquisition has broadened our vertically integrated operating and development capabilities across sectors and regions. We anticipate that the size and composition of fees earned, particularly our other fees, will be impacted by these expanded capabilities.

The activities of GCP International are reflected within our results of operations beginning on March 1, 2025. Therefore, our analysis compared to the prior year periods will lack comparability, particularly in our Real Assets Group segment. Because the activities of GCP International represent four months of activity within the six months ended June 30, 2025, we will separately discuss the significant impact of the GCP Acquisition within our discussion of our results of operations.

In addition, various components of the agreed upon purchase price for the GCP Acquisition are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees on March 1, 2025. Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration and will have a varying impact on our results of operations in the current periods as well as in future periods. Following the integration period, we expect to generate cost savings as we begin to execute on synergy opportunities.

In connection with the GCP Acquisition, we also entered into contingent compensation arrangements with the sellers and with certain of its professionals that became Ares employees. The portion of the arrangements that are attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. The portion of the arrangements that are attributable to the professionals that became Ares employees requires continued service through the measurement periods and will be accounted for as compensation. These arrangements will have a varying impact on our results of operations in the current periods as well as in future periods that is dependent on these classifications as well as the expected attainment of the measurement criteria.

For further discussion, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidated Results of Operations of the Company” as well as “Note 3. Business Combinations” and “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements.

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Revenues

The following is an overview of our fee arrangements by strategy that were impacted as a result of the GCP Acquisition.

Management Fees. Details regarding management fees from GLP J-REIT (TSE: 3281) (“J-REIT”) are presented below:

Vehicle						Strategy						Annual Fee Rate and Fee Base
Real Assets Group
J-REIT						Real Estate						•Comprised of multiple components, including: ◦0.18% on GAV (“J-REIT Fee I”) ◦3.50% on net operating income (“J-REIT Fee II”) ◦Sum of J-REIT Fee I and J-REIT Fee II, multiplied by 0.033%, multiplied by earnings per outstanding investment unit

Details regarding management fees by strategy, excluding J-REIT described above, are presented below:

Strategy						Fee Rate						Fee Base						Average Remaining Contract Term**(1)**
Real Assets Group
Real Estate(2)						0.45% - 1.50%						Capital commitments, invested capital, GAV, NAV, aggregate cost basis of unrealized portfolio investments or a combination thereof						4.8 years
Infrastructure						1.00% - 1.50%						Capital commitments, invested capital, GAV or NAV						5.3 years

(1) Represents the average remaining contract term pursuant to the funds’ governing documents within each strategy, excluding perpetual capital vehicles, as of June 30, 2025.

(2) Following the expiration or termination of the investment period the basis on which management fees are earned for certain closed-end funds in this strategy changes from committed capital to invested capital with no change in the management fee rate. In addition, certain real estate funds pay a management fee of 7.50% of net operating income. For these funds, we present an effective fee rate as a percentage of GAV.

Incentive Fees. Details regarding fee related performance revenues, excluding publicly-traded and perpetual wealth vehicles, are presented below:

Strategy						Fee Rate						Fee Base						Annual Hurdle Rate
Real Assets Group
Real Estate						15.0% - 20.0%						Incentive eligible fund’s profits						6.0% - 8.0%

Carried Interest Allocation. Details regarding carried interest, which is generally based on a fund’s eligible profits, are presented below:

Strategy						Fee Rate												Annual Hurdle Rate
Real Assets Group
Infrastructure						15.0% - 20.0%												7.0% - 10.0%

Administrative, Transaction and Other Fees. Details regarding other fees are presented below:

Other fees:
Property-related fees represent fees earned within our real estate strategy and include the following:
Acquisition fees						Based on a percentage of a property’s cost at the time of property acquisition
Development fees						Based on a percentage of costs to develop a property over the development period
Leasing fees						Based on a percentage of rental income at lease inception or lease renewal
Property management fees						Based on tenancy of properties over the time associated property management services are provided

See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Consolidated Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a comprehensive overview of the components of our consolidated results of operations, including an overview of fee arrangements for other strategies that were not impacted as a result of the GCP Acquisition.

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Consolidation and Deconsolidation of Ares Funds

Consolidated Funds represented approximately 3% of our AUM as of June 30, 2025 and 5% of total revenues for the six months ended June 30, 2025. As of June 30, 2025, we consolidated 25 CLOs, 15 private funds and one SPAC, and as of June 30, 2024, we consolidated 28 CLOs, 10 private funds and one SPAC.

The activity of the Consolidated Funds is reflected within the unaudited condensed consolidated financial statement line items indicated by reference thereto. The impact of consolidation also typically will decrease management fees, carried interest allocation and incentive fees reported under GAAP to the extent these amounts are eliminated upon consolidation.

The assets and liabilities of our Consolidated Funds are held within separate legal entities and, as a result, the liabilities of our Consolidated Funds are typically non-recourse to us. Generally, the consolidation of our Consolidated Funds has a significant gross-up effect on our assets, liabilities and cash flows but has no net effect on the net income attributable to us or our 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. The net economic ownership interests of our Consolidated Funds, to which we have no economic rights, are reflected as redeemable and non-controlling interests in the Consolidated Funds within our unaudited condensed consolidated financial statements. Redeemable interest in Consolidated Funds represent the shares issued by our SPACs that are redeemable for cash by the public shareholders in the event that the SPAC does not complete a business combination or tender offer associated with shareholder approval provisions.

We have contributed certain financial interests, such as capital interests and rights to performance income earned by us in funds that we manage, as collateral or other forms of similar credit-enhancement, including subordination and liquidity support, to structured investment vehicles that we manage, including but not limited to collateralized fund obligations and fund-backed loans. These structured investment vehicles are typically designed to meet investors’ risk-return, liquidity, diversification and risk-based capital treatment objectives and to support capital raising efforts across our platform. The contribution of these financial interests subjects us to a maximum risk of loss equal to the value of the contributed financial interests in the event that these structured investment vehicles or the underlying financial interests do not perform at required levels, which results in a variable interest and often the consolidation of these investment vehicles by us. As a result, the financial interests that we contribute will typically be reclassified from investments in the funds that we manage and/or from accrued performance income to investments of the Consolidated Funds. Any future investment income and performance income resulting from these financial interests will be presented within the results of operations of our Consolidated Funds.

We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity. During the six months ended June 30, 2025, we deconsolidated three CLOs as a result of liquidation. During the six months ended June 30, 2024, we did not deconsolidate any entity.

The performance of our Consolidated Funds is not necessarily consistent with, or representative of, the combined performance trends of all of our funds.

For the actual impact that consolidation had on our results and further discussion on consolidation and deconsolidation of funds, see “Note 15. Consolidation” within our unaudited condensed consolidated financial statements included herein.

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Results of Operations

Consolidated Results of Operations

Although the consolidated results presented below include the results of our operations together with those of the Consolidated Funds and other joint ventures, we separate our analysis of those items primarily impacting the Company from those of the Consolidated Funds.

The following table presents our summarized consolidated results of operations ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Total revenues			$	1,350,128					$	788,682					$	561,446					71%						$	2,438,933					$	1,496,045					$	942,888					63%
Total expenses			(1,137,578)						(564,544)						(573,034)						(102)						(2,151,906)						(1,103,037)						(1,048,869)						(95)
Total other income, net			74,388						93,187						(18,799)						(20)						140,949						155,365						(14,416)						(9)
Less: Income tax expense			60,958						41,074						(19,884)						(48)						78,495						68,307						(10,188)						(15)
Net income			225,980						276,251						(50,271)						(18)						349,481						480,066						(130,585)						(27)
Less: Net income attributable to non-controlling interests in Consolidated Funds			3,999						105,489						(101,490)						(96)						59,976						172,205						(112,229)						(65)
Net income attributable to Ares Operating Group entities			221,981						170,762						51,219						30						289,505						307,861						(18,356)						(6)
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities			(274)						(387)						113						29						42						(314)						356						NM
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			85,193						76,211						8,982						12						105,231						140,210						(34,979)						(25)
Net income attributable to Ares Management Corporation			137,062						94,938						42,124						44						184,232						167,965						16,267						10
Less: Series B mandatory convertible preferred stock dividends declared			25,312						—						25,312						NM						50,625						—						50,625						NM
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	111,750					$	94,938					16,812						18						$	133,607					$	167,965					(34,358)						(20)

Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Consolidated Results of Operations of the Company

The following discussion sets forth information regarding our consolidated results of operations:

Revenues

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Revenues
Management fees			$	900,622					$	721,681					$	178,941					25%						$	1,717,609					$	1,409,373					$	308,236					22%
Carried interest allocation			323,901						(51,167)						375,068						NM						483,909						(83,645)						567,554						NM
Incentive fees			23,079						47,734						(24,655)						(52)						55,127						56,401						(1,274)						(2)
Principal investment income			10,963						29,461						(18,498)						(63)						32,961						36,511						(3,550)						(10)
Administrative, transaction and other fees			91,563						40,973						50,590						123						149,327						77,405						71,922						93
Total revenues			$	1,350,128					$	788,682					561,446						71						$	2,438,933					$	1,496,045					942,888						63

Management Fees. Within the Credit Group, capital raised by our publicly-traded and perpetual wealth vehicles contributed to increases in management fees of $41.8 million and $83.3 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to increases in management fees of $30.1 million and $53.4 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. Part I Fees increased by $13.0 million and $28.1 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in Part I Fees were primarily due to the increases in pre-incentive fee net investment income generated by Ares Strategic Income Fund (“ASIF”), CION Ares Diversified Credit Fund (“CADC”) and our open-ended European direct lending fund, driven by increases in net investment income from their growing portfolio of investments.

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Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition and the acquisition of Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”) (“WSM Acquisition”), collectively generated $67.6 million and $97.0 million in additional management fees for the three and six months ended June 30, 2025, respectively. For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”

Carried Interest Allocation. The following table sets forth carried interest allocation by segment ($ in millions):

			Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Credit funds			$	273.7					$	35.4					$	404.4					$	255.0
Real Assets funds			32.8						50.5						54.9						43.6
Private Equity funds			28.6						(129.4)						65.6						(365.8)
Secondaries funds			4.7						(6.9)						(1.6)						(16.3)
Insurance			9.7						11.5						12.1						17.5
Elimination of carried interest from Consolidated Funds			(6.8)						(11.5)						(12.0)						(17.5)
Carried interest of non-controlling interests in consolidated subsidiaries			(18.8)						(0.8)						(39.5)						(0.1)
Carried interest allocation			$	323.9					$	(51.2)					$	483.9					$	(83.6)

The activity was principally composed of the following:

Three months ended June 30, 2025						Three months ended June 30, 2024
Credit funds
•Primarily from four direct lending funds, two opportunistic credit funds and two alternative credit funds with $42.4 billion of IGAUM generating returns in excess of their hurdle rates: ◦Within our direct lending funds, Ares Capital Europe V, L.P. (“ACE V”), Ares Capital Europe VI, L.P. (“ACE VI”) and Ares Private Credit Solutions II, L.P. (“PCS II”) generated carried interest allocation of $46.7 million, $32.7 million and $31.8 million, respectively, driven by net investment income on an increasing invested capital base. Ares Capital Europe IV, L.P. (“ACE IV”) generated carried interest allocation of $20.8 million driven by net investment income during the period ◦Within our opportunistic credit funds, Ares Special Opportunities Fund II, L.P. (“ASOF II”) generated carried interest allocation of $53.6 million driven by improved profitability of portfolio companies that operate in the healthcare and services industries. Ares Special Opportunities Fund, L.P. (“ASOF I”) generated carried interest allocation of $24.6 million driven by market appreciation of its investment in Savers Value Village, Inc. (“SVV”), driven by its higher stock price ◦Within our alternative credit funds, Ares Pathfinder Fund, L.P. (“Pathfinder I”) and Ares Pathfinder Fund II, L.P. (“Pathfinder II”) generated carried interest allocation of $21.4 million and $9.8 million, respectively, driven by market appreciation of certain investments and net investment income during the period						*•*Primarily from five direct lending funds, one opportunistic credit fund and two alternative credit funds with $35.8 billion of IGAUM generating returns in excess of their hurdle rates: ◦Within our direct lending funds, ACE V and ACE VI generated carried interest allocation of $43.0 million and $13.7 million, respectively, driven by net investment income on an increasing invested capital base. PCS II, ACE IV and Ares Private Credit Solutions, L.P. (“PCS I”) generated carried interest allocation of $17.5 million, $16.4 million and $5.4 million, respectively, primarily driven by net investment income during the period. Our direct lending funds have benefited from rising interest rates on predominately floating-rate loans ◦Within our opportunistic credit funds, ASOF II generated carried interest allocation of $26.9 million, driven by improved profitability of portfolio companies that operate in the services and retail industries ◦Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $19.1 million and $14.0 million, respectively, driven by market appreciation of certain investments and net investment income during the period •Reversal of unrealized carried interest allocation of $82.5 million and $43.2 million, respectively, from Ares Special Situations Fund IV, L.P. (“SSF IV”) and ASOF I, primarily due to market depreciation of their investments in SVV, driven by its lower stock price
Real Assets funds
•Our second climate infrastructure fund generated carried interest allocation of $10.0 million, driven by appreciation of certain investments •Ares Infrastructure Debt Fund V, L.P. (“IDF V”) generated carried interest allocation of $4.6 million, driven by net investment income during the period •U.S. Real Estate Fund IX, L.P. (“US IX”) and U.S. Real Estate Fund X, L.P. (“US X”) generated carried interest allocation of $4.1 million and $3.6 million, respectively, due to increasing operating income and higher property valuations primarily from industrial property investments •Ares Real Estate Opportunity Fund III, L.P. (“AREOF III”) and Ares European Real Estate Fund IV, L.P. (“EF IV”) generated carried interest allocation of $4.1 million and $3.1 million, respectively, primarily due to appreciation of certain investments						•Our infrastructure opportunities funds generated carried interest allocation of $44.8 million, including $19.9 million from EIF V and $14.8 million from Ares Climate Infrastructure Partners, L.P. (“ACIP I”) primarily due to appreciation of certain investments •IDF V generated carried interest allocation of $16.8 million, driven by net investment income during the period •Carried interest allocation of $5.6 million collectively generated from US X and US IX, primarily due to appreciation from properties within real estate equity funds, driven by increasing operating income primarily from industrial and multifamily property investments •Reversal of unrealized carried interest allocation of $12.7 million from EF IV, primarily driven by the lower valuation of residential property investments

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Three months ended June 30, 2025						Three months ended June 30, 2024
Private Equity funds
•Ares Corporate Opportunities Fund VI, L.P. (“ACOF VI”) generated carried interest allocation of $36.1 million primarily driven by improved profitability from portfolio companies that primarily operate in the service and industrial industries •Reversal of unrealized carried interest allocation of $7.6 million from Ares Corporate Opportunities Fund IV, L.P. (“ACOF IV”) driven by lower profitability of portfolio companies that primarily operate in the energy and healthcare industries						*•*Reversal of unrealized carried interest allocation of $230.6 million from Ares Corporate Opportunities Fund V, L.P. (“ACOF V”) was primarily due to the market depreciation of its investment in SVV, driven by its lower stock price •ACOF VI generated carried interest allocation of $90.0 million, driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries
Secondaries funds
•Landmark Real Estate Fund VIII, L.P. (“LREF VIII”) generated carried interest allocation of $6.7 million, primarily driven by appreciation of certain portfolio investments						•Reversal of unrealized carried interest of $14.4 million from LREF VIII, primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios and of $7.3 million from Landmark Equity Partners XVI, L.P. (“LEP XVI”), due to lower net investment income •Our third infrastructure secondaries fund and two private equity secondaries funds generated carried interest allocation of $15.6 million, primarily driven by the appreciation of certain portfolio investments
Six months ended June 30, 2025						Six months ended June 30, 2024
Credit funds
•Primarily from four direct lending funds, one opportunistic credit fund and two alternative credit funds with $40.2 billion of IGAUM generating returns in excess of their hurdle rates: ◦Within our direct lending funds, ACE V, ACE VI and PCS II generated carried interest allocation of $93.0 million, $59.2 million and $44.8 million, respectively, driven by net investment income on an increasing invested capital base. ACE IV generated carried interest allocation of $34.1 million driven by net investment income during the period ◦Within our opportunistic credit funds, ASOF II generated carried interest allocation of $74.7 million, driven by improved profitability of portfolio companies that operate in the services, healthcare and industrial industries ◦Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $31.5 million and $31.4 million, respectively, driven by market appreciation of certain investments and net investment income during the period •Reversal of unrealized carried interest allocation of $27.0 million from SSF IV, primarily due to the market depreciation of their investment in SVV, driven by its lower stock price						*•*Primarily from four direct lending funds, one alternative credit fund and one opportunistic credit funds with $32.8 billion of IGAUM generating returns in excess of their hurdle rates: ◦Within our direct lending funds, PCS II, ACE V and ACE VI generated carried interest allocation of $88.8 million, $82.7 million and $21.4 million, respectively, driven by net investment income on an increasing invested capital base. ACE IV generated carried interest allocation of $32.1 million driven by net investment income during the period. Our direct lending funds have benefited from rising interest rates on predominately floating-rate loans ◦Within our opportunistic credit funds, ASOF II generated carried interest allocation of $57.3 million, driven by improved profitability of portfolio companies that operate in the retail, healthcare and service industries. ◦Within our alternative credit funds, Pathfinder I generated carried interest allocation of $26.8 million driven by market appreciation of certain investments and net investment income during the period •Reversal of unrealized carried interest allocation of $52.7 million and $30.8 million, respectively, from SSF IV and ASOF I, primarily due to market depreciation of their investments in SVV, driven by its lower stock price
Real Assets funds
•IDF V generated carried interest allocation of $14.9 million, driven by net investment income during the period •Our second climate infrastructure fund generated carried interest allocation of $10.0 million, driven by the appreciation of certain portfolio investments •US X and US IX generated carried interest allocation of $6.7 million and $6.1 million, respectively, primarily due to market appreciation and increasing operating income primarily from industrial property investments •AREOF III and EF IV generated carried interest allocation of $4.7 million and $3.6 million, respectively, primarily due to appreciation of certain investments						*•*IDF V generated carried interest allocation of $29.6 million, driven by net investment income during the period •EIF V generated $21.7 million of carried interest allocation, driven by appreciation of certain investments •Carried interest allocation of $5.7 million and $4.4 million generated from US X and US IX, primarily due to appreciation from properties within real estate equity funds, driven by increasing operating income primarily from industrial and multifamily investments *•*Reversal of unrealized carried interest allocation of $17.1 million from EF IV, primarily driven by the lower valuation of residential and retail property investments
Private Equity funds
•ACOF VI generated carried interest allocation of $78.8 million, primarily driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries •Reversal of unrealized carried interest allocation of $13.1 million from a private equity fund driven by lower operating performance from portfolio companies that primarily operate in the industrial and service industries						•Reversal of unrealized carried interest allocation of $474.9 million from ACOF V was primarily due to the market depreciation of its investment in SVV, driven by its lower stock price •ACOF VI generated carried interest allocation of $118.0 million, driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries

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Six months ended June 30, 2025						Six months ended June 30, 2024
Secondaries funds
•Reversal of unrealized carried interest of $11.4 million from LEP XVI, due to the lower valuation of certain investments •Reversal of unrealized carried interest of $4.3 million from LREF VIII, primarily driven by the lower valuation of certain investments •Landmark Equity Partners XVII, L.P. (“LEP XVII”) and two private equity secondaries funds generated carried interest allocation of $10.7 million, driven by improved operating performance and appreciation of certain investments						**•**Reversal of unrealized carried interest of $15.8 million from LREF VIII, primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios and of $12.0 million from LEP XVI, due to lower net investment income **•**Our third infrastructure secondaries fund and two private equity secondaries funds generated carried interest allocation of $15.6 million, primarily driven by the appreciation of certain portfolio investments

Incentive Fees. The following table sets forth incentive fees by segment ($ in millions):

			Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Credit funds			$	6.8					$	31.1					$	28.7					$	33.2
Real Assets funds			0.1						1.0						0.5						4.7
Secondaries funds			16.2						15.6						25.9						18.5
Incentive fees			$	23.1					$	47.7					$	55.1					$	56.4

The majority of our incentive fees crystallize in the fourth quarter. For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”

Principal Investment Income. For equity method investments where we serve as general partner, we present the activity of net realized and unrealized gains on investments and realized investment income together with net cash received or used. The following tables present the change in fair value of our equity method investments where we serve as general partner ($ in millions):

As of March 31, 2025												Activity during the period																								As of June 30, 2025
Cost Basis						Fair Value						Net Cash Used						Net Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
$	514.1					$	604.7					$	34.5					$	2.3					$	8.4					$	(4.5)					$	563.0					$	645.4
As of December 31, 2024												Activity during the period																								As of June 30, 2025
Cost Basis						Fair Value						Net Cash Used						Net Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
$	451.4					$	536.9					$	80.1					$	10.6					$	22.4					$	(4.6)					$	563.0					$	645.4

The activity for the three and six months ended June 30, 2025 was primarily attributable to:

• Realized investment income generated from our investments in various real estate debt and infrastructure debt funds. The six months ended June 30, 2025 also included: (i) interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs; and (ii) realized gains generated from our investments in various U.S. real estate equity funds

• Net cash used, primarily driven by investments in various real estate funds

			As of March 31, 2024												Activity during the period																		As of June 30, 2024
			Cost Basis						Fair Value						Net Cash Received						Net Unrealized Gains (Losses)						Interest and Dividend Income												Cost Basis						Fair Value
			$	461.6					$	545.2					$	(14.9)					$	(0.5)					$	29.9											$	476.4					$	559.7
			As of December 31, 2023												Activity during the period																		As of June 30, 2024
			Cost Basis						Fair Value						Net Cash Received						Net Unrealized Gains (Losses)						Interest and Dividend Income												Cost Basis						Fair Value
			$	453.3					$	535.3					$	(12.1)					$	0.6					$	35.9											$	476.4					$	559.7

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The activity for the three and six months ended June 30, 2024 was primarily attributable to:

• Interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs

• Net cash received, primarily driven by transfers of our investments in APAC credit funds to employee co-investment vehicles, partially offset by investments in European real estate debt funds. Net cash used for the six months ended June 30, 2024 also included investments in European direct lending, alternative credit and infrastructure debt funds

Administrative, Transaction and Other Fees. The increases for the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily driven by incremental fees following the completion of the GCP Acquisition. GCP International enhances our vertically integrated capabilities in real estate, which enables us to earn additional leasing, development and property management fees. These fees contributed $38.1 million and $51.8 million for the three and six months ended June 30, 2025, respectively.

The increases in fees over the comparative periods were also driven by higher administrative service fees of $5.5 million and $9.3 million, respectively, primarily from: (i) our perpetual wealth vehicles, including two new products launched in the current year; and (ii) private funds within our Credit Group that are based on invested capital.

Expenses

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Expenses
Compensation and benefits			$	643,709					$	419,858					$	(223,851)					(53)%						$	1,300,834					$	832,809					$	(468,025)					(56)%
Performance related compensation			234,706						(28,985)						(263,691)						NM						357,339						(79,517)						(436,856)						NM
General, administrative and other expenses			232,156						169,432						(62,724)						(37)						460,070						340,360						(119,710)						(35)
Expenses of Consolidated Funds			27,007						4,239						(22,768)						NM						33,663						9,385						(24,278)						(259)
Total expenses			$	1,137,578					$	564,544					573,034						102						$	2,151,906					$	1,103,037					(1,048,869)						(95)

Compensation and Benefits. 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 Ares employees following the GCP Acquisition. The three and six months ended June 30, 2025 included the following acquisition-related compensation expenses: (i) equity-based compensation expense of $40.8 million and $159.9 million, respectively, from awards associated with the purchase price of the GCP Acquisition, with $108.8 million of expense from the portion of these awards that immediately vested in the first quarter of 2025; (ii) other compensation costs of $20.8 million and $29.6 million, respectively, that were settled in cash; and (iii) compensation expense of $15.4 million and $20.6 million, respectively, for certain contingent compensation arrangements established in connection with the GCP Acquisition. See “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of the contingent liabilities related to the GCP Acquisition arrangements.

In addition, the GCP Acquisition contributed incremental employment related costs of $45.2 million and $63.1 million to the three and six months ended June 30, 2025, respectively.

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $101.6 million and $194.8 million, or 24% and 23%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflects the continued growth in salary and benefits for increased staff levels. The most significant expense increases were equity-based compensation, incentive-based compensation and salary expense. Equity-based compensation expense for the three and six months ended June 30, 2025 compared to the same periods in 2024 increased by $35.9 million and $82.4 million, respectively, as a result of newly issued unvested awards, magnified by our increased stock price. The higher stock price associated with equity awards that vested during the first quarter of 2025 also drove the increase in payroll-related taxes of $19.6 million from the prior year-to-date period. In addition, we accelerated expense for certain awards requiring no future service as retirement provisions have been achieved. These provisions increased expense by $25.0 million and $17.4 million for the six months ended June 30, 2025 and 2024, respectively.

Salary expense for the three and six months ended June 30, 2025 compared to the same periods in 2024 increased by $15.7 million and $28.4 million, respectively, primarily attributable to headcount growth to support the expansion of our

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business. In addition, incentive-based compensation which is dependent on our operating performance and is expected to fluctuate during the year, increased over the comparative periods.

Full-time equivalent headcount increased by 31% to 3,776 professionals for the year-to-date period in 2025 from 2,879 professionals in 2024. The acquisition of GCP International added 844 professionals to our period end headcount as of June 30, 2025, which represents 567 full-time equivalents for the year-to-date period.

For detail regarding the fluctuations of compensation and benefits within each of our segments see “—Results of Operations by Segment.”

Performance Related Compensation. Changes in performance related compensation are directly associated with the changes in carried interest allocation and incentive fees described above and include associated payroll-related taxes as well as carried interest and incentive fees allocated to charitable organizations as part of our philanthropic initiatives. Performance related compensation generally represents 60% to 80% of carried interest allocation and incentive fees recognized before giving effect to payroll taxes and will vary based on the mix of funds generating carried interest allocation and incentive fees for that period.

General, Administrative and Other Expenses. The GCP Acquisition has contributed $54.7 million and $104.9 million of general, administrative and other expenses to the three and six months ended June 30, 2025, respectively. These expenses were driven by: (i) operating costs of $28.1 million and $35.7 million, respectively, including non-recurring integration costs and temporary transition services agreement of $6.2 million and $8.4 million, respectively; (ii) amortization expense of $25.7 million and $34.5 million, respectively, related to the intangible assets recorded in connection with the GCP Acquisition; and (iii) acquisition-related costs of $0.9 million and $34.7 million, respectively, largely paid to advisors and professional services providers to assist in completing the transaction. The impact from the GCP Acquisition has been excluded from the discussion below.

General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $8.0 million and $14.8 million, or 5% and 4%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth to support staff levels and fundraising activities. The most significant expense increases were supplemental distribution fees, occupancy costs and information technology costs.

Supplemental distribution fees increased by $4.2 million and $12.9 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in sales volumes and net asset values of our wealth products, from the ongoing development of our distribution relationships and expansion of our wealth product offerings.

In addition, occupancy costs and information technology costs collectively increased by $8.7 million and $15.3 million, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, including the expansion of our New York headquarters.

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Other Income (Expense)

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Other income (expense)
Net realized and unrealized gains on investments			$	12,708					$	8,339					$	4,369					52%						$	12,976					$	18,855					$	(5,879)					(31)%
Interest and dividend income			7,772						7,017						755						11						25,428						12,399						13,029						105
Interest expense			(43,575)						(37,500)						(6,075)						(16)						(79,962)						(75,324)						(4,638)						(6)
Other expense, net			(46,521)						(938)						(45,583)						NM						(57,235)						(668)						(56,567)						NM
Net realized and unrealized gains on investments of Consolidated Funds			127,752						93,523						34,229						37						216,158						127,947						88,211						69
Interest and other income of Consolidated Funds			161,890						240,359						(78,469)						(33)						321,962						497,635						(175,673)						(35)
Interest expense of Consolidated Funds			(145,638)						(217,613)						71,975						33						(298,378)						(425,479)						127,101						30
Total other income, net			$	74,388					$	93,187					(18,799)						(20)						$	140,949					$	155,365					(14,416)						(9)

Net Realized and Unrealized Gains on Investments; Interest and Dividend Income. For investments where we do not serve as general partner, we present the activity of net realized and unrealized gains on investments and interest and dividend income together with net cash received or used.

The following tables present the change in fair value of these investments ($ in millions):

			As of March 31, 2025												Activity during the period																								As of June 30, 2025
			Cost Basis						Fair Value						Net Cash Used						Net Realized and Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
			$	629.6					$	730.9					$	14.7					$	12.7					$	7.8					$	1.5					$	659.2					$	767.6
			As of December 31, 2024												Activity during the period																								As of June 30, 2025
			Cost Basis						Fair Value						Net Cash Used						Net Realized and Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
			$	514.3					$	616.3					$	110.9					$	13.0					$	25.4					$	2.0					$	659.2					$	767.6

The activity for the three and six months ended June 30, 2025 was primarily attributable to:

• Unrealized gains, primarily from our investments in J-REIT and Ares Private Markets Fund (“APMF”)

• Interest and dividend income, primarily due to: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) interest income generated from our investments in CLOs. The six months ended June 30, 2025 included $11.9 million of interest income earned from treasury-backed securities. These treasury-backed securities were sold and the proceeds from the sale were used to fund the GCP Acquisition

• Net cash used, primarily driven by a strategic investment made in a U.S. technology company, which is the potential business combination target of our sponsored SPAC, Ares Acquisition Corporation II (NYSE: AACT). Net cash used for the six months ended June 30, 2025 also included investments in J-REIT and in our open-ended infrastructure fund, partially offset by the collection of principal from loan investments within our real estate debt strategy

			As of March 31, 2024												Activity during the period																								As of June 30, 2024
			Cost Basis						Fair Value						Net Cash Used						Net Realized and Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
			$	481.7					$	578.5					$	40.0					$	8.3					$	7.0					$	(0.1)					$	529.5					$	633.7
			As of December 31, 2023												Activity during the period																								As of June 30, 2024
			Cost Basis						Fair Value						Net Cash Received						Net Realized and Unrealized Gains (Losses)						Interest and Dividend Income						Other Adjustments						Cost Basis						Fair Value
			$	591.1					$	675.1					$	(72.1)					$	18.9					$	12.4					$	(0.6)					$	529.5					$	633.7

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The activity for the three and six months ended June 30, 2024 was primarily attributable to:

• Unrealized gains, primarily from our investment in APMF, partially offset by unrealized losses from our strategic investments in a company that manages portfolios of non-performing loans and in a non-core insurance related investment. The six months ended June 30, 2024 also included unrealized gains from our strategic investments in a U.S. energy company, primarily as a result of the increases in value of our various common and preferred equity investments, as well as unrealized gains from our strategic investment in a company that manages real estate owned properties

• Interest and dividend income, primarily due to: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) interest income generated from our investments in CLOs.

Interest Expense. Interest expense increased for the three and six months ended June 30, 2025 compared to the same periods in 2024 due to higher collective interest expense associated with our term debt obligations. However, we benefited from savings driven by lower average interest rates over the comparative periods, as well as lower average outstanding balance of our Credit Facility over the year-to-date periods.

Other Expense, Net. The activity for the three and six months ended June 30, 2025 and 2024 included transaction losses associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency. Transaction losses for the three and six months ended June 30, 2025 were primarily attributable to the U.S. dollar weakening against the British Pound and Euro and the associated impact of revaluing net liabilities on entities with functional currencies other than the U.S. dollar. The three and six months ended June 30, 2024 included an insignificant amount of transaction losses associated with currency fluctuations.

The purchase agreement for the GCP Acquisition contains contingent consideration that is dependent on the achievement of revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds. The purchase agreement for the WSM Acquisition contains contingent consideration that is dependent on the achievement of revenue targets from the fundraising of a real estate equity fund and revenue targets associated with growing revenue sources from new business ventures. Other income (expense), net includes non-cash expense from the revaluation of these contingent liabilities of $25.6 million and $27.9 million for the three and six months ended June 30, 2025, respectively.

Income Tax Expense

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Income before taxes			$	286,938					$	317,325					$	(30,387)					(10)%						$	427,976					$	548,373					$	(120,397)					(22)%
Less: Income tax expense			60,958						41,074						(19,884)						(48)						78,495						68,307						(10,188)						(15)
Net income			$	225,980					$	276,251					(50,271)						(18)						$	349,481					$	480,066					(130,585)						(27)

The increases in income tax expense were primarily attributable to higher pre-tax income allocable to AMC and higher entity level taxes in foreign and local jurisdictions for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

The allocation of taxable income is sensitive to any changes in weighted average daily ownership as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes. Although income before taxes decreased over the comparative periods, the allocation of taxable income to AMC increased over the same periods. The following table summarizes weighted average daily ownership:

						Three months ended June 30,												Six months ended June 30,
						2025						2024						2025						2024
AMC common stockholders						67.03		%				63.21		%				66.41		%				62.77		%
Non-controlling AOG unitholders						32.97						36.79						33.59						37.23

The changes in ownership compared to the prior year periods were primarily driven by the issuances of shares of Class A common stock in connection with exchanges of Ares Operating Group Units (“AOG Units”), the GCP Acquisition and vesting of restricted unit awards.

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Redeemable and Non-Controlling Interests

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Net income			$	225,980					$	276,251					$	(50,271)					(18)%						$	349,481					$	480,066					$	(130,585)					(27)%
Less: Net income attributable to non-controlling interests in Consolidated Funds			3,999						105,489						(101,490)						(96)						59,976						172,205						(112,229)						(65)
Net income attributable to Ares Operating Group entities			221,981						170,762						51,219						30						289,505						307,861						(18,356)						(6)
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities			(274)						(387)						113						29						42						(314)						356						NM
Less: Net income attributable to non-controlling interests in Ares Operating Group entities			85,193						76,211						8,982						12						105,231						140,210						(34,979)						(25)
Net income attributable to Ares Management Corporation			137,062						94,938						42,124						44						184,232						167,965						16,267						10
Less: Series B mandatory convertible preferred stock dividends declared			25,312						—						(25,312)						NM						50,625						—						(50,625)						NM
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$	111,750					$	94,938					16,812						18						$	133,607					$	167,965					(34,358)						(20)

The changes in net income attributable to non-controlling interests in AOG entities over the comparative periods were a result of the respective changes in income before taxes and weighted average daily ownership, as presented above.

Consolidated Results of Operations of the Consolidated Funds

The following table presents the results of operations of the Consolidated Funds ($ in thousands):

						Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,																		Favorable (Unfavorable)
						2025						2024						$ Change						% Change						2025						2024												$ Change						% Change
Expenses of the Consolidated Funds						$	(27,007)					$	(4,239)					$	(22,768)					NM						$	(33,663)					$	(9,385)											$	(24,278)					(259)%
Net realized and unrealized gains on investments of Consolidated Funds						127,752						93,523						34,229						37						216,158						127,947												88,211						69
Interest and other income of Consolidated Funds						161,890						240,359						(78,469)						(33)						321,962						497,635												(175,673)						(35)
Interest expense of Consolidated Funds						(145,638)						(217,613)						71,975						33						(298,378)						(425,479)												127,101						30
Income before taxes						116,997						112,030						4,967						4						206,079						190,718												15,361						8
Less: Income tax expense of Consolidated Funds						709						4,992						4,283						86						2,711						3,862												1,151						30
Net income						116,288						107,038						9,250						9						203,368						186,856												16,512						9
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation						103,019						(5,161)						108,180						NM						123,006						3,615												119,391						NM
Other income, net attributable to Ares Management Corporation eliminated upon consolidation						(9,270)						(6,710)						2,560						38						(20,386)						(11,469)												8,917						78
General, administrative and other expense attributable to Ares Management Corporation eliminated upon consolidation						—						—						—						—						—						433												433						100
Net income attributable to non-controlling interests in Consolidated Funds						$	3,999					$	105,489					(101,490)						(96)						$	59,976					$	172,205											(112,229)						(65)

The results of operations of the Consolidated Funds primarily represent activities from certain funds that we are deemed to control. When a fund is consolidated, we reflect the revenues and expenses of the entity on a gross basis, subject to eliminations from consolidation. Substantially all of our results of operations related to the Consolidated Funds are attributable to ownership interests that third parties hold in those funds. The Consolidated Funds are not necessarily the same funds in each year presented due to changes in ownership, changes in limited partners’ or investor rights, and the creation or termination of funds and entities. Accordingly, such amounts may not be comparable for the periods presented, and in any event have no material impact on net income attributable to Ares Management Corporation.

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Segment Analysis

For segment reporting purposes, revenues and expenses are presented before giving effect to the results of our Consolidated Funds and the results attributable to non-controlling interests of joint ventures that we consolidate. As a result, segment revenues from management fees, fee related performance revenues, performance income and investment income are different than those presented on a consolidated basis in accordance with GAAP. Revenues recognized from Consolidated Funds are eliminated in consolidation and those attributable to the non-controlling interests of joint ventures have been excluded by us. Furthermore, expenses and the effects of other income (expense) are different than related amounts presented on a consolidated basis in accordance with GAAP due to the exclusion of the results of Consolidated Funds and the non-controlling interests of joint ventures.

Non-GAAP Financial Measures

We use Realized Income (“RI”) as a non-GAAP profit measure in making operating decisions, assessing performance and allocating resources. Fee Related Earnings (“FRE”) is a component of RI that excludes realized activities associated with investment income and performance income.

FRE and RI should be considered in addition to and not in lieu of, the results of operations, which are discussed further under “—Components of Consolidated Results of Operations” and are prepared in accordance with GAAP. We operate through our distinct operating segments. In the first quarter of 2025, we combined the presentation of real estate strategies and infrastructure strategies within Real Assets. Real estate includes Americas real estate equity, European real estate equity, APAC real estate equity and real estate debt. Americas real estate equity, which we had recently renamed from North American real estate equity, now includes the activities of Brazil following the GCP Acquisition. APAC real estate equity is newly established following the GCP Acquisition and primarily represents the activities in Japan and Vietnam. Infrastructure includes digital infrastructure, infrastructure opportunities and infrastructure debt. Digital infrastructure is newly established following the GCP Acquisition. The change in presentation did not result in any change to the historical composition of our segments.

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

The following table sets forth FRE and RI by reportable segment and the OMG ($ in thousands):

						Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
						2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings:
Credit Group						$	426,310					$	368,281					$	58,029					16%						$	834,904					$	720,698					$	114,206					16%
Real Assets Group						113,645						51,643						62,002						120						187,924						98,161						89,763						91
Private Equity Group						9,846						14,454						(4,608)						(32)						24,153						29,825						(5,672)						(19)
Secondaries Group						50,537						33,641						16,896						50						91,121						59,246						31,875						54
Other						4,764						3,297						1,467						44						9,233						5,360						3,873						72
Operations Management Group						(195,991)						(146,800)						(49,191)						(34)						(370,948)						(287,104)						(83,844)						(29)
Fee Related Earnings						$	409,111					$	324,516					84,595						26						$	776,387					$	626,186					150,201						24
Realized Income:
Credit Group						$	435,494					$	408,205					$	27,289					7%						$	867,433					$	764,433					$	103,000					13%
Real Assets Group						97,648						41,069						56,579						138						185,245						85,008						100,237						118
Private Equity Group						12,858						11,392						1,466						13						23,085						22,949						136						1
Secondaries Group						48,715						26,544						22,171						84						88,386						44,130						44,256						100
Other						(657)						22,213						(22,870)						NM						10,112						21,951						(11,839)						(54)
Operations Management Group						(196,244)						(146,265)						(49,979)						(34)						(370,523)						(286,157)						(84,366)						(29)
Realized Income						$	397,814					$	363,158					34,656						10						$	803,738					$	652,314					151,424						23

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Income before provision for income taxes is the GAAP financial measure most comparable to RI. The following table presents the reconciliation of income before taxes as reported within the Condensed Consolidated Statements of Operations to RI and FRE of the reportable segments and the OMG ($ in thousands):

			Three months ended June 30,												Six months ended June 30,
			2025						2024						2025						2024
Income before taxes			$	286,938					$	317,325					$	427,976					$	548,373
Adjustments:
Depreciation and amortization expense			63,180						36,251						111,409						72,895
Equity compensation expense			165,091						88,234						422,953						180,655
Acquisition-related compensation expense(1)			44,305						5,435						66,304						10,939
Acquisition and merger-related expense			2,791						3,650						37,399						14,228
Placement fee adjustment			(1,092)						(230)						(1,098)						5,310
Other (income) expense, net			27,163						(11,430)						29,689						(11,299)
Income before taxes of non-controlling interests in consolidated subsidiaries			(5,317)						(3,942)						(10,788)						(7,604)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations			(4,708)						(110,481)						(62,687)						(176,067)
Total performance (income) loss—unrealized			(300,592)						122,318						(365,035)						167,794
Total performance related compensation—unrealized			207,731						(107,182)						248,281						(171,696)
Total net investment (income) loss—unrealized			(87,676)						23,210						(100,665)						18,786
Realized Income			397,814						363,158						803,738						652,314
Total performance income—realized			(55,554)						(109,642)						(181,002)						(132,823)
Total performance related compensation—realized			39,071						68,996						123,487						82,152
Total net investment loss—realized			27,780						2,004						30,164						24,543
Fee Related Earnings			$	409,111					$	324,516					$	776,387					$	626,186

(1)Represents bonus payments, contingent liabilities (“earnouts”) and other costs in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within our Condensed Consolidated Statements of Operations.

For the specific components and calculations of these non-GAAP measures, as well as additional reconciliations to the most comparable measures in accordance with GAAP, see “Note 14. Segment Reporting” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. Discussed below are our results of operations for our reportable segments and the OMG.

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Results of Operations by Segment

Credit Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Fee Related Earnings

The following table presents the components of the Credit Group’s FRE ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Management fees			$	617,141					$	534,664					$	82,477					15%						$	1,202,537					$	1,045,630					$	156,907					15%
Fee related performance revenues			314						6,404						(6,090)						(95)						18,709						7,159						11,550						161
Other fees			13,362						10,481						2,881						27						23,960						20,392						3,568						17
Compensation and benefits			(160,205)						(142,658)						(17,547)						(12)						(324,952)						(277,507)						(47,445)						(17)
General, administrative and other expenses			(44,302)						(40,610)						(3,692)						(9)						(85,350)						(74,976)						(10,374)						(14)
Fee Related Earnings			$	426,310					$	368,281					58,029						16						$	834,904					$	720,698					114,206						16

Management Fees. The chart below presents Credit Group management fees and effective management fee rates ($ in millions):

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The following table presents the components of and causes for changes in the Credit Group’s management fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 ($ in millions):

			Three month change						Six month change
Publicly-traded and perpetual wealth vehicles:
Fees from ARCC, ASIF and CADC, excluding Part I Fees, due to increases in average total assets			$	33.1					$	68.0
Part I Fees primarily from ASIF, CADC and our open-ended European direct lending fund driven by increases in net investment income from their growing portfolio of investments			12.7						27.5
Fees from our open-ended European direct lending fund, excluding Part I Fees, due to the expiration of a fee waiver and driven by an increase in average total assets			7.4						12.5
Capital deployment in private funds:
Fees from SDL III, ACE VI and Pathfinder II, ASOF II and Ares Senior Direct Lending Fund II, L.P. (“SDL II”)			32.2						61.4
Distributions that reduced the fee base of ACE IV, ASOF I, Ares Senior Direct Lending Fund, L.P. (“SDL I”) and SSG Fund V as the funds are past their investment periods			(10.7)						(23.4)
Cumulative effect of other changes			7.8						10.9
Total			$	82.5					$	156.9

Fee Related Performance Revenues. Fee related performance revenues for the six months ended June 30, 2025 were primarily attributable to incentive fees earned from a European direct lending fund that crystallized a deferred payment during the first quarter of 2025 due to the restructuring of its hold back provisions. Fee related performance revenues for the three and six months ended June 30, 2024 were primarily attributable to incentive fees earned from a U.S. direct lending fund.

Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily driven by higher administrative service fees of $2.1 million and $3.0 million, respectively, which are earned from certain private funds that pay on invested capital.

Compensation and Benefits. The increases in compensation and benefits for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily driven by: (i) increases in incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; (ii) higher Part I Fee compensation of $7.0 million and $13.4 million, respectively, corresponding to the increases in Part I Fees; and (iii) increases in salary expense of $3.0 million and $5.1 million, respectively, primarily attributable to headcount growth to support the expansion of our business. We reduced Part I Fee compensation by $4.9 million and $3.5 million for the three months ended June 30, 2025 and 2024, respectively, and $9.7 million and $4.7 million for the six months ended June 30, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.

The increase in compensation and benefits for the six months ended June 30, 2025 compared to the same period in 2024 was also driven by (i) higher fee related performance compensation of $9.0 million, corresponding to the increase in fee related performance revenues and (ii) an increase in payroll-related taxes of $8.5 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2025.

Full-time equivalent headcount increased by 7% to 698 investment and investment support professionals for the year-to-date period in 2025 from 654 professionals in 2024 to support our growing direct lending and alternative credit platforms.

General, Administrative and Other Expenses. The increases in general, administrative and other expenses were primarily due to costs incurred to support distribution of shares in our perpetual wealth vehicles. Supplemental distribution fees increased by $3.9 million and $10.4 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 as we continue to develop our distribution relationships and expand our wealth product offerings.

Additionally, certain expenses increased during the current period, including occupancy costs and information technology costs. These expenses collectively increased by $2.0 million and $3.6 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 to support our growing headcount and the expansion of our business.

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Realized Income

The following table presents the components of the Credit Group’s RI ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings			$	426,310					$	368,281					$	58,029					16%						$	834,904					$	720,698					$	114,206					16%
Performance income—realized			21,915						98,256						(76,341)						(78)						76,027						115,022						(38,995)						(34)
Performance related compensation—realized			(13,248)						(60,942)						47,694						78						(47,506)						(69,676)						22,170						32
Realized net performance income			8,667						37,314						(28,647)						(77)						28,521						45,346						(16,825)						(37)
Investment income—realized			4,096						9,391						(5,295)						(56)						9,475						11,156						(1,681)						(15)
Interest income			1,135						1,686						(551)						(33)						5,555						4,453						1,102						25
Interest expense			(4,714)						(8,467)						3,753						44						(11,022)						(17,220)						6,198						36
Realized net investment income (loss)			517						2,610						(2,093)						(80)						4,008						(1,611)						5,619						NM
Realized Income			$	435,494					$	408,205					27,289						7						$	867,433					$	764,433					103,000						13

The Credit Group’s realized activities were principally composed of and caused by the following:

Three months ended June 30, 2025						Three months ended June 30, 2024
Realized net performance income
Carried interest: •Distributions of $3.9 million from an alternative credit fund that is in liquidation Incentive fees: •Incentive fees of $2.6 million primarily from two alternative credit funds that have annual measurement periods in the second quarter						Carried interest: •Aggregate tax distributions of $25.7 million primarily from ACE IV, ACE V and ASOF I Incentive fees: •Incentive fees of $9.7 million primarily from two alternative credit funds that have annual measurement periods in the second quarter
Realized investment income and interest income
•Distributions of investment income of $2.4 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs •Distributions of investment income of $1.6 million from our investment in SSF IV •Interest income of $1.0 million generated from eight CLO investments						•Distributions of investment income of $6.6 million generated from our investment in a U.S. direct lending fund •Distributions of investment income of $2.0 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs •Interest income of $1.5 million generated from 14 CLO investments
Six months ended June 30, 2025						Six months ended June 30, 2024
Realized net performance income
Carried interest: •Aggregate tax distributions of $12.3 million primarily from ACE IV, ACE V and Pathfinder I •Distributions of $9.4 million from two alternative credit funds that are in liquidation Incentive fees: •Incentive fees of $3.6 million, primarily generated from two alternative credit funds that have annual measurement periods in the second quarter and from a U.S. direct lending fund						Carried interest: •Aggregate tax distributions of $27.0 million primarily from ACE IV, ACE V, PCS I and ASOF I •Distributions of $4.1 million from two alternative credit funds that are in liquidation Incentive fees: •Incentive fees of $11.3 million primarily from two alternative credit funds that have annual measurement periods in the second quarter
Realized investment income and interest income
•Distributions of investment income of $4.3 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs •Interest income of $2.9 million earned on treasury-backed securities •Distributions of investment income of $2.7 million from our investment in SSF IV •Interest income of $2.4 million generated from 10 CLO investments						•Distributions of investment income of $6.6 million generated from our investment in a U.S. direct lending fund •Distributions of investment income of $3.9 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs •Interest income of $3.0 million generated from 15 CLO investments

Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.

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Credit Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Credit Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):

			As of June 30, 2025																		As of December 31, 2024
			Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income						Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income
Pathfinder I			$	216.3					$	183.9					$	32.4					$	191.4					$	165.7					$	25.7
ASOF I			318.2						223.0						95.2						318.4						223.2						95.2
ASOF II			332.9						234.1						98.8						258.2						181.4						76.8
PCS I			139.2						82.3						56.9						130.1						76.9						53.2
PCS II			216.9						128.7						88.2						171.4						101.5						69.9
ACE IV			193.3						125.5						67.8						168.8						109.6						59.2
ACE V			358.6						226.7						131.9						286.6						180.9						105.7
ACE VI			130.3						82.3						48.0						71.1						44.8						26.3
Other credit funds			346.5						220.8						125.7						332.0						207.0						125.0
Total Credit Group			$	2,252.2					$	1,507.3					$	744.9					$	1,928.0					$	1,291.0					$	637.0

The following table presents the change in accrued performance income for the Credit Group ($ in millions):

												As of December 31, 2024						Activity during the period																		As of June 30, 2025
						Waterfall Type						Accrued Performance Income						Change in Unrealized						Realized						Other Adjustments						Accrued Performance Income
Accrued Carried Interest
Pathfinder I						European						$	191.4					$	31.5					$	(6.6)					$	—					$	216.3
ASOF I						European						318.4						(0.2)						—						—						318.2
ASOF II						European						258.2						74.7						—						—						332.9
PCS I						European						130.1						9.0						—						0.1						139.2
PCS II						European						171.4						44.8						—						0.7						216.9
ACE IV						European						168.8						34.1						(9.5)						(0.1)						193.3
ACE V						European						286.6						93.0						(20.8)						(0.2)						358.6
ACE VI						European						71.1						59.2						—						—						130.3
Other credit funds						European						231.2						81.8						(26.9)						(6.1)						280.0
Other credit funds						American						100.8						(23.3)						(2.1)						(8.9)						66.5
Total accrued carried interest												1,928.0						404.6						(65.9)						(14.5)						2,252.2
Other credit funds						Incentive						—						10.1						(10.1)						—						—
Total Credit Group												$	1,928.0					$	414.7					$	(76.0)					$	(14.5)					$	2,252.2

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Credit Group—Assets Under Management

The tables below present rollforwards of AUM for the Credit Group ($ in millions):

									Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit						Other**(1)**						Total Credit Group
Balance at 3/31/2025									$	46,546					$	42,907					$	15,648					$	164,750					$	77,487					$	11,460					$	278					$	359,076
Net new par/equity commitments									1,278						310						2,439						2,928						1,923						44						—						8,922
Net new debt commitments									1,412						—						350						7,399						—						—						—						9,161
Capital reductions									(478)						—						—						(1,303)						(2,071)						(10)						—						(3,862)
Distributions									(331)						(315)						(961)						(1,257)						(1,461)						(675)						—						(5,000)
Redemptions									(674)						—						—						(270)						—						—						—						(944)
Net allocations among investment strategies									—						185						—						278						—						—						(278)						185
Change in fund value									1,067						629						509						1,719						5,413						231						—						9,568
Balance at 6/30/2025									$	48,820					$	43,716					$	17,985					$	174,244					$	81,291					$	11,050					$	—					$	377,106
									Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit						Other**(1)**						Total Credit Group
Balance at 3/31/2024									$	46,247					$	36,481					$	14,556					$	129,181					$	70,201					$	11,663					$	310					$	308,639
Net new par/equity commitments									666						900						—						7,875						1,489						257						13						11,200
Net new debt commitments									2,656						—						—						5,936						—						—						—						8,592
Capital reductions									(2,534)						—						(1,022)						(1,553)						(1)						—						—						(5,110)
Distributions									(152)						(225)						(180)						(1,390)						(743)						(127)						—						(2,817)
Redemptions									(532)						—						—						(108)						(15)						—						—						(655)
Net allocations among investment strategies									(18)						628						—						25						—						—						(25)						610
Change in fund value									239						628						(154)						1,228						547						173						3						2,664
Balance at 6/30/2024									$	46,572					$	38,412					$	13,200					$	141,194					$	71,478					$	11,966					$	301					$	323,123
									Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit						Other**(1)**						Total Credit Group
Balance at 12/31/2024									$	46,895					$	41,565					$	14,964					$	159,129					$	74,560					$	11,470					$	275					$	348,858
Net new par/equity commitments									1,736						870						3,511						5,911						2,779						58						—						14,865
Net new debt commitments									2,417						—						350						11,215						—						—						—						13,982
Capital reductions									(2,398)						(277)						(175)						(2,246)						(2,071)						(108)						—						(7,275)
Distributions									(361)						(1,177)						(1,103)						(2,489)						(2,434)						(707)						—						(8,271)
Redemptions									(935)						—						—						(391)						—						—						—						(1,326)
Net allocations among investment strategies									—						1,494						—						278						—						—						(278)						1,494
Change in fund value									1,466						1,241						438						2,837						8,457						337						3						14,779
Balance at 6/30/2025									$	48,820					$	43,716					$	17,985					$	174,244					$	81,291					$	11,050					$	—					$	377,106
									Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit						Other**(1)**						Total Credit Group
Balance at 12/31/2023									$	47,299					$	33,886					$	14,554					$	123,073					$	68,264					$	11,920					$	354					$	299,350
Net new par/equity commitments									1,361						2,728						—						10,337						4,180						257						70						18,933
Net new debt commitments									3,650						—						—						10,772						662						(380)						—						14,704
Capital reductions									(3,668)						—						(1,022)						(2,106)						50						151						—						(6,595)
Distributions									(197)						(663)						(469)						(2,878)						(1,942)						(232)						—						(6,381)
Redemptions									(2,227)						—						—						(828)						(116)						—						—						(3,171)
Net allocations among investment strategies									(18)						1,296						—						25						150						—						(128)						1,325
Change in fund value									372						1,165						137						2,799						230						250						5						4,958
Balance at 6/30/2024									$	46,572					$	38,412					$	13,200					$	141,194					$	71,478					$	11,966					$	301					$	323,123
(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated as commitments to an investment strategy as of the reporting dates presented.

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The components of our AUM for the Credit Group are presented below ($ in billions):

			AUM: $377.1						AUM: $323.1

						FPAUM						AUM not yet paying fees						Non-fee paying(1)

(1) Includes $13.8 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of June 30, 2025 and 2024, respectively, and includes $2.0 billion and $1.7 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.

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Credit Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Credit Group ($ in millions):

						Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit												Total Credit Group
Balance at 3/31/2025						$	44,538					$	31,466					$	8,305					$	90,389					$	38,419					$	5,114											$	218,231
Commitments						2,457						10						—						2,551						816						24												5,858
Deployment/subscriptions/increase in leverage						—						697						1,024						2,971						1,642						639												6,973
Capital reductions						(486)						—						—						(672)						(366)						(77)												(1,601)
Distributions						(335)						(1,092)						(546)						(1,843)						(1,109)						(389)												(5,314)
Redemptions						(674)						—						—						(270)						—						—												(944)
Net allocations among investment strategies						—						452						—						—						—						—												452
Change in fund value						1,129						48						—						814						2,503						4												4,498
Balance at 6/30/2025						$	46,629					$	31,581					$	8,783					$	93,940					$	41,905					$	5,315											$	228,153
						Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit												Total Credit Group
Balance at 3/31/2024						$	45,022					$	24,986					$	8,584					$	70,387					$	35,271					$	5,576											$	189,826
Commitments						2,569						—						—						3,498						7						7												6,081
Deployment/subscriptions/increase in leverage						58						583						427						4,338						1,487						292												7,185
Capital reductions						(2,534)						—						—						(497)						(80)						—												(3,111)
Distributions						(158)						(146)						(588)						(2,392)						(446)						(303)												(4,033)
Redemptions						(532)						—						—						(110)						(531)						—												(1,173)
Net allocations among investment strategies						(18)						631						—						—						—						—												613
Change in fund value						373						37						—						743						(64)						(302)												787
Change in fee basis						—						—						—						—						913						—												913
Balance at 6/30/2024						$	44,780					$	26,091					$	8,423					$	75,967					$	36,557					$	5,270											$	197,088
						Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit												Total Credit Group
Balance at 12/31/2024						$	44,629					$	29,384					$	7,899					$	86,415					$	35,786					$	5,032											$	209,145
Commitments						4,646						10						—						6,192						1,450						38												12,336
Deployment/subscriptions/increase in leverage						9						2,165						1,452						6,524						3,548						1,008												14,706
Capital reductions						(2,406)						—						—						(2,314)						(415)						(77)												(5,212)
Distributions						(369)						(1,630)						(568)						(3,739)						(1,640)						(659)												(8,605)
Redemptions						(921)						—						—						(391)						(80)						—												(1,392)
Net allocations among investment strategies						—						1,624						—						—						—						—												1,624
Change in fund value						1,041						28						—						1,253						3,588						4												5,914
Change in fee basis						—						—						—						—						(332)						(31)												(363)
Balance at 6/30/2025						$	46,629					$	31,581					$	8,783					$	93,940					$	41,905					$	5,315											$	228,153
						Liquid Credit						Alternative Credit						Opportunistic Credit						U.S. Direct Lending						European Direct Lending						APAC Credit												Total Credit Group
Balance at 12/31/2023						$	46,140					$	23,218					$	8,490					$	67,596					$	34,246					$	5,590											$	185,280
Commitments						3,792						—						—						6,047						13						7												9,859
Deployment/subscriptions/increase in leverage						59						1,817						767						7,812						3,363						591												14,409
Capital reductions						(3,501)						—						—						(1,821)						(535)						(18)												(5,875)
Distributions						(204)						(519)						(834)						(4,816)						(696)						(627)												(7,696)
Redemptions						(2,226)						—						—						(199)						(897)						—												(3,322)
Net allocations among investment strategies						(18)						1,517						—						—						—						—												1,499
Change in fund value						738						58						—						1,348						(543)						(273)												1,328
Change in fee basis						—						—						—						—						1,606						—												1,606
Balance at 6/30/2024						$	44,780					$	26,091					$	8,423					$	75,967					$	36,557					$	5,270											$	197,088

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The charts below present FPAUM for the Credit Group by its fee bases ($ in billions):

			FPAUM: $228.2						FPAUM: $197.1

			Invested capital						Market value(1)						Collateral balances (at par)						Capital commitments

(1)Includes $54.1 billion and $40.6 billion from funds that primarily invest in illiquid strategies as of June 30, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

Credit Group—Fund Performance Metrics as of June 30, 2025

ARCC contributed approximately 31% of the Credit Group’s total management fees for the six months ended June 30, 2025. In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 41% of the Credit Group’s management fees for the six months ended June 30, 2025.

The following table presents the performance data for our significant funds that are not drawdown funds in the Credit Group as of June 30, 2025 ($ in millions):

																		Returns(%)
						Year of Inception						AUM						Current Quarter												Year-To-Date												Since Inception**(1)**												Primary Investment Strategy
Fund												Gross						Net						Gross						Net						Gross						Net
ARCC(2)						2004						$	35,012					N/A						2.8						N/A						5.0						N/A						12.1						U.S. Direct Lending
CADC(3)						2017						8,025						N/A						3.1						N/A						4.1						N/A						7.0						U.S. Direct Lending
Open-ended core alternative credit fund(4)						2021						6,226						3.0						2.3						6.1						4.5						11.7						8.7						Alternative Credit
ASIF(3)						2023						19,959						N/A						2.9						N/A						4.4						N/A						11.2						U.S. Direct Lending
Open-ended European direct lending fund(5)						2024						4,369						N/A						2.0						N/A						3.6						N/A						10.5						European Direct Lending

(1)Since inception returns are annualized.

(2)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Net returns are calculated using the fund’s NAV and assume dividends are reinvested at the closest quarter-end NAV to the relevant quarterly ex-dividend dates. Additional information related to ARCC can be found in its filings with the SEC, which are not part of this report.

(3)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to CADC and ASIF can be found in its filings with the SEC, which are not part of this report.

(4)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. The fund is made up of a Main Class (“Class M”) and a Constrained Class (“Class C”). Class M includes investors electing to participate in all investments and Class C includes investors electing to be excluded from exposure to liquid investments. Returns presented in the table are for onshore Class M. The current quarter gross and net returns for Class M (offshore) are 3.0% and 2.2%, respectively. The year-to-date gross and net returns for Class M (offshore) are 6.1% and 4.4%, respectively. The since inception gross and net returns for Class M (offshore) are 11.7% and 8.3%, respectively. The current quarter gross and net returns for Class C (offshore) are 2.8% and 2.1%, respectively. The year-to-date gross and net returns for Class M (offshore) are 5.5% and 4.0%, respectively. The since inception gross and net returns for Class C (offshore) are 11.3% and 8.1%, respectively.

(5)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for the Euro hedged distributing institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees, and currency hedging. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.

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The following table presents the performance data of the Credit Group’s significant drawdown funds as of June 30, 2025 ($ in millions):

			Year of Inception						AUM						Original Capital Commitments						Capital Invested to Date						Realized Value**(1)**						Unrealized Value**(2)**						Total Value						MoIC												IRR(%)												Primary Investment Strategy
Fund																								Gross**(3)**						Net**(4)**						Gross**(5)**						Net**(6)**
Funds Harvesting Investments
ACE IV Unlevered(7)			2018						$	6,574					$	2,851					$	2,470					$	1,921					$	1,319					$	3,240					1.4x						1.3x						8.1						5.8						European Direct Lending
ACE IV Levered(7)									4,819						4,111						3,502						2,353						5,855						1.6x						1.4x						11.1						8.0
Pathfinder I			2020						4,034						3,683						3,178						915						3,288						4,203						1.5x						1.3x						14.7						10.6						Alternative Credit
SDL II Unlevered			2021						16,668						1,989						1,665						346						1,661						2,007						1.3x						1.2x						11.7						9.2						U.S. Direct Lending
SDL II Levered									6,047						4,683						1,512						4,634						6,146						1.4x						1.3x						18.2						13.9
Funds Deploying Capital
PCS II			2020						6,269						5,114						3,751						969						3,993						4,962						1.4x						1.3x						12.9						9.0						U.S. Direct Lending
ACE V Unlevered(8)			2020						17,803						7,026						5,866						1,594						5,750						7,344						1.3x						1.2x						10.8						8.0						European Direct Lending
ACE V Levered(8)									6,376						5,325						2,050						5,354						7,404						1.5x						1.3x						15.1						11.2
ASOF II			2021						9,020						7,128						5,892						23						7,451						7,474						1.4x						1.3x						18.1						13.1						Opportunistic Credit
ACE VI Unlevered(9)			2022						21,709						7,439						2,736						131						2,831						2,962						1.1x						1.1x						13.6						9.8						European Direct Lending
ACE VI Levered(9)									9,667						3,561						263						3,827						4,090						1.2x						1.1x						21.3						15.1
SDL III Unlevered			2023						27,089						3,311						1,125						42						1,159						1,201						1.1x						1.1x						NM						NM						U.S. Direct Lending
SDL III Levered									11,959						3,082						196						3,267						3,463						1.2x						1.1x						NM						NM

(1)For funds other than our opportunistic credit funds, realized value represent the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner. For our opportunistic credit funds, realized value represent the sum of all cash distributions to the fee-paying limited partners and if applicable, exclude tax and incentive distributions made to the general partner.

(2)Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated. For funds other than our opportunistic credit funds, the unrealized value is based on all partners. For our opportunistic credit funds, the unrealized value is based on the fee-paying limited partners.

(3)The gross multiple of invested capital (“MoIC”) is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7)ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling: ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered and one feeder fund: ACE IV (D) Levered. ACE IV (E) Levered includes the ACE IV (D) Levered feeder fund. The gross and net IRR and MoIC presented in the table are for ACE IV (E) Unlevered and ACE IV (E) Levered. Metrics for ACE IV (E) Levered exclude the U.S. dollar denominated feeder fund. The gross and net IRR for ACE IV (G) Unlevered are 9.6% and 7.1%, respectively. The gross and net MoIC for ACE IV (G) Unlevered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE IV (G) Levered are 12.5% and 8.9%, respectively. The gross and net MoIC for ACE IV (G) Levered are 1.7x and 1.5x, respectively. The gross and net IRR for ACE IV (D) Levered are 12.5% and 9.2%, respectively. The gross and net MoIC for ACE IV (D) Levered are 1.7x and 1.5x, respectively. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE IV Unlevered and ACE IV Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.

(8)ACE V is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling: ACE V (E) Unlevered, ACE V (G) Unlevered, ACE V (E) Levered, and ACE V (G) Levered, and two feeder funds: ACE V (D) Levered and ACE V (Y) Unlevered. ACE V (E) Levered includes the ACE V (D) Levered feeder fund and ACE V (E) Unlevered includes the ACE V (Y) Unlevered feeder fund. The gross and net IRR and gross and net MoIC presented in the table are for ACE V (E) Unlevered and ACE V (E) Levered. Metrics for ACE V (E) Levered exclude the ACE V (D) Levered feeder fund and metrics for ACE V (E) Unlevered exclude the ACE V (Y) Unlevered feeder fund. The gross and net IRR for ACE V(G) Unlevered are 12.3% and 9.3%, respectively. The gross and net MoIC for ACE V (G) Unlevered are 1.4x and 1.3x, respectively. The gross and net IRR for ACE V (G) Levered are 16.3% and 11.8%, respectively. The gross and net MoIC for ACE V (G) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (D) Levered are 15.6% and 11.7%, respectively. The gross and net MoIC for ACE V (D) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (Y) Unlevered are 10.7% and 7.7%, respectively. The gross and net MoIC for ACE V (Y) Unlevered are 1.3x and 1.2x, respectively. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of the fund's closing. All other values for ACE V Unlevered and ACE V Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.

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(9)ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in pound sterling: ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds: ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes. ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered. Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR for ACE VI (G) Unlevered are 15.3% and 10.8%, respectively. The gross and net MoIC for ACE VI (G) Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (G) Levered are 25.3% and 14.6%, respectively. The gross and net MoIC for ACE VI (G) Levered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Unlevered are 12.8% and 9.4%, respectively. The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Levered are 21.6% and 15.7%, respectively. The gross and net MoIC for ACE VI (E) II Levered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (D) Levered are 25.1% and 18.9%, respectively. The gross and net MoIC for ACE VI (D) Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (Y) Unlevered are 9.8% and 6.2%, respectively. The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (D) Rated Notes are 20.3% and 11.6%, respectively. The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund's closing. All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.

Real Assets Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Fee Related Earnings

The following table presents the components of the Real Assets Group’s FRE ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Management fees			$	175,924					$	99,609					$	76,315					77%						$	306,377					$	193,423					$	112,954					58%
Fee related performance revenues			147						—						147						NM						147						—						147						NM
Other fees			48,558						6,445						42,113						NM						69,938						11,520						58,418						NM
Compensation and benefits			(80,289)						(39,125)						(41,164)						(105)						(136,991)						(77,043)						(59,948)						(78)
General, administrative and other expenses			(30,695)						(15,286)						(15,409)						(101)						(51,547)						(29,739)						(21,808)						(73)
Fee Related Earnings			$	113,645					$	51,643					62,002						120						$	187,924					$	98,161					89,763						91

Management Fees. The chart below presents Real Assets Group management fees and effective management fee rates ($ in millions):

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The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 ($ in millions):

			Three month change						Six month change
Fees from acquisitions:
Fees from the GCP Acquisition effective March 1, 2025, excluding catch-up fees			$	62.2					$	82.8
Catch-up fees primarily generated from U.S. Logistics Partners V, L.P.			0.1						3.9
Fees from the WSM Acquisition effective December 1, 2024			5.3						10.3
Capital commitments:
Fees from our second climate infrastructure fund, our fourth European value-add real estate equity fund and Ares U.S. Real Estate Opportunity Fund IV, L.P. (“AREOF IV”), excluding catch-up fees			3.6						7.5
Catch-up fees from our second climate infrastructure fund and our fourth European value-add real estate equity fund			1.0						1.0
Catch-up fees from AREOF IV, which had its final close in the third quarter of 2024			(3.4)						(3.0)
Fees from our diversified non-traded REIT and our open-ended infrastructure fund, driven by additional capital raised			4.2						6.4
Cumulative effect of other changes			3.3						4.1
Total			$	76.3					$	113.0

The decreases in effective management fee rate for the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily driven by lower effective management fee rates from funds that we manage as a result of the GCP Acquisition and the full quarter impact of the fees received from these funds. Certain of these funds pay management fees based on net operating income and we present the associated effective management fee rates as a percentage of fund assets, which may result in greater variability in the Real Assets Group’s effective management fee rate. In addition, due to the vertically integrated focus of the acquired platform following the GCP Acquisition, we expect the size and composition of other fees earned from these funds will increase relative to management fees.

Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the same periods in 2024 were driven by incremental fees of $40.6 million and $55.0 million, respectively, following the completion of the GCP Acquisition. The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees. For the three and six months ended June 30, 2025, these fees were mostly development fees generated from funds that we manage following the GCP Acquisition. Excluding the impact of the GCP Acquisition, other fees increased by $1.5 million and $3.4 million, or 24% and 29%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to higher property management fees from increased activity within certain U.S. real estate equity funds.

Compensation and Benefits. The GCP Acquisition added 581 professionals to our period end headcount as of June 30, 2025, which represents 392 full-time equivalents for the year-to-date period. Headcount growth attributable to the GCP Acquisition contributed $34.0 million and $47.5 million in employment related costs for the three and six months ended June 30, 2025, respectively. The impact from the GCP Acquisition has been excluded from the discussion below, except as otherwise noted.

Compensation and benefits, excluding the impact from the GCP Acquisition, increased by $7.2 million and $12.4 million, or 18% and 16%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in compensation and benefits over the comparative periods were driven by increases in incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year.

Full-time equivalent headcount increased by 112% to 806 investment and investment support professionals for the year-to-date period in 2025 from 381 professionals for the same period in 2024, including the impact of GCP International previously discussed.

General, Administrative and Other Expenses. The GCP Acquisition contributed $14.1 million and $17.5 million in general, administrative and other expenses for the three and six months ended June 30, 2025, respectively. These expenses were driven by occupancy costs and information technology costs to support existing operations. These expenses collectively contributed $5.6 million and $6.6 million for the three and six months ended June 30, 2025, respectively. The three and six months ended June 30, 2025 also include certain non-recurring integration costs and temporary transition services agreement of $0.9 million and $1.2 million, respectively. The impact from the GCP Acquisition has been excluded from the discussion below.

General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $1.3 million and $4.3 million, or 9% and 14%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in general, administrative and other expenses over the comparative periods were driven by occupancy

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costs and information technology costs. These expenses collectively increased by $1.2 million and $2.5 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 to support our growing headcount and the expansion of our business.

In addition, supplemental distribution fees increased by $1.5 million for the six months ended June 30, 2025 compared to the same period in 2024 as we expand our wealth product offerings with our open-ended infrastructure fund.

Realized Income

The following table presents the components of the Real Assets Group’s RI ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings			$	113,645					$	51,643					$	62,002					120%						$	187,924					$	98,161					$	89,763					91%
Performance income—realized			3,681						5,206						(1,525)						(29)						68,986						8,883						60,103						NM
Performance related compensation—realized			(2,317)						(3,503)						1,186						34						(49,124)						(5,731)						(43,393)						NM
Realized net performance income			1,364						1,703						(339)						(20)						19,862						3,152						16,710						NM
Investment income (loss)—realized			6,544						(6,999)						13,543						NM						14,463						(4,321)						18,784						NM
Interest income			665						2,598						(1,933)						(74)						3,283						3,298						(15)						—
Interest expense			(24,570)						(7,876)						(16,694)						(212)						(40,287)						(15,282)						(25,005)						(164)
Realized net investment loss			(17,361)						(12,277)						(5,084)						41						(22,541)						(16,305)						(6,236)						(38)
Realized Income			$	97,648					$	41,069					56,579						138						$	185,245					$	85,008					100,237						118

The Real Assets Group’s realized activities were principally composed of and caused by the following:

Three months ended June 30, 2025						Three months ended June 30, 2024
Realized net performance income
Carried interest: •Distributions of $1.3 million from U.S. Real Estate Fund VIII, L.P. (“US VIII”) and a U.S. real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments						Carried interest: •Distributions of $1.1 million from US VIII, which is past its investment period and monetizing investments
Realized investment income and interest income
•Distributions of investment income of $4.6 million from funds within our real estate debt and infrastructure debt strategies						•Realized investment losses of $12.4 million associated with a guarantee of a credit facility provided in connection with a historical acquisition •Distributions of investment income of $4.2 million from funds within our real estate debt strategy
Six months ended June 30, 2025						Six months ended June 30, 2024
Realized net performance income
Carried interest: •Tax distributions of $12.6 million from EIF V •Distributions of $4.1 million from US VIII and a U.S. real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments •Distributions of $2.1 million from the sale of an ACIP I co-investment vehicle’s investment in a renewable energy company						Incentive fees: •Incentive fees of $1.9 million generated from a U.S. open-ended industrial real estate fund that varies based upon a three-year measurement period calculated for each fund investor Carried interest: •Distributions of $1.1 million from US VIII, which is past its investment period and monetizing investments
Realized investment income and interest income
•Distributions of investment income of $9.7 million from funds within our real estate debt and infrastructure debt strategies •Interest income of $2.1 million earned on treasury-backed securities						•Realized investment losses of $12.4 million associated with a guarantee of a credit facility provided in connection with a historical acquisition •Distributions of investment income of $6.6 million from funds within our real estate debt strategy

Interest expense increased over the comparative periods primarily due to financing costs incurred in connection with the GCP Acquisition. Interest expense is allocated among our segments primarily based on the cost basis of our balance sheet investments and the cost of acquisitions. The financing costs to complete the GCP Acquisition resulted in a greater allocation of interest expense to the Real Assets Group in the current year periods. We expect that interest expense allocated to the Real Assets Group will remain elevated in the current year as the interest expense associated with the GCP Acquisition will remain fully allocated to the Real Assets Group.

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Real Assets Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Real Assets Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):

			As of June 30, 2025																		As of December 31, 2024
			Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income						Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income
US IX			$	105.9					$	65.7					$	40.2					$	99.8					$	61.9					$	37.9
EIF V			73.0						54.6						18.4						121.3						90.7						30.6
IDF V			145.7						89.3						56.4						113.7						69.3						44.4
ACIP I			92.8						63.8						29.0						97.7						66.8						30.9
Other real assets funds			155.0						97.9						57.1						135.8						85.7						50.1
Total Real Assets Group			$	572.4					$	371.3					$	201.1					$	568.3					$	374.4					$	193.9

The following table presents the change in accrued performance income for the Real Assets Group ($ in millions):

												As of December 31, 2024						Activity during the period																		As of June 30, 2025
						Waterfall Type						Accrued Performance Income						Change in Unrealized						Realized						Other Adjustments						Accrued Performance Income
Accrued Carried Interest
US IX						European						$	99.8					$	6.1					$	—					$	—					$	105.9
EIF V						European						121.3						1.5						(49.8)						—						73.0
IDF V						European						113.7						14.9						—						17.1						145.7
ACIP I						European						97.7						0.4						(5.3)						—						92.8
Other real assets funds						European						97.2						22.3						(13.4)						0.6						106.7
Other real assets funds						American						38.6						9.7						—						—						48.3
Total accrued carried interest												568.3						54.9						(68.5)						17.7						572.4
Other real assets funds						Incentive						—						0.5						(0.5)						—						—
Total Real Assets Group												$	568.3					$	55.4					$	(69.0)					$	17.7					$	572.4

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Real Assets Group—Assets Under Management

The tables below present rollforwards of AUM for the Real Assets Group ($ in millions):

																											Real Estate																								Infrastructure						Total Real Assets Group
Balance at 3/31/2025																											$	104,440																							$	19,747					$	124,187
Net new par/equity commitments																											766																								1,328						2,094
Net new debt commitments																											1,619																								—						1,619
Capital reductions																											(386)																								—						(386)
Distributions																											(1,058)																								(661)						(1,719)
Redemptions																											(131)																								—						(131)
Net allocations among investment strategies																											(79)																								129						50
Change in fund value																											3,479																								581						4,060
Balance at 6/30/2025																											$	108,650																							$	21,124					$	129,774
																											Real Estate																								Infrastructure						Total Real Assets Group
Balance at 3/31/2024																											$	48,753																							$	15,351					$	64,104
Net new par/equity commitments																											1,820																								671						2,491
Net new debt commitments																											1,703																								—						1,703
Capital reductions																											(207)																								—						(207)
Distributions																											(369)																								(367)						(736)
Redemptions																											(291)																								—						(291)
Change in fund value																											118																								510						628
Balance at 6/30/2024																											$	51,527																							$	16,165					$	67,692
																											Real Estate																								Infrastructure						Total Real Assets Group
Balance at 12/31/2024																											$	58,246																							$	17,052					$	75,298
Acquisitions																											43,273																								2,008						45,281
Net new par/equity commitments																											2,170																								2,386						4,556
Net new debt commitments																											4,066																								167						4,233
Capital reductions																											(1,154)																								—						(1,154)
Distributions																											(1,849)																								(1,328)						(3,177)
Redemptions																											(290)																								—						(290)
Net allocations among investment strategies																											(106)																								156						50
Change in fund value																											4,294																								683						4,977
Balance at 6/30/2025																											$	108,650																							$	21,124					$	129,774
																											Real Estate																								Infrastructure						Total Real Assets Group
Balance at 12/31/2023																											$	49,715																							$	15,698					$	65,413
Net new par/equity commitments																											2,129																								770						2,899
Net new debt commitments																											1,703																								—						1,703
Capital reductions																											(335)																								—						(335)
Distributions																											(642)																								(940)						(1,582)
Redemptions																											(725)																								—						(725)
Change in fund value																											(318)																								637						319
Balance at 6/30/2024																											$	51,527																							$	16,165					$	67,692

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The components of our AUM for the Real Assets Group are presented below ($ in billions):

			AUM: $129.8						AUM: $67.7

			FPAUM						Non-fee paying(1)						AUM not yet paying fees

(1) Includes $1.4 billion and $0.7 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.

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Real Assets Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Real Assets Group ($ in millions):

																														Real Estate																								Infrastructure						Total Real Assets Group
Balance at 3/31/2025																														$	64,756																							$	11,669					$	76,425
Commitments																														482																								398						880
Deployment/subscriptions/increase in leverage																														683																								604						1,287
Capital reductions																														(136)																								—						(136)
Distributions																														(720)																								(588)						(1,308)
Redemptions																														(131)																								—						(131)
Net allocations among investment strategies																														(79)																								129						50
Change in fund value																														2,833																								91						2,924
Change in fee basis																														(496)																								—						(496)
Balance at 6/30/2025																														$	67,192																							$	12,303					$	79,495
																														Real Estate																								Infrastructure						Total Real Assets Group
Balance at 3/31/2024																														$	29,492																							$	11,344					$	40,836
Commitments																														1,081																								143						1,224
Deployment/subscriptions/increase in leverage																														722																								143						865
Distributions																														(286)																								(277)						(563)
Redemptions																														(291)																								—						(291)
Change in fund value																														(10)																								(28)						(38)
Change in fee basis																														(410)																								—						(410)
Balance at 6/30/2024																														$	30,298																							$	11,325					$	41,623
																														Real Estate																								Infrastructure						Total Real Assets Group
Balance at 12/31/2024																														$	32,896																							$	11,192					$	44,088
Acquisitions																														30,178																								289						30,467
Commitments																														1,371																								576						1,947
Deployment/subscriptions/increase in leverage																														1,401																								1,396						2,797
Capital reductions																														(178)																								—						(178)
Distributions																														(1,271)																								(1,440)						(2,711)
Redemptions																														(290)																								—						(290)
Net allocations among investment strategies																														(106)																								156						50
Change in fund value																														3,429																								(225)						3,204
Change in fee basis																														(238)																								359						121
Balance at 6/30/2025																														$	67,192																							$	12,303					$	79,495
																														Real Estate																								Infrastructure						Total Real Assets Group
Balance at 12/31/2023																														$	30,310																							$	11,028					$	41,338
Commitments																														1,377																								143						1,520
Deployment/subscriptions/increase in leverage																														1,190																								539						1,729
Capital reductions																														(12)																								—						(12)
Distributions																														(514)																								(353)						(867)
Redemptions																														(725)																								—						(725)
Change in fund value																														(414)																								(32)						(446)
Change in fee basis																														(914)																								—						(914)
Balance at 6/30/2024																														$	30,298																							$	11,325					$	41,623

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The charts below present FPAUM for the Real Assets Group by its fee bases ($ in billions):

			FPAUM: $79.5						FPAUM: $41.6

			Invested capital/other(1)						GAV						Market value(2)						Capital commitments

(1)Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.

(2)Amounts represent FPAUM from funds that primarily invest in illiquid strategies. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

Real Assets Group—Fund Performance Metrics as of June 30, 2025

The significant funds presented in the tables below collectively contributed approximately 38% of the Real Assets Group’s management fees for the six months ended June 30, 2025.

The following table presents the performance data for our significant funds that are not drawdown funds in the Real Assets Group as of June 30, 2025 ($ in millions):

																		Returns(%)
						Year of Inception						AUM						Current Quarter												Year-To-Date												Since Inception**(1)**												Primary Investment Strategy
Fund												Gross						Net						Gross						Net						Gross						Net
Diversified non-traded REIT(2)						2012						$	6,485					N/A						2.1						N/A						4.5						N/A						6.2						Real Estate
J-REIT(3)						2012						8,147						N/A						N/A						N/A						N/A						N/A						13.6						Real Estate
Industrial non-traded REIT(4)						2017						7,459						N/A						2.1						N/A						4.5						N/A						8.6						Real Estate
U.S. open-ended industrial real estate fund(5)						2017						5,458						1.6						1.3						3.3						2.7						16.8						13.7						Real Estate
Japanese open-ended industrial real estate fund						2020						3,947						2.6						2.3						5.1						4.5						11.5						10.3						Real Estate

(1)Since inception returns are annualized.

(2)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. The inception date used in the calculation of the since inception return is the date in which the first shares of common stock were sold after converting to a NAV-based REIT.

(3)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at NAV on the semi-annual period-end date. NAVs are calculated semi-annually in February and August, and therefore, only the since inception return is presented. The inception date used in the calculation of the since inception return is the date in which the fund's investment units began to be listed on the Tokyo Stock Exchange. The since inception return is calculated based on the most recent NAV date. Additional information related to J-REIT can be found in its materials posted to its website, which are not part of this report.

(4)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.

(5)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Gross returns do not reflect the deduction of management fees, incentive fees, as applicable, or other expenses. Net returns are calculated by subtracting the applicable management fees, incentive fees, as applicable and other expenses from the gross returns on a quarterly basis.

The following table presents the performance data of the Real Assets Group’s significant drawdown funds as of June 30, 2025 ($ in millions):

						Year of Inception						AUM						Original Capital Commitments						Capital Invested to Date						Realized Value**(1)**						Unrealized Value**(2)**						Total Value						MoIC												IRR(%)												Primary Investment Strategy
Fund																											Gross**(3)**						Net**(4)**						Gross**(5)**						Net**(6)**
Fund Harvesting Investments
EIP II(7)						2020						$	4,038					$	1,839					$	1,791					$	210					$	1,802					$	2,012					1.2x						1.1x						3.4						3.0						Real Estate
Fund Deploying Capital
IDF V(8)						2020						5,003						4,585						4,164						1,418						3,559						4,977						1.3x						1.2x						12.9						10.1						Infrastructure

(1)Realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners.

(2)Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated.

(3)The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and, if applicable, excludes interests attributable to the non fee-paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees, carried interest, as applicable, credit facility interest expense, as applicable, and other expenses. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7)EIP II is a Euro-denominated fund. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund's closing. All other values for EIP II are converted to U.S. Dollars at the prevailing quarter-end exchange rate.

(8)IDF V is made up of U.S. Dollar hedged, Euro unhedged, GBP hedged, Yen hedged, and single investor parallel funds. The gross and net IRR and MoIC presented in the table are for the U.S. Dollar hedged parallel fund. The gross and net IRR for the single investor U.S. Dollar parallel fund are 11.7% and 9.3%, respectively. The gross and net MoIC for the single investor U.S. Dollar parallel fund are 1.3x and 1.2x, respectively. The gross and net IRR for the Euro unhedged parallel fund are 10.8% and 8.0%, respectively. The gross and net MoIC for the Euro unhedged parallel fund are 1.2x and 1.2x, respectively. The gross and net IRR for the GBP hedged parallel fund are 12.4% and 9.4%, respectively. The gross and net MoIC for the GBP hedged parallel fund are 1.2x and 1.2x, respectively. The gross and net IRR for the Yen hedged parallel fund are 8.6% and 6.1%, respectively. The gross and net MoIC for the Yen hedged parallel fund are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund's closing. All other values for IDF V are for the combined fund and are converted to U.S. Dollars at the prevailing quarter-end exchange rate.

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Private Equity Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Fee Related Earnings

The following table presents the components of the Private Equity Group’s FRE ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Management fees			$	31,767					$	33,572					$	(1,805)					(5)%						$	63,765					$	68,505					$	(4,740)					(7)%
Other fees			434						447						(13)						(3)						831						886						(55)						(6)
Compensation and benefits			(16,796)						(14,075)						(2,721)						(19)						(30,627)						(28,860)						(1,767)						(6)
General, administrative and other expenses			(5,559)						(5,490)						(69)						(1)						(9,816)						(10,706)						890						8
Fee Related Earnings			$	9,846					$	14,454					(4,608)						(32)						$	24,153					$	29,825					(5,672)						(19)

Management Fees. The chart below presents Private Equity Group management fees and effective management fee rates ($ in millions):

The following table presents the components of and causes for changes in the Private Equity Group’s management fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 ($ in millions):

			Three month change						Six month change
Corporate private equity extended value fund that stopped paying fees at the end of the fourth quarter of 2024			$	(1.7)					$	(3.4)
Cumulative effect of other changes			(0.1)						(1.3)
Total			$	(1.8)					$	(4.7)

The increases in effective management fee rate for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily driven by a corporate private equity extended fund that stopped paying fees at the end of the fourth quarter of 2024 and had a lower effective management fee rate than the average effective management fee rate of funds within the Private Equity Group.

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Compensation and Benefits. The changes in compensation and benefits largely reflect increases in incentive-based compensation that has been recorded in anticipation of the management fees from our seventh corporate private equity fund turning on in the second half of the year. Full-time equivalent headcount increased by 1% to 105 investment and investment support professionals for the year-to-date period in 2025 from 104 professionals in 2024.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings			$	9,846					$	14,454					$	(4,608)					(32)%						$	24,153					$	29,825					$	(5,672)					(19)%
Performance income—realized			29,958						5,819						24,139						NM						35,989						8,557						27,432						NM
Performance related compensation—realized			(23,506)						(4,661)						(18,845)						NM						(26,857)						(6,855)						(20,002)						(292)
Realized net performance income			6,452						1,158						5,294						NM						9,132						1,702						7,430						NM
Investment income (loss)—realized			369						462						(93)						(20)						(4,233)						761						(4,994)						NM
Interest income			1						3						(2)						(67)						2,023						8						2,015						NM
Interest expense			(3,810)						(4,685)						875						19						(7,990)						(9,347)						1,357						15
Realized net investment loss			(3,440)						(4,220)						780						18						(10,200)						(8,578)						(1,622)						(19)
Realized Income			$	12,858					$	11,392					1,466						13						$	23,085					$	22,949					136						1

The Private Equity Group’s realized activities were principally composed of and caused by the following:

Three months ended June 30, 2025						Three months ended June 30, 2024
Realized net performance income
Carried interest: •Distributions from partial sales of ACOF VI’s investment in Frontier Communications Parent, Inc. (“FYBR”) and ACOF IV’s investment in an energy company						Carried interest: •Distributions from partial sales of ACOF IV’s investment in various energy companies
Six months ended June 30, 2025						Six months ended June 30, 2024
Realized net performance income
Carried interest: •Distributions from partial sales of ACOF VI’s investment in FYBR and ACOF IV’s investment in an energy company						Carried interest: •Distributions from partial sales of ACOF IV’s investment in various energy companies
Realized investment income (loss) and interest income
•Realized investment loss of $5.7 million from Ares Corporate Opportunities Fund III, L.P. as the fund continues to liquidate its remaining assets •Interest income of $2.0 million earned on treasury-backed securities						•No significant activities

Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.

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Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in millions):

			As of June 30, 2025																		As of December 31, 2024
			Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income						Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income
ACOF IV			$	153.1					$	122.6					$	30.5					$	166.8					$	133.6					$	33.2
ACOF VI			578.7						490.3						88.4						523.1						442.8						80.3
Other funds			8.6						7.5						1.1						20.9						14.8						6.1
Total Private Equity Group			$	740.4					$	620.4					$	120.0					$	710.8					$	591.2					$	119.6

The following table presents the change in accrued carried interest for the Private Equity Group ($ in millions):

												As of December 31, 2024						Activity during the period																		As of June 30, 2025
						Waterfall Type						Accrued Carried Interest						Change in Unrealized						Realized												Accrued Carried Interest
ACOF IV						American						$	166.8					$	(0.9)					$	(12.8)											$	153.1
ACOF VI						American						523.1						78.8						(23.2)												578.7
Other funds						European						13.1						(12.6)						—												0.5
Other funds						American						7.8						0.3						—												8.1
Total Private Equity Group												$	710.8					$	65.6					$	(36.0)											$	740.4

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Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):

						Corporate Private Equity						APAC Private Equity						Other						Total Private Equity Group
Balance at 3/31/2025						$	21,902					$	2,825					$	—					$	24,727
Capital reductions						(19)						—						—						(19)
Distributions						(1,056)						—						—						(1,056)
Change in fund value						374						(260)						—						114
Balance at 6/30/2025						$	21,201					$	2,565					$	—					$	23,766
						Corporate Private Equity						APAC Private Equity						Other						Total Private Equity Group
Balance at 3/31/2024						$	21,230					$	3,246					$	—					$	24,476
Net new par/equity commitments						15						—						—						15
Capital reductions						(2)						—						—						(2)
Distributions						(28)						(1)						—						(29)
Change in fund value						55						65						—						120
Balance at 6/30/2024						$	21,270					$	3,310					$	—					$	24,580
						Corporate Private Equity						APAC Private Equity						Other						Total Private Equity Group
Balance at 12/31/2024						$	21,064					$	2,977					$	—					$	24,041
Net new par/equity commitments						959						16						—						975
Capital reductions						(54)						—						—						(54)
Distributions						(1,205)						—						—						(1,205)
Change in fund value						437						(428)						—						9
Balance at 6/30/2025						$	21,201					$	2,565					$	—					$	23,766
						Corporate Private Equity						APAC Private Equity						Other**(1)**						Total Private Equity Group
Balance at 12/31/2023						$	20,998					$	3,414					$	139					$	24,551
Net new par/equity commitments						269						3						58						330
Capital reductions						(4)						—						—						(4)
Distributions						(53)						(11)						—						(64)
Redemptions						—						(2)						—						(2)
Net allocations among investment strategies						150						—						(197)						(47)
Change in fund value						(90)						(94)						—						(184)
Balance at 6/30/2024						$	21,270					$	3,310					$	—					$	24,580
(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated as commitments to an investment strategy as of the reporting dates presented.

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The components of our AUM for the Private Equity Group are presented below ($ in billions):

						AUM: $23.8						AUM: $24.6

			FPAUM						Non-fee paying(1)						AUM not yet paying fees

(1) Includes $1.1 billion and $1.3 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.

Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):

						Corporate Private Equity						APAC Private Equity												Total Private Equity Group
Balance at 3/31/2025						$	9,825					$	1,527											$	11,352
Deployment/subscriptions/increase in leverage						16						—												16
Capital reductions						(11)						—												(11)
Change in fund value						2						—												2
Change in fee basis						(341)						(25)												(366)
Balance at 6/30/2025						$	9,491					$	1,502											$	10,993
						Corporate Private Equity						APAC Private Equity												Total Private Equity Group
Balance at 3/31/2024						$	10,904					$	1,661											$	12,565
Deployment/subscriptions/increase in leverage						9						16												25
Change in fund value						(9)						—												(9)
Change in fee basis						(312)						(4)												(316)
Balance at 6/30/2024						$	10,592					$	1,673											$	12,265
						Corporate Private Equity						APAC Private Equity												Total Private Equity Group
Balance at 12/31/2024						$	9,860					$	1,567											$	11,427
Deployment/subscriptions/increase in leverage						25						7												32
Capital reductions						(11)						—												(11)
Change in fund value						2						—												2
Change in fee basis						(385)						(72)												(457)
Balance at 6/30/2025						$	9,491					$	1,502											$	10,993
						Corporate Private Equity						APAC Private Equity												Total Private Equity Group
Balance at 12/31/2023						$	11,459					$	1,665											$	13,124
Deployment/subscriptions/increase in leverage						9						16												25
Redemptions						—						(2)												(2)
Change in fund value						(28)						—												(28)
Change in fee basis						(848)						(6)												(854)
Balance at 6/30/2024						$	10,592					$	1,673											$	12,265

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The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):

			FPAUM: $11.0						FPAUM: $12.3

						Capital commitments									Invested capital

Private Equity Group—Fund Performance Metrics as of June 30, 2025

The significant funds presented in the table below collectively contributed approximately 77% of the Private Equity Group’s management fees for the six months ended June 30, 2025.

The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of June 30, 2025 ($ in millions):

						Year of Inception						AUM						Original Capital Commitments						Capital Invested to Date						Realized Value**(1)**						Unrealized Value**(2)**						Total Value						MoIC												IRR(%)												Primary Investment Strategy
Fund																											Gross**(3)**						Net**(4)**						Gross**(5)**						Net**(6)**
Funds Harvesting Investments
ACOF V						2017						$	7,286					$	7,850					$	7,611					$	4,098					$	6,823					$	10,921					1.4x						1.3x						7.6						5.8						Corporate Private Equity
Fund Deploying Capital
ACOF VI						2020						8,228						5,743						5,840						1,923						7,863						9,786						1.7x						1.5x						21.6						16.0						Corporate Private Equity

(1)Realized value represents the sum of all cash dividends, interest income, other fees and cash proceeds from realizations of interests in portfolio investments. Realized value excludes any proceeds related to bridge financings.

(2)Unrealized value represents the fair market value of remaining investments. Unrealized value does not take into account any bridge financings. There can be no assurance that unrealized investments will be realized at the valuations indicated.

(3)The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross MoICs are also calculated before giving effect to any bridge financings. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(4)The net MoIC is calculated at the fund-level. The net MoIC is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or performance fees. The net MoIC is after giving effect to management fees, carried interest, as applicable, and other expenses. The net MoICs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net MoIC would be 1.3x for ACOF V and 1.4x for ACOF VI. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRRs reflect returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross IRRs are also calculated before giving effect to any bridge financings. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculation are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees, carried interest as applicable, and other expenses and exclude commitments by the general partner and Schedule I investors who do not pay either management fees or carried interest. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. The net IRRs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net IRRs would be 5.9% for ACOF V and 15.4% for ACOF VI.

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Secondaries Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Fee Related Earnings

The following table presents the components of the Secondaries Group’s FRE ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Management fees			$	61,643					$	48,145					$	13,498					28%						$	119,293					$	92,566					$	26,727					29%
Fee related performance revenues			16,236						15,163						1,073						7						25,892						18,125						7,767						43
Other fees			5,801						54						5,747						NM						5,923						58						5,865						NM
Compensation and benefits			(23,067)						(20,825)						(2,242)						(11)						(41,438)						(33,539)						(7,899)						(24)
General, administrative and other expenses			(10,076)						(8,896)						(1,180)						(13)						(18,549)						(17,964)						(585)						(3)
Fee Related Earnings			$	50,537					$	33,641					16,896						50						$	91,121					$	59,246					31,875						54

Management Fees. The chart below presents Secondaries Group management fees and effective management fee rates ($ in millions):

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The following table presents the components of and causes for changes in the Secondaries Group’s management fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 ($ in millions):

			Three month change						Six month change
Fees from APMF, driven by additional capital raised			$	6.5					$	12.7
Fees from our third infrastructure secondaries fund, excluding catch-up fees, and a credit secondaries fund			4.1						7.1
Catch-up fees generated from our third infrastructure secondaries fund			2.2						5.8
Cumulative effect of other changes			0.7						1.1
Total			$	13.5					$	26.7

The increases in effective management fee rate for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily due to additional capital raised by APMF that has a fee rate of 1.40%.

Fee Related Performance Revenues. The increases in fee related performance revenues for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were attributable to higher incentive fees earned from APMF as a result of increased transactions.

Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the same periods in 2024 were attributable to capital markets transaction fees associated with services provided by Ares Management Capital Markets LLC (“AMCM”) during the second quarter of 2025.

Compensation and Benefits. The increases in compensation and benefits for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were driven by: (i) increases in incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; and (ii) higher fee related performance compensation of $0.2 million and $4.2 million, respectively, corresponding to the increases in fee related performance revenues. We reduced fee related performance compensation by $2.9 million and $3.2 million for the three months ended June 30, 2025 and 2024, respectively, and $5.6 million and $4.9 million for the six months ended June 30, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees paid to distribution partners.

Full-time equivalent headcount remained flat at 112 investment and investment support professionals for the year-to-date period in both 2025 and 2024.

General, Administrative and Other Expenses. The increases in general, administrative and other expenses were primarily due to costs incurred to support distribution of shares in our perpetual wealth vehicles. Supplemental distribution fees increased by $0.5 million and $1.5 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

Conversely, placement fee expense decreased by $1.1 million for the six months ended June 30, 2025 compared to the same period in 2024. The activity for the six months ended June 30, 2024 included $1.1 million of investor service fees that were fully recognized through the service period that ended in the third quarter of 2024.

Realized Income

The following table presents the components of the Secondaries Group’s RI ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings			$	50,537					$	33,641					$	16,896					50%						$	91,121					$	59,246					$	31,875					54%
Performance income—realized			—						361						(361)						(100)						—						361						(361)						(100)
Performance related compensation—realized			—						110						(110)						(100)						—						110						(110)						(100)
Realized net performance income			—						471						(471)						(100)						—						471						(471)						(100)
Investment income—realized			17						127						(110)						(87)						155						314						(159)						(51)
Interest income			23						21						2						10						980						44						936						NM
Interest expense			(1,862)						(7,716)						5,854						76						(3,870)						(15,945)						12,075						76
Realized net investment loss			(1,822)						(7,568)						5,746						(76)						(2,735)						(15,587)						12,852						82
Realized Income			$	48,715					$	26,544					22,171						84						$	88,386					$	44,130					44,256						100

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Realized net investment loss for the three and six months ended June 30, 2025 and 2024 largely represents allocated interest expense exceeding investment income during these periods.

Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.

Interest income for the six months ended June 30, 2025 primarily reflects income earned on treasury-backed securities during the first quarter of 2025.

Secondaries Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Secondaries Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):

			As of June 30, 2025																		As of December 31, 2024
			Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income						Accrued Performance Income						Accrued Performance Compensation						Accrued Net Performance Income
LEP XVI			$	1.6					$	1.6					$	—					$	144.1					$	123.3					$	20.8
LREF VIII			77.0						65.3						11.7						81.3						68.9						12.4
Other secondaries funds			52.6						39.5						13.1						38.4						28.8						9.6
Total Secondaries Group			$	131.2					$	106.4					$	24.8					$	263.8					$	221.0					$	42.8

The following table presents the change in accrued performance income for the Secondaries Group ($ in millions):

												As of December 31, 2024						Activity during the period												As of June 30, 2025
						Waterfall Type						Accrued Carried Interest						Change in Unrealized												Other Adjustments						Accrued Carried Interest
Accrued Carried Interest
LEP XVI						European						$	144.1					$	(11.4)											$	(131.1)					$	1.6
LREF VIII						European						81.3						(4.3)												—						77.0
Other secondaries funds						European						38.4						14.1												0.1						52.6
Total Secondaries Group												$	263.8					$	(1.6)											$	(131.0)					$	131.2

The reduction in LEP XVI accrued carried interest was driven by a partial contribution to a structured investment vehicle that represents the amount retained by us after compensating our employees. This structured investment vehicle is required to be consolidated by us. As a result, the amount of LEP XVI accrued carried interest, including the associated compensation payable to our employees, was reclassified to investments of a Consolidated Fund.

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Secondaries Group—Assets Under Management

The table below presents the rollforwards of AUM for the Secondaries Group ($ in millions):

			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 3/31/2025			$	16,979					$	7,945					$	4,030					$	2,358											$	31,312
Net new par/equity commitments			1,100						—						244						1,175												2,519
Distributions			(50)						(6)						(91)						(13)												(160)
Redemptions			(40)						—						—						—												(40)
Net allocations among investment strategies			10						25						—						37												72
Change in fund value			184						34						16						12												246
Balance at 6/30/2025			$	18,183					$	7,998					$	4,199					$	3,569											$	33,949
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 3/31/2024			$	13,580					$	7,975					$	2,624					$	1,462											$	25,641
Net new par/equity commitments			415						38						209						204												866
Distributions			(223)						(2)						(55)						(5)												(285)
Change in fund value			66						(108)						121						2												81
Balance at 6/30/2024			$	13,838					$	7,903					$	2,899					$	1,663											$	26,303
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 12/31/2024			$	15,805					$	7,779					$	3,691					$	1,878											$	29,153
Net new par/equity commitments			2,349						228						581						1,649												4,807
Capital reductions			—						(58)						—						—												(58)
Distributions			(228)						(44)						(110)						(17)												(399)
Redemptions			(63)						—						—						—												(63)
Net allocations among investment strategies			10						25						—						37												72
Change in fund value			310						68						37						22												437
Balance at 6/30/2025			$	18,183					$	7,998					$	4,199					$	3,569											$	33,949
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 12/31/2023			$	13,174					$	7,826					$	2,380					$	1,380											$	24,760
Net new par/equity commitments			951						188						424						272												1,835
Distributions			(363)						(25)						(55)						(6)												(449)
Change in fund value			76						(86)						150						17												157
Balance at 6/30/2024			$	13,838					$	7,903					$	2,899					$	1,663											$	26,303

The components of our AUM for the Secondaries Group are presented below ($ in billions):

			AUM: $33.9						AUM: $26.3

			FPAUM						AUM not yet paying fees						Non-fee paying(1)

(1) Includes $1.1 billion and $0.5 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.

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Secondaries Group—Fee Paying AUM

The table below presents the rollforwards of fee paying AUM for the Secondaries Group ($ in millions):

			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 3/31/2025			$	13,369					$	6,530					$	2,927					$	644											$	23,470
Commitments			471						—						217						—												688
Deployment/subscriptions/increase in leverage			51						15						—						343												409
Distributions			(5)						(6)						—						—												(11)
Redemptions			(40)						—						—						—												(40)
Net allocations among investment strategies			10						25						—						37												72
Change in fund value			62						(7)						—						(108)												(53)
Balance at 6/30/2025			$	13,918					$	6,557					$	3,144					$	916											$	24,535
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 3/31/2024			$	11,641					$	6,203					$	1,972					$	75											$	19,891
Commitments			399						—						207						—												606
Deployment/subscriptions/increase in leverage			8						32						1						(1)												40
Distributions			(57)						(2)						(55)						(18)												(132)
Change in fund value			78						(94)						12						7												3
Change in fee basis			(51)						104						—						—												53
Balance at 6/30/2024			$	12,018					$	6,243					$	2,137					$	63											$	20,461
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 12/31/2024			$	12,788					$	6,441					$	2,582					$	590											$	22,401
Commitments			1,020						170						550						—												1,740
Deployment/subscriptions/increase in leverage			136						47						13						470												666
Distributions			(14)						(38)						(17)						—												(69)
Redemptions			(63)						—						—						—												(63)
Net allocations among investment strategies			10						25						—						37												72
Change in fund value			41						(88)						16						(181)												(212)
Balance at 6/30/2025			$	13,918					$	6,557					$	3,144					$	916											$	24,535
			Private Equity Secondaries						Real Estate Secondaries						Infrastructure Secondaries						Credit Secondaries												Total Secondaries Group
Balance at 12/31/2023			$	11,204					$	5,978					$	1,763					$	95											$	19,040
Commitments			935						150						421						—												1,506
Deployment/subscriptions/increase in leverage			9						92						2						(1)												102
Distributions			(122)						(18)						(55)						(36)												(231)
Change in fund value			42						(55)						6						7												—
Change in fee basis			(50)						96						—						(2)												44
Balance at 6/30/2024			$	12,018					$	6,243					$	2,137					$	63											$	20,461

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The chart below presents FPAUM for the Secondaries Group by its fee bases ($ in billions):

FPAUM: $24.5						FPAUM: $20.4

			Reported value(1)						Capital commitments						Invested capital/other

(1)Amounts represent FPAUM from funds that primarily invest in illiquid strategies. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

Secondaries Group—Fund Performance Metrics as of June 30, 2025

The significant funds presented in the tables below collectively contributed approximately 37% of the Secondaries Group’s management fees for the six months ended June 30, 2025.

The following table presents the performance data for our significant fund that is not a drawdown fund in the Secondaries Group as of June 30, 2025 ($ in millions):

																		Returns(%)
						Year of Inception						AUM						Current Quarter												Year-To-Date												Since Inception**(1)**												Primary Investment Strategy
Fund												Gross						Net						Gross						Net						Gross						Net
APMF(2)						2022						$	3,147					N/A						3.1						N/A						7.5						N/A						14.7						Private Equity Secondaries

(1)Since inception returns are annualized.

(2)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to APMF can be found in its filings with the SEC, which are not part of this report.

The following table presents the performance data of the Secondaries Group’s significant drawdown fund as of June 30, 2025 ($ in millions):

						Year of Inception						AUM						Original Capital Commitments						Capital Invested to Date						Realized Value**(1)**						Unrealized Value**(2)**						Total Value						MoIC												IRR(%)												Primary Investment Strategy
Fund																											Gross**(3)**						Net**(4)**						Gross**(5)**						Net**(6)**
Fund Harvesting Investments
LEP XVI(7)						2016						$	4,134					$	4,896					$	4,179					$	2,079					$	3,104					$	5,183					1.4x						1.2x						15.6						9.5						Private Equity Secondaries

Returns for LEP XVI are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period.

(1)Realized value represents the sum of all cash distributions to all limited partners and if applicable, exclude tax and incentive distributions made to the general partner.

(2)Unrealized value represents the limited partners’ share of fund’s NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated.

(3)The gross MoIC is calculated at the fund-level and is based on the interests of all partners. If applicable, limiting the gross MoIC to exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest would have no material impact on the result. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The gross fund-level MoIC would have generally been lower had such fund called capital from its partners instead of utilizing the credit facility.

(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees and other expenses, carried interest and credit facility interest expense, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to all partners. If applicable, limiting the gross IRR to exclude interests attributable to the non-fee paying limited partners and/or the general

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partner who does not pay management fees or carried interest would have no material impact on the result. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. The gross fund-level IRR would generally have been lower had such fund called capital from its partners instead of utilizing the credit facility.

(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and other expenses, carried interest and credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7)The results of the fund are presented on a combined basis with the affiliated parallel funds or accounts, given that the investments are substantially the same.

Operations Management Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Fee Related Earnings

The following table presents the components of the Operations Management Group’s FRE ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Other fees			$	7,831					$	5,480					$	2,351					43%						$	13,368					$	9,813					$	3,555					36%
Compensation and benefits			(134,645)						(98,370)						(36,275)						(37)						(251,113)						(192,527)						(58,586)						(30)
General, administrative and other expenses			(69,177)						(53,910)						(15,267)						(28)						(133,203)						(104,390)						(28,813)						(28)
Fee Related Earnings			$	(195,991)					$	(146,800)					(49,191)						(34)						$	(370,948)					$	(287,104)					(83,844)						(29)

Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily attributable to capital markets transaction services that were provided by AMCM in the second quarter of 2025.

Compensation and Benefits. The GCP Acquisition added 263 business operations professionals to our period end headcount as of June 30, 2025, which represents 175 full-time equivalents for the year-to-date period. Headcount growth attributable to the GCP Acquisition contributed $8.9 million and $12.8 million, respectively, in recurring employment related costs to the three and six months ended June 30, 2025. The impact from the GCP Acquisition has been excluded from the discussion below, except as otherwise noted.

Compensation and benefits, excluding the impact from the GCP Acquisition, increased by $27.4 million and $45.8 million, or 28% and 24%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in compensation and benefits over the comparative periods were driven by: (i) the increase in headcount to support the growth of our business and other strategic initiatives; (ii) higher incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; and (iii) higher sales-based bonuses, which increased by $2.7 million and $5.4 million, respectively, over the comparative periods, primarily driven by the increase in sales of our wealth products. The increase in compensation and benefits for the six months ended June 30, 2025 compared to the same period in 2024 was also driven by an increase in payroll-related taxes of $6.2 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2025.

Full-time equivalent headcount increased by 27% to 2,021 professionals for the year-to-date period in 2025 from 1,596 professionals in 2024, including the impact of GCP International previously discussed.

General, Administrative and Other Expenses. The GCP Acquisition has contributed $12.0 million and $15.7 million, respectively, in general, administrative and other expenses to the three and six months ended June 30, 2025. These expenses included certain non-recurring integration costs and temporary transition services agreement of $5.3 million and $7.2 million, respectively. These expenses were also driven by occupancy costs and information technology costs, which collectively contributed $2.5 million and $2.8 million for the three and six months ended June 30, 2025, respectively. The impact from the GCP Acquisition has been excluded from the discussion below.

General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $3.3 million and $13.1 million, or 6% and 13%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in general, administrative and other expenses were driven by occupancy costs and information technology costs, which collectively increased by $4.7 million and $9.2 million, respectively, over the comparative periods. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, with

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occupancy costs also being impacted by the expansion of our New York headquarters. In addition, marketing expenses increased by $1.0 million and $1.3 million, respectively, over the comparative periods, driven by company sponsorships and investor events.

Realized Income

The following table presents the components of the OMG’s RI ($ in thousands):

			Three months ended June 30,												Favorable (Unfavorable)												Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Fee Related Earnings			$	(195,991)					$	(146,800)					$	(49,191)					(34)%						$	(370,948)					$	(287,104)					$	(83,844)					(29)%
Investment income (loss)—realized			(893)						229						(1,122)						NM						(562)						239						(801)						NM
Interest income			646						411						235						57						1,249						853						396						46
Interest expense			(6)						(105)						99						94						(262)						(145)						(117)						(81)
Realized net investment income (loss)			(253)						535						(788)						NM						425						947						(522)						(55)
Realized Income			$	(196,244)					$	(146,265)					(49,979)						(34)						$	(370,523)					$	(286,157)					(84,366)						(29)

Liquidity and Capital Resources

Management assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. Management believes that we are well-positioned and our liquidity will continue to be sufficient for our foreseeable working capital needs, contractual obligations, dividend payments, pending acquisitions and strategic initiatives.

Sources and Uses of Liquidity

Our sources of liquidity are: (i) cash on hand; (ii) net working capital; (iii) cash from operations, including management fees, which are collected monthly, quarterly or semi-annually, and fee related performance revenues, which are typically measured and collected annually, as well as net realized performance income, which may be unpredictable as to amount and timing; (iv) fund distributions related to our investments that are unpredictable as to amount and timing; and (v) net borrowings from the Credit Facility. As of June 30, 2025, our cash and cash equivalents were $509.7 million and we have $725.0 million available under our Credit Facility. Our ability to draw from the Credit Facility is subject to leverage and other covenants. We remain in compliance with all covenants as of June 30, 2025. We believe that these sources of liquidity will be sufficient to fund our working capital requirements and to meet our commitments in the ordinary course of business and under the current market conditions for the foreseeable future. Cash flows from management fees may be impacted by a slowdown in deployment, declines in valuations or negatively impacted fundraising. In addition, management fees may be subject to deferral and fee related performance revenues may be subject to hold backs. Contributions of our financial interests, such as capital interests and rights to performance income earned by us in funds that we manage, to structured investment vehicles that we manage, may reduce or delay our cash flows and liquidity. Declines or delays in transaction activity may also impact our fund distributions and net realized performance income, which could adversely impact our cash flows and liquidity. Market conditions may make it difficult to extend the maturity or refinance our existing indebtedness or obtain new indebtedness with similar terms.

We expect that our primary liquidity needs will continue to be to: (i) provide capital to facilitate the growth of our existing investment management businesses; (ii) fund our investment commitments; (iii) provide capital to facilitate our expansion into businesses that are complementary to our existing investment management businesses as well as other strategic growth initiatives; (iv) pay operating expenses, including cash compensation to our employees and tax payments for net settlement of equity awards; (v) fund capital expenditures; (vi) service our debt; (vii) pay income taxes and make payments under the tax receivable agreement (“TRA”); (viii) make dividend payments to our Class A and non-voting common stockholders and our Series B mandatory convertible preferred stockholders in accordance with our dividend policies; and (ix) pay distributions to AOG unitholders.

In the normal course of business, we expect to pay dividends to our Class A and non-voting common stockholders that are aligned with our expected FRE after an allocation of current taxes paid. For the purposes of determining this amount, we allocate the current taxes paid to FRE and to realized performance and investment income in a manner that may be disproportionate to earnings generated by these metrics, and the actual taxes paid on these metrics should they be considered separately. Additionally, our methodology uses the tax benefits from certain expenses that are not included in these non-GAAP metrics, such as equity-based compensation from the vesting of equity awards and from the amortization of intangible assets, among others. We allocate the taxes by multiplying the statutory tax rate currently in effect by our net realized performance and net investment income and removing this amount from total current taxes. The remaining current tax paid is the amount that we

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allocate to FRE. We use this method to allocate the current provision for income taxes to approximate the amount of cash that is available to pay dividends to our stockholders. If cash flows from operations were insufficient to fund dividends over a sustained period of time, we expect that we would suspend or reduce paying such dividends. In addition, there is no assurance that dividends would continue at the current levels or at all. Unless quarterly dividends have been declared and paid (or declared and set apart for payment) on the Series B mandatory convertible preferred stock, we may not declare or pay or set apart payment for dividends on any shares of our Class A common stock during the period. Declared dividends on the Series B mandatory convertible preferred stock will be payable, at our election, in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock. 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 our Class A common stock on October 1, 2027. Although any income allocated to Series B mandatory convertible preferred stock dividends may be subject to taxes, dividends to our Series B mandatory convertible preferred stockholders will not be reduced on account of any income taxes owed by us. As a result, taxes associated with any income allocated to Series B mandatory convertible preferred stock dividends will be borne by Class A and non-voting common stockholders.

Our ability to obtain debt financing and complete stock offerings provides us with additional sources of liquidity. For further discussion of financing transactions occurring in the current period, see “Cash Flows” within this section and “Note 7. Debt” and “Note 13. Equity and Redeemable Interest” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Our unaudited condensed consolidated financial statements reflect the cash flows of our operating businesses as well as those of our Consolidated Funds. The assets of our Consolidated Funds, on a gross basis, are significantly larger than the assets of our operating businesses and therefore have a substantial effect on the amounts reported within our condensed consolidated statements of cash flows. The primary cash flow activities of our Consolidated Funds include: (i) raising capital from third-party investors, which is reflected as non-controlling interests of our Consolidated Funds; (ii) financing certain investments by issuing debt; (iii) purchasing and selling investment securities; (iv) generating cash through the realization of certain investments; (v) collecting interest and dividend income; and (vi) distributing cash to investors. Our Consolidated Funds are generally accounted for as investment companies under GAAP; therefore, the character and classification of all Consolidated Fund transactions are presented as cash flows from operations. Liquidity available at our Consolidated Funds is not available for corporate liquidity needs, and debt of the Consolidated Funds is non–recourse to us except to the extent of our investment in the fund.

Cash Flows

The following tables summarize our condensed consolidated statements of cash flows by activities attributable to the Company and Consolidated Funds. For more details on the activity of the Company and Consolidated Funds, refer to “Note 15. Consolidation” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

			Six months ended June 30,
			2025						2024
Net cash provided by operating activities			$	1,164,527					$	879,653
Net cash provided by the Consolidated Funds’ operating activities, net of eliminations			1,245,377						262,564
Net cash provided by operating activities			2,409,904						1,142,217
Net cash used in the Company’s investing activities			(1,767,608)						(63,309)
Net cash used in the Company’s financing activities			(173,078)						(878,127)
Net cash used in the Consolidated Funds’ financing activities, net of eliminations			(1,571,850)						(247,404)
Net cash used in financing activities			(1,744,928)						(1,125,531)
Effect of exchange rate changes			104,312						(17,206)
Net change in cash and cash equivalents			$	(998,320)					$	(63,829)

The Consolidated Funds had no effect on cash flows attributable to the Company for the periods presented and are excluded from the discussion below. The following discussion focuses on cash flow by activities attributable to the Company.

Operating Activities

In the table below, cash flows from operations are summarized to present: (i) cash generated from our core operating activities, primarily consisting of profits generated principally from management fees and fee related performance revenues after covering for operating expenses and fee related performance compensation; (ii) net realized performance income; and (iii)

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net cash from investment related activities including purchases, sales, realized net investment income and interest expense. We generated meaningful cash flow from operations in each period presented.

			Six months ended June 30,												Favorable (Unfavorable)
			2025						2024						$ Change						% Change
Core operating activities			$	1,002,904					$	689,786					$	313,118					45%
Net realized performance income			46,780						50,921						(4,141)						(8)
Net cash provided by investment related activities			114,843						138,946						(24,103)						(17)
Net cash provided by operating activities			$	1,164,527					$	879,653					284,874						32

Cash from our core operating activities increased as a result of growing fee revenues and sustained profitability and timing of cash collection of our receivables.

Net realized performance income includes (i) carried interest distributions that may represent tax distributions or other distributions of income and (ii) incentive fees that are realized annually at the end of the measurement period, which is typically at the end of the calendar year. Cash received from carried interest distributions and the subsequent payments to employees may not necessarily occur in the same quarter. Cash from incentive fees is generally received in the period subsequent to the measurement period. The decrease in net realized performance income over the comparative periods was primarily due to the decrease in carried interest distributions received during the first half of 2025 when compared to the same period in 2024.

Net cash provided by investment related activities for the six months ended June 30, 2025 and 2024 primarily represents: (i) distributions received from our capital investments and the collection of principal and interest from loans that we have made; (ii) sales of certain capital investments to employees; and (iii) the rebalancing of and associated return of our capital commitments upon admitting new limited partners; offset by (iv) purchases associated with funding capital commitments and strategic investments in our investment portfolio; and (v) interest payments on our debt obligations. Net cash provided by investment related activities for the six months ended June 30, 2025 also included interest income from treasury-backed securities that were redeemed in March 2025, providing proceeds to support the GCP Acquisition. As we are committed to invest alongside the investors in our funds, our capital commitments will increase with our growing assets under management and our investment related activities may fluctuate depending on timing of capital investments and distributions of each fund from year to year. For further discussion of our capital commitments, see “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Our working capital needs are generally rising to support the growth of our business, while the capital requirements needed to support fund-related activities vary based upon the specific investment activities being conducted during such period.

Investing Activities

			Six months ended June 30,
			2025						2024
Purchase of furniture, equipment and leasehold improvements, net of disposals			$	(44,893)					$	(55,309)
Acquisitions, net of cash acquired			(1,722,715)						(8,000)
Net cash used in investing activities			$	(1,767,608)					$	(63,309)

Net cash used in investing activities for the six months ended June 30, 2025 was predominately cash used to complete the GCP Acquisition in the first quarter of 2025. In addition, net cash used in investing activities for both periods included cash to purchase furniture, equipment and leasehold improvements primarily for the build out of our new Los Angeles headquarters that we occupied beginning in the third quarter of 2024. Net cash used in investing activities for the six months ended June 30, 2025 also included cash to purchase furniture, equipment and leasehold improvements primarily for the expansion of our New York headquarters to support the growth in our staffing levels.

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Financing Activities

			Six months ended June 30,
			2025						2024
Net proceeds from issuance of Class A common stock			$	—					$	354,395
Net borrowings (repayments) of Credit Facility			1,115,000						(400,000)
Class A and non-voting common stock dividends			(517,924)						(385,738)
AOG unitholder distributions			(281,929)						(246,522)
Series B mandatory convertible preferred stock dividends			(73,406)						—
Stock option exercises			—						1,511
Taxes paid related to net share settlement of equity awards			(416,609)						(203,076)
Other financing activities			1,790						1,303
Net cash used in the Company’s financing activities			$	(173,078)					$	(878,127)

As a result of generating higher fee related earnings, we increased the level of dividends paid to a growing shareholder base of Class A and non-voting common stockholders and distributions paid to AOG unitholders, representing net cash used for the six months ended June 30, 2025 and 2024. In addition, we issued 30,000,000 shares of Series B mandatory convertible preferred stock in October 2024. Net cash used in the Company’s financing activities included dividend payments made during the six months ended June 30, 2025 to preferred stockholders.

Net cash used in the Company’s financing activities for the six months ended June 30, 2025 included net borrowings under the Credit Facility. These proceeds were used primarily to fund the GCP Acquisition in the first quarter of 2025. Net cash used in the Company’s financing activities for the six months ended June 30, 2024 included the repayment of our Credit Facility, partially using cash provided by the net proceeds from the public offering of Class A common stock that closed during the second quarter of 2024.

In connection with the vesting of equity awards that are granted to our employees under the Equity Incentive Plan, we withhold shares equal to the fair value of our employees’ tax withholding liabilities and pay the taxes on their behalf in cash and thus issue fewer net shares. Cash used in connection with these awards increased during the current period primarily as a result of a higher stock price on the vesting date, which resulted in employees recognizing additional compensation. For the six months ended June 30, 2025, we net settled and did not issue 2.2 million shares, which includes 0.2 million shares that were withheld from restricted units that vested on the GCP Acquisition close date. For the six months ended June 30, 2024, we net settled and did not issue 1.7 million shares.

Capital Resources

We intend to use a portion of our available liquidity to pay cash dividends to our Series B mandatory convertible preferred stockholders and Class A and non-voting common stockholders on a quarterly basis in accordance with our dividend policies. Our ability to make cash dividends is dependent on a myriad of factors, including: (i) general economic and business conditions; (ii) our strategic plans and prospects; (iii) our business and investment opportunities; (iv) timing of capital calls by our funds in support of our commitments; (v) our financial condition and operating results; (vi) working capital requirements and other anticipated cash needs; (vii) contractual restrictions and obligations; (viii) legal, tax and regulatory restrictions; (ix) restrictions on the payment of distributions by our subsidiaries to us; and (x) other relevant factors.

We are required to maintain minimum net capital balances for regulatory purposes for our broker-dealer entities. These net capital requirements are met in part by retaining cash, cash equivalents and investment securities. Additionally, certain of our subsidiaries operating outside the U.S. are also subject to capital adequacy requirements in each of the applicable jurisdictions. As a result, we may be restricted in our ability to transfer cash between different operating entities and jurisdictions. As of June 30, 2025, we were required to maintain approximately $99.8 million in net assets within these subsidiaries to meet regulatory net capital and capital adequacy requirements. We remain in compliance with these regulatory requirements.

Holders of AOG Units, subject to the terms of the exchange agreement, may exchange their AOG Units for shares of our Class A common stock on a one-for-one basis. These exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of AMC that otherwise would not have been available. These increases in tax basis may increase depreciation and amortization for U.S. income tax purposes and thereby reduce the amount of tax that we would otherwise be required to pay in the future. We entered into the TRA that provides payment to the TRA recipients of 85% of the amount of actual cash savings (“Cash Tax Savings”), if any, in U.S. federal, state, local and foreign income tax or franchise tax that we actually realize as a result of these increases in tax basis and of certain other tax benefits related to entering into the TRA,

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including tax benefits attributable to payments under the TRA and interest accrued thereon (“Tax Benefit Payment”). Effective as of May 1, 2023, pursuant to an amendment to the TRA, to the extent Ares Owners Holdings L.P. would have been a recipient of certain Tax Benefit Payments under the TRA for taxable exchanges on or after May 1, 2023, Ares Owners Holdings L.P. will no longer be entitled to any Tax Benefit Payment for such exchanges and 100% of any Cash Tax Savings will inure to us. Future payments under the TRA in respect of subsequent exchanges are expected to be substantial. The TRA liability balance was $508.6 million and $402.4 million as of June 30, 2025 and December 31, 2024, respectively. For the six months ended June 30, 2025 and 2024, payments under the TRA were $8.1 million and $6.1 million, respectively.

For a discussion of our debt obligations, including the debt obligations of our consolidated funds, see “Note 7. Debt” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

For a discussion of our equity, see “Note 13. Equity and Redeemable Interest” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Critical Accounting Estimates

We prepare our unaudited condensed consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make assumptions, estimates or judgments that affect the reported amounts of assets, liabilities, revenues and expenses in our unaudited condensed consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates or judgments, however, are both subjective and subject to change, and actual results may differ from our assumptions and estimates. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known. For a summary of our significant accounting policies, see “Note 2. Summary of Significant Accounting Policies,” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2024. For a summary of our critical accounting estimates, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K.

Recent Accounting Pronouncements

Information regarding recent accounting pronouncements and their impact on Ares can be found in “Note 2. Summary of Significant Accounting Policies,” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Commitments and Contingencies

In the normal course of business, we enter into contractual obligations that may require future cash payments. We may also engage in off-balance sheet arrangements, including transactions in derivatives, guarantees, capital commitments to funds, indemnifications and potential contingent payment obligations. For further discussion of these arrangements, see “Note 8. Commitments and Contingencies” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.