Item 1. Financial Statements

279K characters. Original on sec.gov · Markdown

Item 1. Financial Statements

Ares Management Corporation

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




	As of
	September 30, 2025		December 31, 2024
	(unaudited)
Assets
Cash and cash equivalents	$	496,669	$	1,507,976
Investments (includes accrued carried interest of $4,119,700 and $3,495,115 as of September 30, 2025 and December 31, 2024, respectively)	5,755,803		4,644,775
Due from affiliates	1,334,225		1,056,608
Other assets	857,551		774,654
Right-of-use operating lease assets	526,042		511,319
Intangible assets, net	2,166,249		975,828
Goodwill	3,437,450		1,162,636
Assets of Consolidated Funds:
Cash and cash equivalents	1,003,291		1,227,489
Investments held in trust account	—		550,800
Investments, at fair value	11,254,240		12,187,044

Receivable for securities sold	147,795		202,782
Other assets	52,851		82,397
Total assets	$	27,032,166	$	24,884,308
Liabilities
Accounts payable, accrued expenses and other liabilities	$	935,366	$	363,872
Accrued compensation	656,737		280,894
Due to affiliates	626,592		500,480
Performance related compensation payable	2,992,638		2,537,203
Debt obligations	3,675,783		2,558,914
Operating lease liabilities	676,372		641,864
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities	100,665		323,100

Payable for securities purchased	361,855		332,406
CLO loan obligations, at fair value	7,588,847		9,672,189
Fund borrowings	785,281		275,000
Total liabilities	18,400,136		17,485,922
Commitments and contingencies (Note 8)
Redeemable interest in Consolidated Funds	—		550,700
Redeemable interest in Ares Operating Group entities	25,750		23,496
Non-controlling interests in Consolidated Funds	2,514,018		2,025,666
Non-controlling interests in Ares Operating Group entities	1,618,234		1,254,878
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024)	1,460,758		1,458,771
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (216,834,793 shares and 199,872,571 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)	2,168		1,999
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of September 30, 2025 and December 31, 2024)	35		35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024)	—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (106,526,860 shares and 109,806,689 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)	1,065		1,098
Additional paid-in-capital	4,198,927		2,936,794
Accumulated deficit	(1,218,682)		(837,294)
Accumulated other comprehensive income (loss), net of tax	29,757		(17,757)
Total stockholders’ equity	4,474,028		3,543,646
Total equity	8,606,280		6,824,190
Total liabilities, redeemable interest, non-controlling interests and equity	$	27,032,166	$	24,884,308

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Operations

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Revenues
Management fees	$	971,762	$	753,597	$	2,689,371	$	2,162,970
Carried interest allocation	464,666		277,651		948,575		194,006
Incentive fees	100,668		48,638		155,795		105,039
Principal investment income	17,976		8,036		50,937		44,547
Administrative, transaction and other fees	102,556		41,817		251,883		119,222
Total revenues	1,657,628		1,129,739		4,096,561		2,625,784
Expenses
Compensation and benefits	659,835		435,876		1,960,669		1,268,685
Performance related compensation	404,095		219,697		761,434		140,180
General, administrative and other expenses	246,154		197,019		706,224		537,379

Expenses of Consolidated Funds	(1,868)		2,295		31,795		11,680
Total expenses	1,308,216		854,887		3,460,122		1,957,924
Other income (expense)
Net realized and unrealized gains (losses) on investments	188,420		(5,074)		201,396		13,781
Interest and dividend income	13,644		7,553		39,072		19,952
Interest expense	(46,315)		(29,733)		(126,277)		(105,057)
Other expense, net	(7,263)		(18,805)		(64,498)		(19,473)
Net realized and unrealized gains on investments of Consolidated Funds	180,255		64,831		396,413		192,778
Interest and other income of Consolidated Funds	130,821		234,681		452,783		732,316
Interest expense of Consolidated Funds	(156,703)		(201,199)		(455,081)		(626,678)
Total other income, net	302,859		52,254		443,808		207,619
Income before taxes	652,271		327,106		1,080,247		875,479
Income tax expense	111,892		46,453		190,387		114,760
Net income	540,379		280,653		889,860		760,719
Less: Net income attributable to non-controlling interests in Consolidated Funds	67,407		64,241		127,383		236,446
Net income attributable to Ares Operating Group entities	472,972		216,412		762,477		524,273
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,797		1,319		1,839		1,005
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	182,293		96,633		287,524		236,843
Net income attributable to Ares Management Corporation	288,882		118,460		473,114		286,425
Less: Series B mandatory convertible preferred stock dividends declared	25,313		—		75,938		—
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	263,569	$	118,460	$	397,176	$	286,425
Net income per share of Class A and non-voting common stock:
Basic	$	1.15	$	0.55	$	1.64	$	1.31
Diluted	$	1.15	$	0.55	$	1.64	$	1.31
Weighted-average shares of Class A and non-voting common stock:
Basic	219,881,697		200,724,068		216,086,939		196,526,832
Diluted	219,881,697		200,724,068		216,086,939		196,526,832

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

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Comprehensive Income

(Amounts in Thousands) (unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net income	$	540,379	$	280,653	$	889,860	$	760,719
Foreign currency translation adjustments, net of tax	(4,770)		37,167		91,342		23,608
Total comprehensive income	535,609		317,820		981,202		784,327
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds	66,795		70,798		146,677		237,476
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities	1,615		1,933		2,554		1,315
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities	180,756		107,698		311,343		245,031
Comprehensive income attributable to Ares Management Corporation	$	286,443	$	137,391	$	520,628	$	300,505

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)


	Series B Mandatory Convertible Preferred Stock		Class A Common Stock		Non-voting Common Stock		Class C Common Stock		Additional Paid-in-Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance as of December 31, 2024	$	1,458,771	$	1,999	$	35	$	1,098	$	2,936,794	$	(837,294)	$	(17,757)	$	1,254,878	$	2,025,666	$	6,824,190
Changes in ownership interests and related tax benefits	—		47		—		(20)		(707,255)		—		—		354,253		(34,832)		(387,807)
Adjustment to issuance costs of Series B mandatory convertible preferred stock	1,147		—		—		—		—		—		—		—		—		1,147
Issuances of common stock	—		103		—		—		1,642,214		—		—		—		—		1,642,317
Issuances of AOG Units	—		—		—		3		—		—		—		15,561		—		15,564
Capital contributions	—		—		—		—		—		—		—		120		295,750		295,870
Dividends/distributions	(25,313)		—		—		—		—		(258,691)		—		(138,003)		(208,855)		(630,862)
Net income	25,313		—		—		—		—		21,857		—		20,038		55,977		123,185
Currency translation adjustment, net of tax	—		—		—		—		—		—		42,101		21,934		6,338		70,373
Equity compensation	—		—		—		—		168,955		—		—		88,907		—		257,862
Balance as of March 31, 2025	1,459,918		2,149		35		1,081		4,040,708		(1,074,128)		24,344		1,617,688		2,140,044		8,211,839

Changes in ownership interests and related tax benefits	—		10		—		(8)		(61,923)		—		—		(52,023)		243,432		129,488

Capital contributions	—		—		—		—		—		—		—		1,333		37,422		38,755
Dividends/distributions	(25,312)		—		—		—		—		(259,233)		—		(143,626)		(110,900)		(539,071)
Net income	25,312		—		—		—		—		111,750		—		85,193		3,999		226,254
Currency translation adjustment, net of tax	—		—		—		—		—		—		7,852		3,422		13,568		24,842
Equity compensation	—		—		—		—		109,276		—		—		55,815		—		165,091
Balance as of June 30, 2025	1,459,918		2,159		35		1,073		4,088,061		(1,221,611)		32,196		1,567,802		2,327,565		8,257,198

Changes in ownership interests and related tax benefits	—		8		—		(8)		4,834		—		—		(46,698)		27,846		(14,018)
Adjustment to issuance costs of Series B mandatory convertible preferred stock	840		—		—		—		—		—		—		—		—		840
Issuances of common stock	—		1		—		—		—		—		—		—		—		1
Capital contributions	—		—		—		—		—		—		—		1		121,076		121,077
Dividends/distributions	(25,313)		—		—		—		—		(260,640)		—		(137,725)		(29,264)		(452,942)
Net income	25,313		—		—		—		—		263,569		—		182,293		67,407		538,582
Currency translation adjustment, net of tax	—		—		—		—		—		—		(2,439)		(1,537)		(612)		(4,588)
Equity compensation	—		—		—		—		106,032		—		—		54,098		—		160,130
Balance as of September 30, 2025	$	1,460,758	$	2,168	$	35	$	1,065	$	4,198,927	$	(1,218,682)	$	29,757	$	1,618,234	$	2,514,018	$	8,606,280

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)


	Series B Mandatory Convertible Preferred Stock		Class A Common Stock		Non-voting Common Stock		Class C Common Stock		Additional Paid-in-Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance as of December 31, 2023	$	—	$	1,871	$	35	$	1,170	$	2,391,036	$	(495,083)	$	(5,630)	$	1,322,469	$	1,258,445	$	4,474,313

Changes in ownership interests and related tax benefits	—		39		—		(20)		(62,709)		—		—		(103,599)		51,984		(114,305)
Issuances of common stock	—		—		—		1		—		—		—		7,723		—		7,724
Capital contributions	—		—		—		—		—		—		—		1,034		168,673		169,707
Dividends/distributions	—		—		—		—		—		(190,504)		—		(129,240)		(26,908)		(346,652)
Net income	—		—		—		—		—		73,027		—		63,999		66,716		203,742
Currency translation adjustment, net of tax	—		—		—		—		—		—		(4,850)		(2,932)		(3,608)		(11,390)
Equity compensation	—		—		—		—		57,600		—		—		34,822		—		92,422
Stock option exercises	—		1		—		—		1,510		—		—		—		—		1,511
Balance as of March 31, 2024	—		1,911		35		1,151		2,387,437		(612,560)		(10,480)		1,194,276		1,515,302		4,477,072

Changes in ownership interests and related tax benefits	—		19		—		(18)		(75,616)		—		—		103,129		(35,192)		(7,678)
Issuances of common stock	—		27		—		—		354,368		—		—		—		—		354,395
Capital contributions	—		—		—		—		—		—		—		269		342,937		343,206

Dividends/distributions	—		—		—		—		—		(195,234)		—		(116,980)		(20,696)		(332,910)
Net income	—		—		—		—		—		94,938		—		76,211		105,489		276,638
Currency translation adjustment, net of tax	—		—		—		—		—		—		(1)		55		(1,919)		(1,865)
Equity compensation	—		—		—		—		55,791		—		—		32,441		—		88,232

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

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

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

Changes in ownership interests and related tax benefits	—		15		—		(14)		23,944		—		—		(19,708)		(16,187)		(11,950)
Issuance of Series B mandatory convertible preferred stock	1,458,771		—		—		—		—		—		—		—		—		1,458,771
Issuances of common stock	—		1		—		—		(113)		—		—		1		—		(111)
Capital contributions	—		—		—		—		—		—		—		1,801		94,860		96,661
Dividends/distributions	(22,781)		—		—		—		—		(199,432)		—		(142,104)		(47,519)		(411,836)
Net income	22,781		—		—		—		—		154,536		—		114,275		59,326		350,918
Currency translation adjustment, net of tax	—		—		—		—		—		—		(26,207)		(15,149)		(13,760)		(55,116)
Equity compensation	—		—		—		—		56,070		—		—		30,514		—		86,584

Balance as of December 31, 2024	$	1,458,771	$	1,999	$	35	$	1,098	$	2,936,794	$	(837,294)	$	(17,757)	$	1,254,878	$	2,025,666	$	6,824,190

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Cash Flows

(Amounts in Thousands)

(unaudited)


	Nine months ended September 30,
	2025		2024
Cash flows from operating activities:
Net income	$	889,860	$	760,719
Adjustments to reconcile net income to net cash provided by operating activities	491,735		429,097







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	1,620,528		835,340




Cash flows due to changes in operating assets and liabilities	350,245		258,389





Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	398,279		(300,009)




Net cash provided by operating activities	3,750,647		1,983,536
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(56,385)		(82,203)
Acquisitions, net of cash acquired	(1,726,175)		(13,683)
Net cash used in investing activities	(1,782,560)		(95,886)
Cash flows from financing activities:

Net proceeds from issuance of Class A common stock	—		407,236
Proceeds from Credit Facility	2,130,000		970,000


Repayments of Credit Facility	(1,015,000)		(1,395,000)

Dividends and distributions	(1,296,937)		(969,360)




Stock option exercises	—		1,511
Taxes paid related to net share settlement of equity awards	(425,623)		(211,615)
Other financing activities	2,630		485
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	269,903		544,294
Distributions to non-controlling interests in Consolidated Funds	(349,020)		(76,502)
Redemptions of redeemable interests in Consolidated Funds	(509,503)		—
Borrowings under loan obligations by Consolidated Funds	532,191		323,540
Repayments under loan obligations by Consolidated Funds	(2,308,666)		(1,504,344)
Net cash used in financing activities	(2,970,025)		(1,909,755)
Effect of exchange rate changes	(9,369)		23,969
Net change in cash and cash equivalents	(1,011,307)		1,864
Cash and cash equivalents, beginning of period	1,507,976		348,274
Cash and cash equivalents, end of period	$	496,669	$	350,138
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	1,657,881	$	7,724

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

1. ORGANIZATION

Ares Management Corporation (the “Company”), a Delaware corporation, together with its subsidiaries, is a leading global alternative investment manager operating integrated groups across Credit, Real Assets, Private Equity and Secondaries. Information about segments should be read together with “Note 14. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various funds and managed accounts within each investment group (the “Ares Funds”). These subsidiaries provide investment advisory services to the Ares Funds in exchange for management fees.

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

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

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments so that the unaudited condensed consolidated financial statements are presented fairly and that estimates made in preparing its unaudited condensed consolidated financial statements are reasonable and prudent, and that all such adjustments are of a normal recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”).

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

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

Recent Accounting Pronouncements

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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

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

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 clarifies the threshold for capitalizing internal-use software costs to be based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for the Company’s fiscal year ending December 31, 2028. Early adoption is permitted and the amendments in this update may be applied on a prospective, retrospective or modified basis. The Company is currently evaluating the impact of this guidance.

3. BUSINESS COMBINATIONS

Acquisition of GCP International

On March 1, 2025, the Company completed the acquisition of the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), and existing capital commitments to certain managed funds (such acquisition of GCP International and the capital commitments, the “GCP Acquisition”). The GCP Acquisition adds complementary real estate and digital infrastructure investment capabilities and expands the Company’s geographic presence. The activities of GCP International are included within the Real Assets Group segment.

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


Cash	$	1,787,575
Equity(1)	1,657,881
Contingent consideration(2)	465,080
Total	$	3,910,536

(1)9.6 million shares of Class A common stock and 0.1 million Ares Operating Group Units (“AOG Units”) were issued in connection with the GCP Acquisition purchase consideration.

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

The following is a summary of the fair values of assets acquired and liabilities assumed for the GCP Acquisition as of March 1, 2025, based upon third party valuations of certain intangible assets. The purchase price allocation is preliminary and subject to change during the measurement period, which may be up to one year from the acquisition date, as additional information is obtained about the facts and circumstances that existed at close of the GCP Acquisition. The fair value of assets acquired and liabilities assumed are estimated to be:


Cash	$	61,436
Other tangible assets	452,438
Intangible assets:
Management contracts	473,300
Client relationships	107,200

Finite-lived intangible assets	580,500
Indefinite-lived management contracts	749,600
Total intangible assets	1,330,100
Total identifiable assets acquired	1,843,974
Accounts payable, accrued expenses and other liabilities	203,058

Net identifiable assets acquired	1,640,916
Goodwill	2,269,620
Net assets acquired	$	3,910,536

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

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

In connection with the GCP Acquisition, various components of the agreed upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became employees of the Company following the GCP Acquisition. Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration. For the nine months ended September 30, 2025, $47.2 million of acquisition related compensation costs were expensed and recorded within compensation and benefits within the Condensed Consolidated Statements of Operations. Because the purchase price included components of cash and equity, the individuals that became employees of the Company also received a portion of their sales proceeds in the form of equity, which was recorded as equity compensation expense. For the nine months ended September 30, 2025, $110.1 million of equity compensation expense was recognized from the immediate vesting of 0.6 million restricted units, of which 0.2 million shares were withheld for taxes. Additionally, there were 2.3 million unvested equity awards and 0.2 million unvested AOG Unit awards related to these arrangements (collectively, the “Unvested GCP Equity Purchase Price”) as of March 1, 2025. In connection with the Unvested GCP Equity Purchase Price, equity compensation expense of $33.5 million and $84.6 million was recognized during the three and nine months ended September 30, 2025, respectively. The total compensation expense expected to be recognized in all future periods associated with the Unvested GCP Equity Purchase Price is approximately $337.3 million as of September 30, 2025 and is expected to be recognized over the remaining weighted average period of 3.0 years.

The Company has incurred $68.7 million of acquisition related costs, of which $35.3 million was incurred during the nine months ended September 30, 2025. These acquisition related costs were expensed and reported within general, administrative and other expenses.

The acquired business from the GCP Acquisition generated revenues and net income of $253.7 million and $76.4 million, respectively, are included in the Condensed Consolidated Statements of Operations before giving effect to corporate level taxes for the period from March 1, 2025 through September 30, 2025. The Company did not acquire all of the assets or assume all of the liabilities of the legacy business. GCP International represents an aggregation of various businesses and components of other businesses that operate in different jurisdictions, each that historically used a different basis of accounting. There are no historical financial statements that apply consistent management assumptions and use a consistent

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

basis of accounting. Therefore, it is impracticable to provide pro forma information on revenues and earnings for the GCP Acquisition.

4. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

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



	Weighted Average Amortization Period (in years) as of September 30, 2025		As of September 30,			As of December 31,
		2025			2024
Management contracts	4.8		$	1,023,893		$	590,675
Client relationships	7.0		317,920			210,720

Other	0.0		—			500
Finite-lived intangible assets			1,341,813			801,895
Foreign currency translation			5,848			(789)
Total finite-lived intangible assets			1,347,661			801,106
Less: accumulated amortization			(498,812)			(393,078)
Finite-lived intangible assets, net			848,849			408,028
Management contracts			1,317,400			567,800

Indefinite-lived management contracts			1,317,400			567,800
Intangible assets, net			$	2,166,249		$	975,828

During the three and nine months ended September 30, 2025, the Company recorded a non-cash impairment charge of $2.3 million to the fair value of management contracts of certain CLOs within the Credit Group. The primary indicator of impairment was the lower than expected future fee revenue resulting from the earlier than expected end to the useful lives of these CLOs.

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

Amortization expense associated with intangible assets was $52.3 million and $28.9 million for the three months ended September 30, 2025 and 2024, respectively, and $142.3 million and $87.1 million for the nine months ended September 30, 2025 and 2024, respectively, and has been presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2025, the Company removed $40.6 million of fully-amortized intangible assets.

Goodwill

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


	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Total




Balance as of December 31, 2024	$	312,032	$	311,569	$	121,408	$	417,627	$	1,162,636
Acquisitions	—		2,269,489		—		—		2,269,489

Foreign currency translation	1,451		3,861		—		13		5,325
Balance as of September 30, 2025	$	313,483	$	2,584,919	$	121,408	$	417,640	$	3,437,450

There was no impairment of goodwill recorded during the three and nine months ended September 30, 2025 and 2024. The impact of foreign currency translation adjustments is reflected within the Condensed Consolidated Statements of Comprehensive Income.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

5. INVESTMENTS

The following table summarizes the Company’s investments:


	As of				Percentage of total investments as of

	September 30,		December 31,		September 30,	December 31,
	2025		2024		2025	2024
Equity method investments:
Equity method - carried interest	$	4,053,637	$	3,495,115	70.4%	75.2%
Equity method - carried interest (held at fair value)	66,063		—		1.2	—
Equity method private investment partnership interests - principal	660,558		536,912		11.5	11.6
Equity method private investment partnership interests and other (held at fair value)	601,398		411,417		10.4	8.9
Equity method private investment partnership interests and other	64,631		55,461		1.1	1.2
Total equity method investments	5,446,287		4,498,905		94.6	96.9
Collateralized loan obligations	21,119		19,040		0.4	0.4
Fixed income securities	10,805		22,793		0.2	0.5
Collateralized loan obligations and fixed income securities, at fair value	31,924		41,833		0.6	0.9
Common stock and other equity securities, at fair value	277,592		104,037		4.8	2.2
Total investments	$	5,755,803	$	4,644,775

Equity Method Investments

The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the three and nine months ended September 30, 2025 and 2024, no individual equity method investment held by the Company met the significance criteria.

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Total net investment income and net realized and unrealized gains (losses) related to equity method investments	$	195,215	$	8,093	$	245,883	$	51,633

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

Equity Method Investments Held at Fair Value

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Equity method private investment partnership interests and other (held at fair value)	$	174,313	$	(5,542)	$	182,609	$	(3,494)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Investments of the Consolidated Funds

The following table summarizes investments held in the Consolidated Funds:


	Fair Value as of				Percentage of total investments as of

	September 30,		December 31,		September 30,	December 31,
	2025		2024		2025	2024
Fixed income investments:
Loans and securitization vehicles	$	5,952,569	$	7,907,449	52.9%	62.1%
U.S. treasury securities	—		550,800		—	4.3
Bonds	322,226		418,069		2.9	3.3
Total fixed income investments	6,274,795		8,876,318		55.8	69.7
Partnership interests	2,749,399		2,000,380		24.4	15.7
Equity securities	2,230,046		1,861,146		19.8	14.6
Total investments, at fair value	$	11,254,240	$	12,737,844

As of September 30, 2025 and December 31, 2024, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company’s total assets.

6. FAIR VALUE

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

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of September 30, 2025:


Financial Instruments of the Company	Level I		Level II		Level III		Total
Assets, at fair value


Investments:
Common stock and other equity securities	$	128,395	$	149,197	$	601,398	$	878,990
Common stock and other equity securities - carried interest	42,750		—		23,313		66,063
Collateralized loan obligations and fixed income securities	—		—		31,924		31,924

Total investments, at fair value	171,145		149,197		656,635		976,977
Derivatives-foreign currency forward contracts	—		7,014		—		7,014
Total assets, at fair value	$	171,145	$	156,211	$	656,635	$	983,991
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(4,149)	$	—	$	(4,149)
Contingent consideration	—		—		(528,054)		(528,054)
Total liabilities, at fair value	$	—	$	(4,149)	$	(528,054)	$	(532,203)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles	$	—	$	5,299,163	$	653,406	$	—	$	5,952,569

Bonds	—		322,226		—		—		322,226

Total fixed income investments	—		5,621,389		653,406		—		6,274,795
Partnership interests	—		—		—		2,749,399		2,749,399
Equity securities	—		3,023		2,227,023		—		2,230,046
Total investments, at fair value	—		5,624,412		2,880,429		2,749,399		11,254,240
Derivatives:
Foreign currency forward contracts	—		2,980		—		—		2,980

Total derivative assets, at fair value	—		2,980		—		—		2,980
Total assets, at fair value	$	—	$	5,627,392	$	2,880,429	$	2,749,399	$	11,257,220
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(7,588,847)	$	—	$	—	$	(7,588,847)
Derivatives:

Foreign currency forward contracts	—		(2,941)		—		—		(2,941)
Asset swaps	—		—		(156)		—		(156)
Total derivative liabilities, at fair value	—		(2,941)		(156)		—		(3,097)
Total liabilities, at fair value	$	—	$	(7,591,788)	$	(156)	$	—	$	(7,591,944)

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


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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles	$	—	$	7,313,632	$	593,817	$	—	$	7,907,449
U.S. treasury securities	550,800		—		—		—		550,800
Bonds	—		418,069		—		—		418,069
Total fixed income investments	550,800		7,731,701		593,817		—		8,876,318
Partnership interests	—		—		—		2,000,380		2,000,380
Equity securities	28,603		2,615		1,829,928		—		1,861,146
Total investments, at fair value	579,403		7,734,316		2,423,745		2,000,380		12,737,844

Derivatives-foreign currency forward contracts	—		2,995		—		—		2,995


Total assets, at fair value	$	579,403	$	7,737,311	$	2,423,745	$	2,000,380	$	12,740,839
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(9,672,189)	$	—	$	—	$	(9,672,189)
Derivatives:

Foreign currency forward contracts	—		(2,888)		—		—		(2,888)
Asset swaps	—		—		(1,846)		—		(1,846)
Total derivative liabilities, at fair value	—		(2,888)		(1,846)		—		(4,734)
Total liabilities, at fair value	$	—	$	(9,675,077)	$	(1,846)	$	—	$	(9,676,923)

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


Level III Assets of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of June 30, 2025	$	421,438	$	50,411	$	(510,490)	$	(38,641)

Transfer in(1)	27,162		1,488		—		28,650
Transfer out(1)	—		(21,551)		—		(21,551)
Purchases(2)	100		1,877		—		1,977
Change in fair value	—		—		(17,564)		(17,564)
Sales/settlements(3)	—		(1,383)		—		(1,383)
Realized and unrealized appreciation, net	176,011		1,082		—		177,093
Balance as of September 30, 2025	$	624,711	$	31,924	$	(528,054)	$	128,581
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	176,011	$	1,091	$	(17,564)	$	159,538


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of June 30, 2025	$	2,004,343	$	501,049	$	(720)	$	2,504,672
Transfer in(1)	—		96,098		—		96,098
Transfer out(1)	(819)		(160,813)		—		(161,632)
Purchases(2)	180,028		407,229		—		587,257
Sales/settlements(3)	(383)		(194,116)		—		(194,499)
Realized and unrealized appreciation, net	43,854		3,959		564		48,377
Balance as of September 30, 2025	$	2,227,023	$	653,406	$	(156)	$	2,880,273
Change in net unrealized appreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	44,727	$	5,210	$	560	$	50,497

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

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Total
Balance as of June 30, 2024	$	379,443	$	92,374	$	471,817



Purchases(1)	859		18,240		19,099
Sales/settlements(2)	1,093		(2,430)		(1,337)

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


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

Transfer in(3)	—		143,738		—		143,738
Transfer out(3)	(508)		(227,541)		—		(228,049)
Purchases(1)	136,313		250,554		—		386,867
Sales/settlements(2)	(111)		(213,489)		—		(213,600)
Realized and unrealized appreciation (depreciation), net	9,015		1,197		(288)		9,924
Balance as of September 30, 2024	$	1,731,563	$	757,956	$	(1,903)	$	2,487,616
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	9,300	$	(425)	$	(222)	$	8,653

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

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

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


Level III Assets of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of December 31, 2024	$	411,179	$	41,833	$	(17,550)	$	435,462
Established in connection with acquisition (see Note 8)	—		—		(465,080)		(465,080)
Transfer in(1)	27,162		11,491		—		38,653
Transfer out(1)	(10,000)		(21,551)		—		(31,551)
Purchases(2)	10,646		39,047		—		49,693
Sales/settlements(3)	—		(39,820)		—		(39,820)
Change in fair value	—		—		(45,424)		(45,424)
Realized and unrealized appreciation, net	185,724		924		—		186,648
Balance as of September 30, 2025	$	624,711	$	31,924	$	(528,054)	$	128,581
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	185,724	$	2,646	$	(45,424)	$	142,946


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of December 31, 2024	$	1,829,927	$	593,817	$	(1,846)	$	2,421,898
Transfer in(1)	1		263,627		—		263,628
Transfer out(1)	(819)		(311,876)		—		(312,695)
Purchases(2)	270,355		852,279		124		1,122,758
Sales/settlements(3)	(502)		(747,907)		—		(748,409)
Realized and unrealized appreciation, net	128,061		3,466		1,566		133,093
Balance as of September 30, 2025	$	2,227,023	$	653,406	$	(156)	$	2,880,273
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	128,230	$	(2,981)	$	1,532	$	126,781

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

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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



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


Transfer in(1)	—		60,917		60,917
Transfer out(1)	(37,587)		—		(37,587)
Purchases(2)	2,539		283,913		286,452
Sales/settlements(3)	(1,478)		(362,164)		(363,642)

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


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of December 31, 2023	$	1,190,400	$	740,113	$	(1,291)	$	1,929,222

Transfer in(1)	—		199,112		—		199,112
Transfer out(1)	(35)		(305,887)		—		(305,922)
Purchases(2)	482,424		711,190		114		1,193,728
Sales/settlements(3)	(111)		(585,977)		—		(586,088)

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

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

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

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of September 30, 2025:


Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	262,998	Expected transaction price	N/A	N/A	N/A
	100,000		Market yield analysis	Market interest rate	8.0%	8.0%
	85,533		Market approach	Multiple of book value	0.6x - 1.5x	1.2x
	62,675		Option pricing model	Volatility	50.0%	50.0%
	40,089		Discounted cash flow	Discount rate	11.0% - 15.0%	13.0%
	34,298		Transaction price(1)	N/A	N/A	N/A
	27,064		Monte Carlo simulation	Volatility	55.0%	55.0%
	12,054		Market approach	Earnings multiple	11.0x	11.0x
Fixed income investments
	21,119		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	10,805		Market yield analysis	Market interest rate	16.5%	16.5%

Total assets	$	656,635
Liabilities
Contingent consideration	$	(528,054)	Monte Carlo simulation	Discount rate	6.6% - 7.0%	6.8%
				Volatility	11.1% - 15.1%	13.1%
Total liabilities	$	(528,054)


Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	1,204,390	Discounted cash flow	Discount rate	10.0% - 20.0%	12.0%
	1,015,394		Market approach	Multiple of book value	1.0x - 1.7x	1.3x
	6,761		Market approach	EBITDA multiple(2)	5.9x - 34.0x	8.8x
	478		Market approach	Yield	12.3% - 14.0%	9.7%
Fixed income investments
	326,130		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	326,107		Market approach	Yield	6.5% - 14.0%	9.7%
	1,169		Discounted cash flow	Discount rate	12.3% - 20.0%	12.6%
Total assets	$	2,880,429
Liabilities
Derivative instruments	$	(156)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(156)

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	168,387	Transaction price(1)	N/A	N/A	N/A
	100,000		Market approach	Yield	8.0%	8.0%
	57,659		Market approach	Multiple of book value	1.0x - 1.1x	1.0x
			Discounted cash flow	Discount rate	10.0% - 14.0%	12.0%
	56,918		Market approach	Multiple of book value	1.2x - 1.7x	1.4x
	19,205		Option pricing model	Volatility	35.0%	35.0%
	8,489		Market approach	Earnings multiple	15.4x	15.4x
	521		Discounted cash flow	Discount rate	18.5% - 21.5%	20.0%


Fixed income investments
	22,283		Transaction price(1)	N/A	N/A	N/A
	19,040		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	510		Other	N/A	N/A	N/A
Total assets	$	453,012
Liabilities
Contingent consideration	$	(17,550)	Monte Carlo simulation	Discount rate	6.6% - 6.9%	6.8%

				Volatility	11.1%	11.1%
Total liabilities	$	(17,550)


Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	985,109	Discounted cash flow	Discount rate	10.0% - 20.0%	13.0%
	835,432		Market approach	Multiple of book value	1.0x - 1.7x	1.4x

	8,598		Market approach	EBITDA multiple(2)	5.6x - 34.6x	10.7x
	789		Other	N/A	N/A	N/A

Fixed income investments
	308,675		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	284,950		Market approach	Yield	7.4% - 28.6%	9.9%


	192		Other	N/A	N/A	N/A


Total assets	$	2,423,745
Liabilities
Derivative instruments	$	(1,846)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(1,846)

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

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

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

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




	As of September 30, 2025		As of December 31, 2024
Investments (held at fair value)	$	2,749,399	$	2,000,380
Unfunded commitments	2,330,124		932,473

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

7. DEBT

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


				As of September 30, 2025			As of December 31, 2024


	Debt Origination Date	Maturity	Original Borrowing Amount	Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolving	4/22/2030	N/A	$	1,115,000	5.27%	$	—	—%
2028 Senior Notes(2)	11/10/2023	11/10/2028	500,000	496,506		6.42	495,677		6.42
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000	397,841		3.28	397,501		3.28
2052 Senior Notes(4)	1/21/2022	2/1/2052	500,000	484,908		3.77	484,601		3.77
2054 Senior Notes(5)	10/11/2024	10/11/2054	750,000	736,265		5.65	736,010		5.65
2051 Subordinated Notes(6)	6/30/2021	6/30/2051	450,000	445,263		4.13	445,125		4.13
Total debt obligations				$	3,675,783		$	2,558,914

(1)In April 2025, the Company amended its Credit Facility to, among other things: (i) extend the maturity from March 31, 2029 to April 22, 2030; (ii) increase commitments from $1.400 billion, with an accordion feature of $600.0 million, to $1.840 billion with an accordion feature of $660.0 million; and (iii) provide a sub-limit for the issuance of swingline loans up to an aggregate amount of $75.0 million (with the amount available for borrowing under the Credit Facility amendment being reduced by any swingline loans issued). The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of September 30, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.09% per annum. The Credit Facility has a base rate and SOFR floor of zero.

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

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

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

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

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

As of September 30, 2025, the Company and its subsidiaries were in compliance with all covenants under the debt obligations.

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

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


	Credit Facility		Senior Notes		Subordinated Notes



Unamortized debt issuance costs as of December 31, 2024	$	4,858	$	18,725	$	4,875
Debt issuance costs incurred	2,181		11		—
Amortization of debt issuance costs	(944)		(1,310)		(138)
Unamortized debt issuance costs as of September 30, 2025	$	6,095	$	17,426	$	4,737

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Loan Obligations of the Consolidated CLOs

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

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


	As of September 30, 2025				As of December 31, 2024


	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)
Senior secured notes	$	6,838,742	5.48%	8.8	$	8,937,972	6.08%	8.0
Subordinated notes(1)	750,105		N/A	10.3	734,217		N/A	5.6
Total loan obligations of Consolidated CLOs	$	7,588,847			$	9,672,189

(1)The notes do not have contractual interest rates; instead, holders of the notes receive a variable rate of interest amounting to the excess cash flows generated by each Consolidated CLO.

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

Credit Facilities of the Consolidated Funds

Certain Consolidated Funds maintain credit facilities to fund investments between capital drawdowns. These facilities generally are collateralized by the net assets of the Consolidated Funds or the unfunded capital commitments of the Consolidated Funds’ limited partners, bear an annual commitment fee based on unfunded commitments and contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments and portfolio asset dispositions. The creditors of these facilities have no recourse to the Company and only have recourse to a subsidiary of the Company to the extent the debt is guaranteed by such subsidiary. As of September 30, 2025 and December 31, 2024, the Consolidated Funds were in compliance with all covenants under such credit facilities.

The Consolidated Funds had the following credit facilities outstanding:


				As of September 30, 2025			As of December 31, 2024


	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate	Outstanding Loan(1)		Effective Rate
Credit Facilities:
	1/28/2026	$	100,000	$	88,900	6.39%	N/A		N/A
	9/24/2026	300,000		292,890		5.96	121,000		8.00
	9/24/2026	150,000		—		N/A	—		N/A
	6/26/2027	300,000		200,000		6.14	154,000		7.15
	9/12/2027	54,000		—		N/A	—		N/A
	6/23/2032	201,007		201,007		7.23	N/A		N/A
	3/31/2040	110,235		1,013		12.00	N/A		N/A
	3/31/2040	88,188		1,471		11.00	N/A		N/A
	8/7/2040	170,000		—		N/A	N/A		N/A
Total borrowings of Consolidated Funds				$	785,281		$	275,000

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

8. COMMITMENTS AND CONTINGENCIES

Indemnification Arrangements

Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Condensed Consolidated Statements of Financial Condition. As of September 30, 2025, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Commitments

As of September 30, 2025 and December 31, 2024, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $1,513.6 million and $1,451.4 million, respectively.

Guarantees

As of September 30, 2025 and December 31, 2024, the Company’s maximum exposure to losses from guarantees was $183.5 million and $1.1 million, respectively. The guarantee agreements that the Company enters into with financial institutions are primarily to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund.

Contingent Liabilities

GCP International

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

The portion of the DC Earnout and Japan Earnout attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. As of March 1, 2025, the fair value of these contingent liabilities was $465.1 million and was recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. The contingent liabilities are subject to change over the measurement periods, which will end no later than June 30, 2028. Changes in fair value from the acquisition date will be recorded within other income (expense), net within the Condensed Consolidated Statements of Operations. The Company expects to settle the contingent liabilities at the Company's discretion with no less than 15.0% cash and the remaining balance in equity. As of September 30, 2025, the fair value of the contingent liabilities was $507.6 million and recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. For the three and nine months ended September 30, 2025, the change in fair value of $17.0 million and $42.5 million, respectively, is presented within other income (expense), net within the Condensed Consolidated Statements of Operations.

The portion of the DC Earnout and Japan Earnout attributable to the professionals that became employees of the Company requires continued service through the measurement periods. The Company expects to settle the contingent liabilities at the Company's discretion with no less than 15.0% cash and the remaining balance in equity awards. The DC Earnout and Japan Earnout are remeasured each period with incremental changes in fair value for the cash and equity components of these liabilities recognized within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following the measurement period end dates, the cash components will be paid and the equity awards will be granted at fair value for the balance of the liability. As of September 30, 2025, the fair value of the contingent liabilities was $217.5 million. Compensation expense of $14.7 million and $32.7 million for the three and nine months ended September 30, 2025, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations with an equal offset presented within accrued compensation within the Condensed Consolidated Statements of Financial Condition. The unpaid liabilities at the respective measurement period end dates will be reclassified from liability to additional paid-in-

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

capital. Any compensation expense associated with the DC Earnout and Japan Earnout that was not previously recorded through the final measurement period end date will be recognized as equity-based compensation expense over the remaining service periods ranging from three to six years, measured from the GCP Acquisition close date.

Other Arrangements

The Company also entered into various other contingent arrangements in connection with acquisitions. The maximum exposure for these contingent arrangements was $215.0 million and $155.0 million as of September 30, 2025 and December 31, 2024, respectively.

Certain portions of these contingent arrangements require continued service through the measurement periods. As of September 30, 2025 and December 31, 2024, the fair value of these contingent liabilities was $124.1 million and $99.6 million, respectively, and the Company has recorded $58.7 million and $29.9 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $10.1 million and $5.4 million for three months ended September 30, 2025 and 2024, respectively, and $28.8 million and $16.4 million for the nine months ended September 30, 2025 and 2024, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations.

The remaining portions of these contingent arrangements did not require continued service through the measurement periods and were classified as contingent consideration. As of September 30, 2025 and December 31, 2024, the fair value of these contingent liabilities was $20.4 million and $17.6 million, respectively, and has been recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. Other expense of $0.4 million and $2.8 million for the three and nine months ended September 30, 2025, respectively, is presented within other income (expense), net within the Condensed Consolidated Statements of Operations.

Carried Interest

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

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

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

As of September 30, 2025 and December 31, 2024, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $125.5 million and $59.6 million, respectively, of which approximately $99.7 million and $39.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest. Management believes the possibility of all of the investments becoming worthless is remote. As of September 30, 2025 and December 31, 2024, if the funds were liquidated at their fair values, there would be no material contingent repayment obligation or liability.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Litigation

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

Leases

The Company’s leases primarily consists of operating leases for office space and certain office equipment. The Company’s leases have remaining lease terms of one to 18 years. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:


Maturity of operating lease liabilities	As of September 30, 2025
2025	$	22,315
2026	75,796
2027	69,136
2028	79,184
2029	73,448
Thereafter	714,940
Total future payments	1,034,819
Less: interest	358,447
Total operating lease liabilities	$	676,372


	Three months ended September 30,				Nine months ended September 30,
Classification within general, administrative and other expenses	2025		2024		2025		2024
Operating lease expense	$	22,549	$	16,920	$	66,277	$	47,505



	Nine months ended September 30,
Supplemental information on the measurement of operating lease liabilities	2025		2024
Operating cash flows for operating leases	$	48,346	$	41,740



Leased assets obtained in exchange for new operating lease liabilities	48,544		210,551


	As of September 30,	As of December 31,

Lease term and discount rate	2025	2024

Weighted-average remaining lease terms (in years)	13.0	14.1


Weighted-average discount rate	5.8%	5.8%

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

9. RELATED PARTY TRANSACTIONS

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

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

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

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

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


	As of September 30,		As of December 31,

	2025		2024
Due from affiliates:
Management fees receivable from non-consolidated funds	$	867,745	$	636,835
Incentive fee receivable from non-consolidated funds	82,771		172,235
Payments made on behalf of and amounts due from non-consolidated funds and employees	383,709		247,538

Due from affiliates—Company	$	1,334,225	$	1,056,608


Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	3,450	$	5,767
Tax receivable agreement liability	540,587		402,359
Realized carried interest and incentive fees payable	69,759		78,692
Payments made by non-consolidated funds on behalf of and payable by the Company	12,796		13,662
Due to affiliates—Company	$	626,592	$	500,480

Due from and Due to Ares Funds and Portfolio Companies

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

10. INCOME TAXES

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Income tax expense	$	111,892	$	46,453	$	190,387	$	114,760

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s unaudited condensed consolidated financial statements. For the three and nine months ended September 30, 2025 and 2024, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate.

The income tax effects of temporary differences give rise to significant portions of deferred tax assets and liabilities, which are presented on a net basis. As of September 30, 2025 and December 31, 2024, the Company recorded a net deferred tax asset of $289.1 million and $241.9 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition. As of September 30, 2025 and December 31, 2024, a deferred tax liability of $13.9 million and $8.4 million, respectively, was recorded and presented as a liability for the Consolidated Funds within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is generally no longer subject to corporate income tax audits by taxing authorities for any years prior to 2021. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

11. EARNINGS PER SHARE

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

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

For the three and nine months ended September 30, 2025 and 2024, the two-class method was the more dilutive method.

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Basic earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	263,569	$	118,460	$	397,176	$	286,425
Dividends declared and paid on Class A and non-voting common stock	(246,759)		(187,696)		(736,997)		(553,867)
Distributions on unvested restricted units	(10,620)		(7,829)		(31,812)		(22,692)
Undistributed earnings allocable to participating unvested restricted units	(494)		—		—		—
Undistributed net income (dividends in excess of earnings) available to Class A and non-voting common stockholders	$	5,696	$	(77,065)	$	(371,633)	$	(290,134)
Basic weighted-average shares of Class A and non-voting common stock	219,881,697		200,724,068		216,086,939		196,526,832
Undistributed basic earnings (dividends in excess of earnings) per share of Class A and non-voting common stock	$	0.03	$	(0.38)	$	(1.72)	$	(1.48)
Dividend declared and paid per Class A and non-voting common stock	1.12		0.93		3.36		2.79
Basic earnings per share of Class A and non-voting common stock	$	1.15	$	0.55	$	1.64	$	1.31

Diluted earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	263,569	$	118,460	$	397,176	$	286,425
Distributions on unvested restricted units	(10,620)		(7,829)		(31,812)		(22,692)

Net income available to Class A and non-voting common stockholders	$	252,949	$	110,631	$	365,364	$	263,733




Diluted weighted-average shares of Class A and non-voting common stock	219,881,697		200,724,068		216,086,939		196,526,832
Diluted earnings per share of Class A and non-voting common stock	$	1.15	$	0.55	$	1.64	$	1.31

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

12. EQUITY COMPENSATION

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Unvested awards	$	157,073	$	85,613	$	576,039	$	266,267
AOG Unit awards	3,057		—		7,044		—
Total equity-based compensation expense	$	160,130	$	85,613	$	583,083	$	266,267

Equity Incentive Plan

Equity-based compensation is generally granted under the 2023 Ares Management Corporation Equity Incentive Plan (the “Equity Incentive Plan”). The total number of shares available to be issued under the Equity Incentive Plan resets based on a formula defined in the Equity Incentive Plan and may increase on January 1 of each year. On January 1, 2025, the total number of shares available for issuance under the Equity Incentive Plan reset to 51,846,506 shares and as of September 30, 2025, 44,089,959 shares remained available for issuance.

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

Unvested Awards

Each unvested award represents either a share of the Company’s Class A common stock that is subject to restriction or a restricted unit, representing an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The unvested awards vest and the restrictions lapse or are settled in shares of Class A common stock, as applicable, over service periods generally ranging from immediate vesting to five years from the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions). Compensation expense associated with unvested awards is recognized on a straight-line basis over the requisite service period of the award.

Restricted units are delivered net of the holder’s payroll-related taxes upon vesting. For the nine months ended September 30, 2025, 5.2 million restricted units vested and 2.9 million shares of Class A common stock were delivered to the holders. For the nine months ended September 30, 2024, 4.0 million restricted units vested and 2.2 million shares of Class A common stock were delivered to the holders.

The holders of restricted units, other than awards that have not yet been issued, generally have the right to receive as current compensation an amount in cash equal to: (i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”).

The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the nine months ended September 30, 2025:


Record Date	Dividends Per Share		Dividend Equivalents Paid
March 17, 2025	$	1.12	$	21,489
June 16, 2025	1.12		20,958
September 16, 2025	1.12		21,095

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

The following table presents unvested awards’ activity:


	Unvested Awards	Weighted Average Grant Date Fair Value Per Unvested Award
Balance as of December 31, 2024	17,968,940	$	79.11
Granted	7,377,644	185.65
Vested	(5,158,943)	79.80
Forfeited	(215,045)	92.19
Balance as of September 30, 2025	19,972,596	$	118.14

The total compensation expense expected to be recognized in all future periods associated with unvested awards is approximately $1,683.5 million as of September 30, 2025 and is expected to be recognized over the remaining weighted average period of 3.4 years.

Other Equity-based Compensation

In connection with the GCP Acquisition, the Company granted 0.3 million AOG Unit awards to certain professionals. Of the total AOG Unit awards granted, 0.1 million units vested on the close date of the GCP Acquisition and the remaining 0.2 million units vest in three equal installments on each of the first three anniversaries of the GCP Acquisition close date, subject to the holder’s continued employment as of the applicable vesting dates. The weighted average grant date fair value per unvested AOG Unit award was $170.94. The total compensation expense expected to be recognized in all future periods associated with unvested AOG Unit awards is approximately $29.3 million as of September 30, 2025 and is expected to be recognized over the remaining weighted average period of 2.4 years.

13. EQUITY AND REDEEMABLE INTEREST

Common Stock

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

In February 2025, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $750.0 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2026. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the nine months ended September 30, 2025 and 2024, the Company did not repurchase any shares as part of the stock repurchase program.

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


	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance as of December 31, 2024	199,872,571	3,489,911	1,000	109,806,689	313,170,171
Issuances of common stock	10,442,517	—	—	303,500	10,746,017
Exchanges of common stock	3,583,329	—	—	(3,583,329)	—


Vesting of restricted unit awards, net of shares withheld for tax	2,936,376	—	—	—	2,936,376

Balance as of September 30, 2025	216,834,793	3,489,911	1,000	106,526,860	326,852,564

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


							Daily Average Ownership
	As of September 30, 2025			As of December 31, 2024			Three months ended September 30,				Nine months ended September 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest		2025		2024		2025		2024
Ares Management Corporation	220,324,704	67.41	%	203,362,482	64.94	%	67.29	%	64.14	%	66.71	%	63.23	%
Ares Owners Holdings, L.P.	106,526,860	32.59		109,806,689	35.06		32.71		35.86		33.29		36.77
Total	326,851,564	100.00	%	313,169,171	100.00	%

Preferred Stock

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Redeemable Interest

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


	Total
Balance as of December 31, 2023	$	24,098

Net income	73
Currency translation adjustment, net of tax	(257)

Distributions	(302)

Balance as of March 31, 2024	23,612

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



Balance as of June 30, 2024	23,178

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



Balance as of September 30, 2024	25,111

Net loss	(902)
Currency translation adjustment, net of tax	(713)



Balance as of December 31, 2024	23,496

Net income	316
Currency translation adjustment, net of tax	198

Distributions	(300)

Balance as of March 31, 2025	23,710

Net loss	(274)
Currency translation adjustment, net of tax	699


Balance as of June 30, 2025	24,135

Net income	1,797
Currency translation adjustment, net of tax	(182)


Balance as of September 30, 2025	$	25,750

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


	Total
Balance as of December 31, 2023	$	522,938
Change in redemption value	6,849

Balance as of March 31, 2024	529,787

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

Balance as of September 30, 2024	544,154
Change in redemption value	6,546

Balance as of December 31, 2024	550,700
Change in redemption value	5,698

Balance as of March 31, 2025	556,398
Redemptions from Class A ordinary shares of AAC II (as defined below)	(7,143)
Change in redemption value	8,795
Balance as of June 30, 2025	558,050
Redemptions from Class A ordinary shares of AAC II (as defined below)	(502,360)
Change in redemption value	7,214
Deconsolidation of AAC II (as defined below)	(62,904)
Balance as of September 30, 2025	$	—

As of December 31, 2024, 50,000,000 of AAC II (as defined below) Class A ordinary shares were presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

In September 2025, Kodiak AI, Inc. (Nasdaq: KDK) (f/k/a Ares Acquisition Corporation II, or “AAC II”) completed a business combination with Kodiak Robotics, Inc. In connection with the transaction, AAC II was renamed KDK, and the Company’s investments in AAC II were converted into various interests in KDK, including KDK common shares and warrants, as well as unvested KDK common shares and the potential to receive additional KDK common shares, each subject to certain performance conditions. These investments represent non-controlling financial interests and are presented within investments within the Condensed Consolidated Statements of Financial Condition. Following the business combination, the Company no longer held a controlling financial interest in AAC II, resulting in the deconsolidation of AAC II.

For the three months ended September 30, 2025, changes in value of the Company’s investments in KDK included: (i) $42.7 million of unrealized performance income related to KDK common shares; and (ii) $23.3 million of unrealized performance income related to KDK common shares subject to vesting upon achievement of certain performance conditions. These investments were received in exchange for previously held AAC II Class A ordinary shares with a nominal cost basis, and the changes in value are presented within carried interest allocation within the Condensed Consolidated Statements of Operations.

Additionally, for the three months ended September 30, 2025, the Company recognized net unrealized gains of $1.9 million related to the remainder of its investments in KDK, presented within net realized and unrealized gains (losses) on investments within the Condensed Consolidated Statements of Operations.

The Company’s investments in KDK common shares and warrants are classified as Level I in the fair value hierarchy. The Company’s investments in unvested KDK common shares and the potential to receive additional KDK common shares, each subject to performance conditions, are classified as Level III, with fair value determined using a Monte Carlo simulation model.

14. SEGMENT REPORTING

The Company operates through its distinct operating segments. The Company operating segments are summarized below:

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

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

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

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

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Segment Profit Measure: Realized income (“RI”), which includes fee related earnings (“FRE”) as a component, supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

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

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

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


	Three months ended September 30, 2025
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	651,964	$	177,655	$	33,284	$	91,303	$	16,400	$	970,606	$	—	$	970,606
Fee related performance revenues	62,389		5,904		—		17,110		—		85,403		—		85,403
Other fees	13,471		55,556		467		196		2,280		71,970		9,235		81,205
Compensation and benefits	(212,709)		(85,513)		(15,752)		(24,952)		(10,247)		(349,173)		(144,405)		(493,578)
General, administrative and other expenses	(46,510)		(27,515)		(4,892)		(9,624)		(2,139)		(90,680)		(81,746)		(172,426)
Fee related earnings	468,605		126,087		13,107		74,033		6,294		688,126		(216,916)		471,210
Performance income—realized	19,438		1,200		3,744		177		—		24,559		—		24,559
Performance related compensation—realized	(11,421)		(769)		(2,999)		(106)		—		(15,295)		—		(15,295)
Realized net performance income	8,017		431		745		71		—		9,264		—		9,264
Investment income—realized	2,095		10,415		513		221		1,607		14,851		2,090		16,941
Interest income	577		1,639		1		68		1,271		3,556		853		4,409
Interest expense	(4,722)		(26,521)		(3,785)		(2,076)		(9,201)		(46,305)		(10)		(46,315)
Realized net investment income (loss)	(2,050)		(14,467)		(3,271)		(1,787)		(6,323)		(27,898)		2,933		(24,965)
Realized income	$	474,572	$	112,051	$	10,581	$	72,317	$	(29)	$	669,492	$	(213,983)	$	455,509

	Three months ended September 30, 2024
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	557,450	$	105,733	$	34,621	$	48,084	$	11,374	$	757,262	$	—	$	757,262
Fee related performance revenues	41,761		—		—		2,508		—		44,269		—		44,269
Other fees	10,520		7,263		372		58		114		18,327		5,253		23,580
Compensation and benefits	(179,987)		(42,360)		(13,877)		(14,432)		(7,245)		(257,901)		(102,112)		(360,013)
General, administrative and other expenses	(41,046)		(14,118)		(4,576)		(8,464)		(1,459)		(69,663)		(56,124)		(125,787)
Fee related earnings	388,698		56,518		16,540		27,754		2,784		492,294		(152,983)		339,311
Performance income—realized	6,192		15,441		475		—		—		22,108		—		22,108
Performance related compensation—realized	(3,451)		(9,403)		(380)		—		—		(13,234)		—		(13,234)
Realized net performance income	2,741		6,038		95		—		—		8,874		—		8,874
Investment income—realized	6,733		3,729		526		76		4,065		15,129		58		15,187
Interest income	1,266		245		4		20		3,144		4,679		438		5,117
Interest expense(1)	(5,859)		(6,190)		(4,454)		(5,566)		(7,529)		(29,598)		(135)		(29,733)
Realized net investment income (loss)	2,140		(2,216)		(3,924)		(5,470)		(320)		(9,790)		361		(9,429)
Realized income	$	393,579	$	60,340	$	12,711	$	22,284	$	2,464	$	491,378	$	(152,622)	$	338,756


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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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





	Nine months ended September 30, 2025
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	1,854,501	$	484,032	$	97,049	$	210,596	$	43,089	$	2,689,267	$	—	$	2,689,267
Fee related performance revenues	81,098		6,051		—		43,002		—		130,151		—		130,151
Other fees	37,431		125,494		1,298		6,119		2,548		172,890		22,603		195,493
Compensation and benefits	(537,661)		(222,504)		(46,379)		(66,390)		(23,780)		(896,714)		(395,518)		(1,292,232)
General, administrative and other expenses	(131,860)		(79,062)		(14,708)		(28,173)		(6,330)		(260,133)		(214,949)		(475,082)
Fee related earnings	1,303,509		314,011		37,260		165,154		15,527		1,835,461		(587,864)		1,247,597
Performance income—realized	95,465		70,186		39,733		177		—		205,561		—		205,561
Performance related compensation—realized	(58,927)		(49,893)		(29,856)		(106)		—		(138,782)		—		(138,782)
Realized net performance income	36,538		20,293		9,877		71		—		66,779		—		66,779
Investment income (loss)—realized	11,570		24,878		(3,720)		376		6,244		39,348		1,528		40,876
Interest income	6,132		4,922		2,024		1,048		14,044		28,170		2,102		30,272
Interest expense	(15,744)		(66,808)		(11,775)		(5,946)		(25,732)		(126,005)		(272)		(126,277)
Realized net investment income (loss)	1,958		(37,008)		(13,471)		(4,522)		(5,444)		(58,487)		3,358		(55,129)
Realized income	$	1,342,005	$	297,296	$	33,666	$	160,703	$	10,083	$	1,843,753	$	(584,506)	$	1,259,247

	Nine months ended September 30, 2024
	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	1,603,080	$	299,156	$	103,126	$	140,650	$	30,726	$	2,176,738	$	—	$	2,176,738
Fee related performance revenues	48,920		—		—		20,633		—		69,553		—		69,553
Other fees	30,912		18,783		1,258		116		396		51,465		15,066		66,531
Compensation and benefits	(457,494)		(119,403)		(42,737)		(47,971)		(17,937)		(685,542)		(294,639)		(980,181)
General, administrative and other expenses	(116,022)		(43,857)		(15,282)		(26,428)		(5,041)		(206,630)		(160,514)		(367,144)
Fee related earnings	1,109,396		154,679		46,365		87,000		8,144		1,405,584		(440,087)		965,497
Performance income—realized	121,214		24,324		9,032		361		—		154,931		—		154,931
Performance related compensation—realized	(73,127)		(15,134)		(7,235)		110		—		(95,386)		—		(95,386)
Realized net performance income	48,087		9,190		1,797		471		—		59,545		—		59,545
Investment income (loss)—realized	17,889		(592)		1,287		390		9,716		28,690		297		28,987
Interest income	5,719		3,543		12		64		31,469		40,807		1,291		42,098
Interest expense(1)	(23,079)		(21,472)		(13,801)		(21,511)		(24,914)		(104,777)		(280)		(105,057)
Realized net investment income (loss)	529		(18,521)		(12,502)		(21,057)		16,271		(35,280)		1,308		(33,972)
Realized income	$	1,158,012	$	145,348	$	35,660	$	66,414	$	24,415	$	1,429,849	$	(438,779)	$	991,070

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Segment revenues
Management fees	$	970,606	$	757,262	$	2,689,267	$	2,176,738
Fee related performance revenues	85,403		44,269		130,151		69,553
Other fees	71,970		18,327		172,890		51,465
Performance income—realized	24,559		22,108		205,561		154,931
Total segment revenues	$	1,152,538	$	841,966	$	3,197,869	$	2,452,687
Segment expenses
Compensation and benefits	$	349,173	$	257,901	$	896,714	$	685,542
General, administrative and other expenses	90,680		69,663		260,133		206,630
Performance related compensation—realized	15,295		13,234		138,782		95,386
Total segment expenses	$	455,148	$	340,798	$	1,295,629	$	987,558
Segment realized net investment income (loss)
Investment income—realized	$	14,851	$	15,129	$	39,348	$	28,690
Interest income	3,556		4,679		28,170		40,807
Interest expense	(46,305)		(29,598)		(126,005)		(104,777)
Total segment realized net investment loss	$	(27,898)	$	(9,790)	$	(58,487)	$	(35,280)

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Total consolidated revenue	$	1,657,628	$	1,129,739	$	4,096,561	$	2,625,784
Performance income—unrealized	(463,933)		(263,553)		(828,968)		(95,759)
Management fees of Consolidated Funds eliminated in consolidation	8,519		11,660		27,367		36,115
Performance income of Consolidated Funds eliminated in consolidation	8,375		1,032		20,599		18,484
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	2,905		128		9,584		409
Administrative fees(1)	(24,255)		(18,093)		(66,010)		(52,201)
OMG revenue	(9,235)		(5,252)		(22,603)		(15,066)


Principal investment income, net of eliminations	(17,976)		(8,036)		(50,937)		(44,547)
Net (revenue) expense of non-controlling interests in consolidated subsidiaries	(9,490)		(5,659)		12,276		(20,532)
Total consolidation adjustments and reconciling items	(505,090)		(287,773)		(898,692)		(173,097)
Total segment revenue	$	1,152,538	$	841,966	$	3,197,869	$	2,452,687

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Total consolidated expenses	$	1,308,216	$	854,887	$	3,460,122	$	1,957,924
Performance related compensation-unrealized	(330,960)		(180,174)		(579,241)		(8,478)
Expenses of Consolidated Funds added in consolidation	(6,778)		(14,083)		(66,240)		(48,200)
Expenses of Consolidated Funds eliminated in consolidation	8,646		11,355		34,445		36,520
Administrative fees(1)	(24,255)		(18,093)		(66,010)		(52,201)
OMG expenses	(226,151)		(158,236)		(610,467)		(455,153)
Acquisition and merger-related expense	(5,427)		(25,166)		(42,826)		(39,394)
Equity compensation expense	(160,130)		(85,613)		(583,083)		(266,267)
Acquisition-related compensation expense(2)	(42,448)		(5,435)		(108,752)		(16,374)
Placement fee adjustment	2,415		4,485		3,513		(825)
Depreciation and amortization expense	(65,956)		(46,005)		(177,365)		(118,900)
Expense of non-controlling interests in consolidated subsidiaries	(2,024)		2,876		31,533		(1,094)
Total consolidation adjustments and reconciling items	(853,068)		(514,089)		(2,164,493)		(970,366)
Total segment expenses	$	455,148	$	340,798	$	1,295,629	$	987,558

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

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Total consolidated other income	$	302,859	$	52,254	$	443,808	$	207,619
Investment (income) loss—unrealized	(269,895)		(4,950)		(398,112)		13,836
Interest and other investment (income) loss—unrealized	(1,691)		15,258		26,166		15,093
Other income, net of Consolidated Funds added in consolidation	(148,108)		(87,804)		(380,235)		(276,107)
Other expense (income), net of Consolidated Funds eliminated in consolidation	4,020		194		16,791		(137)
OMG other income	(9,802)		(220)		(10,532)		(1,002)

Principal investment income	73,543		14,101		191,759		12,038
Other (income) expense, net	17,571		3,389		47,260		(7,910)
Other loss (income) of non-controlling interests in consolidated subsidiaries	3,605		(2,012)		4,608		1,290
Total consolidation adjustments and reconciling items	(330,757)		(62,044)		(502,295)		(242,899)
Total segment realized net investment loss	$	(27,898)	$	(9,790)	$	(58,487)	$	(35,280)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

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


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Income before taxes	$	652,271	$	327,106	$	1,080,247	$	875,479
Adjustments:
Depreciation and amortization expense	65,956		46,005		177,365		118,900
Equity compensation expense	160,130		85,612		583,083		266,267
Acquisition-related compensation expense(1)	42,448		5,435		108,752		16,374
Acquisition and merger-related expense	5,427		25,166		42,826		39,394
Placement fee adjustment	(2,415)		(4,485)		(3,513)		825
OMG expense, net	207,114		152,763		577,332		439,085
Other (income) expense, net	17,571		3,389		47,260		(7,910)
Income before taxes of non-controlling interests in consolidated subsidiaries	(3,861)		(10,544)		(14,649)		(18,148)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(70,590)		(65,998)		(133,277)		(242,065)
Total performance income—unrealized	(463,933)		(263,553)		(828,968)		(95,759)
Total performance related compensation—unrealized	330,960		180,174		579,241		8,478
Total net investment (income) loss—unrealized	(271,586)		10,308		(371,946)		28,929
Realized income	669,492		491,378		1,843,753		1,429,849
Total performance income—realized	(24,559)		(22,108)		(205,561)		(154,931)
Total performance related compensation—realized	15,295		13,234		138,782		95,386
Total net investment loss—realized	27,898		9,790		58,487		35,280
Fee related earnings	$	688,126	$	492,294	$	1,835,461	$	1,405,584

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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

15. CONSOLIDATION

Deconsolidation of Funds

As of the end of the reporting period, certain funds that have historically been consolidated in the financial statements are no longer consolidated because: (i) such funds have been liquidated or dissolved; or (ii) the Company is no longer deemed to be the primary beneficiary of the variable interest entities (“VIEs”) as it no longer has a significant economic interest. During the nine months ended September 30, 2025, the Company deconsolidated four CLOs as a result of liquidation, one CLO as a result of a significant change in ownership and AAC II, as the Company no longer holds a controlling financial interest in Kodiak AI, Inc. (Nasdaq: KDK) (f/k/a AAC II) following the business combination described in “Note 13. Equity and Redeemable Interest.” During the nine months ended September 30, 2024, the Company did not deconsolidate any entity.

Investments in Consolidated Variable Interest Entities

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

Investments in Non-Consolidated Variable Interest Entities

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

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


	As of September 30,		As of December 31,

	2025		2024
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs	$	532,939	$	386,927
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs	1,040,196		791,133
Assets of consolidated VIEs	12,458,177		13,698,611
Liabilities of consolidated VIEs	8,905,942		10,879,735


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net income attributable to non-controlling interests related to consolidated VIEs	$	72,306	$	57,289	$	127,580	$	216,614

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

Consolidating Schedules

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


	As of September 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	496,669	$	—	$	—	$	496,669
Investments (includes $4,119,700 of accrued carried interest)	6,930,248		—		(1,174,445)		5,755,803
Due from affiliates	1,346,417		—		(12,192)		1,334,225
Other assets	857,551		—		—		857,551
Right-of-use operating lease assets	526,042		—		—		526,042
Intangible assets, net	2,166,249		—		—		2,166,249
Goodwill	3,437,450		—		—		3,437,450
Assets of Consolidated Funds
Cash and cash equivalents	—		1,003,291		—		1,003,291

Investments, at fair value	—		11,254,240		—		11,254,240

Receivable for securities sold	—		147,795		—		147,795
Other assets	—		52,851		—		52,851
Total assets	$	15,760,626	$	12,458,177	$	(1,186,637)	$	27,032,166
Liabilities
Accounts payable, accrued expenses and other liabilities	$	935,539	$	—	$	(173)	$	935,366
Accrued compensation	656,737		—		—		656,737
Due to affiliates	626,592		—		—		626,592
Performance related compensation payable	2,992,638		—		—		2,992,638
Debt obligations	3,675,783		—		—		3,675,783

Operating lease liabilities	676,372		—		—		676,372
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		101,066		(401)		100,665
Due to affiliates	—		11,412		(11,412)		—
Payable for securities purchased	—		361,855		—		361,855
CLO loan obligations, at fair value	—		7,646,328		(57,481)		7,588,847
Fund borrowings	—		785,281		—		785,281
Total liabilities	9,563,661		8,905,942		(69,467)		18,400,136
Commitments and contingencies

Redeemable interest in Ares Operating Group entities	25,750		—		—		25,750
Non-controlling interest in Consolidated Funds	—		3,552,235		(1,038,217)		2,514,018
Non-controlling interest in Ares Operating Group entities	1,643,966		—		(25,732)		1,618,234
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,460,758		—		—		1,460,758
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (216,834,793 shares issued and outstanding)	2,168		—		—		2,168
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)	35		—		—		35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding)	—		—		—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (106,526,860 shares issued and outstanding)	1,065		—		—		1,065
Additional paid-in-capital	4,252,148		—		(53,221)		4,198,927
Accumulated deficit	(1,218,682)		—		—		(1,218,682)
Accumulated other comprehensive loss, net of tax	29,757		—		—		29,757
Total stockholders’ equity	4,527,249		—		(53,221)		4,474,028
Total equity	6,171,215		3,552,235		(1,117,170)		8,606,280
Total liabilities, redeemable interest, non-controlling interests and equity	$	15,760,626	$	12,458,177	$	(1,186,637)	$	27,032,166

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	As of December 31, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	1,507,976	$	—	$	—	$	1,507,976
Investments (includes $3,495,115 of accrued carried interest)	5,485,012		—		(840,237)		4,644,775
Due from affiliates	1,236,450		—		(179,842)		1,056,608
Other assets	774,654		—		—		774,654
Right-of-use operating lease assets	511,319		—		—		511,319
Intangible assets, net	975,828		—		—		975,828
Goodwill	1,162,636		—		—		1,162,636
Assets of Consolidated Funds
Cash and cash equivalents	—		1,227,489		—		1,227,489
Investments held in trust account	—		550,800		—		550,800
Investments, at fair value	—		12,187,044		—		12,187,044

Receivable for securities sold	—		202,782		—		202,782
Other assets	—		82,397		—		82,397
Total assets	$	11,653,875	$	14,250,512	$	(1,020,079)	$	24,884,308
Liabilities
Accounts payable, accrued expenses and other liabilities	$	364,152	$	—	$	(280)	$	363,872
Accrued compensation	280,894		—		—		280,894
Due to affiliates	500,480		—		—		500,480
Performance related compensation payable	2,537,203		—		—		2,537,203
Debt obligations	2,558,914		—		—		2,558,914
Operating lease liabilities	641,864		—		—		641,864
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		323,566		(466)		323,100
Due to affiliates	—		178,409		(178,409)		—
Payable for securities purchased	—		332,406		—		332,406
CLO loan obligations, at fair value	—		9,793,645		(121,456)		9,672,189
Fund borrowings	—		275,000		—		275,000
Total liabilities	6,883,507		10,903,026		(300,611)		17,485,922
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		550,700		—		550,700
Redeemable interest in Ares Operating Group entities	23,496		—		—		23,496
Non-controlling interest in Consolidated Funds	—		2,796,786		(771,120)		2,025,666
Non-controlling interest in Ares Operating Group entities	1,236,767		—		18,111		1,254,878
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,458,771		—		—		1,458,771
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (199,872,571 shares issued and outstanding)	1,999		—		—		1,999
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)	35		—		—		35
Class B common stock, $0.01 par value, 1000 shares authorized ($1,000 shares issued and outstanding)	—		—		—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (109,806,689 shares issued and outstanding)	1,098		—		—		1,098
Additional paid-in-capital	2,903,253		—		33,541		2,936,794
Accumulated deficit	(837,294)		—		—		(837,294)
Accumulated other comprehensive loss, net of tax	(17,757)		—		—		(17,757)
Total stockholders’ equity	3,510,105		—		33,541		3,543,646
Total equity	4,746,872		2,796,786		(719,468)		6,824,190
Total liabilities, redeemable interest, non-controlling interests and equity	$	11,653,875	$	14,250,512	$	(1,020,079)	$	24,884,308

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Three months ended September 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	980,281	$	—	$	(8,519)	$	971,762
Carried interest allocation	473,041		—		(8,375)		464,666
Incentive fees	100,668		—		—		100,668
Principal investment income	73,543		—		(55,567)		17,976
Administrative, transaction and other fees	105,461		—		(2,905)		102,556
Total revenues	1,732,994		—		(75,366)		1,657,628
Expenses
Compensation and benefits	659,835		—		—		659,835
Performance related compensation	404,095		—		—		404,095
General, administrative and other expense	246,154		—		—		246,154
Expenses of the Consolidated Funds	—		6,778		(8,646)		(1,868)
Total expenses	1,310,084		6,778		(8,646)		1,308,216
Other income (expense)
Net realized and unrealized gains on investments	198,777		—		(10,357)		188,420
Interest and dividend income	13,644		—		—		13,644
Interest expense	(46,315)		—		—		(46,315)
Other expense, net	(7,335)		—		72		(7,263)
Net realized and unrealized gains on investments of the Consolidated Funds	—		173,840		6,415		180,255
Interest and other income of the Consolidated Funds	—		130,821		—		130,821
Interest expense of the Consolidated Funds	—		(156,553)		(150)		(156,703)
Total other income, net	158,771		148,108		(4,020)		302,859
Income before taxes	581,681		141,330		(70,740)		652,271
Income tax expense	108,709		3,183		—		111,892
Net income	472,972		138,147		(70,740)		540,379
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		138,147		(70,740)		67,407
Net income attributable to Ares Operating Group entities	472,972		—		—		472,972
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,797		—		—		1,797
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	182,293		—		—		182,293
Net income attributable to Ares Management Corporation	288,882		—		—		288,882


Less: Series B mandatory convertible preferred stock dividends declared	25,313		—		—		25,313

Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	263,569	$	—	$	—	$	263,569

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


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


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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	2,716,738	$	—	$	(27,367)	$	2,689,371
Carried interest allocation	968,902		—		(20,327)		948,575
Incentive fees	156,067		—		(272)		155,795
Principal investment income	191,759		—		(140,822)		50,937
Administrative, transaction and other fees	261,467		—		(9,584)		251,883
Total revenues	4,294,933		—		(198,372)		4,096,561
Expenses
Compensation and benefits	1,960,669		—		—		1,960,669
Performance related compensation	761,434		—		—		761,434
General, administrative and other expense	706,224		—		—		706,224
Expenses of the Consolidated Funds	—		66,240		(34,445)		31,795
Total expenses	3,428,327		66,240		(34,445)		3,460,122
Other income (expense)
Net realized and unrealized gains on investments	231,959		—		(30,563)		201,396
Interest and dividend income	39,660		—		(588)		39,072
Interest expense	(126,277)		—		—		(126,277)
Other expense, net	(64,978)		—		480		(64,498)
Net realized and unrealized gains on investments of the Consolidated Funds	—		387,849		8,564		396,413
Interest and other income of the Consolidated Funds	—		452,783		—		452,783
Interest expense of the Consolidated Funds	—		(460,397)		5,316		(455,081)
Total other income, net	80,364		380,235		(16,791)		443,808
Income before taxes	946,970		313,995		(180,718)		1,080,247
Income tax expense	184,493		5,894		—		190,387
Net income	762,477		308,101		(180,718)		889,860
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		308,101		(180,718)		127,383
Net income attributable to Ares Operating Group entities	762,477		—		—		762,477
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,839		—		—		1,839
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	287,524		—		—		287,524
Net income attributable to Ares Management Corporation	473,114		—		—		473,114
Less: Series B mandatory convertible preferred stock dividends declared	75,938		—		—		75,938
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	397,176	$	—	$	—	$	397,176

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


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


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

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


	Nine months ended September 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	762,477	$	308,101	$	(180,718)	$	889,860
Adjustments to reconcile net income to net cash provided by operating activities	495,364		—		(3,629)		491,735







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		1,639,232		(18,704)		1,620,528




Cash flows due to changes in operating assets and liabilities	487,320		—		(137,075)		350,245





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(65,520)		463,799		398,279




Net cash provided by operating activities	1,745,161		1,881,813		123,673		3,750,647
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(56,385)		—		—		(56,385)
Acquisitions, net of cash acquired	(1,726,175)		—		—		(1,726,175)
Net cash used in investing activities	(1,782,560)		—		—		(1,782,560)
Cash flows from financing activities:


Proceeds from Credit Facility	2,130,000		—		—		2,130,000

Repayments of Credit Facility	(1,015,000)		—		—		(1,015,000)


Dividends and distributions	(1,296,937)		—		—		(1,296,937)



Taxes paid related to net share settlement of equity awards	(425,623)		—		—		(425,623)
Other financing activities	2,630		—		—		2,630
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		322,583		(52,680)		269,903
Distributions to non-controlling interests in Consolidated Funds	—		(502,225)		153,205		(349,020)
Redemptions of redeemable interests in Consolidated Funds	—		(509,503)		—		(509,503)
Borrowings under loan obligations by Consolidated Funds	—		532,191		—		532,191
Repayments under loan obligations by Consolidated Funds	—		(2,308,666)		—		(2,308,666)
Net cash used in financing activities	(604,930)		(2,465,620)		100,525		(2,970,025)
Effect of exchange rate changes	(61,606)		52,237		—		(9,369)
Net change in cash and cash equivalents	(703,935)		(531,570)		224,198		(1,011,307)
Cash and cash equivalents, beginning of period	1,507,976		1,227,489		(1,227,489)		1,507,976
Cash and cash equivalents, end of period	$	804,041	$	695,919	$	(1,003,291)	$	496,669
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	1,657,881	$	—	$	—	$	1,657,881

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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


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







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





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





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




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


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

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




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

Borrowings under loan obligations by Consolidated Funds	—		323,540		—		323,540
Repayments under loan obligations by Consolidated Funds	—		(1,504,344)		—		(1,504,344)
Net cash used in financing activities	(1,196,743)		(808,129)		95,117		(1,909,755)
Effect of exchange rate changes	4,992		18,977		—		23,969
Net change in cash and cash equivalents	1,864		166,403		(166,403)		1,864
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	350,138	$	1,315,914	$	(1,315,914)	$	350,138
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	7,724	$	—	$	—	$	7,724

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

16. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after September 30, 2025 through the date the unaudited condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure:

In October 2025, the Company’s board of directors declared a quarterly dividend of $1.12 per share of Class A and non-voting common stock payable on December 31, 2025 to common stockholders of record at the close of business on December 17, 2025.

In October 2025, the Company’s board of directors declared a quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock payable on January 1, 2026 to preferred stockholders of record on December 15, 2025.

Previous: Cover and table of contents · Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations