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  4. [10-Q] Ares Management Corp Quarterly Earnings Report

[10-Q] Ares Management Corp Quarterly Earnings Report

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
10-Q
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025-10-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2025
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission File No. 001-36429
Ares_Logo_RGB_NavyBlue (004).jpg
ARES MANAGEMENT CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware80-0962035
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification Number)
1800 Avenue of the Stars, Suite 1400, Los Angeles, CA 90067
(Address of principal executive office) (Zip Code)
(310) 201-4100
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.01 per shareARESNew York Stock Exchange
6.75% Series B mandatory convertible preferred stock, par value $0.01 per shareARES.PRBNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes x  No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x  No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
 x
Accelerated Filer☐Non-Accelerated Filer☐Smaller Reporting Company☐Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No x
As of October 31, 2025 there were 216,852,343 of the registrant’s shares of Class A common stock outstanding, 3,489,911 of the registrant’s shares of non-voting common stock outstanding, 1,000 shares of the registrant’s Class B common stock outstanding, 106,526,860 of the registrant’s Class C common stock outstanding and 30,000,000 of the registrant’s shares of Series B mandatory convertible preferred stock outstanding.

Table of Contents
TABLE OF CONTENTS
Page
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
9
Condensed Consolidated Statements of Financial Condition as of September 30, 2025 and December 31, 2024
9
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024
10
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024
11
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2025 and for the year ended December 31, 2024
12
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024
14
Notes to the Condensed Consolidated Financial Statements
15
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
56
Item 3. Quantitative and Qualitative Disclosures about Market Risk
118
Item 4. Controls and Procedures
118
PART II—OTHER INFORMATION
Item 1. Legal Proceedings
120
Item 1A. Risk Factors
120
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
120
Item 3. Defaults Upon Senior Securities
120
Item 4. Mine Safety Disclosure
120
Item 5. Other Information
120
Item 6. Exhibits
120
Signatures
122
2
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Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in this report and in our Annual Report on Form 10-K for the year ended December 31, 2024, under the headings “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 1A. Risk Factors.” These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in our other periodic filings. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

References in this Quarterly Report on Form 10-Q to the “Ares Operating Group” refer to Ares Holdings L.P. (“Ares Holdings”). References in this Quarterly Report on Form 10-Q to an “Ares Operating Group Unit” or an “AOG Unit” refers to a partnership unit in the Ares Operating Group entity.

The use of any defined term in this report to mean more than one entities, persons, securities or other items collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group. For example, notwithstanding the use of the defined terms “Ares,” “we” and “our” in this report to refer to Ares Management Corporation and its subsidiaries, each subsidiary of Ares Management Corporation is a standalone legal entity that is separate and distinct from Ares Management Corporation and any of its other subsidiaries.

Under generally accepted accounting principles in the United States (“U.S.”) (“GAAP”), we are required to consolidate (i) entities other than limited partnerships and entities similar to limited partnerships in which we hold a majority voting interest or have majority ownership and control over the operational, financial and investing decisions of that entity, including Ares-affiliates and affiliated funds and co-investment vehicles, for which we are presumed to have controlling financial interests, and (ii) entities that we concluded are variable interest entities (“VIEs”), including limited partnerships and collateralized loan obligations, for which we are deemed to be the primary beneficiary. When an entity is consolidated, we reflect the assets, liabilities, revenues, expenses and cash flows of the entity in our unaudited condensed consolidated financial statements on a gross basis, subject to eliminations from consolidation, including the elimination of the management fees, carried interest, incentive fees and other fees that we earn from the entity. However, the presentation of performance related compensation and other expenses associated with generating such revenues is not affected by the consolidation process. In addition, as a result of the consolidation process, the net income attributable to third-party investors in consolidated entities is presented as net income attributable to non-controlling interests in Consolidated Funds within Condensed Consolidated Statements of Operations. We also consolidate joint ventures that we have established with third-party investors for strategic distribution and expansion purposes. The results of these entities are reflected on a gross basis in the unaudited condensed consolidated financial statements, subject to eliminations from consolidation, and net income attributable to third-party investors in the consolidated joint ventures is presented within net income attributable to redeemable interest and non-controlling interests in Ares Operating Group entities or an “AOG Entity,” which refers to, collectively, Ares Holdings and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity.

In this Quarterly Report on Form 10-Q, in addition to presenting our results on a consolidated basis in accordance with GAAP, we present revenues, expenses and other results on a: (i) “segment basis,” which deconsolidates the consolidated funds and removes the proportional results attributable to third-party investors in the consolidated joint ventures, and therefore shows the results of our operating segments without giving effect to the consolidation of these entities; and (ii) “unconsolidated reporting basis,” which shows the results of our operating segments on a combined segment basis together with the Operations Management Group (the “OMG”). In addition to our operating segments, the OMG consists of shared resource groups to support our operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy and relationship management and
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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 our managed funds and vehicles, which reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to our operating segments but we consider the cost structure of the OMG when evaluating our financial performance. This information constitutes non-GAAP financial information within the meaning of Regulation G, as promulgated by the SEC. Our management uses this information to assess the performance of our operating segments and the OMG, and we believe that this information enhances the ability of shareholders to analyze our performance. For more information, see “Note 14. Segment Reporting,” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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Glossary

When used in this report, unless the context otherwise requires:

•“American-style waterfall” generally refers to carried interest that the general partner is entitled to receive after a fund investment is realized and the investors in the fund have received distributions in excess of the capital contributed for that investment and all prior realized investments (including allocable expenses) plus a preferred return;

•“Ares”, the “Company”, “AMC”, “we”, “us” and “our” refer to Ares Management Corporation and its subsidiaries;

•“Ares Operating Group entities” or an “AOG Entity” refers to, collectively, Ares Holdings L.P. (“Ares Holdings”) and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity;

•“Ares Operating Group Unit” or an “AOG Unit” refers to, collectively, a partnership unit in the Ares Operating Group entities including Ares Holdings and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity;

•“assets under management” or “AUM” generally refers to the assets we manage. For our funds other than those noted below, our AUM represents the sum of the net asset value (“NAV”) of such funds, the drawn and undrawn debt (at the fund-level including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). NAV generally refers to fair value of the assets of the fund less the liabilities of the fund but may represent carrying value of assets and liabilities of funds that are not reported at fair value. For the CLOs we manage, our AUM is equal to initial principal of collateral adjusted for paydowns. For Real Assets funds that we manage where management fees are based on gross asset value, net operating income or similar metrics including their equivalents (“GAV”), our AUM represents the sum of the GAV of such funds, undrawn debt (including any amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). GAV typically refers to the fair value of a fund’s total assets. AUM also includes the proceeds raised in the initial public offerings of special purpose acquisition companies (“SPACs”) sponsored by us, less any redemptions;

•“AUM not yet paying fees” (also referred to as “shadow AUM”) refers to AUM that is not currently paying fees and is eligible to earn management fees upon deployment;

•“available capital” (also referred to as “dry powder”) is comprised of uncalled committed capital and undrawn amounts under credit facilities and may include AUM that may be canceled or not otherwise available to invest;

•“catch-up fees” refers to management fees charged retroactively on limited partner commitments to a fund following the initial close date of that fund. These fees are charged to ensure that all limited partners’ share of the net assets of that fund are ratable with their commitment. Catch-up fees reflect the fees generated between the fund’s initial close date and the last day of the quarter prior to the new limited partner’s commitment;

•“CLOs” refers to “our funds” that are structured as collateralized loan obligations;

•“Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under GAAP to be consolidated in our consolidated financial statements;

•“Credit Facility” refers to the revolving credit facility of the Ares Operating Group;

•“effective management fee rate” represents annualized management fees divided by the average fee paying AUM for the period, excluding the impact of catch-up fees;

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•“European-style waterfall” generally refers to carried interest that the general partner is entitled to receive after the investors in a fund have received distributions in an amount equal to all prior capital contributions plus a preferred return;

•“fee paying AUM” or “FPAUM” refers to the AUM from which we directly earn management fees. FPAUM is equal to the sum of all the individual fee bases of our funds that directly contribute to our management fees. For our funds other than CLOs, our FPAUM represents the amount of limited partner capital commitments for certain closed-end funds within the reinvestment period, the amount of limited partner invested capital for the aforementioned closed-end funds beyond the reinvestment period and the portfolio value, GAV or NAV. For the CLOs we manage, our FPAUM is equal to the gross amount of aggregate collateral balance, at par, adjusted for defaulted or discounted collateral;

•“fee related earnings” or “FRE”, a non-GAAP measure that is a component of Realized Income, 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 FRE excludes net performance income, investment income from our funds and adjusts for certain other items that we believe are not indicative of our 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 are measured and eligible to be received on a recurring basis and are not dependent on realization events from the underlying investments;

•“fee related performance revenues” refers to incentive fees from perpetual capital vehicles that are: (i) measured and eligible to be received on a recurring basis; and (ii) not dependent on realization events from the underlying investments. Certain vehicles are subject to hold back provisions that limit the amounts paid in a particular year. Such hold back amounts may be paid in subsequent years, subject to their extended performance conditions;

•“GAAP” refers to accounting principles generally accepted in the United States of America;

•“Holdco Members” refers to Michael Arougheti, David Kaplan, Antony Ressler, Bennett Rosenthal and R. Kipp deVeer;

•“incentive eligible AUM” or “IEAUM” generally refers to the AUM of our funds and other entities from which carried interest and incentive fees may be generated, regardless of whether or not they are currently generating carried interest and incentive fees. It generally represents the NAV plus uncalled equity or total assets plus uncalled debt, as applicable, of our funds for which we are entitled to receive carried interest and incentive fees, excluding capital committed by us and our professionals (from which we generally do not earn carried interest and incentive fees), as well as proceeds raised in the initial public offerings of SPACs sponsored by us, less any redemptions. With respect to the AUM of certain publicly-traded and perpetual wealth vehicles that generate Part II Fees, only Part II Fees may be generated from IEAUM;

•“incentive generating AUM” or “IGAUM” refers to the AUM of our funds and other entities that are currently generating carried interest and incentive fees on a realized or unrealized basis. It generally represents the NAV or total assets of our funds, as applicable, for which we are entitled to receive carried interest and incentive fees, excluding capital committed by us and our professionals (from which we generally do not earn carried interest and incentive fees). Certain publicly-traded and perpetual wealth vehicles that generate Part II Fees are only included in IGAUM when Part II Fees are being generated;

•“management fees” refers to fees we earn for advisory services provided to our funds, which are generally based on a defined percentage of fair value of assets, total commitments, invested capital, gross asset value, net asset value, net investment income, total assets or par value of the investment portfolios managed by us. Management fees include Part I Fees, a quarterly fee based on the net investment income of certain funds;    

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•“net performance income” refers to performance income net of related compensation that is typically payable to our professionals;

•“our funds” refers to the funds, alternative asset companies, trusts, co-investment vehicles and other entities and accounts that are managed or co-managed by the Ares Operating Group, and which are structured to pay fees. It also includes funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation (NASDAQ: ARCC) (“ARCC”) and an SEC-registered investment adviser;

•“Part I Fees” refers to a quarterly fee on the net investment income of certain publicly-traded or perpetual wealth vehicles. Such fees are classified as management fees as they are predictable and recurring in nature, not subject to contingent repayment and generally cash-settled each quarter, unless subject to a payment deferral;

•“Part II Fees” refers to fees from certain publicly-traded or perpetual wealth vehicles that are paid in arrears as of the end of each calendar year when the respective cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of respective Part II Fees paid in all prior years since inception;

•“performance income” refers to income we earn based on the performance of a fund that is generally based on certain specific hurdle rates as defined in the fund’s investment management or partnership agreements and may be either incentive fees earned from funds with stated investment periods or carried interest;

•“perpetual capital” refers to the AUM of publicly-traded, perpetual wealth vehicles, commingled funds and managed accounts that have an indefinite term, are not in liquidation, and for which there is no immediate requirement to return invested capital to investors upon the realization of investments. Perpetual Capital - Managed Accounts refers to managed accounts for single investors primarily in illiquid strategies that meet the perpetual capital criteria. Perpetual Capital - Private Commingled Funds refers to commingled funds that meet the perpetual capital criteria, not including our publicly-traded or perpetual wealth vehicles. Perpetual capital may be withdrawn by investors under certain conditions, including through an election to redeem an investor’s fund investment or to terminate the investment management agreement, which in certain cases may be terminated on 30 days’ prior written notice. In addition, the investment management or advisory agreements of certain of our publicly-traded and perpetual wealth vehicles have one year terms, which are subject to annual renewal by such vehicles;

•“realized income” or “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 losses, 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 our Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; and (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusting for certain other items that we believe are not indicative of our 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;

•“SEC” refers to the Securities and Exchange Commission.

Many of the terms used in this report, including AUM, FPAUM, FRE and RI, may not be comparable to similarly titled measures used by other companies. In addition, our definitions of AUM and FPAUM are not based on any definition of
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AUM or FPAUM that is set forth in the agreements governing the funds that we manage and may differ from definitions of AUM or FPAUM set forth in other agreements to which we are a party or definitions used by the SEC or other regulatory bodies. Further, FRE and RI are not measures of performance calculated in accordance with GAAP. We use FRE and RI as measures of operating performance, not as measures of liquidity. FRE and RI should not be considered in isolation or as substitutes for operating income, net income, operating cash flows, or other income or cash flow statement data prepared in accordance with GAAP. The use of FRE and RI without consideration of related GAAP measures is not adequate due to the adjustments described above. Our management compensates for these limitations by using FRE and RI as supplemental measures to our GAAP results. We present these measures to provide a more complete understanding of our performance as our management measures it.

Amounts and percentages throughout this report may reflect rounding adjustments and consequently totals may not appear to sum.
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PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Ares Management Corporation
Condensed Consolidated Statements of Financial Condition
(Amounts in Thousands, Except Share Data)
As of
September 30, 2025December 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 affiliates1,334,225 1,056,608 
Other assets857,551 774,654 
Right-of-use operating lease assets526,042 511,319 
Intangible assets, net2,166,249 975,828 
Goodwill3,437,450 1,162,636 
Assets of Consolidated Funds:
Cash and cash equivalents1,003,291 1,227,489 
Investments held in trust account— 550,800 
Investments, at fair value11,254,240 12,187,044 
Receivable for securities sold147,795 202,782 
Other assets52,851 82,397 
Total assets$27,032,166 $24,884,308 
Liabilities  
Accounts payable, accrued expenses and other liabilities$935,366 $363,872 
Accrued compensation656,737 280,894 
Due to affiliates626,592 500,480 
Performance related compensation payable2,992,638 2,537,203 
Debt obligations3,675,783 2,558,914 
Operating lease liabilities676,372 641,864 
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities100,665 323,100 
Payable for securities purchased361,855 332,406 
CLO loan obligations, at fair value7,588,847 9,672,189 
Fund borrowings785,281 275,000 
Total liabilities18,400,136 17,485,922 
Commitments and contingencies (Note 8)
Redeemable interest in Consolidated Funds— 550,700 
Redeemable interest in Ares Operating Group entities25,750 23,496 
Non-controlling interests in Consolidated Funds2,514,018 2,025,666 
Non-controlling interests in Ares Operating Group entities1,618,234 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-capital4,198,927 2,936,794 
Accumulated deficit(1,218,682)(837,294)
Accumulated other comprehensive income (loss), net of tax29,757 (17,757)
Total stockholders’ equity4,474,028 3,543,646 
Total equity8,606,280 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.
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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,
 2025202420252024
Revenues
Management fees$971,762 $753,597 $2,689,371 $2,162,970 
Carried interest allocation464,666 277,651 948,575 194,006 
Incentive fees100,668 48,638 155,795 105,039 
Principal investment income17,976 8,036 50,937 44,547 
Administrative, transaction and other fees102,556 41,817 251,883 119,222 
Total revenues1,657,628 1,129,739 4,096,561 2,625,784 
Expenses
Compensation and benefits659,835 435,876 1,960,669 1,268,685 
Performance related compensation404,095 219,697 761,434 140,180 
General, administrative and other expenses246,154 197,019 706,224 537,379 
Expenses of Consolidated Funds(1,868)2,295 31,795 11,680 
Total expenses1,308,216 854,887 3,460,122 1,957,924 
Other income (expense)
Net realized and unrealized gains (losses) on investments188,420 (5,074)201,396 13,781 
Interest and dividend income13,644 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 Funds180,255 64,831 396,413 192,778 
Interest and other income of Consolidated Funds130,821 234,681 452,783 732,316 
Interest expense of Consolidated Funds(156,703)(201,199)(455,081)(626,678)
Total other income, net302,859 52,254 443,808 207,619 
Income before taxes652,271 327,106 1,080,247 875,479 
Income tax expense111,892 46,453 190,387 114,760 
Net income540,379 280,653 889,860 760,719 
Less: Net income attributable to non-controlling interests in Consolidated Funds67,407 64,241 127,383 236,446 
Net income attributable to Ares Operating Group entities472,972 216,412 762,477 524,273 
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,797 1,319 1,839 1,005 
Less: Net income attributable to non-controlling interests in Ares Operating Group entities182,293 96,633 287,524 236,843 
Net income attributable to Ares Management Corporation288,882 118,460 473,114 286,425 
Less: Series B mandatory convertible preferred stock dividends declared25,313 — 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:
Basic219,881,697 200,724,068 216,086,939 196,526,832 
Diluted219,881,697 200,724,068 216,086,939 196,526,832 

Substantially all revenue is earned from affiliated funds of the Company.
See accompanying notes to the unaudited condensed consolidated financial statements.
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Ares Management Corporation
Condensed Consolidated Statements of Comprehensive Income
(Amounts in Thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
 2025202420252024
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 income535,609 317,820 981,202 784,327 
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds66,795 70,798 146,677 237,476 
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities1,615 1,933 2,554 1,315 
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities180,756 107,698 311,343 245,031 
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.
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Ares Management Corporation
Condensed Consolidated Statements of Changes in Equity
(Amounts in Thousands)
(unaudited)
Series B Mandatory Convertible Preferred StockClass A Common StockNon-voting Common StockClass C Common StockAdditional Paid-in-CapitalAccumulated DeficitAccumulated Other Comprehensive LossNon-Controlling Interest in Ares Operating Group EntitiesNon-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 stock1,147 — — — — — — — — 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 income25,313 — — — — 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 income25,312 — — — — 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 stock840 — — — — — — — — 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 income25,313 — — — — 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.
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Ares Management Corporation
Condensed Consolidated Statements of Changes in Equity
(Amounts in Thousands)
(unaudited)
Series B Mandatory Convertible Preferred StockClass A Common StockNon-voting Common StockClass C Common StockAdditional Paid-in-CapitalAccumulated DeficitAccumulated Other Comprehensive LossNon-Controlling Interest in Ares Operating Group EntitiesNon-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 stock1,458,771 — — — — — — — — 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 income22,781 — — — — 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.
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Ares Management Corporation
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands)
(unaudited)
 Nine months ended September 30,
 20252024
Cash flows from operating activities:  
Net income$889,860 $760,719 
Adjustments to reconcile net income to net cash provided by operating activities491,735 429,097 
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds1,620,528 835,340 
Cash flows due to changes in operating assets and liabilities350,245 258,389 
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds398,279 (300,009)
Net cash provided by operating activities3,750,647 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 Facility2,130,000 970,000 
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 activities2,630 485 
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds269,903 544,294 
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 Funds532,191 323,540 
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 period1,507,976 348,274 
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.
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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.
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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.
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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 assets452,438 
Intangible assets:
Management contracts473,300 
Client relationships107,200 
Finite-lived intangible assets580,500 
Indefinite-lived management contracts749,600 
Total intangible assets1,330,100 
Total identifiable assets acquired1,843,974 
Accounts payable, accrued expenses and other liabilities203,058 
Net identifiable assets acquired1,640,916 
Goodwill2,269,620 
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
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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, 2025As of September 30,As of December 31,
20252024
Management contracts4.8$1,023,893 $590,675 
Client relationships7.0317,920 210,720 
Other0.0— 500 
Finite-lived intangible assets1,341,813 801,895 
Foreign currency translation5,848 (789)
Total finite-lived intangible assets1,347,661 801,106 
Less: accumulated amortization(498,812)(393,078)
Finite-lived intangible assets, net848,849 408,028 
Management contracts1,317,400 567,800 
Indefinite-lived management contracts1,317,400 567,800 
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 GroupReal Assets GroupPrivate 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 translation1,451 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.

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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 ofPercentage of total investments as of
September 30,December 31,September 30,December 31,
2025202420252024
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 - principal660,558 536,912 11.511.6
Equity method private investment partnership interests and other (held at fair value)601,398 411,417 10.48.9
Equity method private investment partnership interests and other64,631 55,461 1.11.2
Total equity method investments5,446,287 4,498,905 94.696.9
Collateralized loan obligations21,119 19,040 0.40.4
Fixed income securities10,805 22,793 0.20.5
Collateralized loan obligations and fixed income securities, at fair value31,924 41,833 0.60.9
Common stock and other equity securities, at fair value277,592 104,037 4.82.2
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,
2025202420252024
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,
2025202420252024
Equity method private investment partnership interests and other (held at fair value)$174,313 $(5,542)$182,609 $(3,494)


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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 ofPercentage of total investments as of
September 30,December 31,September 30,December 31,
2025202420252024
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
Bonds322,226 418,069 2.93.3
Total fixed income investments6,274,795 8,876,318 55.869.7
Partnership interests2,749,399 2,000,380 24.415.7
Equity securities2,230,046 1,861,146 19.814.6
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 CompanyLevel 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 interest42,750 — 23,313 66,063 
Collateralized loan obligations and fixed income securities
— — 31,924 31,924 
Total investments, at fair value171,145 149,197 656,635 976,977 
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)

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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 FundsLevel I Level II Level III Investments Measured at NAVTotal 
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 CompanyLevel I Level II Level III Investments Measured at NAVTotal 
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)

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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 FundsLevel ILevel IILevel IIIInvestments Measured at NAVTotal
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles$— $7,313,632 $593,817 $— $7,907,449 
U.S. treasury securities550,800 — — — 550,800 
Bonds— 418,069 — — 418,069 
Total fixed income investments550,800 7,731,701 593,817 — 8,876,318 
Partnership interests— — — 2,000,380 2,000,380 
Equity securities28,603 2,615 1,829,928 — 1,861,146 
Total investments, at fair value579,403 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 CompanyEquity SecuritiesFixed IncomeContingent ConsiderationTotal
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, net176,011 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 FundsEquity SecuritiesFixed IncomeDerivatives, NetTotal
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, net43,854 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.

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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 CompanyEquity SecuritiesFixed IncomeTotal
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 FundsEquity SecuritiesFixed IncomeDerivatives, NetTotal
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), net9,015 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 CompanyEquity SecuritiesFixed
Income		Contingent ConsiderationTotal
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, net185,724 924 — 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 FundsEquity SecuritiesFixed
Income		Derivatives, NetTotal
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, net128,061 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.
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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 CompanyEquity  SecuritiesFixed IncomeTotal
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, net1,122 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 FundsEquity SecuritiesFixed IncomeDerivatives, NetTotal
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), net58,885 (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.
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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 CompanyFair ValueValuation Technique(s)Significant Unobservable Input(s)RangeWeighted Average
Assets
Equity securities
$262,998 
Expected transaction price
N/A
N/A
N/A
100,000 Market yield analysisMarket interest rate
8.0%
8.0%
85,533 Market approachMultiple of book value
0.6x - 1.5x
1.2x
62,675 Option pricing modelVolatility
50.0%
50.0%
40,089 Discounted cash flowDiscount rate
11.0% - 15.0%
13.0%
34,298 
Transaction price(1)
N/AN/AN/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 servicesN/AN/AN/A
10,805 
Market yield analysis
Market interest rate
16.5%
16.5%
Total assets$656,635 
Liabilities
Contingent consideration$(528,054)Monte Carlo simulationDiscount rate
6.6% - 7.0%
6.8%
Volatility
11.1% - 15.1%
13.1%
Total liabilities$(528,054)

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


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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 CompanyFair Value Valuation Technique(s) Significant Unobservable Input(s)RangeWeighted Average
Assets
Equity securities
$168,387 
Transaction price(1)
N/AN/AN/A
100,000 Market approachYield
8.0%
8.0%
57,659 Market approachMultiple of book value
1.0x - 1.1x
1.0x
Discounted cash flowDiscount rate
10.0% - 14.0%
12.0%
56,918 Market approachMultiple of book value
1.2x - 1.7x
1.4x
19,205 Option pricing modelVolatility35.0%35.0%
8,489 Market approachEarnings multiple
15.4x
15.4x
521 Discounted cash flowDiscount rate
18.5% - 21.5%
20.0%
Fixed income investments
22,283 
Transaction price(1)
N/AN/AN/A
19,040 Broker quotes and/or 3rd party pricing servicesN/AN/AN/A
510 OtherN/AN/AN/A
Total assets$453,012 
Liabilities
Contingent consideration$(17,550)Monte Carlo simulationDiscount rate
6.6% - 6.9%
6.8%
Volatility11.1%11.1%
Total liabilities$(17,550)

Level III Measurements of the Consolidated FundsFair Value Valuation Technique(s) Significant Unobservable Input(s) RangeWeighted Average
Assets
Equity securities
$985,109 Discounted cash flowDiscount rate
10.0% - 20.0%
13.0%
835,432 Market approachMultiple of book value
1.0x - 1.7x
1.4x
8,598 Market approach
EBITDA multiple(2)
5.6x - 34.6x
10.7x
789 OtherN/AN/AN/A
Fixed income investments
308,675 Broker quotes and/or 3rd party pricing servicesN/AN/AN/A
284,950 Market approachYield
7.4% - 28.6%
9.9%
192 OtherN/A
N/A
N/A
Total assets$2,423,745 
Liabilities
Derivative instruments $(1,846)Broker quotes and/or 3rd party pricing servicesN/AN/AN/A
Total liabilities$(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, 2025As of December 31, 2024
Investments (held at fair value)$2,749,399 $2,000,380 
Unfunded commitments2,330,124 932,473 
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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, 2025As of December 31, 2024
Debt Origination DateMaturityOriginal Borrowing AmountCarrying ValueInterest RateCarrying ValueInterest Rate
Credit Facility(1)
Revolving4/22/2030N/A$1,115,000 5.27%$— —%
2028 Senior Notes(2)
11/10/202311/10/2028500,000 496,506 6.42495,677 6.42
2030 Senior Notes(3)
6/15/20206/15/2030400,000 397,841 3.28397,501 3.28
2052 Senior Notes(4)
1/21/20222/1/2052500,000 484,908 3.77484,601 3.77
2054 Senior Notes(5)
10/11/202410/11/2054750,000 736,265 5.65736,010 5.65
2051 Subordinated Notes(6)
6/30/20216/30/2051450,000 445,263 4.13445,125 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 FacilitySenior NotesSubordinated Notes
Unamortized debt issuance costs as of December 31, 2024
$4,858 $18,725 $4,875 
Debt issuance costs incurred2,181 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 
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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/A10.3734,217 N/A5.6
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, 2025As of December 31, 2024
Maturity DateTotal Capacity
Outstanding Loan(1)
Effective Rate
Outstanding Loan(1)
Effective Rate
Credit Facilities:
1/28/2026$100,000 $88,900 6.39%N/AN/A
9/24/2026300,000 292,890 5.96121,000 8.00
9/24/2026150,000 — N/A— N/A
6/26/2027300,000 200,000 6.14154,000 7.15
9/12/202754,000 — N/A— N/A
6/23/2032201,007 201,007 7.23N/AN/A
3/31/2040110,235 1,013 12.00N/AN/A
3/31/204088,188 1,471 11.00N/AN/A
8/7/2040170,000 — N/AN/AN/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.

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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-
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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.

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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 
202675,796 
202769,136 
202879,184 
202973,448 
Thereafter714,940 
Total future payments1,034,819 
Less: interest358,447 
Total operating lease liabilities$676,372 

Three months ended September 30,Nine months ended September 30,
Classification within general, administrative and other expenses2025202420252024
Operating lease expense$22,549 $16,920 $66,277 $47,505 

Nine months ended September 30,
Supplemental information on the measurement of operating lease liabilities20252024
Operating cash flows for operating leases$48,346 $41,740 
Leased assets obtained in exchange for new operating lease liabilities48,544 210,551 

As of September 30,As of December 31,
Lease term and discount rate20252024
Weighted-average remaining lease terms (in years)13.014.1
Weighted-average discount rate5.8%5.8%

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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,
 20252024
Due from affiliates: 
Management fees receivable from non-consolidated funds$867,745 $636,835 
Incentive fee receivable from non-consolidated funds82,771 172,235 
Payments made on behalf of and amounts due from non-consolidated funds and employees383,709 247,538 
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 liability540,587 402,359 
Realized carried interest and incentive fees payable69,759 78,692 
Payments made by non-consolidated funds on behalf of and payable by the Company12,796 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.

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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,
2025202420252024
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.

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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,
2025202420252024
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 stock219,881,697 200,724,068 216,086,939 196,526,832 
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 stock1.12 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 stock219,881,697 200,724,068 216,086,939 196,526,832 
Diluted earnings per share of Class A and non-voting common stock$1.15 $0.55 $1.64 $1.31 
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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,
 2025202420252024
Unvested awards$157,073 $85,613 $576,039 $266,267 
AOG Unit awards3,057 — 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 DateDividends Per ShareDividend Equivalents Paid
March 17, 2025$1.12 $21,489 
June 16, 20251.12 20,958 
September 16, 20251.12 21,095 


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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 AwardsWeighted Average
Grant Date Fair
Value Per Unvested Award
Balance as of December 31, 202417,968,940 $79.11 
Granted7,377,644 185.65 
Vested(5,158,943)79.80 
Forfeited(215,045)92.19 
Balance as of September 30, 202519,972,596 $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 StockNon-Voting Common StockClass B Common StockClass C Common StockTotal
Balance as of December 31, 2024199,872,571 3,489,911 1,000 109,806,689 313,170,171 
Issuances of common stock10,442,517 — — 303,500 10,746,017 
Exchanges of common stock3,583,329 — — (3,583,329)— 
Vesting of restricted unit awards, net of shares withheld for tax2,936,376 — — — 2,936,376 
Balance as of September 30, 2025216,834,793 3,489,911 1,000 106,526,860 326,852,564 

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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, 2025As of December 31, 2024Three months ended September 30,Nine months ended September 30,
AOG UnitsDirect Ownership InterestAOG UnitsDirect Ownership Interest2025202420252024
Ares Management Corporation220,324,704 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 
Total326,851,564 100.00 %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.


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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 income73 
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 income1,319 
Currency translation adjustment, net of tax614 
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 income316 
Currency translation adjustment, net of tax198 
Distributions(300)
Balance as of March 31, 2025
23,710 
Net loss(274)
Currency translation adjustment, net of tax699 
Balance as of June 30, 2025
24,135 
Net income1,797 
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$522,938 
Change in redemption value6,849 
Balance as of March 31, 2024529,787 
Change in redemption value6,959 
Balance as of June 30, 2024536,746 
Change in redemption value7,408 
Balance as of September 30, 2024544,154 
Change in redemption value6,546 
Balance as of December 31, 2024550,700 
Change in redemption value5,698 
Balance as of March 31, 2025556,398 
Redemptions from Class A ordinary shares of AAC II (as defined below)(7,143)
Change in redemption value8,795 
Balance as of June 30, 2025558,050 
Redemptions from Class A ordinary shares of AAC II (as defined below)(502,360)
Change in redemption value7,214 
Deconsolidation of AAC II (as defined below)(62,904)
Balance as of September 30, 2025$— 

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.

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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.
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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.

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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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group

Other
Total SegmentsOMGTotal
Management fees$651,964 $177,655 $33,284 $91,303 $16,400 $970,606 $— $970,606 
Fee related performance revenues62,389 5,904 — 17,110 — 85,403 — 85,403 
Other fees13,471 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 earnings468,605 126,087 13,107 74,033 6,294 688,126 (216,916)471,210 
Performance income—realized19,438 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 income8,017 431 745 71 — 9,264 — 9,264 
Investment income—realized2,095 10,415 513 221 1,607 14,851 2,090 16,941 
Interest income577 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 GroupReal Assets GroupPrivate Equity GroupSecondaries Group
Other
Total SegmentsOMGTotal
Management fees$557,450 $105,733 $34,621 $48,084 $11,374 $757,262 $— $757,262 
Fee related performance revenues41,761 — — 2,508 — 44,269 — 44,269 
Other fees10,520 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 earnings388,698 56,518 16,540 27,754 2,784 492,294 (152,983)339,311 
Performance income—realized6,192 15,441 475 — — 22,108 — 22,108 
Performance related compensation—realized(3,451)(9,403)(380)— — (13,234)— (13,234)
Realized net performance income2,741 6,038 95 — — 8,874 — 8,874 
Investment income—realized6,733 3,729 526 76 4,065 15,129 58 15,187 
Interest income1,266 245 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.
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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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group
Other
Total SegmentsOMGTotal
Management fees$1,854,501 $484,032 $97,049 $210,596 $43,089 $2,689,267 $— $2,689,267 
Fee related performance revenues81,098 6,051 — 43,002 — 130,151 — 130,151 
Other fees37,431 125,494 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 earnings1,303,509 314,011 37,260 165,154 15,527 1,835,461 (587,864)1,247,597 
Performance income—realized95,465 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 income36,538 20,293 9,877 71 — 66,779 — 66,779 
Investment income (loss)—realized11,570 24,878 (3,720)376 6,244 39,348 1,528 40,876 
Interest income6,132 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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group
Other
Total SegmentsOMGTotal
Management fees$1,603,080 $299,156 $103,126 $140,650 $30,726 $2,176,738 $— $2,176,738 
Fee related performance revenues48,920 — — 20,633 — 69,553 — 69,553 
Other fees30,912 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 earnings1,109,396 154,679 46,365 87,000 8,144 1,405,584 (440,087)965,497 
Performance income—realized121,214 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 income48,087 9,190 1,797 471 — 59,545 — 59,545 
Investment income (loss)—realized17,889 (592)1,287 390 9,716 28,690 297 28,987 
Interest income5,719 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.
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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,
2025202420252024
Segment revenues
Management fees$970,606 $757,262 $2,689,267 $2,176,738 
Fee related performance revenues85,403 44,269 130,151 69,553 
Other fees71,970 18,327 172,890 51,465 
Performance income—realized24,559 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 expenses90,680 69,663 260,133 206,630 
Performance related compensation—realized15,295 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 $28,690 
Interest income3,556 4,679 28,170 40,807 
Interest expense(46,305)(29,598)(126,005)(104,777)
Total segment realized net investment loss$(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,
2025202420252024
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 consolidation8,519 11,660 27,367 36,115 
Performance income of Consolidated Funds eliminated in consolidation8,375 1,032 20,599 18,484 
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation2,905 128 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.

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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,
2025202420252024
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 consolidation8,646 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 adjustment2,415 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 
(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
(2)Represents bonus payments, 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,
2025202420252024
Total consolidated other income$302,859 $52,254 $443,808 $207,619 
Investment (income) loss—unrealized(269,895)(4,950)(398,112)13,836 
Interest and other investment (income) loss—unrealized(1,691)15,258 26,166 15,093 
Other income, net of Consolidated Funds added in consolidation(148,108)(87,804)(380,235)(276,107)
Other expense (income), net of Consolidated Funds eliminated in consolidation4,020 194 16,791 (137)
OMG other income(9,802)(220)(10,532)(1,002)
Principal investment income73,543 14,101 191,759 12,038 
Other (income) expense, net17,571 3,389 47,260 (7,910)
Other loss (income) of non-controlling interests in consolidated subsidiaries3,605 (2,012)4,608 1,290 
Total consolidation adjustments and reconciling items(330,757)(62,044)(502,295)(242,899)
Total segment realized net investment loss$(27,898)$(9,790)$(58,487)$(35,280)
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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,
2025202420252024
Income before taxes$652,271 $327,106 $1,080,247 $875,479 
Adjustments:
Depreciation and amortization expense65,956 46,005 177,365 118,900 
Equity compensation expense160,130 85,612 583,083 266,267 
Acquisition-related compensation expense(1)
42,448 5,435 108,752 16,374 
Acquisition and merger-related expense5,427 25,166 42,826 39,394 
Placement fee adjustment(2,415)(4,485)(3,513)825 
OMG expense, net207,114 152,763 577,332 439,085 
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—unrealized330,960 180,174 579,241 8,478 
Total net investment (income) loss—unrealized(271,586)10,308 (371,946)28,929 
Realized income669,492 491,378 1,843,753 1,429,849 
Total performance income—realized(24,559)(22,108)(205,561)(154,931)
Total performance related compensation—realized15,295 13,234 138,782 95,386 
Total net investment loss—realized27,898 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.
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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,
20252024
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 VIEs1,040,196 791,133 
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,
2025202420252024
Net income attributable to non-controlling interests related to consolidated VIEs$72,306 $57,289 $127,580 $216,614 
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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 affiliates1,346,417 — (12,192)1,334,225 
Other assets857,551 — — 857,551 
Right-of-use operating lease assets526,042 — — 526,042 
Intangible assets, net2,166,249 — — 2,166,249 
Goodwill3,437,450 — — 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 compensation656,737 — — 656,737 
Due to affiliates626,592 — — 626,592 
Performance related compensation payable2,992,638 — — 2,992,638 
Debt obligations3,675,783 — — 3,675,783 
Operating lease liabilities676,372 — — 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 liabilities9,563,661 8,905,942 (69,467)18,400,136 
Commitments and contingencies
Redeemable interest in Ares Operating Group entities25,750 — — 25,750 
Non-controlling interest in Consolidated Funds— 3,552,235 (1,038,217)2,514,018 
Non-controlling interest in Ares Operating Group entities1,643,966 — (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-capital4,252,148 — (53,221)4,198,927 
Accumulated deficit(1,218,682)— — (1,218,682)
Accumulated other comprehensive loss, net of tax29,757 — — 29,757 
       Total stockholders’ equity4,527,249 — (53,221)4,474,028 
       Total equity6,171,215 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 
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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 		EliminationsConsolidated 
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 affiliates1,236,450 — (179,842)1,056,608 
Other assets774,654 — — 774,654 
Right-of-use operating lease assets511,319 — — 511,319 
Intangible assets, net975,828 — — 975,828 
Goodwill1,162,636 — — 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 compensation280,894 — — 280,894 
Due to affiliates500,480 — — 500,480 
Performance related compensation payable2,537,203 — — 2,537,203 
Debt obligations2,558,914 — — 2,558,914 
Operating lease liabilities641,864 — — 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 liabilities6,883,507 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 entities23,496 — — 23,496 
Non-controlling interest in Consolidated Funds— 2,796,786 (771,120)2,025,666 
Non-controlling interest in Ares Operating Group entities1,236,767 — 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-capital2,903,253 — 33,541 2,936,794 
Accumulated deficit(837,294)— — (837,294)
Accumulated other comprehensive loss, net of tax(17,757)— — (17,757)
       Total stockholders’ equity3,510,105 — 33,541 3,543,646 
       Total equity4,746,872 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 
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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 allocation473,041 — (8,375)464,666 
Incentive fees100,668 — — 100,668 
Principal investment income73,543 — (55,567)17,976 
Administrative, transaction and other fees105,461 — (2,905)102,556 
Total revenues1,732,994 — (75,366)1,657,628 
Expenses
Compensation and benefits659,835 — — 659,835 
Performance related compensation404,095 — — 404,095 
General, administrative and other expense246,154 — — 246,154 
Expenses of the Consolidated Funds— 6,778 (8,646)(1,868)
Total expenses1,310,084 6,778 (8,646)1,308,216 
Other income (expense)
Net realized and unrealized gains on investments198,777 — (10,357)188,420 
Interest and dividend income13,644 — — 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, net158,771 148,108 (4,020)302,859 
Income before taxes581,681 141,330 (70,740)652,271 
Income tax expense108,709 3,183 — 111,892 
Net income472,972 138,147 (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 entities472,972 — — 472,972 
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,797 — — 1,797 
Less: Net income attributable to non-controlling interests in Ares Operating Group entities182,293 — — 182,293 
Net income attributable to Ares Management Corporation288,882 — — 288,882 
Less: Series B mandatory convertible preferred stock dividends declared25,313 — — 25,313 
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$263,569 $— $— $263,569 
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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		EliminationsConsolidated
Revenues
Management fees$765,257 $— $(11,660)$753,597 
Carried interest allocation278,683 — (1,032)277,651 
Incentive fees48,638 — — 48,638 
Principal investment income14,100 — (6,064)8,036 
Administrative, transaction and other fees41,945 — (128)41,817 
Total revenues1,148,623 — (18,884)1,129,739 
Expenses
Compensation and benefits435,876 — — 435,876 
Performance related compensation219,697 — — 219,697 
General, administrative and other expense196,586 — 433 197,019 
Expenses of the Consolidated Funds— 14,083 (11,788)2,295 
Total expenses852,159 14,083 (11,355)854,887 
Other income (expense)
Net realized and unrealized gains (losses) on investments3,034 — (8,108)(5,074)
Interest and dividend income9,809 — (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 taxes261,108 73,721 (7,723)327,106 
Income tax expense44,696 1,757 — 46,453 
Net income216,412 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 entities216,412 — — 216,412 
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,319 — — 1,319 
Less: Net income attributable to non-controlling interests in Ares Operating Group entities96,633 — — 96,633 
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$118,460 $— $— $118,460 
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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 allocation968,902 — (20,327)948,575 
Incentive fees156,067 — (272)155,795 
Principal investment income191,759 — (140,822)50,937 
Administrative, transaction and other fees261,467 — (9,584)251,883 
Total revenues4,294,933 — (198,372)4,096,561 
Expenses    
Compensation and benefits1,960,669 — — 1,960,669 
Performance related compensation761,434 — — 761,434 
General, administrative and other expense706,224 — — 706,224 
Expenses of the Consolidated Funds— 66,240 (34,445)31,795 
Total expenses3,428,327 66,240 (34,445)3,460,122 
Other income (expense)    
Net realized and unrealized gains on investments231,959 — (30,563)201,396 
Interest and dividend income39,660 — (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, net80,364 380,235 (16,791)443,808 
Income before taxes946,970 313,995 (180,718)1,080,247 
Income tax expense184,493 5,894 — 190,387 
Net income762,477 308,101 (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 entities762,477 — — 762,477 
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,839 — — 1,839 
Less: Net income attributable to non-controlling interests in Ares Operating Group entities287,524 — — 287,524 
Net income attributable to Ares Management Corporation473,114 — — 473,114 
Less: Series B mandatory convertible preferred stock dividends declared75,938 — — 75,938 
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$397,176 $— $— $397,176 
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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 		EliminationsConsolidated 
Revenues    
Management fees$2,199,085 $— $(36,115)$2,162,970 
Carried interest allocation212,493 — (18,487)194,006 
Incentive fees105,036 — 3 105,039 
Principal investment income12,038 — 32,509 44,547 
Administrative, transaction and other fees119,631 — (409)119,222 
Total revenues2,648,283 — (22,499)2,625,784 
Expenses
Compensation and benefits1,268,685 — — 1,268,685 
Performance related compensation140,180 — — 140,180 
General, administrative and other expense537,379 — — 537,379 
Expenses of the Consolidated Funds— 48,200 (36,520)11,680 
Total expenses1,946,244 48,200 (36,520)1,957,924 
Other income (expense)
Net realized and unrealized gains on investments28,390 — (14,609)13,781 
Interest and dividend income27,953 — (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 taxes633,414 227,907 14,158 875,479 
Income tax expense109,141 5,619 — 114,760 
Net income524,273 222,288 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 entities524,273 — — 524,273 
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,005 — — 1,005 
Less: Net income attributable to non-controlling interests in Ares Operating Group entities236,843 — — 236,843 
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$286,425 $— $— $286,425 




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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		EliminationsConsolidated
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 activities495,364 — (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 liabilities487,320 — (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 activities1,745,161 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 Facility2,130,000 — — 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 activities2,630 — — 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 period1,507,976 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 


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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		EliminationsConsolidated
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 activities543,839 — (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 liabilities221,389 — 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 activities1,289,501 955,555 (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 stock407,236 — — 407,236 
Proceeds from Credit Facility970,000 — — 970,000 
Repayments of Credit Facility(1,395,000)— — (1,395,000)
Dividends and distributions (969,360)— — (969,360)
Stock option exercises1,511 — — 1,511 
Taxes paid related to net share settlement of equity awards(211,615)— — (211,615)
Other financing activities485 — — 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 changes4,992 18,977 — 23,969 
Net change in cash and cash equivalents1,864 166,403 (166,403)1,864 
Cash and cash equivalents, beginning of period348,274 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 

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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.
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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ares Management Corporation is a Delaware corporation. Unless the context otherwise requires, references to “Ares,” “we,” “us,” “our,” and the “Company” are intended to mean the business and operations of Ares Management Corporation and its consolidated subsidiaries. The following discussion analyzes the financial condition and results of operations of the Company. “Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under U.S. GAAP to be consolidated in our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. Additional terms used by the Company are defined in the Glossary and throughout the Management’s Discussion and Analysis in this Quarterly Report on Form 10-Q.
The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements of Ares Management Corporation and the related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and the related notes included in the 2024 Annual Report on Form 10-K of Ares Management Corporation. We have reclassified certain prior period amounts to conform to the current year presentation.
Amounts and percentages presented throughout our discussion and analysis of financial condition and results of operations may reflect rounded results in thousands (unless otherwise indicated) and consequently, totals may not appear to sum. In addition, illustrative charts may not be presented at scale.

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

Trends Affecting Our Business
We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles. For the three months ended September 30, 2025, 94% of our management fees were derived from perpetual capital vehicles or long-dated funds. Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility. However, our results from operations, including the fair value of our AUM, are affected by a variety of factors. Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).

    The following table presents returns of selected market indices:
Returns (%)
Type of IndexName of IndexRegionThree months ended September 30, 2025Nine months ended September 30, 2025
High yield bondsICE BAML High Yield Master II IndexU.S.2.47.1 
High yield bondsICE BAML European Currency High Yield IndexEurope1.94.7
Leveraged loansS&P UBS Leveraged Loan Index U.S.1.74.7
Leveraged loansS&P UBS Western European Leveraged Loan IndexEurope0.93.3
EquitiesS&P 500 IndexU.S.8.114.8
EquitiesMSCI All Country World Ex-U.S. IndexNon-U.S.7.026.6
Infrastructure equitiesS&P Global Infrastructure IndexGlobal3.719.8
Real estate equitiesFTSE NAREIT All Equity REITs IndexU.S.1.71.4
Real estate equitiesFTSE EPRA/NAREIT Developed Europe IndexEurope(5.2)0.8
Real estate equitiesTokyo Stock Exchange REIT IndexAPAC8.016.2

During the third quarter of 2025, macroeconomic and geopolitical developments continued to shape sentiment across global equity and debt markets. Markets largely remained resilient and performed well despite continued volatility. The U.S. public equity markets were supported by interest rate cuts that signaled the possibility of further easing. International markets continued to outperform, supported by gradually improving transaction volumes.

The commercial real estate markets continued to recover during the quarter, driven by increased transaction volumes and steady property valuations and capitalization rates. The U.S. real estate markets improved, with interest rate cuts also driving positive momentum during the quarter. However, the European real estate markets declined primarily due to political uncertainty and lower rent growth expectations in certain regions. While performance varies by sector and geography, we believe multifamily and industrial properties will continue to benefit from favorable long-term structural trends. In addition, renewable energy continues to scale, with strong transaction volumes supporting elevated revenue contract prices amid positive
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demand momentum. The climate infrastructure market remained resilient, bolstered by continued progress in clean energy deployment and the expansion of digital infrastructure and adoption of artificial intelligence.

Private equity activity rebounded in the third quarter, marking a shift in market sentiment following a subdued first half of the year. Transaction and exit activity accelerated, fueled by easing interest rates and a narrowing valuation gap between buyers and sellers. We believe that stabilized market conditions, with a renewed focus on value creation strategies that emphasize operational improvements, selective deployment, talent optimization and digital transformation are essential to support long-term momentum.

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

Managing Business Performance
Operating Metrics
We measure our business performance using certain operating metrics that are common to the alternative investment management industry and are discussed below.
Assets Under Management
AUM refers to the assets we manage and is viewed as a metric to measure our investment and fundraising performance as it reflects assets generally at fair value plus available uncalled capital.

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The tables below present rollforwards of our total AUM by segment ($ in millions):
Credit
Group		Real Assets
Group		Private Equity
Group
Secondaries
Group
Other
Businesses		Total AUM
Balance at 6/30/2025
$377,106 $129,774 $23,766 $33,949 $7,790 $572,385 
Acquisitions— — 856 — — 856 
Net new par/equity commitments11,479 3,347 528 3,349 2,148 20,851 
Net new debt commitments7,800 1,473 — 775 — 10,048 
Capital reductions(4,248)(883)(1)(32)— (5,164)
Distributions(3,669)(1,272)(151)(210)(477)(5,779)
Redemptions(1,202)(592)— (60)(502)(2,356)
Net allocations among investment strategies440 125 — — (565)— 
Change in fund value3,748 382 98 604 (17)4,815 
Balance at 9/30/2025
$391,454 $132,354 $25,096 $38,375 $8,377 $595,656 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total AUM
Balance at 6/30/2024
$323,123 $67,692 $24,580 $26,303 $5,534 $447,232 
Acquisitions362 — — — — 362 
Net new par/equity commitments8,801 1,604 105 688 2,043 13,241 
Net new debt commitments5,620 1,250 — 625 — 7,495 
Capital reductions(2,518)(254)— — — (2,772)
Distributions(7,277)(933)(195)(162)(238)(8,805)
Redemptions(854)(206)— — — (1,060)
Net allocations among investment strategies1,027 — — 25 (1,052)— 
Change in fund value7,034 1,200 14 (224)78 8,102 
Balance at 9/30/2024
$335,318 $70,353 $24,504 $27,255 $6,365 $463,795 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total AUM
Balance at 12/31/2024
$348,858 $75,298 $24,041 $29,153 $7,096 $484,446 
Acquisitions— 45,281 856 — — 46,137 
Net new par/equity commitments26,344 7,904 1,503 8,155 5,165 49,071 
Net new debt commitments21,782 5,706 — 775 — 28,263 
Capital reductions(11,524)(2,035)(55)(90)— (13,704)
Distributions(11,938)(4,450)(1,356)(609)(1,025)(19,378)
Redemptions(2,527)(882)— (123)(510)(4,042)
Net allocations among investment strategies1,935 174 — 73 (2,182)— 
Change in fund value18,524 5,358 107 1,041 (167)24,863 
Balance at 9/30/2025
$391,454 $132,354 $25,096 $38,375 $8,377 $595,656 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total AUM
Balance at 12/31/2023
$299,350 $65,413 $24,551 $24,760 $4,772 $418,846 
Acquisitions362 — — — 71 433 
Net new par/equity commitments27,736 4,502 435 2,523 4,655 39,851 
Net new debt commitments20,324 2,954 — 625 — 23,903 
Capital reductions(9,114)(589)(4)— — (9,707)
Distributions(13,658)(2,514)(259)(612)(611)(17,654)
Redemptions(4,024)(931)(2)— — (4,957)
Net allocations among investment strategies2,351 — (47)25 (2,329)— 
Change in fund value11,991 1,518 (170)(66)(193)13,080 
Balance at 9/30/2024
$335,318 $70,353 $24,504 $27,255 $6,365 $463,795 

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The components of our AUM are presented below ($ in billions):
581582
AUM: $595.7AUM: $463.8
FPAUM
Non-fee paying(1)
AUM not yet paying fees
(1) Includes $14.0 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of September 30, 2025 and 2024, respectively, and includes $5.7 billion and $4.2 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.

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


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Fee Paying Assets Under Management

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

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

Credit
Group		Real Assets
Group		Private Equity
Group
Secondaries
Group
Other
Businesses		Total
Balance at 6/30/2025
$228,153 $79,495 $10,993 $24,535 $6,381 $349,557 
Acquisitions— — 1,118 — — 1,118 
Commitments8,129 2,811 — 3,153 1,805 15,898 
Deployment/increase in leverage9,888 1,460 1 113 142 11,604 
Capital reductions(3,001)(774)— — — (3,775)
Distributions(4,063)(1,704)(8)(101)(414)(6,290)
Redemptions(785)(592)— (60)— (1,437)
Net allocations among investment strategies669 125 — — (794)— 
Change in fund value757 (496)(16)444 (96)593 
Change in fee basis421 178 (240)(5)— 354 
Balance at 9/30/2025
$240,168 $80,503 $11,848 $28,079 $7,024 $367,622 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total
Balance at 6/30/2024
$197,088 $41,623 $12,265 $20,461 $4,412 $275,849 
Acquisitions244 — — — — 244 
Commitments5,214 1,153 — 507 1,946 8,820 
Deployment/increase in leverage6,811 781 9 89 20 7,710 
Capital reductions(3,269)— — — — (3,269)
Distributions(3,717)(581)(54)(66)(238)(4,656)
Redemptions(1,025)(206)— — — (1,231)
Net allocations among investment strategies1,282 — — — (1,282)— 
Change in fund value2,781 527 (5)(135)212 3,380 
Change in fee basis(172)(184)68 236 — (52)
Balance at 9/30/2024
$205,237 $43,113 $12,283 $21,092 $5,070 $286,795 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total
Balance at 12/31/2024
$209,145 $44,088 $11,427 $22,401 $5,492 $292,553 
Acquisitions— 30,467 1,118 — — 31,585 
Commitments20,465 4,760 — 4,893 4,589 34,707 
Deployment/increase in leverage24,594 4,256 33 780 395 30,058 
Capital reductions(8,212)(951)(11)— — (9,174)
Distributions(12,668)(4,415)(8)(170)(962)(18,223)
Redemptions(2,177)(882)— (123)— (3,182)
Net allocations among investment strategies2,293 174 — 73 (2,540)— 
Change in fund value6,670 2,706 (14)230 50 9,642 
Change in fee basis58 300 (697)(5)— (344)
Balance at 9/30/2025
$240,168 $80,503 $11,848 $28,079 $7,024 $367,622 
Credit
Group		Real Assets
Group		Private Equity
Group		Secondaries
Group		Other
Businesses		Total
Balance at 12/31/2023
$185,280 $41,338 $13,124 $19,040 $3,575 $262,357 
Acquisitions244 — — — 55 299 
Commitments15,074 2,674 — 2,013 4,348 24,109 
Deployment/increase in leverage21,221 2,508 34 191 174 24,128 
Capital reductions(9,145)(12)— — — (9,157)
Distributions(11,414)(1,449)(54)(297)(611)(13,825)
Redemptions(4,347)(931)(2)— — (5,280)
Net allocations among investment strategies2,781 — — — (2,781)— 
Change in fund value4,109 83 (33)(138)311 4,332 
Change in fee basis1,434 (1,098)(786)283 (1)(168)
Balance at 9/30/2024
$205,237 $43,113 $12,283 $21,092 $5,070 $286,795 


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The charts below present FPAUM by its fee bases ($ in billions):
549755819556 549755819567
FPAUM: $367.6FPAUM: $286.8
Invested capital/other(1)
Market value/reported value(2)
Capital commitmentsCollateral balances (at par)GAV
    
(1)Other consists of Ares Commercial Real Estate Corporation’s (NYSE: ACRE) (“ACRE”) FPAUM, which is based on ACRE’s stockholders’ equity.
(2)Includes $87.8 billion and $67.8 billion from funds that primarily invest in illiquid strategies as of September 30, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

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

Perpetual Capital Assets Under Management

The chart below presents our perpetual capital AUM by segment and type ($ in billions):
perp cap 10.30.jpg
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Management Fees By Type

We view the duration of funds we manage as a metric to measure the stability of our future management fees. For the three months ended September 30, 2025 and 2024, 94% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.

The charts below present the composition of our segment management fees by fund type:
2260    2262
Perpetual Capital - Publicly-Traded
Vehicles
Perpetual Capital - Perpetual Wealth Vehicles
Perpetual Capital - Private Commingled Vehicles Perpetual Capital - Managed Accounts
Long-Dated Funds(1)
Other
(1) Long-dated funds generally have a contractual life of five years or more at inception.

Available Capital and Assets Under Management Not Yet Paying Fees

The charts below present our available capital and AUM not yet paying fees by segment ($ in billions):
avl cap 2025-10-22 162533.jpg
CreditReal AssetsPrivate Equity
Secondaries
Other Businesses
As of September 30, 2025, AUM Not Yet Paying Fees includes $81.0 billion of AUM available for future deployment that could generate approximately $756.3 million in potential incremental annual management fees, which represents 26% embedded gross base management fee growth from the last twelve month period upon deployment. Development assets not yet
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stabilized represents fund assets that are in the development stage. Upon completion of development, management fees generally increase with a change in fee base, in fee rate or both. As of September 30, 2025, development assets not yet stabilized could generate approximately $22.4 million in potential incremental annual management fees.

Incentive Eligible Assets Under Management and Incentive Generating Assets Under Management

The charts below present our IEAUM and IGAUM by segment ($ in billions):
IEAUM IGAUM10.30.jpg
CreditReal AssetsPrivate Equity
Secondaries
Other Businesses

Fee related performance revenues are not recognized by us until such fees are crystallized and no longer subject to reversal. As of September 30, 2025, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $32.1 billion, composed of $20.3 billion within the Credit Group, $7.4 billion within the Real Assets Group and $4.4 billion within the Secondaries Group. As of September 30, 2024, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $20.4 billion, composed of $18.5 billion within the Credit Group and $1.9 billion within the Secondaries Group. As of September 30, 2025 and 2024, IGAUM included $58.3 billion and $42.8 billion, respectively, of AUM from funds generating incentive income that is not recognized by us until such fees are crystallized or no longer subject to reversal.

Fund Performance Metrics

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

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

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

Components of Consolidated Results of Operations

GCP Acquisition Overview

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

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

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

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

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

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


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Revenues

The following is an overview of our fee arrangements by strategy that were impacted as a result of the GCP Acquisition.
Management Fees. Details regarding management fees from GLP J-REIT (TSE: 3281) (“J-REIT”) are presented below:
VehicleStrategyAnnual Fee Rate and Fee Base
Real Assets Group
J-REITReal Estate
•Comprised of multiple components, including:
◦0.18% on GAV (“J-REIT Fee I”)
◦3.50% on net operating income (“J-REIT Fee II”)
◦Sum of J-REIT Fee I and J-REIT Fee II, multiplied by 0.033%, multiplied by earnings per outstanding investment unit
Details regarding management fees by strategy, excluding J-REIT described above, are presented below:
StrategyFee RateFee Base
Average Remaining Contract Term(1)
Real Assets Group
Real Estate(2)
0.45% - 1.50%Capital commitments, invested capital, GAV, NAV, aggregate cost basis of unrealized portfolio investments or a combination thereof4.6 years
Infrastructure1.00% - 1.50%Capital commitments, invested capital, GAV or NAV5.3 years
(1)    Represents the average remaining contract term pursuant to the funds’ governing documents within each strategy, excluding perpetual capital vehicles, as of September 30, 2025.
(2)    Following the expiration or termination of the investment period the basis on which management fees are earned for certain closed-end funds in this strategy changes from committed capital to invested capital with no change in the management fee rate. In addition, certain real estate funds pay a management fee of 7.50% of net operating income. For these funds, we present an effective fee rate as a percentage of GAV.

Incentive Fees. Details regarding fee related performance revenues, excluding publicly-traded and perpetual wealth vehicles, are presented below:
StrategyFee RateFee BaseAnnual Hurdle Rate
Real Assets Group
Real Estate15.0% - 20.0%Incentive eligible fund’s profits6.0% - 8.0%

Carried Interest Allocation. Details regarding carried interest, which is generally based on a fund’s eligible profits, are presented below:
StrategyFee RateAnnual Hurdle Rate
Real Assets Group
Infrastructure15.0% - 20.0%7.0% - 10.0%
Administrative, Transaction and Other Fees. Details regarding other fees are presented below:
Other fees:
Property-related fees represent fees earned within our real estate strategy and include the following:
Acquisition feesBased on a percentage of a property’s cost at the time of property acquisition
Development feesBased on a percentage of costs to develop a property over the development period
Leasing feesBased on a percentage of rental income at lease inception or lease renewal
Property management feesBased on tenancy of properties over the time associated property management services are provided
See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Consolidated Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a comprehensive overview of the components of our consolidated results of operations, including an overview of fee arrangements for other strategies that were not impacted as a result of the GCP Acquisition.
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Consolidation and Deconsolidation of Ares Funds
Consolidated Funds represented approximately 3% of our AUM as of September 30, 2025 and 5% of total revenues for the nine months ended September 30, 2025. As of September 30, 2025, we consolidated 23 CLOs and 16 private funds, and as of September 30, 2024, we consolidated 28 CLOs, 10 private funds and one SPAC.
The activity of the Consolidated Funds is reflected within the unaudited condensed consolidated financial statement line items indicated by reference thereto. The impact of consolidation also typically will decrease management fees, carried interest allocation and incentive fees reported under GAAP to the extent these amounts are eliminated upon consolidation.
The assets and liabilities of our Consolidated Funds are held within separate legal entities and, as a result, the liabilities of our Consolidated Funds are typically non-recourse to us. Generally, the consolidation of our Consolidated Funds has a significant gross-up effect on our assets, liabilities and cash flows but has no net effect on the net income attributable to us or our stockholders’ equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. The net economic ownership interests of our Consolidated Funds, to which we have no economic rights, are reflected as redeemable and non-controlling interests in the Consolidated Funds within our unaudited condensed consolidated financial statements. Redeemable interest in Consolidated Funds represent the shares issued by our SPACs that are redeemable for cash by the public shareholders in the event that the SPAC does not complete a business combination or tender offer associated with shareholder approval provisions.
We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity. During the nine months ended September 30, 2025, we deconsolidated four CLOs as a result of liquidation, one CLO as a result of a significant change in ownership and Ares Acquisition Corporation II (“AAC II”), as we no longer hold 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, we did not deconsolidate any entity.
We have contributed certain financial interests to structured investment vehicles that we manage, including but not limited to collateralized fund obligations and fund-backed loans. These financial interests include our capital interests and rights to performance income in funds that we manage. The purpose of these contributions is to provide collateral or other forms of similar credit-enhancement, including subordination and liquidity support, to the structured investment vehicles. These structured investment vehicles are typically designed to meet investors’ risk-return, liquidity, diversification and risk-based capital treatment objectives and to support capital raising efforts across our platform. The contribution of these financial interests subjects us to a maximum risk of loss equal to the value of the contributed financial interests in the event that these structured investment vehicles or the underlying financial interests do not perform at required levels, which results in a variable interest and often the consolidation of these investment vehicles by us. As a result, the financial interests that we contribute will typically be reclassified from investments in the funds that we manage and/or from accrued performance income to investments of the Consolidated Funds. Any future investment income and performance income resulting from these financial interests will be presented within the results of operations of our Consolidated Funds as a result of consolidation.
The performance of our Consolidated Funds is not necessarily consistent with, or representative of, the combined performance trends of all of our funds.
For the actual impact that consolidation had on our results and further discussion on consolidation and deconsolidation of funds, see “Note 15. Consolidation” within our unaudited condensed consolidated financial statements included herein.
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Results of Operations
Consolidated Results of Operations
Although the consolidated results presented below include the results of our operations together with those of the Consolidated Funds and other joint ventures, we separate our analysis of those items primarily impacting the Company from those of the Consolidated Funds.

The following table presents our summarized consolidated results of operations ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Total revenues$1,657,628 $1,129,739 $527,889 47%$4,096,561 $2,625,784 $1,470,777 56%
Total expenses(1,308,216)(854,887)(453,329)(53)(3,460,122)(1,957,924)(1,502,198)(77)
Total other income, net302,859 52,254 250,605 NM443,808 207,619 236,189 114
Less: Income tax expense
111,892 46,453 (65,439)(141)190,387 114,760 (75,627)(66)
Net income540,379 280,653 259,726 93889,860 760,719 129,141 17
Less: Net income attributable to non-controlling interests in Consolidated Funds67,407 64,241 3,166 5127,383 236,446 (109,063)(46)
Net income attributable to Ares Operating Group entities472,972 216,412 256,560 119762,477 524,273 238,204 45
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,797 1,319 478 361,839 1,005 834 83
Less: Net income attributable to non-controlling interests in Ares Operating Group entities182,293 96,633 85,660 89287,524 236,843 50,681 21
Net income attributable to Ares Management Corporation288,882 118,460 170,422 144473,114 286,425 186,689 65
Less: Series B mandatory convertible preferred stock dividends declared25,313 — 25,313 NM75,938 — 75,938 NM
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$263,569 $118,460 145,109 122$397,176 $286,425 110,751 39

Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024 
Consolidated Results of Operations of the Company
The following discussion sets forth information regarding our consolidated results of operations:
Revenues
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Revenues
Management fees$971,762 $753,597 $218,165 29%$2,689,371 $2,162,970 $526,401 24%
Carried interest allocation464,666 277,651 187,015 67948,575 194,006 754,569 NM
Incentive fees100,668 48,638 52,030 107155,795 105,039 50,756 48
Principal investment income17,976 8,036 9,940 12450,937 44,547 6,390 14
Administrative, transaction and other fees102,556 41,817 60,739 145251,883 119,222 132,661 111
Total revenues$1,657,628 $1,129,739 527,889 47$4,096,561 $2,625,784 1,470,777 56
Management Fees. Within the Credit Group, our publicly-traded and perpetual wealth vehicles contributed to increases in management fees of $44.4 million and $127.8 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily driven by increases in the average size of their portfolios. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to increases in management fees of $30.4 million and $83.8 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition and the acquisition of Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”)
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(“WSM Acquisition”), collectively generated $63.8 million and $160.1 million in additional management fees for the three and nine months ended September 30, 2025, respectively. Part I Fees increased by $20.0 million and $48.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in Part I Fees were primarily attributable to Ares Strategic Income Fund (“ASIF”), our open-ended European direct lending fund, CION Ares Diversified Credit Fund (“CADC”) and our open-ended infrastructure fund, driven by increases in net investment income from their growing portfolio of investments. For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”

Carried Interest Allocation. The following table sets forth carried interest allocation by segment ($ in millions):
Three months ended September 30,Nine months ended September 30,
2025202420252024
Credit funds$286.8 $209.1 $691.2 $464.1 
Real Assets funds38.2 37.5 93.1 81.1 
Private Equity funds47.0 54.1 112.7 (311.7)
Secondaries funds
29.5 (20.4)27.7 (36.8)
Other businesses71.8 1.0 83.9 18.5 
Elimination of carried interest from Consolidated Funds(8.4)(1.0)(20.3)(18.5)
Carried interest of non-controlling interests in consolidated subsidiaries(0.2)(2.6)(39.7)(2.7)
Carried interest allocation$464.7 $277.7 $948.6 $194.0 

The activity was principally composed of the following:
Three months ended September 30, 2025Three months ended September 30, 2024
Credit funds
•Primarily from three opportunistic credit funds, two alternative credit funds and three direct lending funds with $41.9 billion of IGAUM generating returns in excess of their hurdle rates:
◦Within our opportunistic credit funds, Ares Special Opportunities Fund II, L.P. (“ASOF II”) generated carried interest allocation of $47.9 million driven by improved profitability of portfolio companies that operate in the healthcare and services industries. Ares Special Situations Fund IV, L.P. (“SSF IV”) and Ares Special Opportunities Fund, L.P. (“ASOF I”) generated carried interest allocation of $42.2 million and $21.5 million, respectively, primarily due to its investment in Savers Value Village, Inc. (“SVV”), driven by its higher stock price
◦Within our alternative credit funds, Ares Pathfinder Fund II, L.P. (“Pathfinder II”) and Ares Pathfinder Fund, L.P. (“Pathfinder I”) generated carried interest allocation of $37.3 million and $25.5 million, respectively, driven by market appreciation of certain investments and net investment income during the period
◦Within our direct lending funds, Ares Capital Europe VI, L.P. (“ACE VI”), Ares Private Credit Solutions II, L.P. (“PCS II”) and Ares Capital Europe V, L.P. (“ACE V”) generated carried interest allocation of $33.8 million, $29.9 million and $8.0 million, respectively, driven by net investment income on an increasing invested capital base
•Primarily from one opportunistic credit fund, five direct lending funds and two alternative credit funds with $36.0 billion of IGAUM generating returns in excess of their hurdle rates:
◦Within our opportunistic credit funds, ASOF II generated carried interest allocation of $75.1 million, driven by improved profitability of portfolio companies that operate in the services and retail industries
◦Within our direct lending funds, ACE V and ACE VI generated carried interest allocation of $53.0 million and $16.2 million, respectively, driven by net investment income on an increasing invested capital base. PCS II, Ares Capital Europe IV, L.P. (“ACE IV”) and Ares Private Credit Solutions, L.P. (“PCS I”) generated carried interest allocation of $27.0 million, $16.9 million and $8.7 million, respectively, primarily driven by net investment income during the period. Our direct lending funds benefited from rising interest rates on predominately floating-rate loans during the period.
◦Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $17.0 million and $15.6 million, respectively, driven by market appreciation of certain investments and net investment income during the period
•Reversal of unrealized carried interest allocation of $27.6 million from SSF IV, primarily due to SVV’s lower stock price
Real Assets funds
•Ares Energy Investors Fund V, L.P. (“EIF V”) and Ares Climate Infrastructure Partners II, L.P. (“ACIP II’) generated carried interest allocation of $18.4 million and $12.7 million, respectively, driven by appreciation of certain investments
•Ares Infrastructure Debt Fund V, L.P. (“IDF V”) generated carried interest allocation of $16.3 million, driven by net investment income during the period
•Ares Climate Infrastructure Partners, L.P. (“ACIP I”) and EIF V generated carried interest allocation of $16.3 million and $6.1 million, respectively, due to appreciation of certain investments
•IDF V generated carried interest allocation of $12.6 million, driven by net investment income during the period
•US X and U.S. Real Estate Fund IX, L.P. (“US IX”) collectively generated carried interest allocation of $9.5 million, driven by increasing operating income primarily from industrial and multifamily property investments
•Reversal of unrealized carried interest allocation of $6.3 million from Ares European Real Estate Fund IV, L.P. (“EF IV”), driven by the lower valuation of a residential property investment
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Three months ended September 30, 2025Three months ended September 30, 2024
Private Equity funds
•Ares Corporate Opportunities Fund VI, L.P. (“ACOF VI”) generated carried interest allocation of $60.2 million, primarily driven by improved profitability from portfolio companies that primarily operate in the industrial, healthcare, retail and service industries
•Reversal of unrealized carried interest allocation of $18.6 million from Ares Corporate Opportunities Fund IV, L.P. (“ACOF IV”), driven by lower profitability of portfolio companies that primarily operate in the energy and healthcare industries
•ACOF VI generated carried interest allocation of $63.3 million, primarily due to the market appreciation of its investment in Frontier Communications Parent, Inc. (“FYBR”), driven by its higher stock price, and to improved profitability from portfolio companies that primarily operate in the healthcare and services industries
•Reversal of unrealized carried interest allocation of $6.8 million from ACOF IV, primarily due to lower valuation of a portfolio company that primarily operates in the healthcare industry
Secondaries funds
•Landmark Real Estate Fund IX, L.P. (“LREF IX”) and Landmark Equity Partners XVII, L.P. (“LEP XVII”) generated carried interest allocation of $12.9 million and $9.3 million, respectively, primarily driven by appreciation of certain portfolio investments
•Two private equity secondaries funds collectively generated carried interest allocation of $3.1 million, driven by the appreciation of certain portfolio investments
•Reversal of unrealized carried interest of $15.9 million from Landmark Equity Partners XVI, L.P. (“LEP XVI”) due to the lower valuation of certain portfolio investments
•Reversal of unrealized carried interest of $2.4 million from Landmark Real Estate Fund VIII, L.P. (“LREF VIII”), primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios
Other businesses
•Carried interest allocation of $66.0 million attributable to the change in value from previously held AAC II Class A ordinary shares that converted into equity securities of KDK following the business combination
•No significant activities
Nine months ended September 30, 2025Nine months ended September 30, 2024
Credit funds
•Primarily from two opportunistic credit fund, four direct lending funds and two alternative credit funds with $44.3 billion of IGAUM generating returns in excess of their hurdle rates:
◦Within our opportunistic credit funds, ASOF II and ASOF I generated carried interest allocation of $122.6 million and $21.2 million, respectively, driven by improved profitability of portfolio companies that operate in the services, healthcare and industrial industries and ASOF I’s investment in SVV, driven by its higher stock price
◦Within our direct lending funds, ACE V, ACE VI and PCS II generated carried interest allocation of $101.0 million, $93.0 million and $74.7 million, respectively, driven by net investment income on an increasing invested capital base. ACE IV generated carried interest allocation of $37.0 million driven by net investment income during the period
◦Within our alternative credit funds, Pathfinder II and Pathfinder I generated carried interest allocation of $68.7 million and $57.0 million, respectively, driven by market appreciation of certain investments and net investment income during the period
•Primarily from five direct lending funds, one opportunistic credit fund and two alternative credit funds with $36.0 billion of IGAUM generating returns in excess of their hurdle rates:
◦Within our direct lending funds, ACE V, PCS II and ACE VI generated carried interest allocation of $135.7 million, $115.8 million and $37.6 million, respectively, driven by net investment income on an increasing invested capital base. ACE IV and PCS I generated carried interest allocation of $49.0 million and $22.2 million, respectively, driven by net investment income during the period. Our direct lending funds benefited from rising interest rates on predominately floating-rate loans during the period.
◦Within our opportunistic credit funds, ASOF II generated carried interest allocation of $132.4 million, driven by improved profitability of portfolio companies that operate in the services and retail industries
◦Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $43.8 million and $36.6 million, respectively, driven by market appreciation of certain investments and net investment income during the period
•Reversal of unrealized carried interest allocation of $80.3 million and $21.3 million, respectively, from SSF IV and ASOF I, primarily due to their investments in SVV, driven by its lower stock price
Real Assets funds
•IDF V generated carried interest allocation of $31.2 million, driven by net investment income during the period
•ACIP II and EIF V generated carried interest allocation of $22.7 million and $19.9 million, respectively, driven by the appreciation of certain portfolio investments
•US IX generated carried interest allocation of $9.8 million, primarily due to market appreciation and increasing operating income primarily from industrial, office and multifamily property investments
•IDF V generated carried interest allocation of $42.2 million, driven by net investment income during the period
•ACIP I and EIF V generated carried interest allocation of $40.5 million and $27.8 million, respectively, due to appreciation of certain investments
•US X generated carried interest allocation of $14.2 million, driven by increasing operating income primarily from industrial and multifamily property investments
•Reversal of unrealized carried interest allocation of $23.4 million from EF IV, primarily driven by the lower valuation of residential property investments
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Nine months ended September 30, 2025Nine months ended September 30, 2024
Private Equity funds
•ACOF VI generated carried interest allocation of $139.0 million, driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries
•Reversal of unrealized carried interest allocation of $19.5 million and $13.1 million, respectively, from ACOF IV and from a corporate private equity extended value fund driven by lower operating performance from portfolio companies that primarily operate in the energy, healthcare, industrial and service industries
•Reversal of unrealized carried interest allocation of $474.9 million from ACOF V was primarily due to its investment in SVV, driven by its lower stock price
•ACOF VI generated carried interest allocation of $181.2 million, driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries
Secondaries funds
•LEP XVII and LREF IX generated carried interest allocation of $16.5 million and $14.4 million, respectively, primarily driven by appreciation of certain portfolio investments
•Two private equity secondaries funds collectively generated carried interest allocation of $8.0 million, driven by the appreciation of certain portfolio investments
•Reversal of unrealized carried interest of $11.3 million and $2.3 million, respectively, from LEP XVI and LREF VIII, driven by lower valuation of certain investments
•Reversal of unrealized carried interest of $18.2 million from LREF VIII, primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios
•Reversal of unrealized carried interest of $28.2 million from LEP XVI, due to the lower valuation of certain portfolio investments
•Ares Secondaries Infrastructure Solutions III, L.P. (“ASIS III”) and two private equity secondaries funds collectively generated carried interest allocation of $15.2 million, primarily driven by the appreciation of certain portfolio investments
Other businesses
•Carried interest allocation of $66.0 million attributable to the change in value from previously held AAC II Class A ordinary shares that converted into equity securities of KDK following the business combination
•Carried interest allocation of $18.5 million from an insurance fund that is eliminated upon consolidation
Incentive Fees. The following table sets forth incentive fees by segment ($ in millions):
Three months ended September 30,Nine months ended September 30,
2025202420252024
Credit funds$77.5 $45.9 $106.1 $79.1 
Real Assets funds5.9 0.2 6.5 4.9 
Secondaries funds
17.3 2.5 43.2 21.0 
Incentive fees$100.7 $48.6 $155.8 $105.0 
The majority of our incentive fees crystallize in the fourth quarter. The increases in incentive fees for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were primarily due to higher incentive fees from an open-ended core alternative credit fund that has an annual measurement period in the third quarter, driven by increased IGAUM and improved fund performance. For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”
Principal Investment Income. For equity method investments where we serve as general partner, we present the activity of net realized and unrealized gains on investments and interest and dividend income together with net cash received or used. The following tables present the change in fair value of our equity method investments where we serve as general partner ($ in millions):
As of June 30, 2025
Activity during the period
As of September 30, 2025
Cost BasisFair ValueNet Cash UsedNet Realized and Unrealized Gains Interest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$563.0 $645.4 $7.2 $9.9 $8.1 $(10.0)$577.8 $660.6 
As of December 31, 2024
Activity during the period
As of September 30, 2025
Cost BasisFair ValueNet Cash UsedNet Realized and Unrealized Gains Interest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$451.4 $536.9 $87.3 $18.6 $32.3 $(14.5)$577.8 $660.6 
The activity for the three and nine months ended September 30, 2025 was primarily attributable to:
•Net realized and unrealized gains primarily included unrealized gains from our investments in various credit secondaries, private equity secondaries and infrastructure opportunities funds, partially offset by an unrealized loss from a U.S. real estate equity fund. The nine months ended September 30, 2025 also included unrealized gains from our investments in various U.S. direct lending funds.
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•Interest and dividend income primarily generated from our investments in various funds within our real estate strategy. The nine months ended September 30, 2025 also included interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs.
•Other adjustments reflect the impact of contributions of certain capital interests to structured investment vehicles that are consolidated by us. These adjustments reflect the reclassification of the contributed capital interests to Consolidated Funds, and as a result, these contributed capital interests are eliminated upon consolidation.
•Net cash used was primarily driven by investments in various infrastructure opportunities funds. Net cash used for the nine months ended September 30, 2025 was also driven by investments in various real estate funds.
As of June 30, 2024
Activity during the period
As of September 30, 2024
Cost BasisFair ValueNet Cash ReceivedNet Realized and Unrealized Gains Interest and Dividend IncomeCost BasisFair Value
$476.4 $559.7 $(12.3)$2.9 $5.1 $474.2 $555.4 
As of December 31, 2023
Activity during the period
As of September 30, 2024
Cost BasisFair ValueNet Cash ReceivedNet Realized and Unrealized Gains Interest and Dividend IncomeCost BasisFair Value
$453.3 $535.3 $(24.4)$3.0 $41.5 $474.2 $555.4 
The activity for the three and nine months ended September 30, 2024 was primarily attributable to:
•Interest and dividend income for the nine months ended September 30, 2024 included interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs
•Net cash received was primarily driven by transfers of our investments in alternative credit funds to employee co-investment vehicles, partially offset by investments in European real estate debt and U.S. direct lending funds. Net cash received for the nine months ended September 30, 2024 also included transfers of our investments in APAC credit funds to employee co-investment vehicles, partially offset by investments in European direct lending and infrastructure debt funds.

Administrative, Transaction and Other Fees. The increases for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were driven by incremental fees of $50.0 million and $107.9 million, respectively, following the completion of the GCP Acquisition. The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees. For the three and nine months ended September 30, 2025, these incremental fees largely represented leasing, development and property management fees.

The increases in fees over the comparative periods, excluding the aforementioned impact from the GCP Acquisition, were also driven by higher administrative service fees of $4.8 million and $14.2 million, respectively, primarily from: (i) our perpetual wealth vehicles, including two new products launched during the second half of 2024; and (ii) private funds within our Credit Group that are based on invested capital.

Expenses
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Expenses
Compensation and benefits$659,835 $435,876 $(223,959)(51)%$1,960,669 $1,268,685 $(691,984)(55)%
Performance related compensation404,095 219,697 (184,398)(84)761,434 140,180 (621,254)NM
General, administrative and other expenses246,154 197,019 (49,135)(25)706,224 537,379 (168,845)(31)
Expenses of Consolidated Funds(1,868)2,295 4,163 NM31,795 11,680 (20,115)(172)
Total expenses$1,308,216 $854,887 453,329 53$3,460,122 $1,957,924 (1,502,198)(77)
Compensation and Benefits. In connection with the GCP Acquisition, various components of the agreed upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees following the GCP Acquisition. The three and nine months ended September 30, 2025 included the following acquisition-related compensation expenses: (i) equity-based compensation expense of $35.1 million and $195.0 million,
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respectively, from awards associated with the purchase price of the GCP Acquisition, with $108.8 million of expense from the portion of these awards that immediately vested in the first quarter of 2025; (ii) other compensation costs of $17.6 million and $47.2 million, respectively, that were settled in cash; and (iii) compensation expense of $16.7 million and $37.3 million, respectively, for certain contingent compensation arrangements established in connection with the GCP Acquisition. See “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of the contingent liabilities related to the GCP Acquisition arrangements.

In addition, the GCP Acquisition contributed incremental employment related costs of $58.2 million and $121.3 million for the three and nine months ended September 30, 2025, respectively, largely reflecting salary expense and incentive-based compensation.

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $96.4 million and $291.2 million, or 22% and 23%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth in salary and benefits for our increased staffing levels. The most significant expense increases were equity-based compensation, salary expense and incentive-based compensation. Equity-based compensation expense increased by $39.4 million and $121.8 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 as a result of newly issued awards, magnified by our increased stock price. The higher stock price associated with equity awards that vested during the first quarter of 2025 also drove the increase in payroll-related taxes of $23.2 million from the prior year-to-date period. In addition, we accelerated expense for certain awards requiring no future service as retirement provisions have been achieved. These provisions increased expense by $25.0 million and $17.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Salary expense increased by $15.1 million and $43.5 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to headcount growth to support the expansion of our business. In addition, incentive-based compensation which is dependent on our operating performance and is expected to fluctuate during the year, increased over the comparative periods.
Full-time equivalent headcount increased by 33% to 3,891 professionals for the year-to-date period in 2025 from 2,918 professionals in 2024. The acquisition of GCP International added 818 professionals to our period end headcount as of September 30, 2025, which represents 651 full-time equivalents for the year-to-date period.
For detail regarding the fluctuations of compensation and benefits within each of our segments see “—Results of Operations by Segment.”
Performance Related Compensation. Changes in performance related compensation are directly associated with the changes in carried interest allocation and incentive fees described above and include associated payroll-related taxes as well as carried interest and incentive fees allocated to charitable organizations as part of our philanthropic initiatives. Performance related compensation generally represents 60% to 80% of carried interest allocation and incentive fees recognized before giving effect to payroll taxes and will vary based on the mix of funds generating carried interest allocation and incentive fees for that period.
General, Administrative and Other Expenses. General, administrative and other expenses incurred in connection with the activities resulting from the GCP Acquisition were $53.3 million and $123.6 million for the three and nine months ended September 30, 2025, respectively. These expenses were driven by: (i) operating costs of $27.4 million and $63.2 million, respectively, including non-recurring integration costs of $7.6 million and $16.0 million, respectively; and (ii) amortization expense of $25.9 million and $60.4 million, respectively, related to the intangible assets recorded in connection with the GCP Acquisition.
We have also incurred acquisition-related operating expenses in connection to the GCP Acquisition of $0.7 million and $35.3 million for the three and nine months ended September 30, 2025, respectively, and $19.2 million and $19.3 million for the three and nine months ended September 30, 2024, respectively. In each case, such costs were largely paid to advisors and professional services providers to assist in completing the transaction.
General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $14.3 million and $29.2 million, or 8% and 6%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth to support staffing levels and fundraising activities. The most significant expense increases were supplemental distribution fees, occupancy costs and information technology costs.
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Supplemental distribution fees increased by $10.2 million and $23.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in sales volumes and net asset values of our perpetual wealth vehicles, from the ongoing development of our distribution relationships and expansion of our wealth product offerings.
In addition, occupancy costs and information technology costs collectively increased by $7.0 million and $22.3 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, including the expansion of our New York headquarters.

Other Income (Expense)
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Other income (expense)
Net realized and unrealized gains (losses) on investments$188,420 $(5,074)$193,494 NM$201,396 $13,781 $187,615 NM
Interest and dividend income13,644 7,553 6,091 8139,072 19,952 19,120 96
Interest expense(46,315)(29,733)(16,582)(56)(126,277)(105,057)(21,220)(20)
Other expense, net(7,263)(18,805)11,542 61(64,498)(19,473)(45,025)(231)
Net realized and unrealized gains on investments of Consolidated Funds180,255 64,831 115,424 178396,413 192,778 203,635 106
Interest and other income of Consolidated Funds130,821 234,681 (103,860)(44)452,783 732,316 (279,533)(38)
Interest expense of Consolidated Funds(156,703)(201,199)44,496 22(455,081)(626,678)171,597 27
Total other income, net$302,859 $52,254 250,605 NM$443,808 $207,619 236,189 114

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

The following tables present the change in fair value of these investments ($ in millions):
As of June 30, 2025
Activity during the period
As of September 30, 2025
Cost BasisFair ValueNet Cash UsedNet Realized and Unrealized GainsInterest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$659.2 $767.6 $3.9 $188.4 $13.6 $4.9 $669.9 $978.4 
As of December 31, 2024
Activity during the period
As of September 30, 2025
Cost BasisFair ValueNet Cash UsedNet Realized and Unrealized GainsInterest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$514.3 $616.3 $114.8 $201.4 $39.1 $6.8 $669.9 $978.4 

The activity for the three and nine months ended September 30, 2025 was primarily attributable to:
•Net realized and unrealized gains primarily included unrealized gains of $169.5 million from our strategic investments in a U.S. nuclear energy company
•Interest and dividend income primarily included: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) income from our investments in CLOs and CLO-based investments. The nine months ended September 30, 2025 included $11.9 million of interest income earned from treasury-backed securities. These treasury-backed securities were sold and the proceeds from the sale were used to fund the GCP Acquisition.
•Net cash used for the nine months ended September 30, 2025 was primarily driven by our investments in J-REIT and in an open-ended infrastructure fund, partially offset by the collection of principal from loan investments within our real estate debt strategy

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As of June 30, 2024
Activity during the period
As of September 30, 2024
Cost BasisFair ValueNet Cash UsedNet Realized and Unrealized LossesInterest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$529.5 $633.7 $10.4 $(5.1)$7.6 $1.2 $554.8 $647.8 
As of December 31, 2023
Activity during the period
As of September 30, 2024
Cost BasisFair ValueNet Cash ReceivedNet Realized and Unrealized Gains Interest and Dividend IncomeOther AdjustmentsCost BasisFair Value
$591.1 $675.1 $(61.7)$13.8 $20.0 $0.6 $554.8 $647.8 

The activity for the three and nine months ended September 30, 2024 was primarily attributable to:
•Net realized and unrealized gains (losses) primarily included unrealized losses from our strategic investments in a U.S. nuclear energy company. The nine months ended September 30, 2024 also included unrealized gains primarily from our investment in Ares Private Markets Fund (“APMF”) and an unrealized loss from our strategic, non-core insurance related investment.
•Interest and dividend income primarily included: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) income from our investments in CLOs and CLO-based investments
•Net cash used was primarily driven by our strategic loan investments in a U.S. nuclear energy company. Net cash received for the nine months ended September 30, 2024 was primarily driven by the collection of principal from loan investments within our real estate debt strategy.

Interest Expense. Interest expense increased for the three and nine months ended September 30, 2025 compared to the same periods in 2024 due to higher collective interest expense associated with our term debt obligations. Interest expense also increased for the three months ended September 30, 2025 compared to the same period in 2024 due to higher average outstanding balance of our Credit Facility over the comparative periods. However, average interest rates and average outstanding balance of our Credit Facility were lower during the current year when compared to the same period a year ago.

Other Expense, Net. The purchase agreement for the GCP Acquisition contains contingent consideration that is dependent on the achievement of revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds. The purchase agreement for the WSM Acquisition contains contingent consideration that is dependent on the achievement of revenue targets from the fundraising of a real estate equity fund and revenue targets associated with growing revenue sources from new business ventures. Other income (expense), net includes non-cash expense from the revaluation of these contingent liabilities of $17.4 million and $45.3 million for the three and nine months ended September 30, 2025, respectively.

Additionally, the activity for the three and nine months ended September 30, 2025 and 2024 included transaction gains (losses) associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency. While we recognized transaction gains for the three months ended September 30, 2025 due to the U.S. dollar strengthening against the British Pound and Euro, we recognized transaction losses for the nine months ended September 30, 2025 due to the U.S. dollar weakening against the British Pound and Euro and the associated impact of revaluing net liabilities on entities with functional currencies other than the U.S. dollar for the year-to-date period. Transaction losses for the three and nine months ended September 30, 2024 were primarily attributable to the British Pound strengthening against the U.S. dollar and Euro.


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Income Tax Expense
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Income before taxes$652,271 $327,106 $325,165 99%$1,080,247 $875,479 $204,768 23%
Less: Income tax expense
111,892 46,453 (65,439)(141)190,387 114,760 (75,627)(66)
Net income$540,379 $280,653 259,726 93$889,860 $760,719 129,141 17
The increases in income tax expense were primarily attributable to higher pre-tax income allocable to AMC and higher entity level taxes in foreign and local jurisdictions for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.
The allocation of taxable income is also sensitive to any changes in weighted average daily ownership as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes. The following table summarizes weighted average daily ownership:
Three months ended September 30,Nine months ended September 30,
2025202420252024
AMC common stockholders
67.29%64.14 %66.71%63.23%
Non-controlling AOG unitholders32.7135.86 33.2936.77
The changes in ownership compared to the prior year periods were primarily driven by the issuances of shares of Class A common stock in connection with exchanges of AOG Units, the GCP Acquisition and vesting of restricted unit awards.
Redeemable and Non-Controlling Interests
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Net income$540,379 $280,653 $259,726 93%$889,860 $760,719 $129,141 17%
Less: Net income attributable to non-controlling interests in Consolidated Funds67,407 64,241 3,166 5127,383 236,446 (109,063)(46)
Net income attributable to Ares Operating Group entities472,972 216,412 256,560 119762,477 524,273 238,204 45
Less: Net income attributable to redeemable interest in Ares Operating Group entities1,797 1,319 478 361,839 1,005 834 83
Less: Net income attributable to non-controlling interests in Ares Operating Group entities182,293 96,633 85,660 89287,524 236,843 50,681 21
Net income attributable to Ares Management Corporation288,882 118,460 170,422 144473,114 286,425 186,689 65
Less: Series B mandatory convertible preferred stock dividends declared25,313 — (25,313)NM75,938 — (75,938)NM
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders$263,569 $118,460 145,109 122$397,176 $286,425 110,751 39

The changes in net income attributable to non-controlling interests in AOG entities over the comparative periods were a result of the respective changes in income before taxes and weighted average daily ownership, as presented above.
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Consolidated Results of Operations of the Consolidated Funds    
The following table presents the results of operations of the Consolidated Funds ($ in thousands):
 Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Expenses of the Consolidated Funds$1,868 $(2,295)$4,163 NM$(31,795)$(11,680)$(20,115)(172)%
Net realized and unrealized gains on investments of Consolidated Funds180,255 64,831 115,424 178396,413 192,778 203,635 106
Interest and other income of Consolidated Funds130,821 234,681 (103,860)(44)452,783 732,316 (279,533)(38)
Interest expense of Consolidated Funds(156,703)(201,199)44,496 22(455,081)(626,678)171,597 27
Income before taxes156,241 96,018 60,223 63362,320 286,736 75,584 26
Less: Income tax expense of Consolidated Funds3,183 1,757 (1,426)(81)5,894 5,619 (275)(5)
Net income153,058 94,261 58,797 62356,426 281,117 75,309 27
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation75,366 18,884 56,482 NM198,372 22,499 175,873 NM
Other income, net attributable to Ares Management Corporation eliminated upon consolidation(10,285)(10,703)(418)(4)(30,671)(22,172)8,499 38
General, administrative and other expense attributable to Ares Management Corporation eliminated upon consolidation— (433)(433)100— — — —
Net income attributable to non-controlling interests in Consolidated Funds$67,407 $64,241 3,166 5$127,383 $236,446 (109,063)(46)
The results of operations of the Consolidated Funds primarily represent activities from certain funds that we are deemed to control. When a fund is consolidated, we reflect the revenues and expenses of the entity on a gross basis, subject to eliminations from consolidation. Substantially all of our results of operations related to the Consolidated Funds are attributable to ownership interests that third parties hold in those funds. The Consolidated Funds are not necessarily the same funds in each year presented due to changes in ownership, changes in limited partners’ or investor rights, and the creation or termination of funds and entities. Accordingly, such amounts may not be comparable for the periods presented, and in any event have no material impact on net income attributable to Ares Management Corporation.

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Segment Analysis
For segment reporting purposes, revenues and expenses are presented before giving effect to the results of our Consolidated Funds and the results attributable to non-controlling interests of joint ventures that we consolidate. As a result, segment revenues from management fees, fee related performance revenues, performance income and investment income are different than those presented on a consolidated basis in accordance with GAAP. Revenues recognized from Consolidated Funds are eliminated in consolidation and those attributable to the non-controlling interests of joint ventures have been excluded by us. Furthermore, expenses and the effects of other income (expense) are different than related amounts presented on a consolidated basis in accordance with GAAP due to the exclusion of the results of Consolidated Funds and the non-controlling interests of joint ventures.
Non-GAAP Financial Measures
We use Realized Income (“RI”) as a non-GAAP profit measure in making operating decisions, assessing performance and allocating resources. Fee Related Earnings (“FRE”) is a component of RI that excludes realized activities associated with investment income and performance income.
FRE and RI should be considered in addition to and not in lieu of, the results of operations, which are discussed further under “—Consolidated Results of Operations of the Company” and are prepared in accordance with GAAP. We operate through our distinct operating segments. In the first quarter of 2025, we combined the presentation of real estate strategies and infrastructure strategies within Real Assets. Real estate includes Americas real estate equity, European real estate equity, APAC real estate equity and real estate debt. Americas real estate equity, which we had recently renamed from North American real estate equity, now includes the activities of Brazil following the GCP Acquisition. APAC real estate equity is newly established following the GCP Acquisition and primarily represents the activities in Japan and Vietnam. Infrastructure includes digital infrastructure, infrastructure opportunities and infrastructure debt. Digital infrastructure is newly established following the GCP Acquisition. The change in presentation did not result in any change to the historical composition of our segments.

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

The following table sets forth FRE and RI by reportable segment and the OMG ($ in thousands):
 Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings:
Credit Group$468,605 $388,698 $79,907 21%$1,303,509 $1,109,396 $194,113 17%
Real Assets Group126,087 56,518 69,569 123314,011 154,679 159,332 103
Private Equity Group13,107 16,540 (3,433)(21)37,260 46,365 (9,105)(20)
Secondaries Group
74,033 27,754 46,279 167165,154 87,000 78,154 90
Other
6,294 2,784 3,510 12615,527 8,144 7,383 91
Operations Management Group(216,916)(152,983)(63,933)(42)(587,864)(440,087)(147,777)(34)
Fee Related Earnings$471,210 $339,311 131,899 39$1,247,597 $965,497 282,100 29
Realized Income:
Credit Group$474,572 $393,579 $80,993 21%$1,342,005 $1,158,012 $183,993 16%
Real Assets Group112,051 60,340 51,711 86297,296 145,348 151,948 105
Private Equity Group10,581 12,711 (2,130)(17)33,666 35,660 (1,994)(6)
Secondaries Group72,317 22,284 50,033 225160,703 66,414 94,289 142
Other
(29)2,464 (2,493)NM10,083 24,415 (14,332)(59)
Operations Management Group(213,983)(152,622)(61,361)(40)(584,506)(438,779)(145,727)(33)
Realized Income$455,509 $338,756 116,753 34$1,259,247 $991,070 268,177 27

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Income before provision for income taxes is the GAAP financial measure most comparable to RI. The following table presents the reconciliation of income before taxes as reported within the Condensed Consolidated Statements of Operations to RI and FRE of the reportable segments and the OMG ($ in thousands):
Three months ended September 30,Nine months ended September 30,
2025202420252024
Income before taxes$652,271 $327,106 $1,080,247 $875,479 
Adjustments:
Depreciation and amortization expense65,956 46,005 177,365 118,900 
Equity compensation expense160,130 85,612 583,083 266,267 
Acquisition-related compensation expense(1)
42,448 5,435 108,752 16,374 
Acquisition and merger-related expense5,427 25,166 42,826 39,394 
Placement fee adjustment(2,415)(4,485)(3,513)825 
Other (income) expense, net17,571 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—unrealized330,960 180,174 579,241 8,478 
Total net investment (income) loss—unrealized(278,455)10,449 (379,120)29,235 
Realized Income455,509 338,756 1,259,247 991,070 
Total performance income—realized(24,559)(22,108)(205,561)(154,931)
Total performance related compensation—realized15,295 13,234 138,782 95,386 
Total net investment loss—realized24,965 9,429 55,129 33,972 
Fee Related Earnings$471,210 $339,311 $1,247,597 $965,497 
(1)Represents bonus payments, a portion of contingent liabilities (“earnouts”) and other costs in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within our Condensed Consolidated Statements of Operations.

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

Credit Group—Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024
Fee Related Earnings
The following table presents the components of the Credit Group’s FRE ($ in thousands):
 Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Management fees$651,964 $557,450 $94,514 17%$1,854,501 $1,603,080 $251,421 16%
Fee related performance revenues62,389 41,761 20,628 4981,098 48,920 32,178 66
Other fees13,471 10,520 2,951 2837,431 30,912 6,519 21
Compensation and benefits(212,709)(179,987)(32,722)(18)(537,661)(457,494)(80,167)(18)
General, administrative and other expenses(46,510)(41,046)(5,464)(13)(131,860)(116,022)(15,838)(14)
Fee Related Earnings$468,605 $388,698 79,907 21$1,303,509 $1,109,396 194,113 17

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




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The following table presents the components of and causes for changes in the Credit Group’s management fees for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 ($ in millions):
Three month changeNine month change
Publicly-traded and perpetual wealth vehicles:
Fees from ARCC, ASIF and CADC, excluding Part I Fees, due to increases in the average size of their portfolios$32.3 $100.3 
Part I Fees from ASIF, CADC and our open-ended European direct lending fund driven by increases in net investment income from their growing portfolio of investments
18.0 45.5 
Fees from our open-ended European direct lending fund, excluding Part I Fees, due to the expiration of a fee waiver during the first quarter of 2025 and driven by an increase in the average size of its portfolio10.8 23.3 
Capital deployment in private funds:
Fees from SDL III, ACE VI, Pathfinder II, ASOF II and an open-ended core alternative credit fund38.5 97.1 
Distributions that reduced the fee base of ACE IV, ASOF I, Ares Senior Direct Lending Fund, L.P. (“SDL I”) and ACE III as the funds are past their investment periods
(10.7)(34.8)
Cumulative effect of other changes5.6 20.0 
Total$94.5 $251.4 

Fee Related Performance Revenues. Fee related performance revenues increased for the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to higher incentive fees from an open-ended core alternative credit fund that has an annual measurement period in the third quarter, driven by increased IGAUM and improved fund performance. Fee related performance revenues for the nine months ended September 30, 2025 were also attributable to incentive fees earned from a European direct lending fund that crystallized a deferred payment during the first quarter of 2025 due to the restructuring of its hold back provisions.

Other Fees. The increases in other fees for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were primarily driven by higher administrative service fees of $2.2 million and $5.2 million, respectively, which are earned from certain private funds that pay on invested capital.
Compensation and Benefits. The increases in compensation and benefits for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were primarily driven by: (i) higher fee related performance compensation of $15.9 million and $24.8 million, respectively, corresponding to the increases in fee related performance revenues; (ii) higher Part I Fee compensation of $9.2 million and $22.6 million, respectively, corresponding to the increases in Part I Fees; (iii) higher incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year. We reduced Part I Fee compensation by $6.0 million and $3.3 million for the three months ended September 30, 2025 and 2024, respectively, and $15.7 million and $8.0 million for the nine months ended September 30, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.

Full-time equivalent headcount increased by 6% to 701 investment and investment support professionals for the year-to-date period in 2025 from 663 professionals in 2024 to support our growing direct lending and alternative credit platforms.
General, Administrative and Other Expenses. The increases in general, administrative and other expenses were primarily due to costs incurred to support the distribution of shares in our perpetual wealth vehicles. Supplemental distribution fees increased by $5.3 million and $15.7 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 as we continue to develop our distribution relationships and expand our wealth product offerings.

In addition, occupancy costs and information technology costs collectively increased by $0.9 million and $4.6 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in these expenses were primarily to support our growing headcount and the expansion of our business.

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Realized Income

The following table presents the components of the Credit Group’s RI ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings$468,605 $388,698 $79,907 21%$1,303,509 $1,109,396 $194,113 17%
Performance income—realized19,438 6,192 13,246 21495,465 121,214 (25,749)(21)
Performance related compensation—realized(11,421)(3,451)(7,970)(231)(58,927)(73,127)14,200 19
Realized net performance income8,017 2,741 5,276 19236,538 48,087 (11,549)(24)
Investment income—realized2,095 6,733 (4,638)(69)11,570 17,889 (6,319)(35)
Interest income577 1,266 (689)(54)6,132 5,719 413 7
Interest expense(4,722)(5,859)1,137 19(15,744)(23,079)7,335 32
Realized net investment income (loss)(2,050)2,140 (4,190)NM1,958 529 1,429 270
Realized Income$474,572 $393,579 80,993 21$1,342,005 $1,158,012 183,993 16

The Credit Group’s realized activities were principally composed of and caused by the following:
Three months ended September 30, 2025Three months ended September 30, 2024
Realized net performance income
Incentive fees:
•Incentive fees of $4.6 million from an alternative credit fund that crystallized in connection with a loan repayment
Carried interest:
•Distributions of $1.3 million from an alternative credit fund, which is a European-style waterfall fund that is past its investment period and monetizing investments
Incentive fees:
•Incentive fees of $1.6 million primarily from a U.S. CLO that reset its capital structure and extended its reinvestment period and from a U.S. direct lending fund
Realized investment income and interest income
•Income of $2.5 million generated from our investments in 11 CLOs and CLO-based investments
•Income of $3.3 million generated from our investments in 16 CLOs and CLO-based investments
•Income of $1.3 million from our investment in an APAC credit fund
Nine months ended September 30, 2025Nine months ended September 30, 2024
Realized net performance income
Carried interest:
•Tax distributions of $14.0 million primarily from ACE IV, ACE V and Pathfinder I
•Distributions of $10.6 million from two alternative credit funds, which are European-style waterfall funds that are past their investment periods and monetizing investments
Incentive fees:
•Incentive fees of $4.6 million from an alternative credit fund that crystallized in connection with a loan repayment
•Incentive fees of $4.4 million from two alternative credit funds that have annual measurement periods in the second quarter and from a U.S. direct lending fund
Carried interest:
•Tax distributions of $30.0 million primarily from ACE IV, ACE V, PCS I and ASOF I
•Distributions of $3.2 million from an alternative credit fund, which is a European-style waterfall fund that passed its investment period and is monetizing investments
Incentive fees:
•Incentive fees of $13.0 million primarily from two alternative credit funds that have annual measurement periods in the second quarter
Realized investment income and interest income
•Income of $9.2 million generated from our investments in 14 CLOs and CLO-based investments
•Income of $2.7 million from our investment in SSF IV
•Income of $10.2 million generated from our investments in 19 CLOs and CLO-based investments
•Income of $6.6 million generated from our investment in a U.S. direct lending fund
•Income of $1.3 million from our investment in an APAC credit fund
Interest expense decreased for the three and nine months ended September 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.

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Credit Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Credit Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):
As of September 30, 2025
As of December 31, 2024
Accrued Performance IncomeAccrued Performance CompensationAccrued Net Performance IncomeAccrued Performance IncomeAccrued Performance CompensationAccrued Net Performance Income
Pathfinder I$241.8 $205.5 $36.3 $191.4 $165.7 $25.7 
Pathfinder II115.3 90.2 25.1 46.6 36.3 10.3 
ASOF I322.7 238.9 83.8 318.4 223.2 95.2 
ASOF II380.8 267.1 113.7 258.2 181.4 76.8 
PCS I147.0 86.9 60.1 130.1 76.9 53.2 
PCS II247.3 146.3 101.0 171.4 101.5 69.9 
ACE IV196.3 127.5 68.8 168.8 109.6 59.2 
ACE V366.6 231.1 135.5 286.6 180.9 105.7 
ACE VI164.1 103.1 61.0 71.1 44.8 26.3 
Other Credit funds339.4 206.7 132.7 285.4 170.7 114.7 
Total Credit Group$2,521.3 $1,703.3 $818.0 $1,928.0 $1,291.0 $637.0 

The following table presents the change in accrued performance income for the Credit Group ($ in millions):
 
As of December 31, 2024
Activity during the periodAs of September 30, 2025
Waterfall TypeAccrued Performance IncomeChange in UnrealizedRealizedOther AdjustmentsAccrued Performance Income
Accrued Carried Interest
Pathfinder IEuropean$191.4 $57.0 $(6.6)$— $241.8 
Pathfinder IIEuropean46.6 68.7 — — 115.3 
ASOF IEuropean318.4 21.2 — (16.9)322.7 
ASOF IIEuropean258.2 122.6 — — 380.8 
PCS IEuropean130.1 16.7 — 0.2 147.0 
PCS IIEuropean171.4 74.7 — 1.2 247.3 
ACE IVEuropean168.8 37.0 (9.5)— 196.3 
ACE VEuropean286.6 101.0 (20.8)(0.2)366.6 
ACE VIEuropean71.1 93.0 — — 164.1 
Other Credit fundsEuropean184.6 113.5 (30.1)(3.6)264.4 
Other Credit fundsAmerican100.8 (14.2)(3.2)(8.4)75.0 
Total accrued carried interest1,928.0 691.2 (70.2)(27.7)2,521.3 
Other credit funds
Incentive— 25.3 (25.3)— — 
Total Credit Group$1,928.0 $716.5 $(95.5)$(27.7)$2,521.3 

The reduction in ASOF I accrued carried interest was driven by a partial contribution of our rights to receive the carried interest from this fund to a structured investment vehicle. As a result, the contributed carried interest is now reflected as an investment of the structured investment vehicle.


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Credit Group—Assets Under Management

The tables below present rollforwards of AUM for the Credit Group ($ in millions):
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit		OtherTotal Credit
Group
Balance at 6/30/2025$48,820 $43,716 $17,985 $174,244 $81,291 $11,050 $— $377,106 
Net new par/equity commitments2,780 2,466 937 3,910 1,380 6 — 11,479 
Net new debt commitments77 200 — 4,177 3,346 — — 7,800 
Capital reductions(2,189)(434)(175)(1,394)(50)(6)— (4,248)
Distributions(40)(358)(279)(1,673)(1,307)(12)— (3,669)
Redemptions(396)(123)— (615)(68)— — (1,202)
Net allocations among investment strategies— 440 — — — — — 440 
Change in fund value293 804 547 1,664 301 139 — 3,748 
Balance at 9/30/2025$49,345 $46,711 $19,015 $180,313 $84,893 $11,177 $— $391,454 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit
Other(1)
Total Credit
Group
Balance at 6/30/2024$46,572 $38,412 $13,200 $141,194 $71,478 $11,966 $301 $323,123 
Acquisitions— — — 362 — — — 362 
Net new par/equity commitments804 1,144 — 3,841 2,664 277 71 8,801 
Net new debt commitments1,521 250 — 3,515 334 — — 5,620 
Capital reductions(2,006)(30)— (472)6 (16)— (2,518)
Distributions(161)(892)(258)(2,022)(3,238)(706)— (7,277)
Redemptions(587)(150)— (93)(24)— — (854)
Net allocations among investment strategies— 1,052 — — 50 — (75)1,027 
Change in fund value803 854 461 1,571 3,125 217 3 7,034 
Balance at 9/30/2024$46,946 $40,640 $13,403 $147,896 $74,395 $11,738 $300 $335,318 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit
Other(1)
Total Credit
Group
Balance at 12/31/2024$46,895 $41,565 $14,964 $159,129 $74,560 $11,470 $275 $348,858 
Net new par/equity commitments4,517 3,336 4,448 9,821 4,158 64 — 26,344 
Net new debt commitments2,494 200 350 15,392 3,346 — — 21,782 
Capital reductions(4,587)(711)(351)(3,640)(2,121)(114)— (11,524)
Distributions(400)(1,535)(1,382)(4,162)(3,740)(719)— (11,938)
Redemptions(1,330)(123)— (1,006)(68)— — (2,527)
Net allocations among investment strategies— 1,935 — 278 — — (278)1,935 
Change in fund value1,756 2,044 986 4,501 8,758 476 3 18,524 
Balance at 9/30/2025$49,345 $46,711 $19,015 $180,313 $84,893 $11,177 $— $391,454 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit
Other(1)
Total Credit
Group
Balance at 12/31/2023$47,299 $33,886 $14,554 $123,073 $68,264 $11,920 $354 $299,350 
Acquisitions— — — 362 — — — 362 
Net new par/equity commitments2,165 3,872 — 14,178 6,844 535 142 27,736 
Net new debt commitments5,171 250 — 14,287 996 (380)— 20,324 
Capital reductions(5,674)(30)(1,022)(2,578)55 135 — (9,114)
Distributions(358)(1,556)(727)(4,899)(5,180)(938)— (13,658)
Redemptions(2,813)(150)— (921)(140)— — (4,024)
Net allocations among investment strategies(18)2,347 — 25 200 — (203)2,351 
Change in fund value1,174 2,021 598 4,369 3,356 466 7 11,991 
Balance at 9/30/2024$46,946 $40,640 $13,403 $147,896 $74,395 $11,738 $300 $335,318 
(1) Amounts represent equity commitments to the platform that have not yet been allocated to an investment strategy.
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The components of our AUM for the Credit Group are presented below ($ in billions):
4339    4341    
AUM: $391.5AUM: $335.3
FPAUM
Non-fee paying(1)
AUM not yet paying fees

(1) Includes $14.0 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of September 30, 2025 and 2024, respectively, and includes $2.1 billion and $1.7 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.
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Credit Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Credit Group ($ in millions):
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit		Total Credit
Group
Balance at 6/30/2025$46,629 $31,581 $8,783 $93,940 $41,905 $5,315 $228,153 
Commitments3,782 — — 3,073 1,274 — 8,129 
Deployment/increase in leverage13 2,292 505 4,512 2,278 288 9,888 
Capital reductions(2,189)— — (434)(378)— (3,001)
Distributions(40)(594)(133)(2,352)(864)(80)(4,063)
Redemptions(397)(123)— (197)(68)— (785)
Net allocations among investment strategies— 669 — — — — 669 
Change in fund value181 — — 901 (246)(79)757 
Change in fee basis(11)— — — 432 — 421 
Balance at 9/30/2025$47,968 $33,825 $9,155 $99,443 $44,333 $5,444 $240,168 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit		Total Credit
Group
Balance at 6/30/2024$44,780 $26,091 $8,423 $75,967 $36,557 $5,270 $197,088 
Acquisitions— — — 244 — — 244 
Commitments3,258 — — 1,826 108 22 5,214 
Deployment/increase in leverage44 1,060 (752)5,012 1,428 19 6,811 
Capital reductions(2,008)— — (459)(769)(33)(3,269)
Distributions(148)(468)(223)(2,349)(312)(217)(3,717)
Redemptions(598)(150)— (93)(184)— (1,025)
Net allocations among investment strategies— 1,282 — — — — 1,282 
Change in fund value869 30 — 758 1,118 6 2,781 
Change in fee basis— — — — (172)— (172)
Balance at 9/30/2024$46,197 $27,845 $7,448 $80,906 $37,774 $5,067 $205,237 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit		Total Credit
Group
Balance at 12/31/2024$44,629 $29,384 $7,899 $86,415 $35,786 $5,032 $209,145 
Commitments8,428 10 — 9,265 2,724 38 20,465 
Deployment/increase in leverage22 4,457 1,957 11,035 5,826 1,297 24,594 
Capital reductions(4,595)— — (2,747)(793)(77)(8,212)
Distributions(409)(2,224)(701)(6,091)(2,504)(739)(12,668)
Redemptions(1,318)(123)— (588)(148)— (2,177)
Net allocations among investment strategies— 2,293 — — — — 2,293 
Change in fund value1,222 28 — 2,154 3,342 (76)6,670 
Change in fee basis(11)— — — 100 (31)58 
Balance at 9/30/2025$47,968 $33,825 $9,155 $99,443 $44,333 $5,444 $240,168 
Liquid
Credit		Alternative
Credit		Opportunistic
Credit		U.S. Direct
Lending		European
Direct Lending		APAC
Credit		Total Credit
Group
Balance at 12/31/2023$46,140 $23,218 $8,490 $67,596 $34,246 $5,590 $185,280 
Acquisitions— — — 244 — — 244 
Commitments7,050 — — 7,873 121 30 15,074 
Deployment/increase in leverage103 2,877 15 12,824 4,791 611 21,221 
Capital reductions(5,509)— — (2,281)(1,304)(51)(9,145)
Distributions(352)(988)(1,057)(7,165)(1,008)(844)(11,414)
Redemptions(2,824)(150)— (292)(1,081)— (4,347)
Net allocations among investment strategies(18)2,799 — — — — 2,781 
Change in fund value1,607 89 — 2,107 575 (269)4,109 
Change in fee basis— — — — 1,434 — 1,434 
Balance at 9/30/2024$46,197 $27,845 $7,448 $80,906 $37,774 $5,067 $205,237 
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The charts below present FPAUM for the Credit Group by its fee bases ($ in billions):
4699    4701
FPAUM: $240.2FPAUM: $205.2
Invested capital
Market value(1)
Collateral balances (at par)Capital commitments
(1)Includes $58.7 billion and $43.5 billion from funds that primarily invest in illiquid strategies as of September 30, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

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

ARCC contributed approximately 31% of the Credit Group’s total management fees for the nine months ended September 30, 2025. In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 40% of the Credit Group’s management fees for the nine months ended September 30, 2025.

    The following table presents the performance data for our significant funds that are not drawdown funds in the Credit Group as of September 30, 2025 ($ in millions):
   Returns(%)
Primary
Investment Strategy		Year of InceptionAUMCurrent QuarterYear-To-Date
Since Inception(1)
FundGrossNetGrossNetGrossNet
ARCC(2)
U.S. Direct Lending2004$35,200 N/A3.0 N/A8.1 N/A12.1 
CADC(3)
U.S. Direct Lending20178,278 N/A2.5 N/A6.6 N/A7.1 
Open-ended core alternative credit fund(4)
Alternative Credit20217,432 3.2 2.4 9.4 6.9 11.8 8.8 
ASIF(3)
U.S. Direct Lending202322,954 N/A2.6 N/A7.1 N/A11.2 
Open-ended European direct lending fund(5)
European Direct Lending20245,573 N/A2.0 N/A5.7 N/A10.1 
(1)Since inception returns are annualized.
(2)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Net returns are calculated using the fund’s NAV and assume dividends are reinvested at the closest quarter-end NAV to the relevant quarterly ex-dividend dates. Additional information related to ARCC can be found in its filings with the SEC, which are not part of this report.
(3)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to CADC and ASIF can be found in its filings with the SEC, which are not part of this report.
(4)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. The fund is made up of a Main Class (“Class M”) and a Constrained Class (“Class C”). Class M includes investors electing to participate in all investments and Class C includes investors electing to be excluded from exposure to liquid investments. Returns presented in the table are for onshore Class M. The current quarter gross and net returns for Class M (offshore) are 3.1% and 2.3%, respectively. The year-to-date gross and net returns for Class M (offshore) are 9.3% and 6.8%, respectively. The since inception gross and net returns for Class M (offshore) are 11.7% and 8.3%, respectively. The current quarter gross and net returns for Class C (offshore) are 2.9% and 2.2%, respectively. The year-to-date gross and net returns for Class C (offshore) are 8.4% and 6.2%, respectively. The since inception gross and net returns for Class C (offshore) are 11.3% and 8.1%, respectively.
(5)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for the Euro hedged distributing institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees, and currency hedging. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.


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The following table presents the performance data of the Credit Group’s significant drawdown funds as of September 30, 2025 ($ in millions):
Primary Investment StrategyYear of InceptionAUMOriginal Capital CommitmentsCapital Invested to Date
Realized Value(1)
Unrealized Value(2)
Total ValueMoICIRR(%)
Fund
Gross(3)
Net(4)
Gross(5)
Net(6)
Funds Deploying Capital
PCS IIU.S. Direct Lending2020$6,433 $5,114 $4,053 $994 $4,403 $5,397 1.4x1.3x13.39.4
ASOF IIOpportunistic Credit20219,296 7,128 6,202 27 7,986 8,013 1.4x1.3x17.913.1
ACE VI Unlevered(7)
European Direct Lending202224,684 7,439 3,011 171 3,129 3,300 1.1x1.1x13.39.5
ACE VI Levered(7)
9,667 3,615 273 3,866 4,139 1.2x1.1x20.514.6
SDL III Unlevered(8)
U.S. Direct Lending202327,223 3,311 1,243 66 1,274 1,340 1.1x1.1x13.910.3
SDL III Levered11,959 3,331 295 3,542 3,837 1.2x1.2x27.619.2
Funds Harvesting Investments
ACE IV Unlevered(9)
European Direct Lending20186,086 2,851 2,454 2,056 1,171 3,227 1.4x1.3x8.05.8
ACE IV Levered(9)
4,819 4,096 3,825 2,022 5,847 1.6x1.4x11.07.8
ACE V Unlevered(10)
European Direct Lending202017,511 7,026 5,831 1,711 5,626 7,337 1.3x1.3x10.37.6
ACE V
Levered(10)
6,376 5,305 2,206 5,192 7,398 1.5x1.3x14.410.6
SDL II UnleveredU.S. Direct Lending202116,468 1,989 1,700 405 1,665 2,070 1.3x1.2x11.49.0
SDL II Levered6,047 4,924 1,793 4,695 6,488 1.4x1.3x17.713.4
(1)For funds other than our opportunistic credit funds, realized value represent the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner. For our opportunistic credit funds, realized value represent the sum of all cash distributions to the fee-paying limited partners and if applicable, exclude tax and incentive distributions made to the general partner.                    
(2)Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated. For funds other than our opportunistic credit funds, the unrealized value is based on all partners. For our opportunistic credit funds, the unrealized value is based on the fee-paying limited partners.
(3)The gross multiple of invested capital (“MoIC”) is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, as applicable, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(7)ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in pound sterling: ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds: ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes. ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered. Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds. The gross and net IRR for ACE VI (G) Unlevered are 15.0% and 10.5%, respectively. The gross and net MoIC for ACE VI (G) Unlevered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (G) Levered are 24.3% and 14.4%, respectively. The gross and net MoIC for ACE VI (G) Levered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Unlevered are 13.1% and 9.2%, respectively. The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (E) II Levered are 21.1% and 15.2%, respectively. The gross and net MoIC for ACE VI (E) II Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (D) Levered are 24.4% and 18.6%, respectively. The gross and net MoIC for ACE VI (D) Levered are 1.2x and 1.2x, respectively. The gross and net IRR for ACE VI (Y) Unlevered are 9.9% and 6.4%, respectively. The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively. The gross and net IRR for ACE VI (D) Rated Notes are 20.5% and 12.5%, respectively. The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of the fund's closing. All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.
(8)SDL III Unlevered includes investor commitments in three currencies: U.S. dollars, pound sterling, and yen. The gross and net IRR and MoIC presented in the table are for investors committed in U.S. dollars. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of the fund's closing. All other values for SDL III Unlevered are for the combined fund and are converted to U.S. dollars at the prevailing quarter-end exchange rate.
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(9)ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling: ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered and one feeder fund: ACE IV (D) Levered. ACE IV (E) Levered includes the ACE IV (D) Levered feeder fund. The gross and net IRR and MoIC presented in the table are for ACE IV (E) Unlevered and ACE IV (E) Levered. Metrics for ACE IV (E) Levered exclude the U.S. dollar denominated feeder fund. The gross and net IRR for ACE IV (G) Unlevered are 9.6% and 7.0%, respectively. The gross and net MoIC for ACE IV (G) Unlevered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE IV (G) Levered are 12.3% and 8.7%, respectively. The gross and net MoIC for ACE IV (G) Levered are 1.7x and 1.5x, respectively. The gross and net IRR for ACE IV (D) Levered are 12.4% and 9.1%, respectively. The gross and net MoIC for ACE IV (D) Levered are 1.7x and 1.5x, respectively. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of the fund’s closing. All other values for ACE IV Unlevered and ACE IV Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.
(10)ACE V is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling: ACE V (E) Unlevered, ACE V (G) Unlevered, ACE V (E) Levered, and ACE V (G) Levered, and two feeder funds: ACE V (D) Levered and ACE V (Y) Unlevered. ACE V (E) Levered includes the ACE V (D) Levered feeder fund and ACE V (E) Unlevered includes the ACE V (Y) Unlevered feeder fund. The gross and net IRR and gross and net MoIC presented in the table are for ACE V (E) Unlevered and ACE V (E) Levered. Metrics for ACE V (E) Levered exclude the ACE V (D) Levered feeder fund and metrics for ACE V (E) Unlevered exclude the ACE V (Y) Unlevered feeder fund. The gross and net IRR for ACE V(G) Unlevered are 11.9% and 9.0%, respectively. The gross and net MoIC for ACE V (G) Unlevered are 1.4x and 1.3x, respectively. The gross and net IRR for ACE V (G) Levered are 15.6% and 11.3%, respectively. The gross and net MoIC for ACE V (G) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (D) Levered are 14.8% and 11.1%, respectively. The gross and net MoIC for ACE V (D) Levered are 1.5x and 1.4x, respectively. The gross and net IRR for ACE V (Y) Unlevered are 10.3% and 7.4%, respectively. The gross and net MoIC for ACE V (Y) Unlevered are 1.3x and 1.2x, respectively. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of the fund's closing. All other values for ACE V Unlevered and ACE V Levered are for the combined levered and unlevered parallel funds and are converted to U.S. dollars at the prevailing quarter-end exchange rate.
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Real Assets Group—Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024

Fee Related Earnings
The following table presents the components of the Real Assets Group’s FRE ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Management fees$177,655 $105,733 $71,922 68%$484,032 $299,156 $184,876 62%
Fee related performance revenues5,904 — 5,904 NM6,051 — 6,051 NM
Other fees55,556 7,263 48,293 NM125,494 18,783 106,711 NM
Compensation and benefits(85,513)(42,360)(43,153)(102)(222,504)(119,403)(103,101)(86)
General, administrative and other expenses(27,515)(14,118)(13,397)(95)(79,062)(43,857)(35,205)(80)
Fee Related Earnings$126,087 $56,518 69,569 123$314,011 $154,679 159,332 103

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



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The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 ($ in millions):
Three month changeNine month change
Fees from acquisitions:
Fees from the GCP Acquisition effective March 1, 2025, excluding catch-up fees$58.3 $140.5 
Fees from the WSM Acquisition effective December 1, 20245.5 15.8 
Catch-up fees generated from U.S. Logistics Partners V, L.P. — 3.7 
Perpetual wealth vehicles:
Fees from our open-ended infrastructure fund, excluding Part I Fees, our diversified non-traded REIT and our U.S. open-ended industrial real estate fund, driven by additional capital raised
8.8 16.5 
Part I Fees from our open-ended infrastructure fund driven by an increase in net investment income from its growing portfolio of investments1.6 1.6 
Capital commitments:
Fees from our fourth European value-add real estate equity fund, our 11th U.S. value-add real estate equity fund and ACIP II, excluding catch-up fees
2.6 10.7 
Catch-up fees from our fourth European value-add real estate equity fund, our 11th U.S. value-add real estate equity fund and ACIP II0.8 1.1 
Catch-up fees from Ares U.S. Real Estate Opportunity Fund IV, L.P. (“AREOF IV”), which had its final close in the third quarter of 2024(5.0)(6.5)
Distributions that reduced the fee base of U.S. Power Fund IV, L.P. and Infrastructure Debt Fund IV, L.P. as the funds are past their investment periods(2.2)(4.4)
Cumulative effect of other changes1.5 5.9 
Total$71.9 $184.9 

The decreases in effective management fee rate for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were primarily driven by lower effective management fee rates from funds that we manage as a result of the GCP Acquisition and the impact of the fees received from these funds. Certain of these funds pay management fees based on net operating income and we present the associated effective management fee rates as a percentage of fund assets, which may result in greater variability in the Real Assets Group’s effective management fee rate. In addition, due to the vertically integrated focus of the acquired platform following the GCP Acquisition, we expect the size and composition of other fees earned from these funds will increase relative to management fees.
Fee Related Performance Revenues. Fee related performance revenues for the three and nine months ended September 30, 2025 were primarily attributable to incentive fees earned from our U.S. open-ended industrial real estate fund that vary based upon a three-year measurement period calculated for each fund investor.
Other Fees. The increases in other fees for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were driven by incremental fees of $45.5 million and $100.5 million, respectively, following the completion of the GCP Acquisition. The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees. For the three and nine months ended September 30, 2025, these incremental fees largely represented development and leasing fees.
Excluding the aforementioned impact of the GCP Acquisition, other fees increased by $2.8 million and $6.2 million, or 39% and 33%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to higher property management fees from increased activity within certain U.S. real estate equity funds.
Compensation and Benefits. The GCP Acquisition added 530 professionals to our period end headcount as of September 30, 2025, which represents 444 full-time equivalents for the year-to-date period. Headcount growth attributable to the GCP Acquisition contributed $35.8 million and $83.2 million in employment related costs for the three and nine months ended September 30, 2025, respectively, largely reflecting salary expense and incentive-based compensation.
Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $7.6 million and $20.1 million, or 18% and 17%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in compensation and benefits over the comparative periods were driven by: (i) higher incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; and (ii) higher fee related performance compensation of $3.5 million for each of the comparative periods, corresponding to the aforementioned increases in fee related performance revenues.
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Full-time equivalent headcount increased by 123% to 860 investment and investment support professionals for the year-to-date period in 2025 from 386 professionals for the same period in 2024, including the impact of GCP International previously discussed.
General, Administrative and Other Expenses. The GCP Acquisition contributed $10.1 million and $27.6 million in general, administrative and other expenses for the three and nine months ended September 30, 2025, respectively, and included certain non-recurring integration costs of $0.7 million and $1.8 million, respectively. We expect the remainder of the operating expenses to fluctuate during an integration period as we seek to generate cost savings and begin to execute on synergy opportunities.
General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $3.3 million and $7.6 million, or 24% and 17%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases were driven by supplemental distribution fees, which increased by $3.5 million and $5.0 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, as we expanded our wealth product offerings with our open-ended infrastructure fund.
In addition, occupancy costs and information technology costs collectively increased by $3.0 million for the nine months ended September 30, 2025 compared to the same period in 2024 to support our growing headcount and the expansion of our business.
Realized Income

The following table presents the components of the Real Assets Group’s RI ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings$126,087 $56,518 $69,569 123%$314,011 $154,679 $159,332 103%
Performance income—realized1,200 15,441 (14,241)(92)70,186 24,324 45,862 189
Performance related compensation—realized(769)(9,403)8,634 92(49,893)(15,134)(34,759)(230)
Realized net performance income431 6,038 (5,607)(93)20,293 9,190 11,103 121
Investment income (loss)—realized10,415 3,729 6,686 17924,878 (592)25,470 NM
Interest income1,639 245 1,394 NM4,922 3,543 1,379 39
Interest expense(26,521)(6,190)(20,331)NM(66,808)(21,472)(45,336)(211)
Realized net investment loss(14,467)(2,216)(12,251)NM(37,008)(18,521)(18,487)(100)
Realized Income$112,051 $60,340 51,711 86$297,296 $145,348 151,948 105

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The Real Assets Group’s realized activities were principally composed of and caused by the following:
Three months ended September 30, 2025Three months ended September 30, 2024
Realized net performance income
Carried interest:
•Distributions of $0.4 million from U.S. Real Estate Fund VIII, L.P. (“US VIII”), which is a European-style waterfall fund that is past its investment period and monetizing investments
Carried interest:
•Distributions of $3.1 million from the partial sale of an ACIP I co-investment vehicle’s investment in a renewable energy company
•Distributions of $2.4 million from US VIII, which is past its investment period and monetizing investments
Realized investment income and interest income
•Income of $7.9 million from our APAC real estate equity and real estate debt funds
•Income of $2.2 million from US VIII
•Income of $1.2 million from the sale of an infrastructure opportunities fund’s investment in a wind energy company and $1.2 million from an infrastructure debt fund
Nine months ended September 30, 2025Nine months ended September 30, 2024
Realized net performance income
Carried interest:
•Tax distributions of $12.6 million from EIF V
•Distributions of $4.6 million from US VIII and a U.S. real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments
•Distributions of $2.1 million from the sale of an ACIP I co-investment vehicle’s investment in a renewable energy company
Carried interest:
•Distributions of $3.5 million from US VIII, which is past its investment period and monetizing investments
•Distributions of $3.1 million from the partial sale of an ACIP I co-investment vehicle’s investment in a renewable energy company
Incentive fees:
•Incentive fees of $1.9 million generated from a U.S. open-ended industrial real estate fund that varies based upon a three-year measurement period calculated for each fund investor
Realized investment income and interest income
•Income of $15.8 million from our APAC real estate equity and real estate debt funds
•Income of $3.5 million from US VIII

•Realized investment losses of $12.4 million associated with a guarantee of a credit facility provided in connection with a historical acquisition
•Income of $6.4 million from funds within our real estate debt strategy and $2.6 million from an infrastructure debt fund
•Income of $1.2 million from the sale of an infrastructure opportunities fund’s investment in a wind energy company
Interest expense increased over the comparative periods primarily due to financing costs incurred in connection with the GCP Acquisition. Interest expense is allocated among our segments primarily based on the cost basis of our balance sheet investments and the cost of acquisitions. The financing costs to complete the GCP Acquisition resulted in a greater allocation of interest expense to the Real Assets Group in the current year periods. We expect that interest expense allocated to the Real Assets Group will remain elevated in the current year as the interest expense associated with the GCP Acquisition will remain fully allocated to the Real Assets Group.

Real Assets Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Real Assets Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):
 As of September 30, 2025As of December 31, 2024
Accrued Performance IncomeAccrued Performance CompensationAccrued Net Performance IncomeAccrued Performance IncomeAccrued Performance CompensationAccrued Net Performance Income
US IX$109.6 $68.0 $41.6 $99.8 $61.9 $37.9 
EIF V91.4 68.3 23.1 121.3 90.7 30.6 
IDF V161.7 99.4 62.3 113.7 69.3 44.4 
ACIP I96.0 66.0 30.0 97.7 66.8 30.9 
Other Real Assets funds150.5 97.2 53.3 135.8 85.7 50.1 
Total Real Assets Group$609.2 $398.9 $210.3 $568.3 $374.4 $193.9 


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The following table presents the change in accrued performance income for the Real Assets Group ($ in millions):
 As of December 31, 2024Activity during the periodAs of September 30, 2025
Waterfall
Type		Accrued Performance IncomeChange in UnrealizedRealizedOther AdjustmentsAccrued Performance Income
Accrued Carried Interest
US IXEuropean$99.8 $9.8 $— $— $109.6 
EIF VEuropean121.3 19.9 (49.8)— 91.4 
IDF VEuropean113.7 31.2 — 16.8 161.7 
ACIP IEuropean97.7 3.6 (5.3)— 96.0 
Other Real Assets fundsEuropean97.2 22.0 (14.6)0.7 105.3 
Other Real Assets fundsAmerican38.6 6.6 — — 45.2 
Total accrued carried interest568.3 93.1 (69.7)17.5 609.2 
Other Real Assets fundsIncentive— 0.5 (0.5)— — 
Total Real Assets Group$568.3 $93.6 $(70.2)$17.5 $609.2 
        

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Real Assets Group—Assets Under Management

The tables below present rollforwards of AUM for the Real Assets Group ($ in millions):
Real EstateInfrastructureTotal Real
Assets Group
Balance at 6/30/2025$108,650 $21,124 $129,774 
Net new par/equity commitments1,698 1,649 3,347 
Net new debt commitments1,096 377 1,473 
Capital reductions(883)— (883)
Distributions(741)(531)(1,272)
Redemptions(226)(366)(592)
Net allocations among investment strategies(133)258 125 
Change in fund value39 343 382 
Balance at 9/30/2025$109,500 $22,854 $132,354 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 6/30/2024$51,527 $16,165 $67,692 
Net new par/equity commitments1,182 422 1,604 
Net new debt commitments1,250 — 1,250 
Capital reductions(254)— (254)
Distributions(414)(519)(933)
Redemptions(206)— (206)
Change in fund value565 635 1,200 
Balance at 9/30/2024$53,650 $16,703 $70,353 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 12/31/2024$58,246 $17,052 $75,298 
Acquisitions43,273 2,008 45,281 
Net new par/equity commitments3,869 4,035 7,904 
Net new debt commitments5,162 544 5,706 
Capital reductions(2,035)— (2,035)
Distributions(2,591)(1,859)(4,450)
Redemptions(516)(366)(882)
Net allocations among investment strategies(239)413 174 
Change in fund value4,331 1,027 5,358 
Balance at 9/30/2025$109,500 $22,854 $132,354 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 12/31/2023$49,715 $15,698 $65,413 
Net new par/equity commitments3,311 1,191 4,502 
Net new debt commitments2,954 — 2,954 
Capital reductions(589)— (589)
Distributions(1,055)(1,459)(2,514)
Redemptions(931)— (931)
Change in fund value245 1,273 1,518 
Balance at 9/30/2024$53,650 $16,703 $70,353 

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The components of our AUM for the Real Assets Group are presented below ($ in billions):
5791    5793
AUM: $132.4AUM: $70.3
FPAUM
Non-fee paying(1)
AUM not yet paying fees
(1) Includes $1.4 billion and $0.7 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.


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Real Assets Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Real Assets Group ($ in millions):
Real EstateInfrastructureTotal Real
Assets Group
Balance at 6/30/2025$67,192 $12,303 $79,495 
Commitments1,695 1,116 2,811 
Deployment/increase in leverage850 610 1,460 
Capital reductions(774)— (774)
Distributions(541)(1,163)(1,704)
Redemptions(226)(366)(592)
Net allocations among investment strategies(133)258 125 
Change in fund value7 (503)(496)
Change in fee basis178 — 178 
Balance at 9/30/2025$68,248 $12,255 $80,503 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 6/30/2024$30,298 $11,325 $41,623 
Commitments1,104 49 1,153 
Deployment/increase in leverage526 255 781 
Distributions(286)(295)(581)
Redemptions(206)— (206)
Change in fund value419 108 527 
Change in fee basis(124)(60)(184)
Balance at 9/30/2024$31,731 $11,382 $43,113 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 12/31/2024$32,896 $11,192 $44,088 
Acquisitions30,178 289 30,467 
Commitments3,068 1,692 4,760 
Deployment/increase in leverage2,250 2,006 4,256 
Capital reductions(951)— (951)
Distributions(1,812)(2,603)(4,415)
Redemptions(516)(366)(882)
Net allocations among investment strategies(239)413 174 
Change in fund value3,433 (727)2,706 
Change in fee basis(59)359 300 
Balance at 9/30/2025$68,248 $12,255 $80,503 
Real EstateInfrastructureTotal Real
Assets Group
Balance at 12/31/2023$30,310 $11,028 $41,338 
Commitments2,482 192 2,674 
Deployment/increase in leverage1,715 793 2,508 
Capital reductions(12)— (12)
Distributions(801)(648)(1,449)
Redemptions(931)— (931)
Change in fund value6 77 83 
Change in fee basis(1,038)(60)(1,098)
Balance at 9/30/2024$31,731 $11,382 $43,113 


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The charts below present FPAUM for the Real Assets Group by its fee bases ($ in billions):
6047    6049
FPAUM: $80.5FPAUM: $43.1
Invested capital/other(1)
GAV
Market value(2)
Capital commitments
(1)Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.
(2)Amounts represent FPAUM from funds that primarily invest in illiquid strategies. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

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

The significant funds presented in the tables below collectively contributed approximately 34% of the Real Assets Group’s management fees for the nine months ended September 30, 2025.

The following table presents the performance data for our significant funds that are not drawdown funds in the Real Assets Group as of September 30, 2025 ($ in millions):
   Returns(%)
Primary
Investment Strategy		Year of InceptionAUMCurrent QuarterYear-To-Date
Since Inception(1)
FundGrossNetGrossNetGrossNet
Diversified non-traded REIT(2)
Real Estate2012$7,010 N/A3.2 N/A7.9 N/A6.4 
J-REIT(3)
Real Estate20128,076 N/AN/AN/AN/AN/A13.3 
Industrial non-traded REIT(4)
Real Estate20177,565 N/A1.8 N/A6.3 N/A8.5 
U.S. open-ended industrial real estate fund(5)
Real Estate20175,779 1.3 1.0 4.6 3.8 16.4 13.4 
Japanese open-ended industrial real estate fundReal Estate20203,856 3.6 3.3 7.6 6.8 13.6 11.8 
(1)Since inception returns are annualized.
(2)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. The inception date used in the calculation of the since inception return is the date in which the first shares of common stock were sold after converting to a NAV-based REIT.
(3)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at NAV on the semi-annual period-end date. NAVs are calculated semi-annually in February and August, and therefore, only the since inception return is presented. The inception date used in the calculation of the since inception return is the date in which the fund's investment units began to be listed on the Tokyo Stock Exchange. The since inception return is calculated based on the most recent NAV date. Additional information related to J-REIT can be found in its materials posted to its website, which are not part of this report.
(4)Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.
(5)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Gross returns do not reflect the deduction of management fees, incentive fees, as applicable, or other expenses. Net returns are calculated by subtracting the applicable management fees, incentive fees, as applicable and other expenses from the gross returns on a quarterly basis.

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The following table presents the performance data of the Real Assets Group’s significant drawdown funds as of September 30, 2025 ($ in millions):
Primary Investment StrategyYear of InceptionAUMOriginal Capital CommitmentsCapital Invested to Date
Realized Value(1)
Unrealized Value(2)
Total ValueMoICIRR(%)
Fund
Gross(3)
Net(4)
Gross(5)
Net(6)
Fund Harvesting Investments
Europe Logistics Income Partners II SCSp (“EIP II”)(7)
Real Estate2020$4,033 $1,839 $1,786 $222 $1,782 $2,004 1.2x1.1x3.2 2.8 
(1)Realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners.
(2)Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated.
(3)The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and, if applicable, excludes interests attributable to the non fee-paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees, carried interest, as applicable, credit facility interest expense, as applicable, and other expenses. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(7)EIP II is a Euro-denominated fund. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund's closing. All other values for EIP II are converted to U.S. Dollars at the prevailing quarter-end exchange rate.

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Private Equity Group—Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024
Fee Related Earnings
The following table presents the components of the Private Equity Group’s FRE ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Management fees$33,284 $34,621 $(1,337)(4)%$97,049 $103,126 $(6,077)(6)%
Other fees467 372 95 261,298 1,258 40 3
Compensation and benefits(15,752)(13,877)(1,875)(14)(46,379)(42,737)(3,642)(9)
General, administrative and other expenses(4,892)(4,576)(316)(7)(14,708)(15,282)574 4
Fee Related Earnings$13,107 $16,540 (3,433)(21)$37,260 $46,365 (9,105)(20)

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





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The following table presents the components of and causes for changes in the Private Equity Group’s management fees for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 ($ in millions):
Three month changeNine month change
Fees from acquired APAC private equity funds effective August 1, 2025
$2.0 $2.0 
Corporate private equity extended value fund that stopped paying fees at the end of the fourth quarter of 2024
(1.7)(5.1)
Cumulative effect of other changes(1.6)(3.0)
Total$(1.3)$(6.1)

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

Compensation and Benefits. The changes in compensation and benefits largely reflect higher incentive-based compensation recognized in anticipation of management fees from Ares Corporate Opportunities Fund VII, L.P. (“ACOF VII”) turning on in the fourth quarter of 2025. Full-time equivalent headcount increased by 4% to 107 investment and investment support professionals for the year-to-date period in 2025 from 103 professionals in 2024.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings$13,107 $16,540 $(3,433)(21)%$37,260 $46,365 $(9,105)(20)%
Performance income—realized3,744 475 3,269 NM39,733 9,032 30,701 NM
Performance related compensation—realized(2,999)(380)(2,619)NM(29,856)(7,235)(22,621)NM
Realized net performance income745 95 650 NM9,877 1,797 8,080 NM
Investment income (loss)—realized513 526 (13)(2)(3,720)1,287 (5,007)NM
Interest income1 4 (3)(75)2,024 12 2,012 NM
Interest expense(3,785)(4,454)669 15(11,775)(13,801)2,026 15
Realized net investment loss(3,271)(3,924)653 17(13,471)(12,502)(969)(8)
Realized Income$10,581 $12,711 (2,130)(17)$33,666 $35,660 (1,994)(6)

The Private Equity Group’s realized activities were principally composed of and caused by the following:
Three months ended September 30, 2025Three months ended September 30, 2024
Realized net performance income
Carried interest:
•Distributions from partial sales of ACOF IV’s investments in various energy companies
•No significant activities
Nine months ended September 30, 2025Nine months ended September 30, 2024
Realized net performance income
Carried interest:
•Distributions from partial sales of ACOF VI’s investment in FYBR and ACOF IV’s investments in various energy companies
Carried interest:
•Distributions from ACOF IV’s investment in various energy companies
Realized investment income (loss) and interest income
•Realized investment loss of $5.7 million from Ares Corporate Opportunities Fund III, L.P. as the fund continues to liquidate its remaining assets

•No significant activities
Interest expense decreased for the three and nine months ended September 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.
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Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in millions):
 As of September 30, 2025As of December 31, 2024
Accrued Performance IncomeAccrued Performance CompensationAccrued Net Performance IncomeAccrued Performance IncomeAccrued Performance CompensationAccrued Net Performance Income
ACOF IV$130.8 $104.7 $26.1 $166.8 $133.6 $33.2 
ACOF VI613.3 543.2 70.1 523.1 442.8 80.3 
Other Private Equity funds14.0 11.3 2.7 20.9 14.8 6.1 
Total Private Equity Group$758.1 $659.2 $98.9 $710.8 $591.2 $119.6 
The following table presents the change in accrued carried interest for the Private Equity Group ($ in millions):
 As of December 31, 2024Activity during the periodAs of September 30, 2025
Waterfall TypeAccrued Carried InterestChange in UnrealizedRealizedOther AdjustmentsAccrued Carried Interest
ACOF IVAmerican$166.8 $(19.5)$(16.5)$— $130.8 
ACOF VIAmerican523.1 139.0 (23.2)(25.6)613.3 
Other Private Equity fundsEuropean13.1 (12.6)— — 0.5 
Other Private Equity fundsAmerican7.8 5.7 — — 13.5 
Total Private Equity Group$710.8 $112.6 $(39.7)$(25.6)$758.1 

The reduction in ACOF VI accrued carried interest was driven by a partial contribution of our rights to receive the carried interest from this fund to a structured investment vehicle. As a result, the contributed carried interest is now reflected as an investment of the structured investment vehicle.

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Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):
Corporate Private
Equity		APAC Private
Equity		OtherTotal Private
Equity Group
Balance at 6/30/2025$21,201 $2,565 $— $23,766 
Acquisitions— 856 — 856 
Net new par/equity commitments516 12 — 528 
Capital reductions(1)— — (1)
Distributions(70)(81)— (151)
Change in fund value78 20 — 98 
Balance at 9/30/2025$21,724 $3,372 $— $25,096 
Corporate Private
Equity		APAC Private
Equity		OtherTotal Private
Equity Group
Balance at 6/30/2024$21,270 $3,310 $— $24,580 
Net new par/equity commitments105 — — 105 
Distributions(187)(8)— (195)
Change in fund value208 (194)— 14 
Balance at 9/30/2024$21,396 $3,108 $— $24,504 
Corporate Private
Equity		APAC Private
Equity		OtherTotal Private
Equity Group
Balance at 12/31/2024$21,064 $2,977 $— $24,041 
Acquisitions— 856 — 856 
Net new par/equity commitments1,475 28 — 1,503 
Capital reductions(55)— — (55)
Distributions(1,275)(81)— (1,356)
Change in fund value515 (408)— 107 
Balance at 9/30/2025$21,724 $3,372 $— $25,096 
Corporate Private
Equity		APAC Private
Equity
Other(1)
Total Private
Equity Group
Balance at 12/31/2023$20,998 $3,414 $139 $24,551 
Net new par/equity commitments374 3 58 435 
Capital reductions(4)— — (4)
Distributions(240)(19)— (259)
Redemptions— (2)— (2)
Net allocations among investment strategies150 — (197)(47)
Change in fund value118 (288)— (170)
Balance at 9/30/2024$21,396 $3,108 $— $24,504 
(1) Amounts represent equity commitments to the platform that have not yet been allocated to an investment strategy.

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The components of our AUM for the Private Equity Group are presented below ($ in billions):
22052206
AUM: $25.1AUM: $24.5
FPAUM
Non-fee paying(1)
AUM not yet paying fees
(1) Includes $1.1 billion and $1.3 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.


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Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):
Corporate Private
Equity		APAC Private
Equity		Total Private
Equity Group
Balance at 6/30/2025$9,491 $1,502 $10,993 
Acquisitions— 1,118 1,118 
Deployment/increase in leverage1 — 1 
Distributions(8)— (8)
Change in fund value(16)— (16)
Change in fee basis— (240)(240)
Balance at 9/30/2025$9,468 $2,380 $11,848 
Corporate Private
Equity		APAC Private
Equity		Total Private
Equity Group
Balance at 6/30/2024$10,592 $1,673 $12,265 
Deployment/increase in leverage9 — 9 
Distributions(54)— (54)
Change in fund value(5)— (5)
Change in fee basis68 — 68 
Balance at 9/30/2024$10,610 $1,673 $12,283 
Corporate Private
Equity		APAC Private
Equity		Total Private
Equity Group
Balance at 12/31/2024$9,860 $1,567 $11,427 
Acquisitions— 1,118 1,118 
Deployment/increase in leverage26 7 33 
Capital reductions(11)— (11)
Distributions(8)— (8)
Change in fund value(14)— (14)
Change in fee basis(385)(312)(697)
Balance at 9/30/2025$9,468 $2,380 $11,848 
Corporate Private
Equity		APAC Private
Equity		Total Private
Equity Group
Balance at 12/31/2023$11,459 $1,665 $13,124 
Deployment/increase in leverage18 16 34 
Distributions(54)— (54)
Redemptions— (2)(2)
Change in fund value(33)— (33)
Change in fee basis(780)(6)(786)
Balance at 9/30/2024$10,610 $1,673 $12,283 
The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):
24672468    
FPAUM: $11.8FPAUM: $12.3
Capital commitmentsInvested capital
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Private Equity Group—Fund Performance Metrics as of September 30, 2025

The significant funds presented in the table below collectively contributed approximately 75% of the Private Equity Group’s management fees for the nine months ended September 30, 2025.

The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of September 30, 2025 ($ in millions):
Primary Investment StrategyYear of InceptionAUMOriginal Capital CommitmentsCapital Invested to Date
Realized Value(1)
Unrealized Value(2)
Total ValueMoICIRR(%)
Fund
Gross(3)
Net(4)
Gross(5)
Net(6)
Fund Deploying Capital
ACOF VICorporate Private Equity2020$8,546 $5,743 $5,869 $2,107 $8,080 $10,187 1.7x1.5x21.5 16.1 
Funds Harvesting Investments
ACOF V Corporate Private Equity20177,092 7,850 7,611 4,115 6,622 10,737 1.4x1.3x7.1 5.2 
(1)Realized value represents the sum of all cash dividends, interest income, other fees and cash proceeds from realizations of interests in portfolio investments. Realized value excludes any proceeds related to bridge financings.
(2)Unrealized value represents the fair market value of remaining investments. Unrealized value does not take into account any bridge financings. There can be no assurance that unrealized investments will be realized at the valuations indicated.
(3)The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross MoICs are also calculated before giving effect to any bridge financings. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(4)The net MoIC is calculated at the fund-level. The net MoIC is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or performance fees. The net MoIC is after giving effect to management fees, carried interest, as applicable, and other expenses. The net MoICs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net MoIC would be 1.3x for ACOF V and 1.4x for ACOF VI. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRRs reflect returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The gross IRRs are also calculated before giving effect to any bridge financings. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculation are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees, carried interest as applicable, and other expenses and exclude commitments by the general partner and Schedule I investors who do not pay either management fees or carried interest. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility. The net IRRs are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the net IRRs would be 5.3% for ACOF V and 15.5% for ACOF VI.

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Secondaries Group—Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024

Fee Related Earnings

The following table presents the components of the Secondaries Group’s FRE ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Management fees$91,303 $48,084 $43,219 90%$210,596 $140,650 $69,946 50%
Fee related performance revenues17,110 2,508 14,602 NM43,002 20,633 22,369 108
Other fees196 58 138 2386,119 116 6,003 NM
Compensation and benefits(24,952)(14,432)(10,520)(73)(66,390)(47,971)(18,419)(38)
General, administrative and other expenses(9,624)(8,464)(1,160)(14)(28,173)(26,428)(1,745)(7)
Fee Related Earnings$74,033 $27,754 46,279 167$165,154 $87,000 78,154 90

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









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The following table presents the components of and causes for changes in the Secondaries Group’s management fees for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 ($ in millions):
Three month changeNine month change
Capital commitments:
Catch-up fees generated from ASIS III and related vehicles$27.2 $25.3 
Fees from ASIS III, excluding catch-up fees, and a credit secondaries fund
7.4 21.5 
Perpetual wealth vehicles:
Fees from APMF, driven by additional capital raised
7.6 20.3 
Cumulative effect of other changes1.0 2.8 
Total$43.2 $69.9 
The increases in effective management fee rate for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were primarily due to additional capital raised by APMF that has a fee rate of 1.40%.

Fee Related Performance Revenues. The increases in fee related performance revenues for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were attributable to higher incentive fees earned from APMF driven by increased IGAUM and higher investment returns over the comparative periods.

Other Fees. The increase in other fees for the nine months ended September 30, 2025 compared to the same period in 2024 were attributable to capital markets transaction fees associated with services provided by Ares Management Capital Markets LLC (“AMCM”) during the second quarter of 2025.
Compensation and Benefits. The increases in compensation and benefits for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were driven by: (i) higher incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; and (ii) higher fee related performance compensation of $7.4 million and $11.6 million, respectively, corresponding to the increases in fee related performance revenues. We reduced fee related performance compensation by $3.1 million and $1.1 million for the three months ended September 30, 2025 and 2024, respectively, and $8.7 million and $6.0 million for the nine months ended September 30, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees paid to distribution partners.

Full-time equivalent headcount increased slightly to 115 investment and investment support professionals for the year-to-date period in 2025 from 112 professionals in 2024.

General, Administrative and Other Expenses. The increases in general, administrative and other expenses were primarily due to costs incurred to support distribution of shares in APMF. Supplemental distribution fees increased by $1.9 million and $3.4 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024.

Conversely, placement fee expense decreased by $1.1 million for the nine months ended September 30, 2025 compared to the same period in 2024. The activity for the nine months ended September 30, 2024 included $1.3 million of investor service fees that were fully recognized through the service period that ended in the third quarter of 2024.

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Realized Income

The following table presents the components of the Secondaries Group’s RI ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings$74,033 $27,754 $46,279 167%$165,154 $87,000 $78,154 90%
Performance income—realized177 — 177 NM177 361 (184)(51)
Performance related compensation—realized(106)— (106)NM(106)110 (216)NM
Realized net performance income71 — 71 NM71 471 (400)(85)
Investment income—realized221 76 145 191376 390 (14)(4)
Interest income68 20 48 2401,048 64 984 NM
Interest expense(2,076)(5,566)3,490 63(5,946)(21,511)15,565 72
Realized net investment loss(1,787)(5,470)3,683 (67)(4,522)(21,057)16,535 79
Realized Income$72,317 $22,284 50,033 225$160,703 $66,414 94,289 142

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

Interest expense decreased for the three and nine months ended September 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.
Secondaries Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Secondaries Group. Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):
 As of September 30, 2025As of December 31, 2024
Accrued Performance IncomeAccrued Performance CompensationAccrued Net Performance IncomeAccrued Performance IncomeAccrued Performance CompensationAccrued Net Performance Income
LEP XVI$1.6 $1.6 $— $144.1 $123.3 $20.8 
LREF VIII79.0 66.9 12.1 81.3 68.9 12.4 
Other Secondaries funds79.9 60.6 19.3 38.4 28.8 9.6 
Total Secondaries Group
$160.5 $129.1 $31.4 $263.8 $221.0 $42.8 

The following table presents the change in accrued performance income for the Secondaries Group ($ in millions):
 As of December 31, 2024Activity during the periodAs of September 30, 2025
Waterfall TypeAccrued Performance IncomeChange in UnrealizedRealizedOther AdjustmentsAccrued Performance Income
Accrued Carried Interest
LEP XVIEuropean$144.1 $(11.3)$— $(131.2)

$1.6 
LREF VIIIEuropean81.3 (2.3)— — 79.0 
Other Secondaries funds
European38.4 41.5 — — 79.9 
Total accrued carried interest263.8 27.9 — (131.2)160.5 
Other Secondaries funds
Incentive— 0.2 (0.2)— — 
Total Secondaries Group
$263.8 $28.1 $(0.2)$(131.2)$160.5 

The reduction in LEP XVI accrued carried interest was driven by the contribution of our rights to receive the carried interest from this fund to a structured investment vehicle. As a result, the contributed carried interest is now reflected as an investment of the structured investment vehicle.

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Secondaries Group—Assets Under Management

The table below presents the rollforwards of AUM for the Secondaries Group ($ in millions):
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit
Secondaries		Other
Total Secondaries
Group
Balance at 6/30/2025$18,183 $7,998 $4,199 $3,569 $— $33,949 
Net new par/equity commitments910 174 1,941 324 — 3,349 
Net new debt commitments775 — — — — 775 
Capital reductions(32)— — — — (32)
Distributions(108)(36)(57)(9)— (210)
Redemptions(60)— — — — (60)
Change in fund value380 125 82 17 — 604 
Balance at 9/30/2025$20,048 $8,261 $6,165 $3,901 $— $38,375 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit
Secondaries
Other(1)
Total Secondaries
Group
Balance at 6/30/2024$13,838 $7,903 $2,899 $1,663 $— $26,303 
Net new par/equity commitments621 10 — 57 — 688 
Net new debt commitments625 — — — — 625 
Distributions(98)(22)(39)(3)— (162)
Net allocations among investment strategies15 — — — 10 25 
Change in fund value(239)(24)43 (4)— (224)
Balance at 9/30/2024$14,762 $7,867 $2,903 $1,713 $10 $27,255 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit
Secondaries		OtherTotal Secondaries
Group
Balance at 12/31/2024$15,805 $7,779 $3,691 $1,878 $— $29,153 
Net new par/equity commitments3,258 402 2,522 1,973 — 8,155 
Net new debt commitments775 — — — — 775 
Capital reductions(32)(58)— — — (90)
Distributions(336)(80)(167)(26)— (609)
Redemptions(123)— — — — (123)
Net allocations among investment strategies10 25 — 38 — 73 
Change in fund value691 193 119 38 — 1,041 
Balance at 9/30/2025$20,048 $8,261 $6,165 $3,901 $— $38,375 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit
Secondaries
Other(1)
Total Secondaries
Group
Balance at 12/31/2023$13,174 $7,826 $2,380 $1,380 $— $24,760 
Net new par/equity commitments1,572 198 424 329 — 2,523 
Net new debt commitments625 — — — — 625 
Distributions(461)(48)(94)(9)— (612)
Net allocations among investment strategies15 — — — 10 25 
Change in fund value(163)(109)193 13 — (66)
Balance at 9/30/2024$14,762 $7,867 $2,903 $1,713 $10 $27,255 
(1) Amounts represent equity commitments to the platform that have not yet been allocated to an investment strategy.

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

4069 4074
AUM: $38.4AUM: $27.3
FPAUMAUM not yet paying fees
Non-fee paying(1)
(1) Includes $1.1 billion and $0.5 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.
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Secondaries Group—Fee Paying AUM

The table below presents the rollforwards of fee paying AUM for the Secondaries Group ($ in millions):
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit
Secondaries		Total Secondaries
Group
Balance at 6/30/2025$13,918 $6,557 $3,144 $916 $24,535 
Commitments1,251 24 1,878 — 3,153 
Deployment/increase in leverage65 (28)5 71 113 
Distributions(11)(43)(47)— (101)
Redemptions(60)— — — (60)
Change in fund value133 120 22 169 444 
Change in fee basis(5)— — — (5)
Balance at 9/30/2025$15,291 $6,630 $5,002 $1,156 $28,079 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit SecondariesTotal Secondaries
Group
Balance at 6/30/2024$12,018 $6,243 $2,137 $63 $20,461 
Commitments497 10 — — 507 
Deployment/increase in leverage(2)87 4 — 89 
Distributions(12)(17)(34)(3)(66)
Change in fund value(158)(68)39 52 (135)
Change in fee basis(2)40 — 198 236 
Balance at 9/30/2024$12,341 $6,295 $2,146 $310 $21,092 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit SecondariesTotal Secondaries
Group
Balance at 12/31/2024$12,788 $6,441 $2,582 $590 $22,401 
Commitments2,271 194 2,428 — 4,893 
Deployment/increase in leverage202 19 18 541 780 
Distributions(25)(81)(64)— (170)
Redemptions(123)— — — (123)
Net allocations among investment strategies10 25 — 38 73 
Change in fund value173 32 38 (13)230 
Change in fee basis(5)— — — (5)
Balance at 9/30/2025$15,291 $6,630 $5,002 $1,156 $28,079 
Private Equity
Secondaries		Real Estate
Secondaries		Infrastructure
Secondaries		Credit SecondariesTotal Secondaries
Group
Balance at 12/31/2023$11,204 $5,978 $1,763 $95 $19,040 
Commitments1,432 160 421 — 2,013 
Deployment/increase in leverage7 179 6 (1)191 
Distributions(135)(35)(88)(39)(297)
Change in fund value(116)(124)44 58 (138)
Change in fee basis(51)137 — 197 283 
Balance at 9/30/2024$12,341 $6,295 $2,146 $310 $21,092 

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The chart below presents FPAUM for the Secondaries Group by its fee bases ($ in billions):
4319 4323
FPAUM: $28.1FPAUM: $21.1
Reported value(1)
Capital commitmentsInvested capital/other
(1)Amounts represent FPAUM from funds that primarily invest in illiquid strategies. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

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

The significant funds presented in the tables below collectively contributed approximately 33% of the Secondaries Group’s management fees for the nine months ended September 30, 2025.
The following table presents the performance data for our significant fund that is not a drawdown fund in the Secondaries Group as of September 30, 2025 ($ in millions):
   Returns(%)
Primary
Investment Strategy		Year of InceptionAUMCurrent QuarterYear-To-Date
Since Inception(1)
FundGrossNetGrossNetGrossNet
APMF(2)
Private Equity Secondaries2022$4,380 N/A3.6 N/A11.3 N/A14.7 
(1)Since inception returns are annualized.
(2)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to APMF can be found in its filings with the SEC, which are not part of this report.

The following table presents the performance data of the Secondaries Group’s significant drawdown fund as of September 30, 2025 ($ in millions):
Primary Investment StrategyYear of InceptionAUMOriginal Capital CommitmentsCapital Invested to Date
Realized Value(1)
Unrealized Value(2)
Total ValueMoICIRR(%)
Fund
Gross(3)
Net(4)
Gross(5)
Net(6)
Fund Harvesting Investments
LEP XVI(7)
Private Equity Secondaries2016$4,165 $4,896 $4,318 $2,079 $3,304 $5,383 1.4x1.3x15.3 9.4 
Returns for LEP XVI are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period.

(1)Realized value represents the sum of all cash distributions to all limited partners and if applicable, exclude tax and incentive distributions made to the general partner.
(2)Unrealized value represents the limited partners’ share of fund’s NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated.
(3)The gross MoIC is calculated at the fund-level and is based on the interests of all partners. If applicable, limiting the gross MoIC to exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest would have no material impact on the result. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The gross fund-level MoIC would have generally been lower had such fund called capital from its partners instead of utilizing the credit facility.
(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees and other expenses, carried interest and credit facility interest expense, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation. The net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to all partners. If applicable, limiting the gross IRR to exclude interests attributable to the non-fee paying limited partners and/or the general
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partner who does not pay management fees or carried interest would have no material impact on the result. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. The gross fund-level IRR would generally have been lower had such fund called capital from its partners instead of utilizing the credit facility.
(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner who does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and other expenses, carried interest and credit facility interest expenses, as applicable. The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documents. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
(7)The results of the fund are presented on a combined basis with the affiliated parallel funds or accounts, given that the investments are substantially the same.


Operations Management Group—Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024

Fee Related Earnings

The following table presents the components of the Operations Management Group’s FRE ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Other fees$9,235 $5,253 $3,982 76%$22,603 $15,066 $7,537 50%
Compensation and benefits(144,405)(102,112)(42,293)(41)(395,518)(294,639)(100,879)(34)
General, administrative and other expenses(81,746)(56,124)(25,622)(46)(214,949)(160,514)(54,435)(34)
Fee Related Earnings$(216,916)$(152,983)(63,933)(42)$(587,864)$(440,087)(147,777)(34)

Other Fees. The increases in other fees for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were primarily attributable to higher facilitation fees from the 1031 exchange program associated with our non-traded REITs, as well as higher capital markets transaction services that were provided by AMCM.

Compensation and Benefits. The GCP Acquisition added 285 business operations professionals to our period end headcount as of September 30, 2025, which represents 208 full-time equivalents for the year-to-date period. Headcount growth attributable to the GCP Acquisition contributed $18.0 million and $30.8 million, respectively, in employment related costs for the three and nine months ended September 30, 2025, largely reflecting salary expense and incentive-based compensation.

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $24.3 million and $70.1 million, or 24% for both the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in compensation and benefits over the comparative periods were driven by: (i) the increase in headcount to support the growth of our business and other strategic initiatives; (ii) higher incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; and (iii) higher sales-based bonuses, which increased by $1.5 million and $6.9 million, respectively, primarily driven by the increase in sales of our wealth products.

Full-time equivalent headcount increased by 28% to 2,072 professionals for the year-to-date period in 2025 from 1,622 professionals in 2024, including the impact of GCP International previously discussed.

General, Administrative and Other Expenses. The GCP Acquisition contributed $16.2 million and $31.8 million, respectively, in general, administrative and other expenses for the three and nine months ended September 30, 2025 and primarily included certain non-recurring integration costs of $6.8 million and $14.2 million, respectively. We expect the remainder of the operating expenses to fluctuate during an integration period as we seek to generate cost savings and begin to execute on synergy opportunities.

General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $9.5 million and $22.6 million, or 17% and 14%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in general, administrative and other expenses were driven by occupancy costs and information technology costs, which collectively increased by $5.0 million and $14.2 million, respectively, over the comparative periods. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, with occupancy costs also being impacted by the expansion of our New York headquarters. In addition, marketing and travel expenses collectively increased by $2.8 million and $5.3 million, respectively, over the comparative periods, driven by investor events.
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Realized Income

The following table presents the components of the OMG’s RI ($ in thousands):
Three months ended September 30,Favorable (Unfavorable)Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change20252024$ Change% Change
Fee Related Earnings$(216,916)$(152,983)$(63,933)(42)%$(587,864)$(440,087)$(147,777)(34)%
Investment income—realized2,090 58 2,032 NM1,528 297 1,231 NM
Interest income853 438 415 952,102 1,291 811 63
Interest expense(10)(135)125 93(272)(280)8 3
Realized net investment income2,933 361 2,572 NM3,358 1,308 2,050 157
Realized Income$(213,983)$(152,622)(61,361)(40)$(584,506)$(438,779)(145,727)(33)

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

Sources and Uses of Liquidity
Our sources of liquidity are: (i) cash on hand; (ii) net working capital; (iii) cash from operations, including management fees and certain other fees, which are collected monthly, quarterly or semi-annually, and fee related performance revenues, which are typically measured and collected annually, as well as net realized performance income, which may be unpredictable as to amount and timing; (iv) fund distributions related to our investments that are unpredictable as to amount and timing; and (v) net borrowings from the Credit Facility. As of September 30, 2025, our cash and cash equivalents were $496.7 million and we have $725.0 million available under our Credit Facility. Our ability to draw from the Credit Facility is subject to leverage and other covenants. We remain in compliance with all covenants as of September 30, 2025. We believe that these sources of liquidity will be sufficient to fund our working capital requirements and to meet our commitments in the ordinary course of business and under the current market conditions for the foreseeable future. Cash flows from management fees may be impacted by a slowdown in deployment, declines in valuations or negatively impacted fundraising. In addition, management fees may be subject to deferral and fee related performance revenues may be subject to hold backs. Contributions of our financial interests, such as capital interests and rights to performance income earned by us from funds that we manage, to structured investment vehicles that we manage, may reduce or delay our cash flows and liquidity associated with the contributed financial interests. Declines or delays in transaction activity may also impact our fund distributions and net realized performance income, which could adversely impact our cash flows and liquidity. Market conditions may make it difficult to extend the maturity or refinance our existing indebtedness or obtain new indebtedness with similar terms.
We expect that our primary liquidity needs will continue to be to: (i) provide capital to facilitate the growth of our existing investment management businesses; (ii) fund our investment commitments; (iii) provide capital to facilitate our expansion into businesses that are complementary to our existing investment management businesses as well as other strategic growth initiatives; (iv) pay operating expenses, including cash compensation to our employees and tax payments for net settlement of equity awards; (v) fund capital expenditures; (vi) service our debt; (vii) pay income taxes and make payments under the tax receivable agreement (“TRA”); (viii) make dividend payments to our Class A and non-voting common stockholders and our Series B mandatory convertible preferred stockholders in accordance with our dividend policies; and (ix) pay distributions to AOG unitholders.
In the normal course of business, we expect to pay dividends to our Class A and non-voting common stockholders that are aligned with our expected FRE after an allocation of current taxes paid. For the purposes of determining this amount, we allocate the current taxes paid to FRE and to realized performance and investment income in a manner that may be disproportionate to earnings generated by these metrics, and the actual taxes paid on these metrics should they be considered separately. Additionally, our methodology uses the tax benefits from certain expenses that are not included in these non-GAAP metrics, such as equity-based compensation from the vesting of equity awards and from the amortization of intangible assets, among others. We allocate the taxes by multiplying the statutory tax rate currently in effect by our net realized performance and net investment income and removing this amount from total current taxes. The remaining current tax paid is the amount that we allocate to FRE. We use this method to allocate the current provision for income taxes to approximate the amount of cash that is available to pay dividends to our stockholders. If cash flows from operations were insufficient to fund dividends over a
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sustained period of time, we expect that we would suspend or reduce paying such dividends. In addition, there is no assurance that dividends would continue at the current levels or at all. Unless quarterly dividends have been declared and paid (or declared and set apart for payment) on the Series B mandatory convertible preferred stock, we may not declare or pay or set apart payment for dividends on any shares of our Class A common stock during the period. Declared dividends on the Series B mandatory convertible preferred stock will be payable, at our election, in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock. Dividends on Series B mandatory convertible preferred stock are cumulative and the Series B mandatory convertible preferred stock, unless previously converted or redeemed, will automatically convert into our Class A common stock on October 1, 2027. Although any income allocated to Series B mandatory convertible preferred stock dividends may be subject to taxes, dividends to our Series B mandatory convertible preferred stockholders will not be reduced on account of any income taxes owed by us. As a result, taxes associated with any income allocated to Series B mandatory convertible preferred stock dividends will be borne by Class A and non-voting common stockholders.

Our ability to obtain debt financing and complete stock offerings provides us with additional sources of liquidity. For further discussion of financing transactions occurring in the current period, see “Cash Flows” within this section and “Note 7. Debt” and “Note 13. Equity and Redeemable Interest” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Our unaudited condensed consolidated financial statements reflect the cash flows of our operating businesses as well as those of our Consolidated Funds. The assets of our Consolidated Funds, on a gross basis, are significantly larger than the assets of our operating businesses and therefore have a substantial effect on the amounts reported within our condensed consolidated statements of cash flows. The primary cash flow activities of our Consolidated Funds include: (i) raising capital from third-party investors, which is reflected as non-controlling interests of our Consolidated Funds; (ii) financing certain investments by issuing debt; (iii) purchasing and selling investment securities; (iv) generating cash through the realization of certain investments; (v) collecting interest and dividend income; and (vi) distributing cash to investors. Our Consolidated Funds are generally accounted for as investment companies under GAAP; therefore, the character and classification of all Consolidated Fund transactions are presented as cash flows from operations. Liquidity available at our Consolidated Funds is not available for corporate liquidity needs, and debt of the Consolidated Funds is non–recourse to us except to the extent of our investment in the fund.
Cash Flows
The following tables summarize our condensed consolidated statements of cash flows by activities attributable to the Company and Consolidated Funds. For more details on the activity of the Company and Consolidated Funds, refer to “Note 15. Consolidation” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
 Nine months ended September 30,
20252024
Net cash provided by operating activities$1,745,161 $1,289,501 
Net cash provided by the Consolidated Funds’ operating activities, net of eliminations2,005,486 694,035 
Net cash provided by operating activities3,750,647 1,983,536 
Net cash used in the Company’s investing activities(1,782,560)(95,886)
Net cash used in the Company’s financing activities(604,930)(1,196,743)
Net cash used in the Consolidated Funds’ financing activities, net of eliminations(2,365,095)(713,012)
Net cash used in financing activities(2,970,025)(1,909,755)
Effect of exchange rate changes(9,369)23,969 
Net change in cash and cash equivalents$(1,011,307)$1,864 

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

Operating Activities

In the table below, cash flows from operations are summarized to present: (i) cash generated from our core operating activities, primarily consisting of profits generated principally from fee revenues after covering for operating expenses and fee related performance compensation; (ii) net realized performance income; and (iii) net cash from investment related activities including purchases, sales, realized net investment income and interest expense. We generated meaningful cash flow from operations in each period presented.
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Nine months ended September 30,Favorable (Unfavorable)
20252024$ Change% Change
Core operating activities$1,596,238 $1,096,816 $499,422 46%
Net realized performance income98,959 98,000 959 1
Net cash provided by investment related activities49,964 94,685 (44,721)(47)
Net cash provided by operating activities$1,745,161 $1,289,501 455,660 35

Cash from our core operating activities increased as a result of growing fee revenues and sustained profitability and timing of cash collection of our receivables.
Net realized performance income includes (i) carried interest distributions that may represent tax distributions or other distributions of income and (ii) incentive fees that are realized annually at the end of the measurement period, which is typically at the end of the calendar year. Cash received from carried interest distributions and the subsequent payments to employees may not necessarily occur in the same quarter. Cash from incentive fees is generally received in the period subsequent to the measurement period. The increase in net realized performance income over the comparative period was primarily due to the increase in carried interest distributions received during the first nine months of 2025 when compared to the same period in 2024.
Net cash provided by investment related activities for the nine months ended September 30, 2025 and 2024 primarily represents: (i) distributions received from our capital investments and the collection of principal and interest from loans that we have made; (ii) sales of certain capital investments to employees; and (iii) the rebalancing of and associated return of our capital commitments upon admitting new limited partners; offset by (iv) purchases associated with funding capital commitments and strategic investments in our investment portfolio; and (v) interest payments on our debt obligations. Net cash provided by investment related activities for the nine months ended September 30, 2025 also included interest income from treasury-backed securities that were redeemed in March 2025, providing proceeds to support the GCP Acquisition. As we are committed to invest alongside the investors in our funds, our capital commitments will increase with our growing assets under management and our investment related activities may fluctuate depending on timing of capital investments and distributions of each fund from year to year. For further discussion of our capital commitments, see “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Our working capital needs are generally rising to support the growth of our business, while the capital requirements needed to support fund-related activities vary based upon the specific investment activities being conducted during such period.
Investing Activities
Nine months ended September 30,
20252024
Purchase of furniture, equipment and leasehold improvements$(56,385)$(82,203)
Acquisitions, net of cash acquired(1,726,175)(13,683)
Net cash used in investing activities$(1,782,560)$(95,886)

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

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Financing Activities
Nine months ended September 30,
20252024
Net proceeds from issuance of Class A common stock$— $407,236 
Net borrowings (repayments) of Credit Facility1,115,000 (425,000)
Dividends/distributions to unitholders and stockholders(1,296,937)(969,360)
Stock option exercises— 1,511 
Taxes paid related to net share settlement of equity awards(425,623)(211,615)
Other financing activities2,630 485 
Net cash used in the Company’s financing activities$(604,930)$(1,196,743)

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

Net cash used in the Company’s financing activities for the nine months ended September 30, 2025 included net borrowings under the Credit Facility. These proceeds were used primarily to fund the GCP Acquisition in the first quarter of 2025 and to support general operating cash needs. Net cash used in the Company’s financing activities for the nine months ended September 30, 2024 included the repayment of our Credit Facility, partially using cash provided by the net proceeds from the public offering of Class A common stock that closed during the second quarter of 2024.
In connection with the vesting of equity awards that are granted to our employees under the Equity Incentive Plan, we withhold shares equal to the fair value of our employees’ tax withholding liabilities and pay the taxes on their behalf in cash and thus issue fewer net shares. Cash used in connection with these awards increased during the current period primarily as a result of a higher stock price on the vesting date, which resulted in employees recognizing additional compensation. For the nine months ended September 30, 2025, we net settled and did not issue 2.2 million shares, which includes 0.2 million shares that were withheld from restricted units that vested on the GCP Acquisition close date. For the nine months ended September 30, 2024, we net settled and did not issue 1.7 million shares.
Capital Resources
We intend to use a portion of our available liquidity to pay cash dividends and distributions to our Series B mandatory convertible preferred stockholders, Class A and non-voting common stockholders, and AOG unitholders on a quarterly basis in accordance with our dividend and distribution policies. Our ability to make cash dividends and distributions is dependent on a myriad of factors, including: (i) general economic and business conditions; (ii) our strategic plans and prospects; (iii) our business and investment opportunities; (iv) timing of capital calls by our funds in support of our commitments; (v) our financial condition and operating results; (vi) working capital requirements and other anticipated cash needs; (vii) contractual restrictions and obligations; (viii) legal, tax and regulatory restrictions; (ix) restrictions on the payment of distributions by our subsidiaries to us; and (x) other relevant factors.

We are required to maintain minimum net capital balances for regulatory purposes for our broker-dealer entities. These net capital requirements are met in part by retaining cash, cash equivalents and investment securities. Additionally, certain of our subsidiaries operating outside the U.S. are also subject to capital adequacy requirements in each of the applicable jurisdictions. As a result, we may be restricted in our ability to transfer cash between different operating entities and jurisdictions. As of September 30, 2025, we were required to maintain approximately $101.9 million in net assets within these subsidiaries to meet regulatory net capital and capital adequacy requirements. We remain in compliance with these regulatory requirements.

Holders of AOG Units, subject to the terms of the exchange agreement, may exchange their AOG Units for shares of our Class A common stock on a one-for-one basis. These exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of AMC that otherwise would not have been available. These increases in tax basis may increase depreciation and amortization for U.S. income tax purposes and thereby reduce the amount of tax that we would otherwise be required to pay in the future. We entered into the TRA that provides payment to the TRA recipients of 85% of the amount of actual cash savings (“Cash Tax Savings”), if any, in U.S. federal, state, local and foreign income tax or franchise tax that we actually realize as a result of these increases in tax basis and of certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA and interest accrued thereon. Future payments under the TRA in
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respect of subsequent exchanges are expected to be substantial. The TRA liability balance was $540.6 million and $402.4 million as of September 30, 2025 and December 31, 2024, respectively. For the nine months ended September 30, 2025 and 2024, payments under the TRA were $8.1 million and $6.1 million, respectively.
For a discussion of our debt obligations, including the debt obligations of our consolidated funds, see “Note 7. Debt” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

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

Critical Accounting Estimates

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

Recent Accounting Pronouncements

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

Commitments and Contingencies

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

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Our primary exposure to market risk is related to our role as general partner or investment adviser to our funds and the sensitivity to movements in the fair value of their investments, including the effect on management fees, performance income and investment income.
There have been no material changes in our market risks for the nine months ended September 30, 2025. For additional information on our market risks, refer to our Annual Report on Form 10-K for the year ended December 31, 2024, which is accessible on the SEC’s website at www.sec.gov.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the
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effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2025. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, as of September 30, 2025, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2025 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.

Item 1. Legal Proceedings
From time to time, we, our executive officers, directors and our funds and their investment advisers, and their respective affiliates and/or any of their respective principals and employees are subject to legal proceedings, including those arising from our management of such funds. Additionally, we and our funds and their investment advisers are also subject to extensive regulation, which, from time to time, results in requests for information from us or our funds and their investment advisers or legal or regulatory proceedings or investigations against us or our funds and their investment advisers, respectively. We incur significant costs and expenses in connection with any such proceedings, information requests and investigations.

Item 1A.  Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which is accessible on the SEC’s website at www.sec.gov. The risks described in our Annual Report on Form 10-K for the year ended December 31, 2024 are not the only risks facing us. These risks and additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not sell any equity securities during the period covered in this report that were not registered under the Securities Act.

All unregistered purchases of equity securities during the period covered by this Quarterly Report were previously disclosed in our current reports on Form 8-K or quarterly reports on Form 10-Q.

As permitted by our policies and procedures governing transactions in our securities by our directors, executive officers and other employees, from time to time some of these persons may establish plans or arrangements complying with Rule 10b5-1 under the Exchange Act, and similar plans and arrangements relating to our Class A common stock.

Item 3. Defaults Upon Senior Securities
None.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
Rule 10b5-1 Trading Plans
During the three months ended September 30, 2025, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”, as such term is defined in Item 408(a) of Regulation S-K.


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Item 6.  Exhibits, Financial Statement Schedules
(a)Exhibits.
The following is a list of all exhibits filed or furnished as part of this report.
Exhibit No.Description
3.1
Second Amended and Restated Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on May 6, 2021).
3.2
Bylaws of Ares Management Incorporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018).
3.3
Certificate of Designations of 6.75% Series B Mandatory Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-36429) filed with the SEC on October 10, 2024).
31.1*
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).
31.2*
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).
32.1**
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH Inline XBRL Taxonomy Extension Schema Document.
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
* Filed herewith.
** These certifications are not deemed filed by the SEC and are not to be incorporated by reference in any filing we make under the Securities Act of 1933 or the Securities Exchange Act of 1934, irrespective of any general incorporation language in any filings.


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 ARES MANAGEMENT CORPORATION
   
   
Dated: November 6, 2025By:/s/ Michael J Arougheti
 Name:Michael J Arougheti
 Title:Co-Founder & Chief Executive Officer
(Principal Executive Officer)
Dated: November 6, 2025By:/s/ Jarrod Phillips
Name:Jarrod Phillips
Title:Chief Financial Officer
(Principal Financial & Accounting Officer) 

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Source: View Original Filing on SEC EDGAR

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