CONSOLIDATION (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

The Company's interests in consolidated and non-consolidated VIEs, as presented in the Condensed Consolidated Statements of Financial Condition, and its respective maximum exposure to loss relating to non-consolidated VIEs are as follows:



	As of September 30,		As of December 31,
	2019		2018
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs	$	270,980	$	222,477
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs	196,198		186,455
Assets of consolidated VIEs	8,974,941		8,141,280
Liabilities of consolidated VIEs	8,160,607		7,479,383



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Net income attributable to non-controlling interests related to consolidated VIEs	$	15,908	$	13,169	$	41,878	$	23,418

Schedule of consolidating effects of the Consolidated Funds on the Company's financial condition

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company's financial condition as of September 30, 2019 and December 31, 2018 and results from operations for the three and nine months ended September 30, 2019 and 2018.



	As of September 30, 2019
	Consolidated Company Entities			Consolidated Funds		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	152,203		$	—	$	—		$	152,203
Investments (includes $1,250,191 of accrued carried interest)	1,976,062			—		(196,198		)	1,779,864
Due from affiliates	254,005			—		(8,729		)	245,276
Other assets	296,302			—		—			296,302
Right-of-use operating lease assets	148,170			—		—			148,170
Assets of Consolidated Funds
Cash and cash equivalents	—			575,621		—			575,621
Investments, at fair value	—			8,271,481		—			8,271,481
Due from affiliates	—			14,978		—			14,978
Receivable for securities sold	—			85,701		—			85,701
Other assets	—			27,160		—			27,160
Total assets	$	2,826,742		$	8,974,941	$	(204,927	)	$	11,596,756
Liabilities
Accounts payable, accrued expenses and other liabilities	$	71,077		$	—	$	—		$	71,077
Accrued compensation	168,539			—		—			168,539
Due to affiliates	57,551			—		—			57,551
Performance related compensation payable	905,949			—		—			905,949
Debt obligations	246,442			—		—			246,442
Right-of-use operating lease liabilities	174,078			—		—			174,078
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—			83,698		—			83,698
Due to affiliates	—			8,729		(8,729		)	—
Payable for securities purchased	—			514,717		—			514,717
CLO loan obligations, at fair value	—			7,429,260		(21,540		)	7,407,720
Fund borrowings	—			124,203		—			124,203
Total liabilities	1,623,636			8,160,607		(30,269		)	9,753,974
Commitments and contingencies
Non-controlling interest in Consolidated Funds	—			814,334		(174,658		)	639,676
Non-controlling interest in Ares Operating Group entities	450,985			—		—			450,985
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 shares issued and outstanding)	298,761			—		—			298,761
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (114,719,768 shares issued and outstanding)	1,147			—		—			1,147
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 (1 share issued and outstanding)	—			—		—			—
Additional paid-in-capital	507,531			—		—			507,531
Retained earnings	(44,308		)	—		—			(44,308		)
Accumulated other comprehensive loss, net of tax	(11,010		)	—		—			(11,010		)
Total stockholders' equity	752,121			—		—			752,121
Total equity	1,203,106			814,334		(174,658		)	1,842,782
Total liabilities, non-controlling interests and equity	$	2,826,742		$	8,974,941	$	(204,927	)	$	11,596,756



	As of December 31, 2018
	Consolidated Company Entities			Consolidated Funds		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	110,247		$	—	$	—		$	110,247
Investments (includes $841,079 of accrued carried interest)	1,512,592			—		(186,455		)	1,326,137
Due from affiliates	207,924			—		(8,547		)	199,377
Other assets	377,651			—		—			377,651
Assets of Consolidated Funds
Cash and cash equivalents	—			384,644		—			384,644
Investments, at fair value	—			7,673,165		—			7,673,165
Due from affiliates	—			17,609		—			17,609
Receivable for securities sold	—			42,076		—			42,076
Other assets	—			23,786		—			23,786
Total assets	$	2,208,414		$	8,141,280	$	(195,002	)	$	10,154,692
Liabilities
Accounts payable, accrued expenses and other liabilities	$	83,221		$	—	$	—		$	83,221
Accrued compensation	29,389			—		—			29,389
Due to affiliates	82,411			—		—			82,411
Performance related compensation payable	641,737			—		—			641,737
Debt obligations	480,952			—		—			480,952
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—			83,876		—			83,876
Due to affiliates	—			8,547		(8,547		)	—
Payable for securities purchased	—			471,390		—			471,390
CLO loan obligations	—			6,706,286		(28,195		)	6,678,091
Fund borrowings	—			209,284		—			209,284
Total liabilities	1,317,710			7,479,383		(36,742		)	8,760,351
Commitments and contingencies
Non-controlling interest in Consolidated Funds	—			661,897		(158,260		)	503,637
Non-controlling interest in Ares Operating Group entities	302,780			—		—			302,780
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (12,400,000 units issued and outstanding)	298,761			—		—			298,761
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (101,594,095 shares issued and outstanding)	1,016			—		—			1,016
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 (1 share issued and outstanding)	—			—		—			—
Additional paid-in-capital	326,007			—		—			326,007
Retained earnings	(29,336		)	—		—			(29,336		)
Accumulated other comprehensive loss, net of taxes	(8,524		)	—		—			(8,524		)
Total stockholders' equity	587,924			—		—			587,924
Total equity	890,704			661,897		(158,260		)	1,394,341
Total liabilities, non-controlling interests and equity	$	2,208,414		$	8,141,280	$	(195,002	)	$	10,154,692

Schedule of results from operations



	For the Three Months Ended September 30, 2019
	Consolidated Company Entities			Consolidated Funds			Eliminations			Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $38,786)	$	260,371		$	—		$	(8,780	)	$	251,591
Carried interest allocation	186,803			—			—			186,803
Incentive fees	1,712			—			—			1,712
Principal investment income	13,865			—			(2,476		)	11,389
Administrative, transaction and other fees	14,995			—			—			14,995
Total revenues	477,746			—			(11,256		)	466,490
Expenses
Compensation and benefits	166,216			—			—			166,216
Performance related compensation	139,216			—			—			139,216
General, administrative and other expense	79,385			—			—			79,385
Expenses of the Consolidated Funds	—			19,664			(8,780		)	10,884
Total expenses	384,817			19,664			(8,780		)	395,701
Other income (expense)
Net realized and unrealized gains (losses) on investments	(522		)	—			2,044			1,522
Interest and dividend income	2,800			—			(770		)	2,030
Interest expense	(4,691		)	—			—			(4,691		)
Other expense, net	(2,994		)	—			1,124			(1,870		)
Net realized and unrealized gains (losses) on investments of the Consolidated Funds	—			1,399			(2,391		)	(992		)
Interest and other income of the Consolidated Funds	—			107,922			—			107,922
Interest expense of the Consolidated Funds	—			(72,251		)	1,117			(71,134		)
Total other income (expense)	(5,407		)	37,070			1,124			32,787
Income before taxes	87,522			17,406			(1,352		)	103,576
Income tax expense	11,555			146			—			11,701
Net income	75,967			17,260			(1,352		)	91,875
Less: Net income attributable to non-controlling interests in Consolidated Funds	—			17,260			(1,352		)	15,908
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	42,636			—			—			42,636
Net income attributable to Ares Management Corporation	33,331			—			—			33,331
Less: Series A Preferred Stock dividends paid	5,425			—			—			5,425
Net income attributable to Ares Management Corporation Class A common stockholders	$	27,906		$	—		$	—		$	27,906



	For the Three Months Ended September 30, 2018
	Consolidated Company Entities			Consolidated Funds			Eliminations			Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $33,377)	$	213,662		$	—		$	(9,138	)	$	204,524
Carried interest allocation	31,902						—			31,902
Incentive fees	872						—			872
Principal investment loss	(7,886		)	—			422			(7,464		)
Administrative, transaction and other fees	10,943			—			—			10,943
Total revenues	249,493			—			(8,716		)	240,777
Expenses
Compensation and benefits	145,594			—			—			145,594
Performance related compensation	17,606			—			—			17,606
General, administrative and other expense	51,155			—			—			51,155
Expenses of the Consolidated Funds	—			21,971			(9,138		)	12,833
Total expenses	214,355			21,971			(9,138		)	227,188
Other income (expense)
Net realized and unrealized gains on investments	6,540			—			(998		)	5,542
Interest and dividend income	901			—			(93		)	808
Interest expense	(4,143		)	—			—			(4,143		)
Other income, net	725			—			86			811
Net realized and unrealized gains on investments of the Consolidated Funds	—			4,686			751			5,437
Interest and other income of the Consolidated Funds	—			93,062			—			93,062
Interest expense of the Consolidated Funds	—			(63,103		)	340			(62,763		)
Total other income	4,023			34,645			86			38,754
Income before taxes	39,161			12,674			508			52,343
Income tax expense	5,118			13			—			5,131
Net income	34,043			12,661			508			47,212
Less: Net income attributable to non-controlling interests in Consolidated Funds	—			12,661			508			13,169
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	18,133			—			—			18,133
Net income attributable to Ares Management L.P.	15,910			—			—			15,910
Less: Preferred equity dividends paid	5,425			—			—			5,425
Net income attributable to Ares Management L.P. common shareholders	$	10,485		$	—		$	—		$	10,485



	For the Nine Months Ended September 30, 2019
	Consolidated Company Entities			Consolidated Funds			Eliminations			Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $116,336)	$	740,024		$	—		$	(25,928	)	$	714,096
Carried interest allocation	503,808			—			—			503,808
Incentive fees	33,931			—			(5,184		)	28,747
Principal investment income	45,336			—			656			45,992
Administrative, transaction and other fees	35,866			—			—			35,866
Total revenues	1,358,965			—			(30,456		)	1,328,509
Expenses
Compensation and benefits	485,232			—			—			485,232
Performance related compensation	388,424			—			—			388,424
General, administrative and other expense	195,988			—			—			195,988
Expenses of the Consolidated Funds	—			61,977			(31,112		)	30,865
Total expenses	1,069,644			61,977			(31,112		)	1,100,509
Other income (expense)
Net realized and unrealized gains on investments	4,829			—			690			5,519
Interest and dividend income	7,448			—			(1,922		)	5,526
Interest expense	(16,073		)	—			—			(16,073		)
Other expense, net	(2,784		)	—			1,214			(1,570		)
Net realized and unrealized gains on investments of the Consolidated Funds	—			4,661			(1,405		)	3,256
Interest and other income of the Consolidated Funds	—			303,312			—			303,312
Interest expense of the Consolidated Funds	—			(206,688		)	2,637			(204,051		)
Total other income (expense)	(6,580		)	101,285			1,214			95,919
Income before taxes	282,741			39,308			1,870			323,919
Income tax expense (benefit)	36,290			(700		)	—			35,590
Net income	246,451			40,008			1,870			288,329
Less: Net income attributable to non-controlling interests in Consolidated Funds	—			40,008			1,870			41,878
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	136,032			—			—			136,032
Net income attributable to Ares Management Corporation	110,419			—			—			110,419
Less: Series A Preferred Stock dividends paid	16,275			—			—			16,275
Net income attributable to Ares Management Corporation Class A common stockholders	$	94,144		$	—		$	—		$	94,144



	For the Nine Months Ended September 30, 2018
	Consolidated Company Entities			Consolidated Funds			Eliminations			Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $91,660)	$	612,792		$	—		$	(24,721	)	$	588,071
Carried interest allocation	72,587			—			—			72,587
Incentive fees	17,683			—			(4,000		)	13,683
Principal investment income (loss)	9,544			—			(10,228		)	(684		)
Administrative, transaction and other fees	37,372			—			—			37,372
Total revenues	749,978			—			(38,949		)	711,029
Expenses
Compensation and benefits	419,225			—			—			419,225
Performance related compensation	30,479			—			—			30,479
General, administrative and other expense	155,523			—			—			155,523
Expenses of the Consolidated Funds	—			77,982			(28,721		)	49,261
Total expenses	605,227			77,982			(28,721		)	654,488
Other income (expense)
Net realized and unrealized gains on investments	9,800			—			(1,830		)	7,970
Interest and dividend income	6,604			—			(93		)	6,511
Interest expense	(17,088		)	—			—			(17,088		)
Other expense, net	(2,106		)	—			619			(1,487		)
Net realized and unrealized gains on investments of the Consolidated Funds	—			26,053			786			26,839
Interest and other income of the Consolidated Funds	—			250,117			—			250,117
Interest expense of the Consolidated Funds	—			(165,080		)	1,138			(163,942		)
Total other income (expense)	(2,790		)	111,090			620			108,920
Income before taxes	141,961			33,108			(9,608		)	165,461
Income tax expense	29,577			82			—			29,659
Net income	112,384			33,026			(9,608		)	135,802
Less: Net income attributable to non-controlling interests in Consolidated Funds	—			33,026			(9,608		)	23,418
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	67,301			—			—			67,301
Net income attributable to Ares Management L.P.	45,083			—			—			45,083
Less: Preferred equity dividends paid	16,275			—			—			16,275
Net income attributable to Ares Management L.P. common shareholders	$	28,808		$	—		$	—		$	28,808

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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