CONSOLIDATION (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

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


	As of December 31,
	2019		2018
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs⁽¹⁾	$	260,520	$	222,477
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs⁽¹⁾	181,856		186,455
Assets of consolidated VIEs	9,454,572		8,141,280
Liabilities of consolidated VIEs	8,679,869		7,479,383

(1)As of December 31, 2019, the Company's maximum exposure of loss for CLO securities was equal to the cumulative fair value of our capital interest in CLOs that are managed and totaled $104.7 million.


	For the Year Ended December 31,
	2019		2018		2017
Net income attributable to non-controlling interests related to consolidated VIEs	$	39,704	$	20,512	$	60,818

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 December 31, 2019 and December 31, 2018 and results from operations for the year ended December 31, 2019 and 2018 and 2017.


	As of December 31, 2019
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	138,384	$	—	$	—	$	138,384
Investments (includes $1,134,967 of accrued carried interest)	1,845,520		—		(181,856)		1,663,664
Due from affiliates	282,197		—		(14,098)		268,099
Other assets	343,674		—		(2,381)		341,293
Right-of-use operating lease assets	143,406		—		—		143,406
Assets of Consolidated Funds
Cash and cash equivalents	—		606,321		—		606,321
Investments, at fair value	—		8,723,169		4,778		8,727,947
Due from affiliates	—		6,192		—		6,192
Receivable for securities sold	—		88,809		—		88,809
Other assets	—		30,081		—		30,081
Total assets	$	2,753,181	$	9,454,572	$	(193,557)	$	12,014,196
Liabilities
Accounts payable, accrued expenses and other liabilities	$	88,173	$	—	$	—	$	88,173
Accrued compensation	37,795		—		—		37,795
Due to affiliates	71,445		—		—		71,445
Performance related compensation payable	829,764		—		—		829,764
Debt obligations	316,609		—		—		316,609

Operating lease liabilities	168,817		—		—		168,817
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		61,857		—		61,857
Due to affiliates	—		11,700		(11,700)		—
Payable for securities purchased	—		500,146		—		500,146
CLO loan obligations, at fair value	—		7,998,922		(25,174)		7,973,748
Fund borrowings	—		107,244		—		107,244
Total liabilities	1,512,603		8,679,869		(36,874)		10,155,598
Commitments and contingencies
Non-controlling interest in Consolidated Funds	—		774,703		(156,683)		618,020
Non-controlling interest in Ares Operating Group entities	472,288		—		—		472,288
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 (115,242,028 shares issued and outstanding)	1,152		—		—		1,152
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	525,244		—		—		525,244
Retained earnings	(50,820)		—		—		(50,820)
Accumulated other comprehensive loss, net of tax	(6,047)		—		—		(6,047)
Total stockholders' equity	768,290		—		—		768,290
Total equity	1,240,578		774,703		(156,683)		1,858,598
Total liabilities, non-controlling interests and equity	$	2,753,181	$	9,454,572	$	(193,557)	$	12,014,196


	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 shares 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 tax	(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 Year Ended December 31, 2019
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $164,396)	$	1,014,337	$	—	$	(34,920)	$	979,417
Carried interest allocation	621,872		—		—		621,872
Incentive fees	83,048		—		(13,851)		69,197
Principal investment income	44,320		—		12,235		56,555
Administrative, transaction and other fees	51,038		—		(12,641)		38,397
Total revenues	1,814,615		—		(49,177)		1,765,438
Expenses
Compensation and benefits	653,352		—		—		653,352
Performance related compensation	497,181		—		—		497,181
General, administrative and other expense	270,219		—		—		270,219
Expenses of the Consolidated Funds	—		90,816		(48,771)		42,045
Total expenses	1,420,752		90,816		(48,771)		1,462,797
Other income (expense)
Net realized and unrealized gains on investments	10,405		—		(851)		9,554
Interest and dividend income	9,599		—		(2,093)		7,506
Interest expense	(19,671)		—		—		(19,671)
Other expense, net	(8,190)		—		350		(7,840)
Net realized and unrealized gains on investments of the Consolidated Funds	—		3,312		11,824		15,136
Interest and other income of the Consolidated Funds	—		395,599		—		395,599
Interest expense of the Consolidated Funds	—		(281,506)		3,761		(277,745)
Total other income (expense)	(7,857)		117,405		12,991		122,539
Income before taxes	386,006		26,589		12,585		425,180
Income tax expense (benefit)	52,906		(530)		—		52,376
Net income	333,100		27,119		12,585		372,804
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		27,119		12,585		39,704
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	184,216		—		—		184,216
Net income attributable to Ares Management Corporation	148,884		—		—		148,884
Less: Series A Preferred Stock dividends paid	21,700		—		—		21,700
Net income attributable to Ares Management Corporation Class A common stockholders	$	127,184	$	—	$	—	$	127,184


	For the Year Ended December 31, 2018
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $128,805)	$	836,744	$	—	$	(34,242)	$	802,502
Carried interest allocation	42,410		—		—		42,410
Incentive fees	67,380		—		(4,000)		63,380
Principal investment income	1,047		—		(2,502)		(1,455)
Administrative, transaction and other fees	51,624		—		—		51,624
Total revenues	999,205		—		(40,744)		958,461
Expenses
Compensation and benefits	570,380		—		—		570,380
Performance related compensation	30,254		—		—		30,254
General, administrative and other expense	215,964		—		—		215,964
Expenses of the Consolidated Funds	—		92,006		(38,242)		53,764
Total expenses	816,598		92,006		(38,242)		870,362
Other income (expense)
Net realized and unrealized losses on investments	(2,867)		—		983		(1,884)
Interest and dividend income	7,121		—		(93)		7,028
Interest expense	(21,448)		—		—		(21,448)
Other expense, net	(1,715)		—		864		(851)
Net realized and unrealized gains (losses) on investments of the Consolidated Funds	—		664		(2,247)		(1,583)
Interest and other income of the Consolidated Funds	—		337,875		—		337,875
Interest expense of the Consolidated Funds	—		(224,253)		1,358		(222,895)
Total other income (expense)	(18,909)		114,286		865		96,242
Income before taxes	163,698		22,280		(1,637)		184,341
Income tax expense	32,071		131		—		32,202
Net income	131,627		22,149		(1,637)		152,139
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		22,149		(1,637)		20,512
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	74,607		—		—		74,607
Net income attributable to Ares Management Corporation	57,020		—		—		57,020
Less: Series A Preferred Stock dividends paid	21,700		—		—		21,700
Net income attributable to Ares Management Corporation Class A common stockholders	$	35,320	$	—	$	—	$	35,320


	For the Year Ended December 31, 2017
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees (includes ARCC Part I Fees of $105,467)	$	744,825	$	—	$	(22,406)	$	722,419
Carried interest allocation	621,471		—		(1,017)		620,454
Incentive fees	20,295		—		(4,075)		16,220
Principal investment income	89,031		—		(24,587)		64,444
Administrative, transaction and other fees	56,406		—		—		56,406
Total revenues	1,532,028		—		(52,085)		1,479,943
Expenses
Compensation and benefits	514,109		—		—		514,109
Performance related compensation	479,722		—		—		479,722
General, administrative and other expense	196,730		—		—		196,730
Transaction Support Expenses	275,177		—		—		275,177
Expenses of the Consolidated Funds	—		65,501		(26,481)		39,020
Total expenses	1,465,738		65,501		(26,481)		1,504,758
Other income (expense)
Net realized and unrealized gains on investments	13,565		—		(5,303)		8,262
Interest and dividend income	9,048		—		(2,005)		7,043
Interest expense	(21,219)		—		—		(21,219)
Other income, net	19,470		—		—		19,470
Net realized and unrealized gains on investments of the Consolidated Funds	—		126,836		(26,712)		100,124
Interest and other income of the Consolidated Funds	—		187,721		—		187,721
Interest expense of the Consolidated Funds	—		(159,688)		32,961		(126,727)
Total other income	20,864		154,869		(1,059)		174,674
Income before taxes	87,154		89,368		(26,663)		149,859
Income tax expense (benefit)	(24,939)		1,887		—		(23,052)
Net income	112,093		87,481		(26,663)		172,911
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		87,481		(26,663)		60,818
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	35,915		—		—		35,915
Net income attributable to Ares Management L.P.	76,178		—		—		76,178
Less: Preferred equity dividends paid	21,700		—		—		21,700
Net income attributable to Ares Management L.P. common shareholders	$	54,478	$	—	$	—	$	54,478

- 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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