10-Q

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, 2021

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 MANAGEMENT CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	80-0962035
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

2000 Avenue of the Stars, 12th Floor, 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 class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	ARES	New 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 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 29, 2021 there were 167,613,551 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, and 118,803,257 of the registrant's Class C common stock outstanding.

TABLE OF CONTENTS

	Page
PART I—FINANCIAL INFORMATION
Item 1. Financial Information - Unaudited	9
Condensed Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020	9
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020	10
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020	11
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2021 and for the year ended December 31, 2020	12
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020	14
Notes to the Condensed Consolidated Financial Statements	15
Item 2.  Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	62
Item 3. Quantitative and Qualitative Disclosures about Market Risk	123
Item 4.  Controls And Procedures	124
PART II—OTHER INFORMATION
Item 1. Legal Proceedings	125
Item 1A.  Risk Factors	125
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	128
Item 3. Defaults Upon Senior Securities	128
Item 4. Mine Safety Disclosure	128
Item 5. Other Information	128
Item 6. Exhibits	129
Signatures	130

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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” or the negative version 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, 2020, 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. For a discussion of risks resulting from the coronavirus (“COVID-19”) pandemic and the impact on the U.S. and global economy, see “Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q.

References in this Quarterly Report on Form 10-Q to the “Ares Operating Group” refer to, collectively, Ares Holdings L.P. (“Ares Holdings”), Ares Offshore Holdings L.P. (“Ares Offshore”) and Ares Investments L.P. (“Ares Investments”). References in this Quarterly Report on Form 10-Q to an “Ares Operating Group Unit” or an “AOG Unit” refer to, collectively, a partnership unit in each of the Ares Operating Group entities. On April 1, 2021, Ares completed an internal reorganization (the “Reorganization”) that simplified the organizational structure and merged Ares Offshore and Ares Investments with Ares Holdings. As a result of the Reorganization, Ares Holdings became the sole entity in the Ares Operating Group.

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 (“GAAP”), we are required to consolidate (a) 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 entities, for which we are presumed to have controlling financial interests, and (b) 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 consolidated financial statements on a gross basis, subject to eliminations from consolidation, including the elimination of the management fees, performance income 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 in our 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 consolidated financial statements, subject to eliminations from consolidation, and net income attributable to third-party investors in the consolidated joint ventures is included in net income attributable to redeemable interest and non-controlling interests in Ares Operating Group entities.

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 reportable segments without giving effect to the consolidation of these entities and (ii) “unconsolidated reporting basis,” which shows the results of our reportable segments on a combined segment basis together with our Operations

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Management Group. In addition to our reportable segments, we have an Operations Management Group (the “OMG”). The OMG consists of shared resource groups to support our reportable segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, strategy and relationship management, legal, compliance and human resources. The OMG’s expenses are not allocated to our reportable 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 reportable segments and the OMG, and we believe that this information enhances the ability of shareholders to analyze our performance. For more information, see “Note 15. Segment Reporting,” to 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;

•“ARCC Part II Fees” refers to fees that are paid in arrears as of the end of each calendar year when the cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of ARCC Part II Fees paid in all prior years since inception;

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

•“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 CLOs, 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 refers to the fair value of the assets of a fund less the fair value of the liabilities of the fund. For the CLOs we manage, our AUM is equal to initial principal amounts adjusted for paydowns. AUM also includes the proceeds raised in the initial public offering of a special purpose acquisition company (“SPAC”) sponsored by us;

•“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 that are one-time in nature and represents management fees charged to fund investors in subsequent closings of a fund that apply to the time period between the fee initiation date and the subsequent closing date;

•“Class B membership interests” refers to the interests that were retained by the former owners of Crestline Denali Capital LLC and represent the financial interests in the subordinated notes of the related CLOs;

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

•“Consolidated Funds” refers collectively to certain Ares funds, co-investment entities, 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 the annualized fees divided by the average fee paying AUM for the period, excluding the impact of one-time catch-up fees;

•“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;

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•“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, gross asset value 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, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes performance income, performance related compensation, investment income from our Consolidated Funds and non-consolidated funds and certain other items that we believe are not indicative of our core operating performance;

•“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, Ryan Berry and R. Kipp deVeer;

•“Incentive eligible AUM” or “IEAUM” generally refers to the AUM of our funds and other entities from which performance income may be generated, regardless of whether or not they are currently generating performance income. 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 performance income, excluding capital committed by us and our professionals (from which we generally do not earn performance income), as well as proceeds raised in the initial public offering of a SPAC sponsored by us. With respect to ARCC's AUM, only ARCC 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 performance income 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 performance income, excluding capital committed by us and our professionals (from which we generally do not earn performance income). ARCC is only included in IGAUM when ARCC 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, 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, among others;    

•“net inflows of capital” refers to net new commitments during the period, including equity and debt commitments and gross inflows into our open-ended managed accounts and sub-advised accounts, as well as new debt and equity issuances by our publicly traded vehicles minus redemptions from our open-ended funds, managed accounts and sub-advised accounts;

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

•“our funds” refers to the funds, alternative asset companies, 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 ARCC and an SEC-registered investment adviser;

•“Part I Fees” refers to a quarterly performance income on the net investment income of Ares Capital Corporation (NASDAQ: ARCC) (“ARCC”) and CION Ares Diversified Credit Fund (“CADC”). Such fees are classified as

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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;

•“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 an incentive fee or carried interest;

•“perpetual capital” refers to the AUM of (i) ARCC, Ares Commercial Real Estate Corporation (NYSE: ACRE) ("ACRE"), Ares Dynamic Credit Allocation Fund, Inc. (NYSE: ARDC) ("ARDC") and CADC, (ii) our non-traded REITs, (iii) Aspida Holdings Ltd. (together with its subsidiaries, "Aspida") and (iv) certain other 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 - Commingled Funds refers to commingled funds that meet the Perpetual Capital criteria. Perpetual Capital - Managed Accounts refers to managed accounts for single investors primarily in illiquid strategies that meet the Perpetual Capital criteria. 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 non-traded 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 (a) operating results of our Consolidated Funds, (b) depreciation and amortization expense, (c) the effects of changes arising from corporate actions, (d) unrealized gains and losses related to performance income and investment performance and (e) 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;

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

•“Series A Preferred Stock” refers to the preferred stock, $0.01 par value per share, of the Company designated as 7.00% Series A Preferred Stock;

•“2024 Senior Notes” refers to senior notes issued by a wholly owned subsidiary of Ares Holdings in October 2014 with a maturity in October 2024;

•“2030 Senior Notes” refers to senior notes issued by a wholly owned subsidiary of Ares Holdings in June 2020 with a maturity in June 2030; and

•“2051 Subordinated Notes” refers to subordinated notes issued by a wholly owned subsidiary of Ares Holdings in June 2021 with a maturity in June 2051.

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 AUM or FPAUM that is set forth in the agreements governing the investment 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

7

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,		As of December 31,
	2021		2020
	(unaudited)
Assets
Cash and cash equivalents	$	295,704	$	539,812
Investments (includes accrued carried interest of $2,625,319 and $1,145,853 at September 30, 2021 and December 31, 2020, respectively)	3,322,665		1,682,759
Due from affiliates	493,411		405,887
Other assets	1,006,870		590,332
Intangible assets, net	1,452,690		222,087
Right-of-use operating lease assets	176,511		154,742
Assets of Consolidated Funds:
Cash and cash equivalents	1,581,433		522,377
U.S. Treasury securities, at fair value	1,000,165		—
Investments, at fair value	10,360,854		10,877,097
Due from affiliates	9,059		17,172
Receivable for securities sold	187,230		121,225
Other assets	47,806		35,502
Total assets	$	19,934,398	$	15,168,992
Liabilities
Accounts payable, accrued expenses and other liabilities	$	208,141	$	115,289
Accrued compensation	309,569		103,010
Due to affiliates	202,438		100,186
Performance related compensation payable	1,895,343		813,378
Debt obligations	1,238,325		642,998
Operating lease liabilities	214,681		180,236
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities	89,685		46,824
Payable for securities purchased	863,007		514,946
CLO loan obligations, at fair value	10,174,794		9,958,076
Fund borrowings	99,240		121,909
Total liabilities	15,295,223		12,596,852
Commitments and contingencies
Redeemable interest in Consolidated Funds	1,000,000		—
Redeemable interest in Ares Operating Group entities	98,649		100,366
Non-controlling interests in Consolidated Funds	464,400		539,720
Non-controlling interests in Ares Operating Group entities	1,322,866		738,369
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	—		298,761
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (167,581,165 shares and 147,182,562 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	1,676		1,472
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 and zero shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	35		—
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (118,803,257 shares and 112,447,618 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	1,188		1,124
Additional paid-in-capital	1,881,913		1,043,669
Retained earnings	(128,981)		(151,824)
Accumulated other comprehensive income (loss), net of tax	(2,571)		483
Total stockholders' equity	1,753,260		1,193,685
Total equity	3,540,526		2,471,774
Total liabilities, redeemable interest, non-controlling interests and equity	$	19,934,398	$	15,168,992

See accompanying notes to the 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,
	2021		2020		2021		2020
Revenues
Management fees	$	448,262	$	292,434	$	1,135,821	$	823,150
Carried interest allocation	460,651		168,978		1,610,707		241,380
Incentive fees	696		7,194		19,420		4,276
Principal investment income	14,250		11,408		86,477		8,330
Administrative, transaction and other fees	24,860		9,852		49,501		28,897
Total revenues	948,719		489,866		2,901,926		1,106,033
Expenses
Compensation and benefits	335,569		194,267		837,108		559,482
Performance related compensation	331,141		122,356		1,208,954		191,565
General, administrative and other expenses	134,453		69,938		285,471		190,353
Expenses of Consolidated Funds	12,104		6,019		31,575		16,706
Total expenses	813,267		392,580		2,363,108		958,106
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334		(2,607)		18,744		(10,351)
Interest and dividend income	1,376		1,344		6,818		5,112
Interest expense	(11,523)		(6,815)		(25,125)		(18,203)
Other income, net	36,654		2,203		30,686		9,848
Net realized and unrealized gains (losses) on investments of Consolidated Funds	34,245		17,971		44,720		(153,268)
Interest and other income of Consolidated Funds	104,028		116,581		333,745		346,120
Interest expense of Consolidated Funds	(61,578)		(66,322)		(191,577)		(222,860)
Total other income (expense)	111,536		62,355		218,011		(43,602)
Income before taxes	246,988		159,641		756,829		104,325
Income tax expense	30,275		18,314		104,487		22,119
Net income	216,713		141,327		652,342		82,206
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds	47,370		42,627		102,255		(38,593)
Net income attributable to Ares Operating Group entities	169,343		98,700		550,087		120,799
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities	324		(1,007)		693		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	84,293		52,162		264,646		48,926
Net income attributable to Ares Management Corporation	84,726		47,545		284,748		72,880
Less: Series A Preferred Stock dividends paid	—		5,425		10,850		16,275
Less: Series A Preferred Stock redemption premium	—		—		11,239		—
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	56,605
Net income per share of Class A and non-voting common stock:
Basic	$	0.49	$	0.27	$	1.55	$	0.37
Diluted	$	0.45	$	0.27	$	1.48	$	0.37
Weighted-average shares of Class A and non-voting common stock:
Basic	168,931,621		143,466,209		161,071,151		131,866,471
Diluted	186,522,157		158,122,563		177,143,438		131,866,471

Substantially all revenue is earned from affiliated funds of the Company. See accompanying notes to the 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,
	2021		2020		2021		2020
Net income	$	216,713	$	141,327	$	652,342	$	82,206
Other comprehensive income:
Foreign currency translation adjustments, net of tax	(11,324)		16,893		(18,439)		5,372
Total comprehensive income	205,389		158,220		633,903		87,578
Less: Comprehensive income (loss) attributable to non-controlling interests in Consolidated Funds	42,015		50,300		89,784		(32,478)
Less: Comprehensive loss attributable to redeemable interest in Ares Operating Group entities	(32)		(365)		(67)		(365)
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities	81,947		56,290		262,492		48,281
Comprehensive income attributable to Ares Management Corporation	$	81,459	$	51,995	$	281,694	$	72,140

See accompanying notes to the condensed consolidated financial statements.

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    Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity 

(Amounts in Thousands)

	Series A Preferred Stock		Class A Common Stock		Non- voting Common Stock		Class C Common Stock		Additional Paid-in-Capital		Retained Earnings		Accumulated Other Comprehensive Income (loss)		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance at December 31, 2020	$	298,761	$	1,472	$	—	$	1,124	$	1,043,669	$	(151,824)	$	483	$	738,369	$	539,720	$	2,471,774
Changes in ownership interests and related tax benefits	—		26		—		(2)		(41,686)		—		—		(44,477)		—		(86,139)
Capital contributions	—		—		—		—		—		—		—		—		11,011		11,011
Dividends/Distributions	(5,425)		—		—		—		—		(74,684)		—		(67,084)		(38,829)		(186,022)
Net income	5,425		—		—		—		—		52,953		—		56,042		49,858		164,278
Currency translation adjustment, net of tax	—		—		—		—		—		—		(545)		(366)		(9,072)		(9,983)
Equity compensation	—		—		—		—		31,752		—		—		23,897		—		55,649
Balance at March 31, 2021	298,761		1,498		—		1,122		1,033,735		(173,555)		(62)		706,381		552,688		2,420,568
Changes in ownership interests and related tax benefits	—		3		—		—		(165,886)		—		—		143,867		—		(22,016)
Issuances of common stock	—		122		35		—		827,273		—		—		—		—		827,430
Capital contributions	—		—		—		54		—		—		—		317,595		34,994		352,643
Redemption of preferred stock	(310,000)		—		—		—		—		—		—		—		—		(310,000)
Dividends/Distributions	(5,425)		—		—		—		—		(82,825)		—		(63,585)		(33,460)		(185,295)
Net income	16,664		—		—		—		—		124,980		—		124,311		5,027		270,982
Currency translation adjustment, net of tax	—		—		—		—		—		—		758		558		1,956		3,272
Equity compensation	—		—		—		—		41,003		—		—		28,501		—		69,504
Stock option exercises	—		8		—		—		14,019		—		—		—		—		14,027
Balance at June 30, 2021	—		1,631		35		1,176		1,750,144		(131,400)		696		1,257,628		561,205		3,441,115
Changes in ownership interests and related tax benefits	—		38		—		(21)		79,787		—		—		(187,454)		—		(107,650)
Capital contributions	—		—		—		33		—		—		—		211,444		(126,339)		85,138
Dividends/Distributions	—		—		—		—		—		(82,307)		—		(68,083)		(12,481)		(162,871)
Net income	—		—		—		—		—		84,726		—		84,293		47,370		216,389
Currency translation adjustment, net of tax	—		—		—		—		—		—		(3,267)		(2,346)		(5,355)		(10,968)
Equity compensation	—		—		—		—		38,607		—		—		27,384		—		65,991
Stock option exercises	—		7		—		—		13,375		—		—		—		—		13,382
Balance at September 30, 2021	$	—	$	1,676	$	35	$	1,188	$	1,881,913	$	(128,981)	$	(2,571)	$	1,322,866	$	464,400	$	3,540,526

See accompanying notes to the condensed consolidated financial statements.

12

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity 

(Amounts in Thousands)

(unaudited)

	Series A Preferred Stock		Class A Common Stock		Class C Common Stock		Additional Paid-in-Capital		Retained Earnings		Accumulated Other Comprehensive Income (loss)		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance at December 31, 2019	$	298,761	$	1,152	$	—	$	525,244	$	(50,820)	$	(6,047)	$	472,288	$	618,020	$	1,858,598
Consolidation and deconsolidation of funds, net	—		—		—		—		—		—		—		(3,882)		(3,882)
Changes in ownership interests and related tax benefits	—		40		—		(196,670)		—		—		122,551		—		(74,079)
Issuances of common stock	—		121		1,152		382,061		—		—		—		—		383,334
Capital contributions	—		—		—		—		—		—		42,012		133,265		175,277
Dividends/Distributions	(5,425)		—		—		—		(51,090)		—		(55,748)		(13,492)		(125,755)
Net loss	5,425		—		—		—		(36,461)		—		(78,355)		(166,406)		(275,797)
Currency translation adjustment, net of tax	—		—		—		—		—		(4,802)		(4,719)		(4,687)		(14,208)
Equity compensation	—		—		—		16,420		—		—		16,137		—		32,557
Stock option exercises	—		11		—		19,540		—		—		—		—		19,551
Balance at March 31, 2020	298,761		1,324		1,152		746,595		(138,371)		(10,849)		514,166		562,818		1,975,596
Consolidation and deconsolidation of funds, net	—		—		—		—		—		—		—		1,475		1,475
Changes in ownership interests and related tax benefits	—		4		(4)		(9,702)		—		—		9,796		—		94
Expenses incurred upon issuance of common stock	—		—		—		(181)		—		—		—		—		(181)
Capital contributions	—		—		—		—		—		—		229		(9,570)		(9,341)
Dividends/Distributions	(5,425)		—		—		—		(57,620)		—		(59,949)		(136,837)		(259,831)
Net income	5,425		—		—		—		50,946		—		75,119		85,186		216,676
Currency translation adjustment, net of tax	—		—		—		—		—		(388)		(54)		3,129		2,687
Equity compensation	—		—		—		15,500		—		—		13,183		—		28,683
Stock option exercises	—		25		—		47,865		—		—		—		—		47,890
Balance at June 30, 2020	298,761		1,353		1,148		800,077		(145,045)		(11,237)		552,490		506,201		2,003,748
Changes in ownership interests and related tax benefits	—		2		(2)		(122,555)		—		—		118,804		—		(3,751)
Issuances of common stock	—		77		—		305,261		—		—		—		—		305,338
Capital contributions	—		—		—		481		—		—		—		18		499
Dividends/Distributions	(5,425)		—		—		—		(61,159)		—		(49,391)		(19,418)		(135,393)
Net income	5,425		—		—		—		42,120		—		52,162		42,627		142,334
Currency translation adjustment, net of tax	—		—		—		—		—		4,450		4,128		7,673		16,251
Equity compensation	—		—		—		16,921		—		—		13,416		—		30,337
Stock option exercises	—		6		—		11,512		—		—		—		—		11,518
Balance at September 30, 2020	298,761		1,438		1,146		1,011,697		(164,084)		(6,787)		691,609		537,101		2,370,881
Changes in ownership interests and related tax benefits	—		27,000		(22,000)		508,000		—		—		(21,922)		—		(21,409)
Issuances of common stock	—		—		—		1		—		—		—		—		1
Capital contributions	—		—		—		—		—		—		2,558		8,717		11,275
Dividends/Distributions	(5,425)		—		—		—		(61,577)		—		(50,246)		(81,760)		(199,008)
Net income	5,425		—		—		—		73,837		—		96,308		66,678		242,248
Currency translation adjustment, net of tax	—		—		—		—		—		7,270		6,206		8,984		22,460
Equity compensation	—		—		—		17,553		—		—		13,856		—		31,409
Stock option exercises	—		7		—		13,910		—		—		—		—		13,917
Balance at December 31, 2020	$	298,761	$	1,472	$	1,124	$	1,043,669	$	(151,824)	$	483	$	738,369	$	539,720	$	2,471,774

See accompanying notes to the condensed consolidated financial statements.

13

Ares Management Corporation

Condensed Consolidated Statements of Cash Flows

(Amounts in Thousands)

(unaudited)

	Nine months ended September 30,
	2021		2020
Cash flows from operating activities:
Net income	$	652,342	$	82,206
Adjustments to reconcile net income to net cash provided by operating activities	71,133		184,586
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	(1,688,085)		(766,399)
Cash flows due to changes in operating assets and liabilities	(149,438)		145,702
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	(729,703)		366,367
Net cash provided by (used in) operating activities	(1,843,751)		12,462
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(15,152)		(8,608)
Acquisitions, net of cash acquired	(1,057,426)		(117,829)
Net cash used in investing activities	(1,072,578)		(126,437)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock	827,430		383,154
Proceeds from Credit Facility	468,000		790,000
Proceeds from issuance of senior and subordinated notes	450,000		399,084
Repayments of Credit Facility	(318,000)		(860,000)
Dividends and distributions	(438,568)		(334,957)
Series A Preferred Stock dividends	(10,850)		(16,275)
Redemption of Series A Preferred Stock	(310,000)		—
Stock option exercises	27,409		78,959
Taxes paid related to net share settlement of equity awards	(221,287)		(75,657)
Other financing activities	1,976		(4,137)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	919,666		123,713
Distributions to non-controlling interests in Consolidated Funds	(84,770)		(169,747)
Borrowings under loan obligations by Consolidated Funds	1,456,887		618,207
Repayments under loan obligations by Consolidated Funds	(74,909)		(104,794)
Net cash provided by financing activities	2,692,984		827,550
Effect of exchange rate changes	(20,763)		16,793
Net change in cash and cash equivalents	(244,108)		730,368
Cash and cash equivalents, beginning of period	539,812		138,384
Cash and cash equivalents, end of period	$	295,704	$	868,752
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions	$	511,069	$	305,338

    

See accompanying notes to the condensed consolidated financial statements.

14

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, Private Equity, Real Estate, Secondary Solutions and Strategic Initiatives. Information about segments should be read together with “Note 15. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various investment 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, and the Company's assets include equity interests in Ares Holdings Inc., Ares Offshore Holdings, Ltd., and Ares AI Holdings L.P. In this quarterly report, the following of the Company’s subsidiaries are collectively referred to as the “Ares Operating Group” or “AOG”: Ares Offshore Holdings L.P. (“Ares Offshore”), Ares Holdings L.P. (“Ares Holdings”), and Ares Investments L.P. (“Ares Investments”). The Company, indirectly through its wholly owned subsidiaries, is the general partner of each of the Ares Operating Group entities. The Company operates and controls all of the businesses and affairs of and conducts all of its material business activities through the Ares Operating Group.

On April 1, 2021, the Company completed an internal reorganization (the “Reorganization”) that simplified the organizational structure and merged Ares Offshore and Ares Investments with Ares Holdings. As a result of the Reorganization, Ares Holdings became the sole entity in the Ares Operating Group.

The Company and its wholly owned subsidiaries manages or controls certain entities that have been consolidated in the accompanying financials statements as described in “Note 2. Summary of Significant Accounting Policies.” These entities include Ares funds, co-investment entities, collateralized loan obligations or funds (collectively “CLOs”) and a special purpose acquisition company (“SPAC”) (collectively, the “Consolidated Funds”). In February 2021, the Company’s first sponsored SPAC, Ares Acquisition Corporation (NYSE: AAC) (“AAC”), consummated its initial public offering that raised capital of $1.0 billion. Prior to the completion of a business combination, the sponsor, a wholly owned subsidiary of the Company, owns the majority of the Class B ordinary shares outstanding of AAC, and consolidates AAC under the voting interest model.

Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows in the accompanying 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 Stockholders' Equity. 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 in the Consolidated Statements of Cash Flows.

Redeemable Interest and Non-Controlling Interests in Ares Operating Group Entities

The non-controlling interests in AOG entities represent a component of equity and net income attributable to the owners of the Ares Operating Group Units (“AOG Units”) that are not held directly or indirectly by the Company. These owners consist predominantly of Ares Owners Holdings L.P. but also include other strategic distribution partnerships with whom the Company has established joint ventures. Non-controlling interests in AOG entities are adjusted for contributions to and distributions from AOG during the reporting period and are allocated income from the AOG entities based on their historical ownership percentage for the proportional number of days in the reporting period.

On February 21, 2020, the Company completed its acquisition (“Crestline Acquisition”) of the Class A membership interests (the “Class A membership interests”) in Crestline Denali Capital LLC (“Crestline Denali”). The Class A membership interests entitle the Company to the fees associated with managing seven collateral management contracts. The Class B membership interests of Crestline Denali (the “Class B membership interests”) were retained by the former owners of Crestline Denali and represent the financial interests in the subordinated notes of the collateralized loan obligations. In connection with the Company's control over Crestline Denali, the Company also consolidates investments and financial results that are attributable to the Class B membership interests to which the Company has no economic rights or obligations. Equity and income (loss) attributable to the Class B membership interests is included within non-controlling interests in AOG entities.

15

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

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

On July 1, 2020, the Company completed its acquisition of a majority interest in SSG Capital Holdings Limited and its operating subsidiaries (“SSG”) in accordance with the purchase agreement entered into on January 21, 2020 (“SSG Acquisition”).

In connection with the SSG Acquisition, the former owners of SSG retained an ownership interest in the operations acquired by the Company. In certain circumstances, the Company may acquire full ownership of SSG pursuant to a contractual arrangement that may be initiated by the Company or by the former owners of SSG. Since the acquisition of the remaining interest in SSG is not within the Company's sole discretion, the ownership interest held by the former owners of SSG is classified as a redeemable interest and represents mezzanine equity.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The 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 condensed consolidated financial statements are presented fairly and that estimates made in preparing its 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 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, 2020 filed with the Securities and Exchange Commission (“SEC”).

As of September 30, 2021, the impact of the outbreak of the novel coronavirus (“COVID-19”) pandemic continues to unfold. As a result, management's estimates and assumptions may be subject to a higher degree of variability and volatility that may result in material differences from the current period.

The condensed consolidated financial statements include the accounts and activities of the 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.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition, including the fair value of certain elements of contingent consideration, is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Contingent consideration obligations are recognized as of the acquisition date at fair value based on the probability that contingency will be realized. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities assumed is recorded as goodwill. Conversely, any excess of the fair value of the net assets acquired over the purchase consideration is recognized as a bargain purchase gain. Acquisition-related costs incurred in connection with a business combination are expensed as incurred.

U.S. Treasury Securities, at Fair Value

U.S. Treasury securities, at fair value represents U.S. Treasury bills that were purchased with funds raised through the initial public offering of AAC, a consolidated SPAC that is presented within Consolidated Funds. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement. The U.S. Treasury bills have original maturities greater than three months when purchased and therefore are recorded at fair value. Interest income received on such securities is separately presented from the overall change in fair value and is recognized within interest and other income of Consolidated Funds in the

16

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Condensed Consolidated Statements of Operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net realized and unrealized gains (losses) on investments of Consolidated Funds in the Condensed Consolidated Statements of Operations.

Redeemable Interest in Consolidated Funds

Redeemable interest in Consolidated Funds represent the Class A ordinary shares issued by AAC that are redeemable for cash by the public shareholders in the event that AAC does not complete a business combination or tender offer associated with stockholder approval provisions. The class A ordinary shareholders have redemption rights that are considered to be outside of AAC’s control. At each balance sheet date, the carrying value of the redeemable interest is presented at the redemption amount. At September 30, 2021, all 100,000,000 Class A ordinary shares of AAC were classified outside of permanent equity.

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 condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. An entity may elect to adopt the amendments in ASU 2020-04 and ASU 2021-01 at any time after March 12, 2020 but no later than December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

3. BUSINESS COMBINATIONS

Acquisition of Landmark Partners, LLC (collectively with its subsidiaries, “Landmark”)

On June 2, 2021, a subsidiary of the Company completed the acquisition of 100% of the equity interests of Landmark, a subsidiary of BrightSphere Investment Group Inc. (NYSE: BSIG) and Landmark Investment Holdings L.P., in accordance with the purchase agreement entered into on March 30, 2021 (the “Landmark Acquisition”). As a result of the Landmark Acquisition, the Company expanded into the secondaries market with Landmark’s focus of managing private equity, real estate and infrastructure secondaries funds. Following the completion of the Landmark Acquisition, the results of Landmark are included in a newly created Secondary Solutions Group segment.

The acquisition date fair value of the consideration transferred totaled $1.1 billion, which consisted of the following:

Cash	$	803,829
Equity(1)	299,640
Total	$	1,103,469

(1)5,419,413 AOG Units were issued in connection with the Landmark Acquisition and increased Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

17

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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 Landmark Acquisition as of June 2, 2021, based upon third party valuations of certain intangible assets. The fair value of assets acquired and liabilities assumed are estimated to be:

Cash	$	25,685
Other tangible assets	23,411
Intangible assets:
Management contracts	425,880
Client relationships	197,160
Trade name	86,200
Total intangible assets	709,240
Total identifiable assets acquired	758,336
Accounts payable, accrued expenses and other liabilities	72,532
Net identifiable assets acquired	685,804
Goodwill	417,665
Net assets acquired	$	1,103,469

The Company incurred $4.9 million of acquisition related costs that were expensed and reported within general, administrative and other expenses within the Condensed Consolidated Statements of Operations.

The carrying value of goodwill associated with Landmark was $417.7 million as of the acquisition date and is entirely allocated to the Secondary Solutions Group segment. The goodwill is attributable primarily to expected synergies and the assembled workforce of Landmark.

In connection with the Landmark Acquisition, the Company allocated $425.9 million, $197.2 million and $86.2 million of the purchase price to the fair value of the management contracts, client relationships and trade name, respectively. The acquired management contracts and client relationships had a weighted average amortization period as of the acquisition date of 7.4 years and 11.8 years, respectively. The trade name was determined to have an indefinite useful life at the time of the Landmark Acquisition and is not subject to amortization as the Company intends Landmark to continue to operate under its brand name into perpetuity.

Landmark’s revenues and net income of $54.0 million and $26.8 million, respectively, are included in the Company’s Consolidated Statements of Operations for the period from June 2, 2021 through September 30, 2021.

Supplemental information of the Company’s consolidated results on an unaudited pro forma basis, as if the Landmark Acquisition had been consummated as of January 1, 2020, is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total revenues	$	948,719	$	527,105	$	2,966,540	$	1,214,989
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	87,542	$	37,570	$	257,361	$	41,263

The unaudited pro forma supplemental information is based on estimates and assumptions, which the Company believes are reasonable. These results are not necessarily indicative of the Company’s consolidated financial condition or statements of operations in future periods or the results that actually would have been realized had the Company and Landmark been a combined entity during the periods presented. These pro forma amounts have been calculated after applying the following adjustments that were directly attributable to the Landmark Acquisition:

•adjustments to include the impact of the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2020, together with the consequential tax effects;

•adjustments to include the AOG Units issued as consideration for the Landmark Acquisition, as if they were issued on January 1, 2020, and the resulting change in ownership attributable to Ares Management Corporation;

18

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

•adjustments to reflect the pro-rata economic ownership attributable to Ares Management Corporation;

•adjustments to reflect the tax effects of the Landmark Acquisition and the related adjustments as if Landmark had been included in the Company’s results as of January 1, 2020; and

•adjustments to include Landmark Acquisition related transaction costs in earnings for the nine months ended September 30, 2020.

Purchase of Landmark GP Interests

The Company acquired an ownership interest in Landmark Partners XVI - GP, L.P. and Landmark Real Estate Fund VIII – GP, L.P. (collectively referred to as the “Landmark GP Entities”). The ownership interest entitles the Company to 60% of the capital interests and a portion of the carried interest in Landmark Equity Partners XVI L.P., Landmark Real Estate Partners VIII L.P. and certain related co-investment vehicles. The Company’s control over Landmark GP Entities also results in the Company consolidating investments and financial results that are attributable to ownership interests that were retained by former Landmark owners. The economic rights retained by the former Landmark owners attributable to these interests are reflected as non-controlling interests in the AOG entities.

Acquisition of Black Creek Group

On July 1, 2021, a subsidiary of the Company completed the acquisition of 100% of the equity interests of Black Creek Group’s U.S. real estate investment advisory and distribution business (“Black Creek”) in accordance with the purchase agreement entered into on May 20, 2021 (the “Black Creek Acquisition”). Black Creek is a leading real estate investment management firm that operates in core and core-plus real estate strategies across two non-traded Real Estate Investment Trusts (“REITs”) and various institutional fund vehicles. Following the completion of the Black Creek Acquisition, the results of Black Creek are included within the Real Estate Group segment.

In connection with the Black Creek Acquisition, the Company recorded a bargain purchase gain of $42.3 million that has been presented within other income (expense), net in the Condensed Consolidated Statements of Operations. The bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets acquired exceeding the purchase consideration. The purchase agreement with Black Creek contains provisions obligating the Company to make a payment upon the achievement of certain revenue targets to certain senior professionals and advisors that is excluded from purchase consideration as it is subject to continued and future service. See “Note 9. Commitments and Contingencies” for a further description of this contingency.

19

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

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 as of September 30, 2021	As of September 30,		As of December 31,
		2021		2020
Management contracts	6.5 years	$	641,737	$	210,857
Client relationships	11.2 years	229,501		25,141
Trade name	8.7 years	11,079		11,079
Finite-lived intangible assets		882,317		247,077
Foreign currency translation		1,530		3,093
Total finite-lived intangible assets		883,847		250,170
Less: accumulated amortization		(85,157)		(28,082)
Finite-lived intangible assets, net		798,690		222,088
Management contracts		567,800		—
Trade name		86,200		—
Indefinite-lived intangible assets		654,000		—
Intangible assets, net		$	1,452,690	$	222,088

In connection with the Black Creek Acquisition, the Company allocated $576.2 million and $7.2 million of the purchase consideration to the fair value of management contracts and client relationships, respectively. Certain management contracts were determined to have indefinite useful lives at the time of the Black Creek Acquisition and are not subject to amortization. The remaining management contracts and client relationships had a weighted average amortization period as of the acquisition date of 6.1 years and 12.0 years, respectively.

Amortization expense associated with intangible assets was $32.8 million and $11.1 million for the three months ended September 30, 2021 and 2020, respectively, and $60.7 million and $13.7 million for the nine months ended September 30, 2021 and 2020 and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the third quarter of 2021, the Company accelerated the amortization of a collateral management contract due to the redemption of that CLO and removed $3.4 million of intangible assets that were fully amortized.

Goodwill

The following table summarizes the carrying value of goodwill that is included within other assets in the Condensed Consolidated Statements of Financial Condition:

	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance as of December 31, 2020	$	32,196	$	58,600	$	53,120	$	—	$	227,131	$	371,047
Acquisitions	—		—		—		417,665		—		417,665
Foreign currency translation	—		—		219		(16)		(1,165)		(962)
Balance as of September 30, 2021	$	32,196	$	58,600	$	53,339	$	417,649	$	225,966	$	787,750

There was no impairment of goodwill recorded during the nine months ended September 30, 2021 and 2020. The impact of foreign currency translation is reflected within other comprehensive income.

20

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

5. INVESTMENTS

The Company’s investments are comprised of the following:

					Percentage of total investments
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Equity method investments:
Equity method private investment partnership interests - principal (1)	$	492,482	$	366,471	14.8	%	21.8	%
Equity method - carried interest (1)	2,625,319		1,145,853		79.0		68.1
Equity method private investment partnership interests and other (held at fair value)(1)	117,015		92,196		3.5		5.5
Equity method private investment partnership interests and other(1)	32,132		23,883		1.0		1.4
Total equity method investments	3,266,948		1,628,403		98.3		96.8
Collateralized loan obligations (2)	32,724		31,766		1.0		1.9
Other fixed income	21,583		21,583		0.6		1.3
Collateralized loan obligations and other fixed income, at fair value	54,307		53,349		1.6		3.2
Common stock, at fair value	1,410		1,007		0.1		0.1
Total investments	$	3,322,665	$	1,682,759

(1)Investment or portion of the investment is denominated in foreign currency and is translated into U.S. dollars at each reporting date.

(2)As of September 30, 2021 and December 31, 2020, includes $3.2 million and $3.4 million, respectively, of collateralized loan obligations that are attributable to the Class B Membership Interests.

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, 2021 and 2020, no individual equity method investment held by the Company met the significance criteria.

The Company recognized net gains related to its equity method investments of $18.9 million and $8.9 million for the three months ended September 30, 2021 and 2020, respectively, and net gains of $99.3 million and $1.8 million for the nine months ended September 30, 2021 and 2020, respectively. The net gains were 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.

With respect to the Company's equity method investments, the material assets are expected to generate either long-term capital appreciation and/or interest 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.

21

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Investments of the Consolidated Funds

Investments held in the Consolidated Funds are summarized below:

	Fair Value at				Percentage of total investments as of
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Fixed income investments:
Bonds	$	434,226	$	397,494	3.9	%	3.6%
Loans	9,389,769		10,012,948		82.6		92.1
U.S. Treasury securities	1,000,165		—		8.8		—
Investments in CLO warehouse	28,500		—		0.3		—
Total fixed income investments	10,852,660		10,410,442		95.6		95.7
Equity securities	264,202		227,031		2.3		2.1
Partnership interests	244,157		239,624		2.1		2.2
Total investments, at fair value	$	11,361,019	$	10,877,097

As of September 30, 2021, the SPAC’s investment in U.S. Treasury bills exceeded 5.0% of the Company’s total assets. The U.S. Treasury bills mature in November 2021 and have an interest yield of approximately 0.06%. At December 31, 2020, 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 Measurements

GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market price observability. Market price observability is affected by a number of factors, including the type of instrument and the characteristics specific to the instrument. Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value.

Financial assets and liabilities measured and reported at fair value are classified as follows:

•Level I—Quoted prices in active markets for identical instruments.

•Level II—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in inactive markets; and model-derived valuations with directly or indirectly observable significant inputs. Level II inputs include prices in markets with few transactions, non-current prices, prices for which little public information exists or prices that vary substantially over time or among brokered market makers. Other inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates.

•Level III—Valuations that rely on one or more significant unobservable inputs. These inputs reflect the Company’s assessment of the assumptions that market participants would use to value the instrument based on the best information available.

In some instances, an instrument may fall into more than one level of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair value measurement. The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument. The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period.

Contingent consideration: The Company generally determines the fair value of its contingent consideration liabilities by using a Monte Carlo simulation model. The model considers a range of assumptions including historical experience, prior period performance, current progress towards targets, probability-weighted scenarios, and management's own assumptions. The discount rate used is determined based on the weighted average cost of capital for the Company. The fair value of the

22

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Company's contingent consideration liabilities are classified as Level III. Liabilities recorded in connection with the Company’s contingent consideration are included within accounts payable, accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Condition and the associated changes in fair value are included within other income (expense), net in the Condensed Consolidated Statements of Operations.

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, 2021:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	54,307	$	—	$	54,307
Common stock and other equity securities	—		1,410		108,397		—		109,807
Partnership interests	—		—		2,575		6,043		8,618
Total investments, at fair value	—		1,410		165,279		6,043		172,732
Derivatives-foreign exchange contracts and interest rate contracts	—		4,361		—		—		4,361
Total assets, at fair value	$	—	$	5,771	$	165,279	$	6,043	$	177,093
Liabilities, at fair value
Derivatives-foreign exchange contracts	—		(265)		—		—		(265)
Contingent consideration	—		—		(41,413)		—		(41,413)
Total liabilities, at fair value	$	—	$	(265)	$	(41,413)	$	—	$	(41,678)

    

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	406,253	$	27,973	$	—	$	434,226
Loans	—		9,015,066		374,703		—		9,389,769
U.S. Treasury securities	1,000,165		—		—		—		1,000,165
Investments in CLO warehouse	—		28,500		—		—		28,500
Total fixed income investments	1,000,165		9,449,819		402,676		—		10,852,660
Equity securities	3,366		1,590		259,246		—		264,202
Partnership interests	—		—		237,558		6,599		244,157
Total investments, at fair value	$	1,003,531	$	9,451,409	$	899,480	$	6,599	$	11,361,019
Derivatives:
Asset swaps-other	—		—		325		—		325
Total derivative assets, at fair value	—		—		325		—		325
Total assets, at fair value	$	1,003,531	$	9,451,409	$	899,805	$	6,599	$	11,361,344
Liabilities, at fair value
Derivatives:
Warrants	$	(17,000)	$	—	$	—	$	—	$	(17,000)
Asset swaps-other	—		—		(1,513)		—		(1,513)
Total derivative liabilities, at fair value	(17,000)		—		(1,513)		—		(18,513)
Loan obligations of CLOs	—		(10,174,794)		—		—		(10,174,794)
Total liabilities, at fair value	$	(17,000)	$	(10,174,794)	$	(1,513)	$	—	$	(10,193,307)

23

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31,2020:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	53,349	$	—	$	53,349
Common stock and other equity securities	—		1,007		88,412		—		89,419
Partnership interests	—		—		2,575		1,209		3,784
Total investments, at fair value	—		1,007		144,336		1,209		146,552
Derivatives-foreign exchange contracts	—		1,440		—		—		1,440
Total assets, at fair value	$	—	$	2,447	$	144,336	$	1,209	$	147,992
Liabilities, at fair value
Derivatives-foreign exchange contracts	$	—	$	(1,565)	$	—	$	—	$	(1,565)
Total liabilities, at fair value	$	—	$	(1,565)	$	—	$	—	$	(1,565)

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	397,485	$	9	$	—	$	397,494
Loans	—		9,470,651		542,297		—		10,012,948
Total fixed income investments	—		9,868,136		542,306		—		10,410,442
Equity securities	5,749		239		221,043		—		227,031
Partnership interests	—		—		231,857		7,767		239,624
Total investments, at fair value	5,749		9,868,375		995,206		7,767		10,877,097
Derivatives:
Asset swaps-other	—		—		1,104		—		1,104
Total assets, at fair value	$	5,749	$	9,868,375	$	996,310	$	7,767	$	10,878,201
Liabilities, at fair value
Derivatives:
Asset swaps-other	$	—	$	—	$	(44)	$	—	$	(44)
Loan obligations of CLOs	—		(9,958,076)		—		—		(9,958,076)
Total liabilities, at fair value	$	—	$	(9,958,076)	$	(44)	$	—	$	(9,958,120)

24

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	107,240	$	55,840	$	2,575	$	—	$	165,655
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	—		708		—		—		708
Sales/settlements(2)	—		(2,904)		—		—		(2,904)
Realized and unrealized appreciation (depreciation), net	1,157		663		—		(7,213)		(5,393)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	1,157	$	675	$	—	$	(7,213)	$	(5,381)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Transfer in	—		18,792		—		—		18,792
Transfer out	—		(209,282)		—		—		(209,282)
Purchases(1)	27,346		219,180		—		—		246,526
Sales/settlements(2)	(313)		(88,584)		(30,000)		625		(118,272)
Amortized discounts/premiums	—		394		—		—		394
Realized and unrealized appreciation (depreciation), net	2,913		6,750		12,280		(155)		21,788
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,912	$	1,607	$	12,280	$	(63)	$	16,736

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

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

25

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2020:

Level III Assets of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	67,355	$	2,575	$	84,634
Transfer in due to changes in consolidation	72,967		—		—		72,967
Purchases(1)	—		5,983		—		5,983
Sales/settlements(2)	—		(899)		—		(899)
Realized and unrealized appreciation (depreciation), net	(1,746)		3,175		—		1,429
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	3,175	$	—	$	1,429

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	42,259	$	586,287	$	312,636	$	1,402	$	942,584
Transfer in	—		96,671		—		—		96,671
Transfer out	—		(230,326)		—		—		(230,326)
Purchases(1)	150		118,558		—		—		118,708
Sales/settlements(2)	(25)		(73,010)		(2,000)		705		(74,330)
Amortized discounts/premiums	—		(135)		—		140		5
Realized and unrealized appreciation (depreciation), net	828		15,836		(1,402)		(393)		14,869
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	878	$	13,690	$	(1,402)	$	(604)	$	12,562

(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.

26

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

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

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

27

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2020:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		3,686		—		76,653
Purchases(1)	—		7,285		—		7,285
Sales/settlements(2)	—		(1,587)		(32,430)		(34,017)
Realized and unrealized depreciation, net	(1,746)		(2,953)		(187)		(4,886)
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	(1,917)	$	5,511	$	1,848

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		392,672		—		—		392,037
Transfer in	—		146,839		—		—		146,839
Transfer out	—		(350,078)		—		—		(350,078)
Purchases(1)	551		256,514		64,000		—		321,065
Sales/settlements(2)	(714)		(249,027)		(58,000)		813		(306,928)
Amortized discounts/premiums	—		777		—		291		1,068
Realized and unrealized appreciation (depreciation), net	(41,978)		(22,952)		7,222		4,856		(52,852)
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(41,930)	$	(25,701)	$	7,222	$	4,439	$	(55,970)

(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.

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.

28

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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, 2021:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A	N/A
	46,765		Discounted cash flow	Discount Rates	14.0% - 20.0%	15.3%
	46,928		Market approach	Multiple of Book Value	1.5x	N/A
Partnership interests	2,575		Other	N/A	N/A	N/A
Collateralized loan obligations	32,724		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A	N/A
Total assets	$	165,279
Liabilities
Contingent consideration	$	(8,600)	Monte Carlo simulation	Discount Rates	8%	N/A
				Volatility	17%	N/A
	$	(32,813)	Other	N/A	N/A	N/A
Total liabilities	$	(41,413)

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	896	Market approach	EBITDA multiple(2)	1.8x - 83.3x	15.3x
	14		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	258,336		Transaction price(1)	N/A	N/A	N/A
Partnership interest	237,558		Discounted cash flow	Discount rate	22.4%	22.4%
Fixed income securities
	261,064		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	98,055		Income approach	Yield	1.8%-54.7%	6.5%
	14,791		Transaction price	N/A	N/A	N/A
	28,766		Other	N/A	N/A	N/A
Derivative instruments	325		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	899,805
Liabilities
Derivative instruments	$	(1,513)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(1,513)

(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.

29

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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, 2020:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A
	32,905		Discounted Cash Flow	Discount Rates	14.0% - 20.0%
	40,803		Market Approach	Multiple of Book Value	1.6x
Partnership interests	2,575		Other	N/A	N/A
Collateralized loan obligations	31,766		Broker quotes and/or 3rd party pricing services	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A
Total	$	144,336

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	438	Market approach	EBITDA multiple(2)	2.9x - 19.5x	13.4x
	32,528		Other	Net income multiple	30.0x	30.0x
				Illiquidity discount	25.0%	25.0%
	33		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	188,044		Transaction price(1)	N/A	N/A	N/A
Partnership interests	231,857		Discounted cash flow	Discount rate	23.8%	23.8%
Fixed income securities
	384,419		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	6,605		Market approach	EBITDA multiple(2)	6.5x - 7.8x	6.9x
	122,962		Income approach	Yield	2.7% - 48.1%	7.9%
	28,320		Other	N/A	N/A	N/A
Derivative instruments	1,104		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	996,310
Liabilities
Derivative instruments	$	(44)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(44)

(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 Company has an insurance-related investment in a private fund managed by a third party that is valued using NAV per share. The terms and conditions of this fund do not allow for redemptions without certain events or approvals that are outside the Company's control. This investment had a fair value of $6.0 million and $1.2 million as of September 30, 2021 and December 31, 2020. The Company has no unfunded commitments for this investment.

30

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

7. DERIVATIVE FINANCIAL INSTRUMENTS

In the normal course of business, the Company and the Consolidated Funds are exposed to certain risks relating to their ongoing operations and use various types of derivative instruments primarily to mitigate against credit and foreign exchange risk. The derivative instruments are not designated as hedging instruments under the accounting standards for derivatives and hedging. The Company recognizes all of its derivative instruments at fair value as either assets or liabilities in the Condensed Consolidated Statements of Financial Condition within other assets or accounts payable, accrued expenses and other liabilities, respectively. These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

The following tables identify the fair value and notional amounts of derivative contracts by major product type on a gross basis for the Company and the Consolidated Funds:

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
The Company	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Foreign exchange contracts	$	81,008	$	4,352	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565
Interest rate contracts	18,455		9		—		—		—		—		—		—
Total derivatives, at fair value(2)	$	99,463	$	4,361	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
Consolidated Funds	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Warrants	$	—	$	—	$	230,000	$	17,000	$	—	$	—	$	—	$	—
Asset swap - other	44,521		325		39,701		1,513		7,600		1,104		540		44
Total derivatives, at fair value(3)	$	44,521	$	325	$	269,701	$	18,513	$	7,600	$	1,104	$	540	$	44

(1)Represents the total contractual amount of derivative assets and liabilities outstanding.

(2)As of September 30, 2021 and December 31, 2020, the Company had the right to, but elected not to, offset $0.3 million and $1.6 million of its derivative liabilities.

(3)As of September 30, 2021 and December 31, 2020, the Consolidated Funds offset $0.3 million and $0.4 million of their derivative assets and liabilities, respectively.

31

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

8. DEBT

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

					As of September 30, 2021			As of December 31, 2020
	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolver	3/31/2026	N/A		$	150,000	1.13%	$	—	—%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	247,802		4.21	247,285		4.21
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000		396,045		3.28	395,713		3.28
2051 Subordinated Notes(4)	6/30/2021	6/30/2051	450,000		444,478		4.13	—		—
Total debt obligations					$	1,238,325		$	642,998

(1)The AOG entities are borrowers under the Credit Facility, which provides a $1.090 billion revolving line of credit. It has a variable interest rate based on LIBOR 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. On March 31, 2021, the Company amended the Credit Facility to, among other things, extend the maturity date from March 2025 to March 2026. As of September 30, 2021, base rate loans bear interest calculated based on the base rate plus 0.125% and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.125%. The unused commitment fee is 0.10% per annum. There is a base rate and LIBOR floor of zero.     

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 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 Notes.

(4)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company, at 100.00% of par 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, 2021, 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 2024 and 2030 Senior Notes (the “Senior Notes”) and 2051 Subordinated Notes are recorded as a reduction of the corresponding debt obligation, and debt issuance costs related to the Credit Facility are included in other assets in the Condensed Consolidated Statements of Financial Condition. All debt issuance costs are amortized over the remaining term of the related obligation into interest expense in the Condensed Consolidated Statements of Operations.

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

	Credit Facility		Senior Notes		Subordinated Notes
Unamortized debt issuance costs as of December 31, 2020	$	5,232	$	4,283	$	—
Debt issuance costs incurred	1,282		—		5,568
Amortization of debt issuance costs	(929)		(446)		(46)
Unamortized debt issuance costs as of September 30, 2021	$	5,585	$	3,837	$	5,522

Loan Obligations of the Consolidated CLOs

Loan obligations of the Consolidated Funds that are CLOs (“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.

32

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

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

	As of September 30, 2021					As of December 31, 2020
	Loan Obligations		Fair Value of Loan Obligations		Weighted  Average  Remaining Maturity  In Years	Loan Obligations		Fair Value of Loan Obligations		Weighted Average Remaining Maturity  In Years
Senior secured notes(1)	$	9,577,725	$	9,561,079	9.5	$	9,796,442	$	9,665,804	10.1
Subordinated notes(2)	723,567		613,715		8.3	482,391		292,272		10.2
Total loan obligations of Consolidated CLOs	$	10,301,292	$	10,174,794		$	10,278,833	$	9,958,076

(1)Original borrowings under the senior secured notes totaled $9.6 billion, with various maturity dates ranging from September 2026 to July 2034. The weighted average interest rate as of September 30, 2021 was 1.96%.

(2)Original borrowings under the subordinated notes totaled $723.6 million, with various maturity dates ranging from September 2026 to July 2034. The notes do not have contractual interest rates; instead, holders of the notes receive distributions from 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, corporate bonds and other securities. 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 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, 2021 and December 31, 2020, the Consolidated Funds were in compliance with all covenants under such credit facilities.

The Consolidated Funds had the following revolving bank credit facilities and term loan outstanding:

				As of September 30, 2021			As of December 31, 2020
Consolidated Funds' Debt Facilities	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate	Outstanding Loan(1)		Effective Rate
Credit Facilities:
	3/4/2022	$	71,500	$	71,500	1.59%	$	71,500	1.59%
	7/1/2023	18,000		17,740		1.63	17,909		1.75
	1/15/2022(2)	—		—		—	32,500		2.75
	7/23/2024	75,000		10,000		2.65	N/A		N/A
	9/24/2026	150,000		—		N/A	N/A		N/A
Total borrowings of Consolidated Funds				$	99,240		$	121,909

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

(2)On July 23, 2021, the credit facility was terminated at the Consolidated Fund’s discretion.

33

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

9. 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 in the Condensed Consolidated Statements of Financial Condition. As of September 30, 2021, 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, 2021 and December 31, 2020, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $732.8 million and $784.2 million, respectively.

Contingent Liabilities

In connection with the Landmark Acquisition, the Company established a management incentive program (the “Landmark MIP”) with certain professionals of Landmark. The Landmark MIP represents a contingent liability not to exceed $300.0 million and is based on the achievement of fundraising targets for certain Landmark funds during a measurement period.

The Company expects to settle this liability with a combination of 15% cash and 85% equity awards. Expense associated with the cash component is recognized ratably over the measurement period, which will end on the earlier of the final fundraising date or December 31, 2022. Expense associated with the equity component is recognized ratably over the service period, which will continue for four years beyond the measurement period end date. The Landmark MIP is remeasured each period with incremental changes in fair value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. At the measurement period end date, the cash component will be paid and restricted units for the balance of the Landmark MIP will be granted at fair value. The unpaid liability at the measurement period end date will be reclassified from liability to additional paid-in-capital and any difference between the fair value of the Landmark MIP at the measurement period end date and the previously recorded compensation expense will be recognized over the remaining four year service period as equity-based compensation expense. As of September 30, 2021, the fair value of the contingent liability was estimated to be $236.0 million. Compensation expense of $14.7 million and $19.3 million for the three months ended September 30, 2021 and for the period from June 2, 2021 through September 30, 2021, respectively, was recorded in the Condensed Consolidated Statements of Operations.

The purchase agreement with Black Creek contains provisions obligating the Company to make payments in an aggregate amount not to exceed $275.0 million to certain senior professionals and advisors upon the achievement of certain revenue targets through a measurement period no later than December 31, 2024. Because these future payments require continued service through the measurement period, this consideration is accounted for as compensation expense instead of as purchase consideration. The fair value of this contingent liability is remeasured at each reporting date with compensation expense recorded ratably over the service period, which is the Black Creek Acquisition date through the measurement period end date. As of September 30, 2021, the fair value of the contingent liability was $206.7 million and the Company recorded a contingent liability of $13.5 million within accrued compensation in the Consolidated Statements of Financial Condition. For the three months ended September 30 2021, compensation expense of $13.5 million was recorded within compensation and benefits expense within the Condensed Consolidated Statements of Operations.

The purchase agreement with Black Creek also contains a provision obligating the Company to make a payment to the sellers equal to 50% of the performance income realized for certain Black Creek funds for the year ended December 31, 2021. The fair value of this contingent obligation as of the acquisition date was $28.6 million. The contingent obligation is subject to remeasurement until settlement and changes in fair value from the acquisition date are recorded within other income (expense), net within the Condensed Consolidated Statements of Operations. As of September 30, 2021, the fair value of the contingent obligation was $32.8 million and recorded within due to affiliates within the Consolidated Statements of Financial Condition.

34

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Performance Income

Performance income 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 (in most cases) exceed the preferred return threshold or (in all cases) the general partner receives 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 performance income 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.

At September 30, 2021 and December 31, 2020, if the Company assumed all existing investments were worthless, the amount of performance income subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $202.3 million and $326.4 million, respectively, of which approximately $158.0 million and $252.4 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such performance income. Management believes the possibility of all of the investments becoming worthless is remote. As of September 30, 2021 and December 31, 2020, if the funds were liquidated at their fair values, there would be no contingent repayment obligation or liability.

Litigation

From time to time, the Company is named as a defendant in legal actions relating to transactions 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 leases office space and certain office equipment. The Company's leases have remaining lease terms of one to twelve years. The tables below present certain supplemental quantitative disclosures regarding the Company's leases:

		As of September 30,		As of December 31,
	Classification	2021		2020
Operating lease assets	Right-of-use operating lease assets	$	176,511	$	154,742
Finance lease assets	Other assets(1)	1,164		1,386
Total lease assets		$	177,675	$	156,128
Operating lease liabilities	Operating lease liabilities	$	214,681	$	180,236
Finance lease obligations	Accounts payable, accrued expenses and other liabilities	977		1,273
Total lease liabilities		$	215,658	$	181,509

(1) Finance lease assets are recorded net of accumulated amortization of $1.4 million and $1.0 million as of September 30, 2021 and December 31, 2020, respectively.

35

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Maturity of lease liabilities	Operating Leases		Finance Leases
2021	$	10,591	$	73
2022	41,989		598
2023	38,277		164
2024	36,579		162
2025	36,251		11
After 2025	66,683		—
Total future payments	230,370		1,008
Less: interest	15,689		31
Total lease liabilities	$	214,681	$	977

		Three months ended September 30,				Nine months ended September 30,
	Classification	2021		2020		2021		2020
Operating lease expense	General, administrative and other expenses	$	9,697	$	7,701	$	27,203	$	23,138
Finance lease expense:
Amortization of finance lease assets	General, administrative and other expenses	154		127		408		346
Interest on finance lease liabilities	Interest expense	7		11		24		33
Total lease expense		$	9,858	$	7,839	$	27,635	$	23,517

	Nine months ended September 30,
Other information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	26,704	$	23,098
Operating cash flows for finance leases	34		48
Financing cash flows for finance leases	463		412
Leased assets obtained in exchange for new finance lease liabilities	189		—
Leased assets obtained in exchange for new operating lease liabilities	55,461		12,477

	As of September 30,		As of December 31,
Lease term and discount rate	2021		2020
Weighted-average remaining lease terms (in years):
Operating leases	6.1		6.0
Finance leases	2.1		2.6
Weighted-average discount rate:
Operating leases	2.97	%	3.59	%
Finance leases	2.91	%	3.26	%

10. RELATED PARTY TRANSACTIONS

Substantially all of the Company’s revenue is earned from its affiliates, including management fees, carried interest allocation, incentive fees, principal investment income and administrative expense reimbursements. The related accounts receivable are included within due from affiliates within the Condensed Consolidated Statements of Financial Condition, except that accrued carried interest allocations, which is predominantly due from affiliated funds, is presented separately within investments in 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.

The Company also has entered into agreements to be reimbursed for its expenses incurred for providing administrative services to certain related parties, including ARCC, ACRE, ARDC, Ivy Hill Asset Management, L.P., ACF FinCo I L.P. and

36

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

CION Ares Diversified Credit Fund. As a result of the Black Creek Acquisition, the Company is party to agreements with each Black Creek fund to provide various services, such as administration, acquisition, development and property management, among others.

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 or performance income.

Performance income 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,
	2021		2020
Due from affiliates:
Management fees receivable from non-consolidated funds	$	347,078	$	308,581
Incentive fee receivable from non-consolidated funds	579		21,495
Payments made on behalf of and amounts due from non-consolidated funds and employees	145,754		75,811
Due from affiliates—Company	$	493,411	$	405,887
Amounts due from portfolio companies and non-consolidated funds	$	9,059	$	17,172
Due from affiliates—Consolidated Funds	$	9,059	$	17,172
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	7,959	$	4,808
Tax receivable agreement liability	97,698		62,505
Undistributed carried interest and incentive fees	64,675		27,322
Payments made by non-consolidated funds on behalf of and payable by the Company	32,106		5,551
Due to affiliates—Company	$	202,438	$	100,186

Due from 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. Amounts advanced on behalf of Consolidated Funds are eliminated in consolidation. 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.

11. 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. For the three and nine months ended September 30, 2021, the Company recorded income tax expense of $30.3 million and $104.5 million. For the three and nine months ended September 30, 2020, the Company recorded income tax expense of $18.3 million and $22.1 million, respectively.

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 entities that are consolidated in the Company's condensed consolidated financial statements. For the three and nine months ended September 30, 2021 and 2020, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate.

37

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

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, 2021 and December 31, 2020, the Company recorded a net deferred tax asset of $29.9 million and $70.0 million, respectively, within other assets in 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 no longer subject to income tax audits by taxing authorities for any years prior to 2017. 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 condensed consolidated financial statements.

12. EARNINGS PER SHARE

For the three and nine months ended September 30, 2021, the Company had 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. Additional information on the issuance of the non-voting common stock is discussed in “Note 14. Equity and Redeemable Interests.”

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 method.

For the three and nine months ended September 30, 2021 and the three months ended September 30, 2020, the treasury stock method was the more dilutive method. For the nine months ended September 30, 2020, the two-class method was the more dilutive method.

The computation of diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 excludes the following restricted units and AOG units, as their effect would have been anti-dilutive:

	Three months ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Restricted units	450	572	167	—
AOG Units	119,855,724	114,726,173	115,394,058	—

38

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
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	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	(1,440)		(2,757)		(8,142)		(7,715)
Undistributed earnings allocable to participating unvested restricted units	(306)		—		(2,858)		—
Net income available to Class A and non-voting common stockholders	$	82,980	$	39,363	$	251,659	$	48,890
Basic weighted-average shares of Class A and non-voting common stock	168,931,621		143,466,209		161,071,151		131,866,471
Basic earnings per share of Class A and non-voting common stock	$	0.49	$	0.27	$	1.55	$	0.37
Diluted earnings per share of Class A and non-voting common stock:
Net income available to Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	—		—		—		(7,715)
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	48,890
Effect of dilutive shares:
Restricted units	12,273,068		9,762,645		10,807,242		—
Options	5,317,468		4,893,709		5,265,045		—
Diluted weighted-average shares of Class A and non-voting common stock	186,522,157		158,122,563		177,143,438		131,866,471
Diluted earnings per share of Class A and non-voting common stock	$	0.45	$	0.27	$	1.48	$	0.37
Dividend declared and paid per Class A and non-voting common stock	$	0.47	$	0.40	$	1.41	$	1.20

13. EQUITY COMPENSATION

Equity Incentive Plan

Equity-based compensation is granted under the Company's 2014 Equity Incentive Plan (as amended, 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, 2021, the total number of shares available for issuance under the Equity Incentive Plan reset to 44,510,451 shares and as of September 30, 2021, 38,972,964 shares remain available for issuance.

Generally, unvested restricted units 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.

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Restricted units	$	36,390	$	30,036	$	127,219	$	86,804
Restricted units with a market condition	29,601		300		63,925		4,729
Options	—		—		—		43
Equity-based compensation expense	$	65,991	$	30,336	$	191,144	$	91,576

39

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Restricted Units

Each restricted unit represents an unfunded, unsecured right of the holder to receive a share of the Company's Class A common stock on a specific date. The restricted units generally vest and are settled in shares of Class A common stock either (i) at a rate of one-third per year, beginning on the third anniversary of the grant date, (ii) in their entirety on the fifth anniversary of the grant date, (iii) at a rate of one quarter per year, beginning on the second anniversary of the grant date or the holder's employment commencement date, or (iv) at a rate of one third per year, beginning on the first anniversary of 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 restricted units 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, 2021, 8.2 million restricted units vested and 4.4 million shares of Class A common stock were delivered to the holders. For the nine months ended September 30, 2020, 4.7 million restricted units vested and 2.6 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 as described in the subsequent sections, 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”). During the nine months ended September 30, 2021, the Company declared dividends of $0.47 per share to Class A common stockholders at the close of business on March 17, 2021, June 16, 2021 and September 16, 2021. For the three and nine months ended September 30, 2021, Dividend Equivalents were made to the holders of restricted units in the aggregate amount of $6.4 million and $21.7 million, respectively, which are presented as dividends within the Condensed Consolidated Statements of Changes in Equity. When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense in the Condensed Consolidated Statements of Operations.

During the first quarter of 2021, in addition to grants awarded in 2021, the Company approved the future grant of restricted units to certain senior executives in each of 2022, 2023 and 2024, subject to the holder’s continued employment and acceleration in certain instances. The vesting period of these awards are at a rate of 25% per year, beginning on the second anniversary of the grant date. Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period. The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date.

The following table presents unvested restricted units' activity:

	Restricted Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	16,299,664	$	24.30
Granted	9,667,989	46.16
Vested	(6,278,948)	20.70
Forfeited	(1,255,502)	30.48
Balance - September 30, 2021	18,433,203	$	36.33

The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $504.8 million as of September 30, 2021 and is expected to be recognized over the remaining weighted average period of 3.5 years.

40

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Performance-Based Restricted Unit Awards with a Market Condition

During the first quarter of 2021, the Company granted certain restricted units with a vesting condition contingent upon the volume-weighted, average closing price of the Company’s Class A common stock meeting or exceeding a stated price for 30 consecutive calendar days on or prior to January 22, 2029, referred to as the market condition. 537,500 restricted units with a market condition of $55.00 per share (“Tranche I”), 537,500 restricted units with a market condition of $60.00 per share (“Tranche II”), 537,500 restricted units with a market condition of $65.00 per share (“Tranche III”) and 537,500 restricted units with a market condition of $75.00 per share (“Tranche IV”) were granted. Vesting is also generally subject to continued employment at the time such market condition is achieved, subject to certain exceptions upon certain qualifying terminations of employment. Under the terms of the awards, if the target price of the applicable market condition is not achieved by the close of business on January 22, 2029, the unvested market condition awards will be automatically canceled and forfeited for no consideration. Restricted units subject to a market condition are not eligible to receive a Dividend Equivalent.

The grant date fair values for Tranche I, Tranche II, Tranche III and Tranche IV awards were $37.28, $34.47, $31.92 and $27.75 per unit, respectively, based on a probability distributed Monte-Carlo simulation. Due to the existence of the market condition, the vesting period for the awards is not explicit, and as such, compensation expense is recognized on a straight-line basis over the median vesting period derived from the positive iterations of the Monte Carlo simulation where the market condition was achieved. The median vesting period is 0.7 years, 1.2 years, 1.6 years and 2.3 years for Tranche I, Tranche II, Tranche III and Tranche IV, respectively.

Below is a summary of the significant assumptions used to estimate the grant date fair value of market condition awards:

Closing price of the Company's common shares as of valuation date	$45.76
Risk-free interest rate	0.88%
Volatility	35.0%
Dividend yield	3.5%
Cost of equity	10.0%

The following table presents the market condition awards' activity:

	Market Condition Awards Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	—	$	—
Granted	2,150,000	32.86
Vested	(1,925,000)	33.21
Forfeited	(225,000)	29.84
Balance - September 30, 2021	—	$	—

During the nine months ended September 30, 2021, the market-priced vesting condition was met for all four tranches of the market condition awards and resulted in the acceleration of $43.4 million of compensation expense. Tranche I was met during the second quarter of 2021 and Tranche II, III and IV were met during the third quarter of 2021, and the compensation expense was accelerated during each of the quarters of $14.0 million and $29.4 million, respectively.

41

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Options

A summary of options activity during the nine months ended September 30, 2021 is presented below:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (in years)	Aggregate Intrinsic Value
Balance - January 1, 2021	8,312,203	$	18.99	3.4	$	233,251
Granted	—	—		—	—
Exercised	(1,489,789)	18.94		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Balance - September 30, 2021	6,822,414	$	19.00	2.6	$	374,073
Exercisable at September 30, 2021	6,822,414	$	19.00	2.6	$	374,073

Net cash proceeds from exercises of stock options were $27.4 million for the nine months ended September 30, 2021. The Company realized tax benefits of approximately $9.6 million from those exercises.

14. 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. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting 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 2021, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 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 February 2022. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the nine months ended September 30, 2021 and 2020, the Company did not repurchase any shares as part of the stock repurchase program.

On April 5, 2021, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with SMBC. Pursuant to the Purchase Agreement, the Company agreed to issue and sell to SMBC approximately $250.0 million of the Company’s common stock (consisting of 3,489,911 shares of non-voting common stock and 1,234,200 shares of Class A common stock) at a price per share equal to the public offering price of Class A common stock being offered pursuant to the Offering (as defined below), less underwriting discounts and commissions (the “Private Placement”). The Private Placement closed on April 8, 2021 and resulted in gross proceeds to the Company of approximately $250.0 million before deducting offering expenses.

On April 6, 2021, the Company entered into an underwriting agreement pursuant to which the Company agreed to issue and sell 10,925,000 shares of the Class A common stock (including 1,425,000 shares of Class A common stock sold pursuant to the exercise of the underwriters' option to purchase additional shares of Class A common stock) (collectively, the “Offering”). The Offering closed on April 8, 2021 and resulted in gross proceeds to the Company of approximately $578.2 million before deducting offering expenses.

Offering expenses for the Private Placement and Offering amounted to approximately $0.7 million. The expenses have been recorded as a reduction in the proceeds received and are presented on a net basis together with issuances of common stock in additional paid-in-capital within the Condensed Consolidated Statements of Changes in Equity.

42

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

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

	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance - January 1, 2021	147,182,562	—	1,000	112,447,618	259,631,180
Issuance of stock(1)	12,159,200	3,489,911	—	8,744,296	24,393,407
Exchanges of AOG Units	2,330,367	—	—	(2,330,367)	—
Redemptions of AOG Units	—	—	—	(58,290)	(58,290)
Stock option exercises, net of shares withheld for tax	1,460,388	—	—	—	1,460,388
Vesting of restricted stock awards, net of shares withheld for tax	4,448,648	—	—	—	4,448,648
Balance - September 30, 2021	167,581,165	3,489,911	1,000	118,803,257	289,875,333

(1) Issuances of Class C Common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

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

							Daily Average Ownership
	As of September 30, 2021			As of December 31, 2020				Three months ended September 30,				Nine months ended September 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest			2021		2020		2021		2020
Ares Management Corporation	171,071,076	59.02	%	147,182,562	56.69	%		58.50	%	55.57	%	58.26	%	53.33	%
Ares Owners Holdings, L.P.	118,803,257	40.98		112,447,618	43.31			41.50		44.43		41.74		46.67
Total	289,874,333	100.00	%	259,630,180	100.00	%

Preferred Stock

As of December 31, 2020, the Company had 12,400,000 shares of the Series A Preferred Stock outstanding. As and if declared by the Company’s board of directors, dividends on the Series A Preferred Stock are payable quarterly at a rate per annum equal to 7.00%. The Series A Preferred Stock could be redeemed at the Company’s option, in whole or in part, at any time on or after June 30, 2021, at a price per share of $25.00.

On June 30, 2021 (the “Redemption Date”), the Company redeemed all shares of the Series A Preferred Stock outstanding at a redemption price per share of $25.00. The redemption price did not include any accrued dividends as the Redemption Date occurred on the dividend payment date. On the Redemption Date, the Company paid $310.0 million for the redemption of the Series A Preferred Stock and $5.4 million for the previously announced dividend of $0.4375 per share. The excess of the redemption price over the carrying value of the Series A Preferred Stock of approximately $11.2 million relates to the original issuance costs and is presented as a reduction to net income available to common stockholders and to non-controlling interests in AOG entities within the Condensed Consolidated Statements of Operations.

43

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in Ares Operating Group entities:

	Total
Balance - January 1, 2021	$	100,366
Net income	32
Currency translation adjustment, net of tax	(590)
Balance- March 31, 2021	$	99,808
Net income	$	337
Currency translation adjustment, net of tax	186
Distribution	(300)
Balance- June 30, 2021	$	100,031
Net income	$	324
Currency translation adjustment, net of tax	(356)
Distribution	(1,350)
Balance- September 30, 2021	$	98,649

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

	Total
Balance - January 1, 2021	$	—
Redemption value	930,924
Balance- March 31, 2021	$	930,924
Change in redemption value	(14,100)
Balance- June 30, 2021	$	916,824
Change in redemption value	83,176
Balance- September 30, 2021	$	1,000,000

15. SEGMENT REPORTING

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

Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including syndicated loans, high yield bonds, multi-asset credit, alternative credit investments and direct lending. The syndicated loans strategy focuses on evaluating individual credit opportunities related primarily to non-investment grade senior secured loans and primarily targets first lien secured debt, with a secondary focus on second lien secured loans and subordinated and other unsecured loans. The high yield bond strategy seeks to deliver a diversified portfolio of liquid, traded non-investment grade corporate bonds, including secured, unsecured and subordinated debt instruments. Multi-asset credit is a “go anywhere” strategy designed to offer investors a flexible solution to global credit investing by allowing us to tactically allocate between multiple asset classes in various market conditions. The alternative credit strategy seeks to capitalize on asset-focused investment opportunities that fall outside of traditional, well-defined markets such as corporate debt, real estate and private equity. The alternative credit strategy emphasizes downside protection and capital preservation through a focus on investments that tend to share the following key attributes: asset security, covenants, structural protections and cash flow velocity. The direct lending strategy is one of the largest self-originating direct lenders to the U.S. and European markets and has a multi-channel origination strategy designed to address a broad set of investment opportunities in the middle market. The direct lending team maintains a flexible investment strategy with the capability to invest in first lien senior secured loans (including “unitranche” loans which are loans that combine senior and subordinated debt, generally in a first lien position), second lien senior secured loans, subordinated debt, preferred equity and non-control equity co-investments in private middle market companies. U.S. direct lending activities are managed through a publicly traded business development company, ARCC, as well as through private commingled funds and separately managed accounts (“SMAs”).

44

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Private Equity Group: The Private Equity Group manages investment strategies broadly categorizes its investment activities into three strategies: Corporate Private Equity, Special Opportunities and Infrastructure and Power. In the Corporate Private Equity strategy, the Company targets four principal transactions types: prudently leveraged control buyouts, growth equity, rescue/deleveraging capital and distressed buyouts/discounted debt accumulation together with the broad resources of potential investment opportunities. This flexible capital approach, together with the broad resources of the Ares platform, widens our universe of potential investment opportunities and allows us to remain active in different markets and to be highly selective in making investments across various market environments. In the Special Opportunities strategy, the Company employs a flexible capital strategy to target non-control positions across a broad spectrum of stressed, distressed and opportunistic situations. The Infrastructure and Power strategy targets value-added approach that seeks to source and structure essential infrastructure assets with strong downside protection and potential for capital appreciation throughout the climate infrastructure, natural gas generation, and energy transportation sectors.

Real Estate Group: The Real Estate Group manages comprehensive real estate equity and debt strategies, focusing on activities categorized as core, value-add, and opportunistic. Real Estate equity strategies involve high-quality properties and locations and de-risked developments with an opportunity to create value through repositioning, lease-up, re-tenanting, redevelopment, and/or complex recapitalizations. The group targets assets located in liquid markets with diversified economies in order to deliver compelling, risk-adjusted returns through a combination of asset selectivity and disciplined portfolio management. The U.S. core investment activities focus on the acquisition of assets secured by long-term cash flows and durable tenancy diversified across geographies and end-user industries. The core strategy encompasses industrial, multifamily, office, necessity-based retail, and other property types across major metropolitan economies. The value-add investment activities focus on acquiring underperforming, income-producing, institutional-quality assets that can be improved through select value-creation initiatives across the U.S. and Europe. The opportunistic activities focus on capitalizing on distressed and special situations, repositioning underperforming assets and undertaking select development and redevelopment projects across the U.S. and Europe. Additionally, the Ares Real Estate Group has specialized operating and investment capabilities specifically in the industrial sector through its vertically integrated operating platform. The Company’s debt strategies leverage the Real Estate Group’s diverse sources of capital to directly originate and invest in a wide range of financing opportunities in the U.S. In addition to managing private commingled funds and SMAs investing in equity and debt strategies, the Real Estate Group also makes investments through Black Creek Diversified Property Fund, Inc. (“DPF”) and Black Creek Industrial REIT IV, Inc. (“BCI IV”), its non-traded REITs, and ACRE, a publicly traded commercial mortgage REIT.

Secondary Solutions Group: The Secondary Solutions Group was formed during the second quarter of 2021 in connection with the Landmark Acquisition. The Secondary Solutions Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate and infrastructure. The Company acquires interests across a range of partnership vehicles, including funds, multi-asset portfolios and single asset joint ventures. Each strategy focuses on recapitalizing and restructuring the funds, including transactions that can address pending fund maturity, strategy change or the need for additional equity capital. The private equity secondaries strategy targets opportunities in non-competitive channels and makes investments in durable, performing assets with attractive capital structures. In the real estate secondaries strategy, the Company seeks broad diversification by property sector and geography and to drive investment results through underwriting, transaction structuring and portfolio construction. In the infrastructure secondaries strategy, the Company focuses on achieving diversification through a portfolio that provides inflation protection and exposure to uncorrelated assets.

Strategic Initiatives: The Company began reflecting the Strategic Initiatives category beginning in the third quarter of 2020. It represents an all other category that includes operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets including Ares SSG, Ares Insurance Solutions (“AIS”) and AAC.

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. The OMG includes Ares Wealth Management Solutions (“WMS”) that 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 investment companies and partnerships, which reimburse the OMG for expenses equal to the costs of services provided. The OMG’s revenues and expenses are not allocated to the Company’s reportable segments but the Company does consider the cost structure of the OMG when evaluating its financial performance.

Segment Profit Measures: These measures supplement and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

45

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

Fee related earnings (“FRE”) is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes performance income, performance related compensation, investment income from the Consolidated Funds and non-consolidated funds and certain other items that the Company believes are not indicative of its core operating performance.

Realized income (“RI”) 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 (a) operating results of the Consolidated Funds, (b) depreciation and amortization expense, (c) the effects of changes arising from corporate actions, (d) unrealized gains and losses related to performance income and investment performance and (e) 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. Management believes RI is a more appropriate metric to evaluate the Company's current business operations.

Management 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.

46

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	271,591	$	69,591	$	55,160	$	41,064	16,544		$	453,950	$	—	$	453,950
Other fees	5,798		370		3,681		—		2		9,851		3,446		13,297
Compensation and benefits	(86,502)		(26,773)		(29,160)		(11,955)		(5,316)		(159,706)		(66,107)		(225,813)
General, administrative and other expenses	(14,930)		(6,238)		(5,420)		(2,593)		(1,774)		(30,955)		(28,142)		(59,097)
Fee related earnings	175,957		36,950		24,261		26,516		9,456		273,140		(90,803)		182,337
Performance income—realized	6,332		34,316		4,693		—		—		45,341		—		45,341
Performance related compensation—realized	(3,079)		(27,483)		(3,166)		—		—		(33,728)		—		(33,728)
Realized net performance income	3,253		6,833		1,527		—		—		11,613		—		11,613
Investment income—realized	618		2,020		1,699		—		1,025		5,362		—		5,362
Interest and other investment income (expense)—realized	4,716		4,861		918		699		163		11,357		(270)		11,087
Interest expense	(2,392)		(2,726)		(1,683)		(427)		(4,135)		(11,363)		(160)		(11,523)
Realized net investment income (loss)	2,942		4,155		934		272		(2,947)		5,356		(430)		4,926
Realized income	$	182,152	$	47,938	$	26,722	$	26,788	$	6,509	$	290,109	$	(91,233)	$	198,876
	Three months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	208,371	$	54,653	$	23,787	$	—	$	13,320	$	300,131	$	—	$	300,131
Other fees	4,898		2		5		—		6		4,911		—		4,911
Compensation and benefits	(74,373)		(21,224)		(13,011)		—		(4,241)		(112,849)		(41,551)		(154,400)
General, administrative and other expenses	(13,789)		(6,002)		(2,987)		—		(1,514)		(24,292)		(19,519)		(43,811)
Fee related earnings	125,107		27,429		7,794		—		7,571		167,901		(61,070)		106,831
Performance income—realized	7,069		115,997		199		—		—		123,265		—		123,265
Performance related compensation—realized	(4,131)		(93,284)		(123)		—		—		(97,538)		—		(97,538)
Realized net performance income	2,938		22,713		76		—		—		25,727		—		25,727
Investment income—realized	—		16,351		486		—		—		16,837		—		16,837
Interest and other investment income (expense)—realized	1,962		1,065		1,308		—		(4)		4,331		(503)		3,828
Interest expense	(2,340)		(2,216)		(1,389)		—		(729)		(6,674)		(141)		(6,815)
Realized net investment income (loss)	(378)		15,200		405		—		(733)		14,494		(644)		13,850
Realized income	$	127,667	$	65,342	$	8,275	$	—	$	6,838	$	208,122	$	(61,714)	$	146,408

47

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Nine months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	764,702	$	171,019	$	115,602	$	53,962	$	48,963	$	1,154,248	$	—	$	1,154,248
Other fees	18,494		726		4,604		—		82		23,906		3,446		27,352
Compensation and benefits	(252,783)		(73,534)		(60,767)		(16,244)		(15,440)		(418,768)		(158,943)		(577,711)
General, administrative and other expenses	(37,716)		(17,499)		(12,064)		(3,452)		(5,580)		(76,311)		(69,872)		(146,183)
Fee related earnings	492,697		80,712		47,375		34,266		28,025		683,075		(225,369)		457,706
Performance income—realized	78,255		159,479		12,255		—		—		249,989		—		249,989
Performance related compensation—realized	(49,433)		(127,706)		(8,167)		—		—		(185,306)		—		(185,306)
Realized net performance income	28,822		31,773		4,088		—		—		64,683		—		64,683
Investment income—realized	1,858		5,308		4,182		—		1,347		12,695		—		12,695
Interest and other investment income—realized	14,354		10,716		3,892		701		2,824		32,487		170		32,657
Interest expense	(5,372)		(6,032)		(3,930)		(432)		(8,962)		(24,728)		(397)		(25,125)
Realized net investment income (loss)	10,840		9,992		4,144		269		(4,791)		20,454		(227)		20,227
Realized income	$	532,359	$	122,477	$	55,607	$	34,535	$	23,234	$	768,212	$	(225,596)	$	542,616
	Nine months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	606,596	$	160,206	$	71,459	$	—	$	13,320	$	851,581	$	—	$	851,581
Other fees	12,057		142		716		—		6		12,921		—		12,921
Compensation and benefits	(222,063)		(62,946)		(38,159)		—		(4,241)		(327,409)		(114,916)		(442,325)
General, administrative and other expenses	(41,626)		(16,083)		(9,185)		—		(1,514)		(68,408)		(56,877)		(125,285)
Fee related earnings	354,964		81,319		24,831		—		7,571		468,685		(171,793)		296,892
Performance income—realized	16,085		276,469		27,106		—		—		319,660		—		319,660
Performance related compensation—realized	(12,142)		(222,949)		(17,484)		—		—		(252,575)		—		(252,575)
Realized net performance income	3,943		53,520		9,622		—		—		67,085		—		67,085
Investment income (loss)—realized	(843)		35,866		2,740		—		—		37,763		(5,698)		32,065
Interest and other investment income (expense)—realized	13,166		2,364		3,024		—		(4)		18,550		(588)		17,962
Interest expense	(6,391)		(6,106)		(3,715)		—		(729)		(16,941)		(1,262)		(18,203)
Realized net investment income (loss)	5,932		32,124		2,049		—		(733)		39,372		(7,548)		31,824
Realized income	$	364,839	$	166,963	$	36,502	$	—	$	6,838	$	575,142	$	(179,341)	$	395,801

48

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Segment revenues
Management fees	$	453,950	$	300,131	$	1,154,248	$	851,581
Other fees	9,851		4,911		23,906		12,921
Performance income—realized	45,341		123,265		249,989		319,660
Total segment revenues	$	509,142	$	428,307	$	1,428,143	$	1,184,162
Segment expenses
Compensation and benefits	$	159,706	$	112,849	$	418,768	$	327,409
General, administrative and other expenses	30,955		24,292		76,311		68,408
Performance related compensation—realized	33,728		97,538		185,306		252,575
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392
Segment realized net investment income
Investment income—realized	$	5,362	$	16,837	$	12,695	$	37,763
Interest and other investment income —realized	11,357		4,331		32,487		18,550
Interest expense	(11,363)		(6,674)		(24,728)		(16,941)
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

    

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated revenue	$	948,719	$	489,866	$	2,901,926	$	1,106,033
Performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Management fees of Consolidated Funds eliminated in consolidation	11,051		11,719		33,416		33,601
Incentive fees of Consolidated Funds eliminated in consolidation	—		—		1,528		(70)
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	4,264		4,448		13,157		12,249
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG revenue	(3,446)		—		(3,446)		—
Performance income (loss) reclass(2)	680		(291)		1,285		(3,664)
Principal investment income, net of eliminations	(14,250)		(11,408)		(86,477)		(8,330)
Net income of non-controlling interests in consolidated subsidiaries	(6,927)		(4,323)		(16,795)		(5,808)
Total consolidation adjustments and reconciling items	(439,577)		(61,559)		(1,473,783)		78,129
Total segment revenue	$	509,142	$	428,307	$	1,428,143	$	1,184,162

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

(2)Related to performance income for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

49

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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,
	2021		2020		2021		2020
Total consolidated expenses	$	813,267	$	392,580	$	2,363,108	$	958,106
Performance related compensation-unrealized	(296,044)		(24,818)		(1,022,393)		61,010
Expenses of Consolidated Funds added in consolidation	(23,206)		(17,737)		(66,653)		(50,237)
Expenses of Consolidated Funds eliminated in consolidation	11,102		11,718		35,078		33,531
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG expenses	(94,249)		(61,070)		(228,815)		(171,793)
Acquisition and merger-related expense	(754)		(3,474)		(18,364)		(9,430)
Equity compensation expense	(65,991)		(30,336)		(191,144)		(91,576)
Acquisition-related compensation expense(2)	(28,194)		—		(32,824)		—
Deferred placement fees	(32,413)		(2,942)		(33,740)		(18,677)
Depreciation and amortization expense	(36,668)		(14,336)		(71,742)		(26,197)
Expense of non-controlling interests in consolidated subsidiaries	(6,829)		(5,690)		(17,372)		(8,630)
Total consolidation adjustments and reconciling items	(588,878)		(157,901)		(1,682,723)		(309,714)
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392

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

(2)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated other income (expense)	$	111,536	$	62,355	$	218,011	$	(43,602)
Investment (income) loss—unrealized	(3,609)		1,479		(60,588)		83,369
Interest and other investment (income) loss—unrealized	(1,405)		(1,390)		3,057		(10,330)
Other (income) loss from Consolidated Funds added in consolidation, net	(76,287)		(68,132)		(178,195)		20,719
Other expense from Consolidated Funds eliminated in consolidation, net	(4,973)		(3,470)		(13,783)		(11,478)
OMG other (income) expense	37		(1,820)		646		(781)
Performance (income) loss reclass(1)	(680)		291		(1,285)		3,664
Principal investment income (loss)	20,719		18,080		96,448		(24,951)
Other (income) expense, net	(34,812)		9,534		(34,666)		9,903
Other (income) loss of non-controlling interests in consolidated subsidiaries	(5,170)		(2,433)		(9,191)		12,859
Total consolidation adjustments and reconciling items	(106,180)		(47,861)		(197,557)		82,974
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

(1)Related to performance income for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

50

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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,
	2021		2020		2021		2020
Income before taxes	$	246,988	$	159,641	$	756,829	$	104,325
Adjustments:
Depreciation and amortization expense	36,668		14,336		71,742		26,197
Equity compensation expense	65,991		30,336		191,144		91,576
Acquisition-related compensation expense(1)	28,194		—		32,824		—
Acquisition and merger-related expense	7,967		3,490		26,188		9,815
Deferred placement fees	32,413		2,942		33,740		18,677
OMG expense, net	90,840		59,250		226,015		171,012
Other (income) expense, net	(42,025)		9,518		(42,490)		9,518
Net (income) expense of non-controlling interests in consolidated subsidiaries	(5,268)		(1,066)		(8,614)		15,681
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(47,372)		(42,744)		(102,331)		38,446
Total performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Total performance related compensation—unrealized	296,044		24,818		1,022,393		(61,010)
Total investment (income) loss—unrealized	(5,014)		89		(57,531)		73,039
Realized income	290,109		208,122		768,212		575,142
Total performance income—realized	(45,341)		(123,265)		(249,989)		(319,660)
Total performance related compensation—realized	33,728		97,538		185,306		252,575
Total investment income—realized	(5,356)		(14,494)		(20,454)		(39,372)
Fee related earnings	$	273,140	$	167,901	$	683,075	$	468,685

(1)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

51

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

16. CONSOLIDATION

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 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 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,
	2021		2020
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs(1)	$	340,988	$	224,203
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs(1)	478,164		391,963
Assets of consolidated VIEs	12,190,617		11,580,003
Liabilities of consolidated VIEs	11,238,928		10,716,438

(1)As of September 30, 2021 and December 31, 2020, 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 $104.4 million and $107.7 million, respectively.

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	$	38,597	$	42,627	$	84,285	$	(38,593)

52

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(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, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	295,704	$	—	$	—	$	295,704
Investments (includes $2,625,319 of accrued carried interest)	3,804,023		—		(481,358)		3,322,665
Due from affiliates	517,504		—		(24,093)		493,411
Other assets	1,006,870		—		—		1,006,870
Intangible assets, net	1,452,690		—		—		1,452,690
Right-of-use operating lease assets	176,511		—		—		176,511
Assets of Consolidated Funds
Cash and cash equivalents	—		1,581,433		—		1,581,433
U.S. Treasury securities, at fair value	—		1,000,165		—		1,000,165
Investments, at fair value	—		10,356,640		4,214		10,360,854
Due from affiliates	—		19,089		(10,030)		9,059
Receivable for securities sold	—		187,230		—		187,230
Other assets	—		47,806		—		47,806
Total assets	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398
Liabilities
Accounts payable, accrued expenses and other liabilities	$	218,171	$	—	$	(10,030)	$	208,141
Accrued compensation	309,569		—		—		309,569
Due to affiliates	202,438		—		—		202,438
Performance related compensation payable	1,895,343		—		—		1,895,343
Debt obligations	1,238,325		—		—		1,238,325
Operating lease liabilities	214,681		—		—		214,681
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		102,883		(13,198)		89,685
Due to affiliates	—		19,880		(19,880)		—
Payable for securities purchased	—		863,007		—		863,007
CLO loan obligations, at fair value	—		10,220,040		(45,246)		10,174,794
Fund borrowings	—		99,240		—		99,240
Total liabilities	4,078,527		11,305,050		(88,354)		15,295,223
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		1,000,000		—		1,000,000
Redeemable interest in Ares Operating Group entities	98,649		—		—		98,649
Non-controlling interest in Consolidated Funds	—		887,313		(422,913)		464,400
Non-controlling interest in Ares Operating Group entities	1,322,866		—		—		1,322,866
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero shares issued and outstanding)	—		—		—		—
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (167,581,165 shares issued and outstanding)	1,676		—		—		1,676
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 (118,803,257 shares issued and outstanding)	1,188		—		—		1,188
Additional paid-in-capital	1,881,913		—		—		1,881,913
Retained earnings	(128,981)		—		—		(128,981)
Accumulated other comprehensive loss, net of tax	(2,571)		—		—		(2,571)
Total stockholders' equity	1,753,260		—		—		1,753,260
Total equity	3,076,126		887,313		(422,913)		3,540,526
Total liabilities, redeemable interest, non-controlling interests and equity	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398

53

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	As of December 31, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	539,812	$	—	$	—	$	539,812
Investments (includes $1,145,853 of accrued carried interest)	2,064,517		—		(381,758)		1,682,759
Due from affiliates	426,021		—		(20,134)		405,887
Other assets	590,543		—		(211)		590,332
Intangible assets, net	222,087		—		—		222,087
Right-of-use operating lease assets	154,742		—		—		154,742
Assets of Consolidated Funds
Cash and cash equivalents	—		522,377		—		522,377
Investments, at fair value	—		10,873,522		3,575		10,877,097
Due from affiliates	—		27,377		(10,205)		17,172
Receivable for securities sold	—		121,225		—		121,225
Other assets	—		35,502		—		35,502
Total assets	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992
Liabilities
Accounts payable, accrued expenses and other liabilities	$	125,494	$	—	$	(10,205)	$	115,289
Accrued compensation	103,010		—		—		103,010
Due to affiliates	100,186		—		—		100,186
Performance related compensation payable	813,378		—		—		813,378
Debt obligations	642,998		—		—		642,998
Operating lease liabilities	180,236		—		—		180,236
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		46,824		—		46,824
Due to affiliates	—		16,770		(16,770)		—
Payable for securities purchased	—		514,946		—		514,946
CLO loan obligations	—		10,015,989		(57,913)		9,958,076
Fund borrowings	—		121,909		—		121,909
Total liabilities	1,965,302		10,716,438		(84,888)		12,596,852
Commitments and contingencies
Redeemable interest in Ares Operating Group entities	100,366		—		—		100,366
Non-controlling interest in Consolidated Funds	—		863,565		(323,845)		539,720
Non-controlling interest in Ares Operating Group entities	738,369		—		—		738,369
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 (147,182,562 shares issued and outstanding)	1,472		—		—		1,472
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 (112,447,618 share issued and outstanding)	1,124		—		—		1,124
Additional paid-in-capital	1,043,669		—		—		1,043,669
Retained earnings	(151,824)		—		—		(151,824)
Accumulated other comprehensive income, net of tax	483		—		—		483
Total stockholders' equity	1,193,685		—		—		1,193,685
Total equity	1,932,054		863,565		(323,845)		2,471,774
Total liabilities, redeemable interest, non-controlling interests and equity	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992

54

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Three months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	459,313	$	—	$	(11,051)	$	448,262
Carried interest allocation	460,651		—		—		460,651
Incentive fees	696		—		—		696
Principal investment income	20,719		—		(6,469)		14,250
Administrative, transaction and other fees	29,124		—		(4,264)		24,860
Total revenues	970,503		—		(21,784)		948,719
Expenses
Compensation and benefits	335,569		—		—		335,569
Performance related compensation	331,141		—		—		331,141
General, administrative and other expense	134,453		—		—		134,453
Expenses of the Consolidated Funds	—		23,206		(11,102)		12,104
Total expenses	801,163		23,206		(11,102)		813,267
Other income (expense)
Net realized and unrealized gains on investments	2,759		—		5,575		8,334
Interest and dividend income	2,702		—		(1,326)		1,376
Interest expense	(11,523)		—		—		(11,523)
Other income, net	36,338		—		316		36,654
Net realized and unrealized gains on investments of the Consolidated Funds	—		36,695		(2,450)		34,245
Interest and other income of the Consolidated Funds	—		104,344		(316)		104,028
Interest expense of the Consolidated Funds	—		(64,752)		3,174		(61,578)
Total other income	30,276		76,287		4,973		111,536
Income before taxes	199,616		53,081		(5,709)		246,988
Income tax expense	30,273		2		—		30,275
Net income	169,343		53,079		(5,709)		216,713
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		53,079		(5,709)		47,370
Net income attributable to Ares Operating Group entities	169,343		—		—		169,343
Less: Net income attributable to redeemable interest in Ares Operating Group entities	324		—		—		324
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	84,293		—		—		84,293
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	—	$	—	$	84,726

55

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Three months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	304,153	$	—	$	(11,719)	$	292,434
Carried interest allocation	168,978		—		—		168,978
Incentive fees	7,194		—		—		7,194
Principal investment income	18,080		—		(6,672)		11,408
Administrative, transaction and other fees	14,300		—		(4,448)		9,852
Total revenues	512,705		—		(22,839)		489,866
Expenses
Compensation and benefits	194,267		—		—		194,267
Performance related compensation	122,356		—		—		122,356
General, administrative and other expense	69,938		—		—		69,938
Expenses of the Consolidated Funds	—		17,737		(11,718)		6,019
Total expenses	386,561		17,737		(11,718)		392,580
Other income (expense)
Net realized and unrealized gains (losses) on investments	2,303		—		(4,910)		(2,607)
Interest and dividend income	1,602		—		(258)		1,344
Interest expense	(6,815)		—		—		(6,815)
Other income (expense), net	(6,337)		—		8,540		2,203
Net realized and unrealized gains on investments of the Consolidated Funds	—		9,850		8,121		17,971
Interest and other income of the Consolidated Funds	—		126,100		(9,519)		116,581
Interest expense of the Consolidated Funds	—		(67,818)		1,496		(66,322)
Total other income (expense)	(9,247)		68,132		3,470		62,355
Income before taxes	116,897		50,395		(7,651)		159,641
Income tax expense	18,197		117		—		18,314
Net income	98,700		50,278		(7,651)		141,327
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		50,278		(7,651)		42,627
Net income attributable to Ares Operating Group entities	98,700		—		—		98,700
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	52,162		—		—		52,162
Net income attributable to Ares Management Corporation	47,545		—		—		47,545
Less: Series A Preferred Stock dividends paid	5,425		—		—		5,425
Net income attributable to Ares Management Corporation Class A common stockholders	$	42,120	$	—	$	—	$	42,120

56

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,169,237	$	—	$	(33,416)	$	1,135,821
Carried interest allocation	1,610,707		—		—		1,610,707
Incentive fees	20,948		—		(1,528)		19,420
Principal investment income	96,448		—		(9,971)		86,477
Administrative, transaction and other fees	62,658		—		(13,157)		49,501
Total revenues	2,959,998		—		(58,072)		2,901,926
Expenses
Compensation and benefits	837,108		—		—		837,108
Performance related compensation	1,208,954		—		—		1,208,954
General, administrative and other expense	285,471		—		—		285,471
Expenses of the Consolidated Funds	—		66,653		(35,078)		31,575
Total expenses	2,331,533		66,653		(35,078)		2,363,108
Other income (expense)
Net realized and unrealized gains on investments	10,602		—		8,142		18,744
Interest and dividend income	9,695		—		(2,877)		6,818
Interest expense	(25,125)		—		—		(25,125)
Other income, net	30,861		—		(175)		30,686
Net realized and unrealized gains on investments of the Consolidated Funds	—		46,541		(1,821)		44,720
Interest and other income of the Consolidated Funds	—		333,570		175		333,745
Interest expense of the Consolidated Funds	—		(201,916)		10,339		(191,577)
Total other income	26,033		178,195		13,783		218,011
Income before taxes	654,498		111,542		(9,211)		756,829
Income tax expense	104,411		76		—		104,487
Net income	550,087		111,466		(9,211)		652,342
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		111,466		(9,211)		102,255
Net income attributable to Ares Operating Group entities	550,087		—		—		550,087
Less: Net income attributable to redeemable interest in Ares Operating Group entities	693		—		—		693
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	264,646		—		—		264,646
Net income attributable to Ares Management Corporation	284,748		—		—		284,748
Less: Series A Preferred Stock dividends paid	10,850		—		—		10,850
Less: Series A Preferred Stock redemption premium	11,239		—		—		11,239
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	262,659	$	—	$	—	$	262,659

57

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	856,751	$	—	$	(33,601)	$	823,150
Carried interest allocation	241,380		—		—		241,380
Incentive fees	4,206		—		70		4,276
Principal investment income (loss)	(24,951)		—		33,281		8,330
Administrative, transaction and other fees	41,146		—		(12,249)		28,897
Total revenues	1,118,532		—		(12,499)		1,106,033
Expenses
Compensation and benefits	559,482		—		—		559,482
Performance related compensation	191,565		—		—		191,565
General, administrative and other expense	190,353		—		—		190,353
Expenses of the Consolidated Funds	—		50,237		(33,531)		16,706
Total expenses	941,400		50,237		(33,531)		958,106
Other income (expense)
Net realized and unrealized losses on investments	(25,360)		—		15,009		(10,351)
Interest and dividend income	8,102		—		(2,990)		5,112
Interest expense	(18,203)		—		—		(18,203)
Other income, net	1,100		—		8,748		9,848
Net realized and unrealized losses on investments of the Consolidated Funds	—		(148,826)		(4,442)		(153,268)
Interest and other income of the Consolidated Funds	—		355,639		(9,519)		346,120
Interest expense of the Consolidated Funds	—		(227,532)		4,672		(222,860)
Total other expense	(34,361)		(20,719)		11,478		(43,602)
Income (loss) before taxes	142,771		(70,956)		32,510		104,325
Income tax expense	21,972		147		—		22,119
Net income (loss)	120,799		(71,103)		32,510		82,206
Less: Net loss attributable to non-controlling interests in Consolidated Funds	—		(71,103)		32,510		(38,593)
Net income attributable to Ares Operating Group entities	120,799		—		—		120,799
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	48,926		—		—		48,926
Net income attributable to Ares Management Corporation	72,880		—		—		72,880
Less: Series A Preferred Stock dividends paid	16,275		—		—		16,275
Net income attributable to Ares Management Corporation Class A common stockholders	$	56,605	$	—	$	—	$	56,605

58

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	550,087	$	111,466	$	(9,211)	$	652,342
Adjustments to reconcile net income to net cash provided by (used in) operating activities	(28,467)		—		99,600		71,133
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(1,697,529)		9,444		(1,688,085)
Cash flows due to changes in operating assets and liabilities	(153,361)		—		3,923		(149,438)
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	—		343,253		(1,072,956)		(729,703)
Net cash provided by (used in) operating activities	368,259		(1,242,810)		(969,200)		(1,843,751)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(15,152)		—		—		(15,152)
Acquisitions, net of cash acquired	(1,057,426)		—		—		(1,057,426)
Net cash used in investing activities	(1,072,578)		—		—		(1,072,578)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock	827,430		—		—		827,430
Proceeds from Credit Facility	468,000		—		—		468,000
Proceeds from subordinated notes	450,000		—		—		450,000
Repayments of Credit Facility	(318,000)		—		—		(318,000)
Dividends and distributions	(438,568)		—		—		(438,568)
Series A Preferred Stock dividends	(10,850)		—		—		(10,850)
Redemption of Series A Preferred Stock	(310,000)		—		—		(310,000)
Stock option exercises	27,409		—		—		27,409
Taxes paid related to net share settlement of equity awards	(221,287)		—		—		(221,287)
Other financing activities	1,976		—		—		1,976
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		1,027,454		(107,788)		919,666
Distributions to non-controlling interests in Consolidated Funds	—		(102,701)		17,931		(84,770)
Borrowings under loan obligations by Consolidated Funds	—		1,456,887		—		1,456,887
Repayments under loan obligations by Consolidated Funds	—		(74,909)		—		(74,909)
Net cash provided by financing activities	476,110		2,306,731		(89,857)		2,692,984
Effect of exchange rate changes	(15,899)		(4,864)		—		(20,763)
Net change in cash and cash equivalents	(244,108)		1,059,057		(1,059,057)		(244,108)
Cash and cash equivalents, beginning of period	539,812		522,377		(522,377)		539,812
Cash and cash equivalents, end of period	$	295,704	$	1,581,434	$	(1,581,434)	$	295,704
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions	$	511,069	$	—	$	—	$	511,069

59

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income (loss)	$	120,799	$	(71,103)	$	32,510	$	82,206
Adjustments to reconcile net income to net cash provided by operating activities	207,358		—		(22,772)		184,586
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(733,607)		(32,792)		(766,399)
Cash flows due to changes in operating assets and liabilities	152,691		—		(6,989)		145,702
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		105,992		260,375		366,367
Net cash provided by (used in) operating activities	480,848		(698,718)		230,332		12,462
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(8,608)		—		—		(8,608)
Cash paid for asset acquisition	(117,829)		—		—		(117,829)
Net cash used in investing activities	(126,437)		—		—		(126,437)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock	383,154		—		—		383,154
Proceeds from Credit Facility	790,000		—		—		790,000
Proceeds from Senior Notes	399,084		—		—		399,084
Repayments of Credit Facility	(860,000)		—		—		(860,000)
Dividends and distributions	(334,957)		—		—		(334,957)
Series A Preferred Stock dividends	(16,275)		—		—		(16,275)
Stock option exercises	78,959		—		—		78,959
Taxes paid related to net share settlement of equity awards	(75,657)		—		—		(75,657)
Other financing activities	(4,137)		—		—		(4,137)
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		138,760		(15,047)		123,713
Distributions to non-controlling interests in Consolidated Funds	—		(195,598)		25,851		(169,747)
Borrowings under loan obligations by Consolidated Funds	—		618,207		—		618,207
Repayments under loan obligations by Consolidated Funds	—		(104,794)		—		(104,794)
Net cash provided by financing activities	360,171		456,575		10,804		827,550
Effect of exchange rate changes	15,786		1,007		—		16,793
Net change in cash and cash equivalents	730,368		(241,137)		241,137		730,368
Cash and cash equivalents, beginning of period	138,384		606,321		(606,321)		138,384
Cash and cash equivalents, end of period	$	868,752	$	365,185	$	(365,185)	$	868,752
Supplemental disclosure of non-cash financing activities
Issuance of Class A common stock in connection with acquisitions	$	305,388	$	—	$	—	$	305,338

60

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

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

17. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after September 30, 2021 through the date the condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure:

In October 2021, the Company's board of directors declared a quarterly dividend of $0.47 per share of Class A and non-voting common stock payable on December 31, 2021 to common stockholders of record at the close of business on December 17, 2021.

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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 entities, CLOs and special purpose acquisition companies that are required under generally accepted accounting principles in the United States (“GAAP”) to be consolidated in our 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 2020 Annual Report on Form 10-K of Ares Management Corporation and the related notes.

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.

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. As of September 30, 2021, approximately 94% of our management fees were derived from perpetual capital vehicles and other 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 of operations, including the fair value of our AUM, are affected by a variety of factors, particularly in the United States and Western Europe, including conditions in the global financial markets and the economic and political environments.

Performance across global capital markets continued its positive trajectory as inflationary concerns and the spread of the COVID-19 Delta variant were overshadowed by improving corporate credit fundamentals and strengthening market demand.

Despite bouts of volatility throughout the quarter, U.S. high yield bonds had positive returns as strong company earnings, declining default rates and moderating primary market activity provided a supportive tailwind in the asset class. Specifically, the ICE BAML High Yield Master II Index, a high yield bond index, returned 0.9% in the quarter and 4.7% in the year-to-date period. Meanwhile, the Credit Suisse Leveraged Loan Index (“CSLLI”), a leveraged loan index, returned 1.1% in the quarter and 4.7% in the year-to-date period. The CSLLI resumed its rally amid ongoing retail inflows, strong CLO origination and lighter issuance. With rising interest rate risk, robust demand for lower quality, lower duration assets continued to provide a supportive technical backdrop in the asset class.

European high yield and leveraged loan markets rallied alongside its U.S. counterparts amid modest corporate earnings, strong economic data prints and a supportive technical backdrop as issuance meaningfully moderated during the quarter. The ICE BAML European Currency High Yield Index returned 0.7% in the quarter and 3.7% in the year-to-date period, while the Credit Suisse Western European Leveraged Loan Index returned 1.0% in the quarter and 3.9% in the year-to-date period.

Global equity markets were relatively flat in performance as supply chain issues, labor shortages, and complications with the COVID-19 Delta variant were prevalent during the quarter. The S&P 500 Index had positive returns of 0.6% in the quarter and 15.9% in the year-to-date period. Whereas the MSCI All Country World ex USA Index returned a negative 3.0% for the quarter and a positive 5.9% for the year-to-date period. Private equity market activity remained robust throughout the quarter as the recovery from the COVID-19 pandemic continued. This activity has extended to the secondaries markets, which continue to be robust across the private equity, real estate and infrastructure strategies during the quarter. The significant level of dry powder and availability of low-rate, competitive debt financing also helped fuel the private equity markets.

With the European and U.S. economies continuing to recover over the quarter, real estate values have continued to increase following declines from the onset of the global pandemic. Certain property types are recovering at an accelerated rate, led by the industrial subsector. Signs of stabilization are beginning to appear for the office subsector as employees return back

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to the office, particularly in the U.S., though the sector has not fully recovered to pre-pandemic levels. The FTSE EPRA/NAREIT Developed Europe and the FTSE NAREIT All Equity REITs indices returned a negative 0.4% and a negative 0.5%, respectively, for the quarter and returned 6.9% and 19.0%, respectively, for the year-to-date period.

Managing Business Performance

Operating Metrics

We measure our business performance using certain operating metrics that are common to the alternative asset management industry, which 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.

63

The tables below present rollforwards of our total AUM by segment:

($ in millions)	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total AUM
Balance at 6/30/2021	$	167,587	$	30,732	$	19,725	$	19,476	$	10,366	$	247,886
Acquisitions	—		—		13,719		—		—		13,719
Net new par/equity commitments	9,050		1,977		2,077		1,130		213		14,447
Net new debt commitments	5,533		200		250		—		—		5,983
Capital reductions	(381)		(2)		(41)		—		(29)		(453)
Distributions	(944)		(1,491)		(707)		(535)		202		(3,475)
Redemptions	(267)		—		(28)		—		—		(295)
Change in fund value	655		1,280		1,506		672		84		4,197
Balance at 9/30/2021	$	181,233	$	32,696	$	36,501	$	20,743	$	10,836	$	282,009
Average AUM(1)	$	174,412	$	31,715	$	28,114	$	20,110	$	10,601	$	264,952
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total AUM
Balance at 6/30/2020	$	117,413	$	26,602	$	14,395	$	—	$	—	$	158,410
Acquisitions	—		—		—		—		6,871		6,871
Net new par/equity commitments	10,111		475		26		—		190		10,802
Net new debt commitments	1,701		—		23		—		—		1,724
Capital reductions	(206)		(18)		(186)		—		—		(410)
Distributions	(568)		(1,066)		(161)		—		(122)		(1,917)
Redemptions	(301)		(5)		—		—		—		(306)
Change in fund value	3,078		702		282		—		1		4,063
Balance at 9/30/2020	$	131,228	$	26,690	$	14,379	$	—	6,940		$	179,237
Average AUM(2)	$	124,323	$	26,647	$	14,388	$	—	$	6,906	$	172,264
(1) Represents a two-point average of quarter-end balances for each period.
(2) Represents a two-point average of quarter-end balances for each period; except for Strategic Initiatives, which represents the average calculated using AUM on the date of the SSG Acquisition and the subsequent quarter-end.
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total AUM
Balance at 12/31/2020	$	145,472	$	27,439	$	14,808	$	—	$	9,261	$	196,980
Acquisitions	—		—		13,719		19,513		—		33,232
Net new par/equity commitments	24,999		2,296		4,745		1,231		1,393		34,664
Net new debt commitments	13,496		200		2,655		—		29		16,380
Capital reductions	(2,491)		(7)		(273)		—		(29)		(2,800)
Distributions	(2,504)		(3,519)		(1,370)		(659)		(178)		(8,230)
Redemptions	(1,242)		—		(35)		—		—		(1,277)
Change in fund value	3,503		6,287		2,252		658		360		13,060
Balance at 9/30/2021	$	181,233	$	32,696	$	36,501	$	20,743	$	10,836	$	282,009
Average AUM(1)	$	161,353	$	29,972	$	22,042	$	19,911	$	10,089	$	243,367
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total AUM
Balance at 12/31/2019	$	110,543	$	25,166	$	13,207	$	—	$	—	$	148,916
Acquisitions	2,693		—		—		—		6,871		9,564
Net new par/equity commitments	14,257		5,593		1,992		—		190		22,032
Net new debt commitments	5,704		—		287		—		—		5,991
Capital reductions	(350)		(133)		(222)		—		—		(705)
Distributions	(1,905)		(3,293)		(993)		—		(122)		(6,313)
Redemptions	(1,592)		(5)		—		—		—		(1,597)
Change in fund value	1,878		(638)		108		—		1		1,349
Balance at 9/30/2020	$	131,228	$	26,690	$	14,379	$	—	$	6,940	$	179,237
Average AUM(2)	$	117,924	$	25,119	$	14,024	$	—	$	6,906	$	163,973
(1) Represents a four-point average of quarter-end balances for each period, except for Secondary Solutions, which represents the average calculated using AUM on the date of the Landmark Acquisition and on each subsequent quarter-end.
(2) Represents a four-point average of quarter-end balances for each period, except for Strategic Initiatives, which represents the average calculated using AUM on the date of the SSG Acquisition and the subsequent quarter-end.

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

AUM: $282.0 AUM: $179.2

FPAUM AUM not yet paying fees Non-fee paying(1)(2)

(1) Includes $8.5 billion of AUM of funds from which we indirectly earn management fees as of September 30, 2021 and 2020.

(2) Includes $3.1 billion and $2.2 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021 and 2020, respectively.

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

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.

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The tables below present rollforwards of our total FPAUM by segment:

($ in millions)	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance at 6/30/2021	$	99,588	$	18,732	$	11,817	$	16,927	$	6,621	$	153,685
Acquisitions	—		—		7,155		—		—		7,155
Commitments	2,864		1,751		1,323		278		233		6,449
Subscriptions/deployment/increase in leverage	6,095		576		1,464		7		379		8,521
Capital reductions	(335)		—		—		—		(121)		(456)
Distributions	(1,468)		(809)		(375)		(73)		(273)		(2,998)
Redemptions	(296)		—		(28)		—		—		(324)
Change in fund value	(46)		5		588		83		53		683
Change in fee basis	—		(6)		(5)		(37)		—		(48)
Balance at 9/30/2021	$	106,402	$	20,249	$	21,939	$	17,185	$	6,892	$	172,667
Average FPAUM(1)	$	102,997	$	19,491	$	16,879	$	17,057	$	6,757	$	163,181
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance at 6/30/2020	$	78,744	$	17,473	$	9,331	$	—	$	—	$	105,548
Acquisitions	—		—		—		—		4,183		4,183
Commitments	323		210		43		—		—		576
Subscriptions/deployment/increase in leverage	2,152		310		76		—		278		2,816
Capital reductions	(547)		—		(2)		—		(22)		(571)
Distributions	(686)		(219)		(85)		—		(174)		(1,164)
Redemptions	(281)		—		—		—		—		(281)
Change in fund value	1,600		(33)		156		—		—		1,723
Change in fee basis	—		(22)		(86)		—		24		(84)
Balance at 9/30/2020	$	81,305	$	17,719	$	9,433	$	—	$	4,289	$	112,746
Average FPAUM(2)	$	80,027	$	17,596	$	9,383	$	—	$	4,236	$	111,242
(1) Represents a two-point average of quarter-end balances for each period.
(2) Represents a two-point average of quarter-end balances for each period; except for Strategic Initiatives, which represents the average calculated using FPAUM on the date of the SSG Acquisition and the subsequent quarter-end.
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance at 12/31/2020	$	88,017	$	21,172	$	10,252	$	—	$	6,596	$	126,037
Acquisitions	—		—		7,155		16,839		—		23,994
Commitments	6,705		2,171		2,885		378		(66)		12,073
Subscriptions/deployment/increase in leverage	17,178		1,843		2,187		9		1,504		22,721
Capital reductions	(1,618)		—		(32)		—		(302)		(1,952)
Distributions	(3,783)		(2,002)		(903)		(73)		(952)		(7,713)
Redemptions	(1,298)		—		(35)		—		—		(1,333)
Change in fund value	1,201		5		567		81		112		1,966
Change in fee basis	—		(2,940)		(137)		(49)		—		(3,126)
Balance at 9/30/2021	$	106,402	$	20,249	$	21,939	$	17,185	$	6,892	$	172,667
Average FPAUM(1)	$	96,407	$	19,670	$	13,708	$	16,984	$	6,684	$	153,453
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance at 12/31/2019	$	71,880	$	17,040	$	7,963	$	—	$	—	$	96,883
Acquisitions	2,596		—		—		—		4,183		6,779
Commitments	2,844		210		1,541		—		—		4,595
Subscriptions/deployment/increase in leverage	9,691		1,330		608		—		278		11,907
Capital reductions	(1,519)		—		(49)		—		(22)		(1,590)
Distributions	(2,866)		(801)		(394)		—		(174)		(4,235)
Redemptions	(1,605)		—		—		—		—		(1,605)
Change in fund value	324		(39)		161		—		—		446
Change in fee basis	(40)		(21)		(397)		—		24		(434)
Balance at 9/30/2020	$	81,305	$	17,719	$	9,433	$	—	$	4,289	$	112,746
Average FPAUM(2)	$	76,922	$	17,313	$	8,987	$	—	$	4,236	$	107,458
(1) Represents a four-point average of quarter-end balances for each period, except for Secondary Solutions, which represents the average calculated using FPAUM on the date of the Landmark Acquisition and on each subsequent quarter-end.
(2) Represents a four-point average of quarter-end balances for each period, except for Strategic Initiatives, which represents the average calculated using FPAUM on the date of the SSG Acquisition and on the subsequent quarter-end.

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

FPAUM: $172.7 FPAUM: $112.7

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

    

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

(2)Includes $38.3 billion and $20.3 billion from funds that primarily invest in illiquid strategies as of September 30, 2021 and 2020, 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.

Incentive Eligible Assets Under Management, Incentive Generating Assets Under Management and Available Capital

IEAUM generally represents the NAV plus uncalled equity or total assets plus uncalled debt, as applicable, of our funds from which we are entitled to receive performance income, excluding capital committed by us and our professionals (from which we do not earn performance income). With respect to ARCC's AUM, only ARCC Part II Fees may be generated from IEAUM.

IGAUM generally represents the AUM of our funds that are currently generating performance income on a realized or unrealized basis. It represents the basis on which we are entitled to receive performance income. The basis is typically the NAV or total assets of the fund, excluding amounts on which we do not earn performance income, such as capital committed by us and our professionals. ARCC is only included in IGAUM when ARCC Part II Fees are being generated.

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

Credit Private Equity Real Estate Secondary Solutions Strategic Initiatives

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

Credit Private Equity Real Estate Secondary Solutions Strategic Initiatives

As of September 30, 2021, AUM not yet paying fees of $55.3 billion could generate approximately $539.4 million in potential incremental annual management fees, of which $488.7 million relates to $50.3 billion of AUM that is available for future deployment. As of September 30, 2020, AUM not yet paying fees of $39.3 billion could have generated approximately $413.3 million in potential incremental annual management fees, of which $386.1 million relates to $36.3 billion of AUM that was available for future deployment.

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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 both the three months ended September 30, 2021 and 2020, 94% of management fees were earned from perpetual capital or long-dated funds. The charts below present the composition of our segment management fees by the initial fund duration:

    

Perpetual Capital - Commingled Funds Perpetual Capital - Managed Accounts Long-Dated Funds(1) Other(2)

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

(2) Other primarily represents managed accounts or co-investment vehicles that (i) are not considered long-dated and (ii) do not meet the criteria of perpetual capital.

Fund Performance Metrics

Fund performance information for our investment 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 contributed at least 1% of our total management fees or represented at least 1% of the Company’s total FPAUM for the past two consecutive quarterly periods. In addition to management fees, each of our significant funds may generate performance income 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.

We do not present fund performance metrics for significant funds with less than two years of investment performance from the date of the fund's first investment, except for those significant funds that pay management fees on invested capital, in which case investment performance will be presented on the earlier of (i) the one-year anniversary of the fund's first investment or (ii) such time that the fund has invested at least 50% of its capital.

To further facilitate an understanding of the impact a significant fund may have on our results, we present our drawdown funds as either harvesting investments or deploying capital to indicate the fund's stage in its life cycle. A fund harvesting investments is generally not seeking to deploy capital into new investment opportunities, while a fund deploying capital is generally seeking new investment opportunities.

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Consolidation and Deconsolidation of Ares Funds

In February 2021, our first sponsored SPAC, Ares Acquisition Corporation (“AAC”), consummated its initial public offering that raised capital of $1.0 billion. Prior to the completion of a business combination, the sponsor, a wholly owned subsidiary, owns the majority of the Class B ordinary shares outstanding of AAC. We consolidate AAC under the voting interest model and reflect the results of the SPAC as a Consolidated Fund.

Consolidated Funds represented approximately 5% of our AUM as of September 30, 2021, 3% of our management fees and less than 1% of our carried interest and incentive fees for the nine months ended September 30, 2021. As of September 30, 2021, we consolidated 22 CLOs, 10 private funds and one SPAC, and as of September 30, 2020, we consolidated 21 CLOs and seven private funds.

The activity of the Consolidated Funds is reflected within the condensed consolidated financial statement line items indicated by reference thereto. The impact of the Consolidated Funds also typically will decrease management fees, carried interest allocation and incentive fees reported under GAAP to the extent these 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. 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 in our condensed consolidated financial statements. Redeemable interest in Consolidated Funds represent the shares issued by AAC that are redeemable for cash by the public shareholders in connection with AAC’s failure to complete a business combination or tender offer associated with stockholder 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, 2021, we deconsolidated one CLO as a result of significant change in ownership and during the nine months ended September 30, 2020, we deconsolidated one private fund as a result of liquidation/dissolution.

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 16. Consolidation” to our condensed consolidated financial statements included herein.

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Results of Operations

Consolidated Results of Operations

We consolidate funds and entities where we are deemed to hold a controlling financial interest. The Consolidated Funds are not necessarily the same entities in each year presented due to changes in ownership, changes in limited partners' or investor rights, and the creation and termination of funds and entities. The consolidation of these funds and entities had no effect on net income attributable to us for the periods presented. As such, we separate the analysis of the Consolidated Funds and evaluate that activity in total. The following table and discussion sets forth information regarding our consolidated results of operations:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Revenues
Management fees	$	448,262	$	292,434	$	155,828	53%	$	1,135,821	$	823,150	$	312,671	38	%
Carried interest allocation	460,651		168,978		291,673		173	1,610,707		241,380		1,369,327		NM
Incentive fees	696		7,194		(6,498)		(90)	19,420		4,276		15,144		NM
Principal investment income	14,250		11,408		2,842		25	86,477		8,330		78,147		NM
Administrative, transaction and other fees	24,860		9,852		15,008		152	49,501		28,897		20,604		71
Total revenues	948,719		489,866		458,853		94	2,901,926		1,106,033		1,795,893		162
Expenses
Compensation and benefits	335,569		194,267		(141,302)		(73)	837,108		559,482		(277,626)		(50)
Performance related compensation	331,141		122,356		(208,785)		(171)	1,208,954		191,565		(1,017,389)		NM
General, administrative and other expenses	134,453		69,938		(64,515)		(92)	285,471		190,353		(95,118)		(50)
Expenses of Consolidated Funds	12,104		6,019		(6,085)		(101)	31,575		16,706		(14,869)		(89)
Total expenses	813,267		392,580		(420,687)		(107)	2,363,108		958,106		(1,405,002)		(147)
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334		(2,607)		10,941		NM	18,744		(10,351)		29,095		NM
Interest and dividend income	1,376		1,344		32		2	6,818		5,112		1,706		33
Interest expense	(11,523)		(6,815)		(4,708)		(69)	(25,125)		(18,203)		(6,922)		(38)
Other income, net	36,654		2,203		34,451		NM	30,686		9,848		20,838		212
Net realized and unrealized gains (losses) on investments of Consolidated Funds	34,245		17,971		16,274		91	44,720		(153,268)		197,988		NM
Interest and other income of Consolidated Funds	104,028		116,581		(12,553)		(11)	333,745		346,120		(12,375)		(4)
Interest expense of Consolidated Funds	(61,578)		(66,322)		4,744		7	(191,577)		(222,860)		31,283		14
Total other income (expense)	111,536		62,355		49,181		79	218,011		(43,602)		261,613		NM
Income before taxes	246,988		159,641		87,347		55	756,829		104,325		652,504		NM
Income tax expense	30,275		18,314		(11,961)		(65)	104,487		22,119		(82,368)		NM
Net income	216,713		141,327		75,386		53	652,342		82,206		570,136		NM
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds	47,370		42,627		4,743		11	102,255		(38,593)		140,848		NM
Net income attributable to Ares Operating Group entities	169,343		98,700		70,643		72	550,087		120,799		429,288		NM
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities	324		(1,007)		1,331		NM	693		(1,007)		1,700		NM
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	84,293		52,162		32,131		62	264,646		48,926		215,720		NM
Net income attributable to Ares Management Corporation	84,726		47,545		37,181		78	284,748		72,880		211,868		291
Less: Series A Preferred Stock dividends paid	—		5,425		(5,425)		(100)	10,850		16,275		(5,425)		(33)
Less: Series A Preferred Stock redemption premium	—		—		—		—	11,239		—		(11,239)		NM
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	42,120	42,606		101	$	262,659	$	56,605	206,054		NM

NM - Not Meaningful

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Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020 

Consolidated Results of Operations of the Company

Management Fees. Management fees increased by $155.8 million, or 53%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $312.7 million, or 38%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase was primarily driven by higher FPAUM from capital deployment in direct lending funds. Management fees also increased by $17.9 million for the three and nine month periods in connection with the Black Creek Acquisition that was completed on July 1, 2021. In addition, the Landmark Acquisition was completed on June 2, 2021 and contributed $41.1 million and $54.0 million for the three and nine months ended September 30, 2021, respectively. For detail regarding the fluctuations of management fees within each of our segments see “—Results of Operations by Segment.”

Carried Interest Allocation. Carried interest allocation increased by $291.7 million, or 173%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $1,369.3 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The activity was principally composed of the following:

($ in millions)	Three months ended September 30, 2021		Primary Drivers	Three months ended September 30, 2020		Primary Drivers
Credit funds	$	92.6	Primarily from four direct lending funds and one alternative credit fund with $16.1 billion of IGAUM generating returns in excess of their hurdle rates. Ares Private Credit Solutions, L.P. (“PCS”) and Ares Capital Europe IV L.P. (“ACE IV”) generated carried interest allocation of $11.7 million and $27.5 million, respectively. Ares Capital Europe V L.P. (“ACE V”) also generated $18.0 million of carried interest allocation. The carried interest allocation generated by these funds was driven by net investment income on an increasing invested capital base. Ares Capital Europe III, L.P. (“ACE III”) generated carried interest allocation of $10.5 million driven by net investment income during the period. Ares Pathfinder Fund, L.P. (“Pathfinder”) generated carried interest allocation of $16.0 million that was driven by market appreciation of various investments.	$	62.9	Primarily from three direct lending funds and one alternative credit fund with $10.5 billion of IGAUM generating returns in excess of their hurdle rates. PCS and ACE IV generated carried interest allocation of $19.4 million and $17.6 million, respectively, that was driven by net investment income on an increasing invested capital base. Pathfinder generated carried interest allocation of $9.7 million primarily driven by net investment income during the period. ACE III generated carried interest allocation of $9.4 million primarily due to a partial recovery of unrealized losses related to market volatility driven by the COVID-19 pandemic.
Private equity funds	227.2		Market appreciation across several portfolio company investments, primarily operating in the services and technology, retail and healthcare industries, generated carried interest allocation of $141.5 million from Ares Corporate Opportunities V, L.P. (“ACOF V”), $72.5 million from Ares Special Opportunities Fund, L.P. (“ASOF”) and $16.9 million from Ares Corporate Opportunities VI, L.P. (“ACOF VI”). Market depreciation across several investments led to a reversal of carried interest allocation for Ares Corporate Opportunities Fund IV, L.P. (“ACOF IV”) of $6.9 million, primarily due to a lower stock price for The AZEK Company (“AZEK”), and Ares Energy Investors Fund V, L.P. (“EIF V”) of $7.1 million primarily due to a decrease in value of certain energy investments.	82.0		ACOF IV generated carried interest allocation of $43.7 million primarily driven by market appreciation of its investment in AZEK following its initial public offering. In addition, market appreciation across several investments generated carried interest allocation of $24.2 million for ASOF. The market appreciation was driven by the recovery of investment valuations from the market lows from the COVID-19 pandemic.
Real estate funds	103.5		Market appreciation from properties within real estate equity funds, primarily driven by gains generated across several industrial and multi-family assets, generated carried interest allocation of $11.5 million from US Real Estate Fund VIII, L.P. (“US VIII”), $35.8 million from US Real Estate Fund IX, L.P. ("US IX"), $12.7 million from Ares U.S. Real Estate Opportunity Fund III, L.P. (“AREOF III”), $11.0 million from Ares European Real Estate Fund IV, L.P. ("EF IV") and $13.8 million from Ares European Real Estate Fund V SCSp. ("EF V").	24.1		Market appreciation from properties within real estate equity funds that was driven by the recovery of valuations from the market lows from the COVID-19 pandemic, primarily from two of our U.S. real estate equity funds and EF IV in the amount of $9.1 million and $11.2 million, respectively.
Secondary solutions funds	37.7		Market appreciation of certain investments held in Landmark Equity Partners XVI, L.P. (“LEP XVI”) and Landmark Real Estate Partners VIII, L.P. (“LREP VIII”) that generated carried interest allocation of $14.1 million and $17.3 million, respectively.	—		N/A
Strategic initiatives funds	(0.4)		Reversal driven by the market influence of residential housing lending in Asia on certain investments held in Ares SSG Secured Lending Opportunities III, L.P. ("SLO III").	—		N/A
Carried interest allocation	$	460.6		$	169.0

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($ in millions)	Nine months ended September 30, 2021		Primary Drivers	Nine months ended September 30, 2020		Primary Drivers
Credit funds	$	292.8	Primarily from four direct lending funds and one alternative credit fund with $16.1 billion of IGAUM generating returns in excess of their hurdle rates. PCS and ACE IV generated carried interest allocation of $45.3 million and $84.7 million, respectively. ACE V also generated carried interest allocation of $32.5 million. The carried interest allocation generated by these funds was driven by net investment income on an increasing invested capital base. ACE III generated carried interest allocation of $36.4 million primarily driven by net investment income during the period. In addition, Pathfinder generated carried interest allocation of $43.3 million that was driven by market appreciation of various investments.	$	77.9	Primarily from two direct lending funds and one alternative credit fund with $8.0 billion of IGAUM generating returns in excess of their hurdle rates. PCS and ACE IV generated carried interest allocation of $25.7 million and $34.1 million, respectively, driven by net investment income on an increasing invested capital base that was partially offset by net unrealized losses on investments that were primarily incurred during the first quarter of 2020 due to the market volatility driven by the COVID-19 pandemic. Pathfinder generated carried interest allocation of $10.1 million primarily driven by net investment income during the period.
Private equity funds	992.0		ACOF IV generated carried interest allocation of $171.1 million primarily due to market appreciation of its investment in AZEK driven by its higher stock price. In addition, market appreciation across several portfolio company investments, primarily operating in the services and technology, retail and healthcare industries, generated carried interest allocation of $532.2 million from ACOF V, $192.4 million from ASOF and $63.9 million from ACOF VI.	152.6		ACOF IV generated carried interest allocation of $199.7 million primarily due to market appreciation of its investment in AZEK following its initial public offering. In addition, market appreciation across several investments generated carried interest allocation of $53.1 million for ASOF. Market depreciation across several investments led to the reversal of unrealized carried interest allocation of $75.1 million for ACOF V and $27.4 million for Ares Energy Opportunities Fund, L.P. ("AEOF"). The market depreciation for investments of these funds was driven by depressed prices in the energy market.
Real estate funds	226.9		Market appreciation from properties within real estate equity funds, primarily driven by gains generated across several industrial and multi-family assets, generated carried interest allocation of $33.1 million from US VIII, $61.6 million from US IX, $17.5 million from AREOF III, $10.9 million from EF IV and $61.3 million from EF V.	10.9		Market appreciation from properties within real estate equity funds that was driven by the recovery of valuations from the market lows from the COVID-19 pandemic. In addition, there were gains generated in multiple funds resulting from the sale of a pan-European logistics portfolio at a higher price than the December 31, 2019 price. This activity was offset by net market depreciation that led to the reversal of unrealized carried interest allocation, primarily from US IX and EF IV in the amount of $6.8 million and $4.6 million, respectively.
Secondary solutions funds	98.9		Market appreciation of certain investments held in LEP XVI and LREP VIII that generated carried interest allocation of $54.6 million and $26.1 million, respectively.	—		N/A
Strategic initiatives funds	0.1		Market appreciation of certain investments held in SLO III.	—		N/A
Carried interest allocation	$	1,610.7		$	241.4

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Incentive Fees. Incentive fees decreased by $6.5 million, or 90%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and increased by $15.1 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The activity was principally composed of the following:

($ in millions)	Three months ended September 30, 2021		Primary Drivers	Three months ended September 30, 2020		Primary Drivers
Credit funds	$	0.1	Incentive fees that crystallized during the period from one alternative credit fund.	$	7.2	Incentive fees that crystallized during the period from one alternative credit fund.
Real estate funds	0.6		Incentive fees generated from ACRE.	—		No activity.
Incentive fees	$	0.7		$	7.2
($ in millions)	Nine months ended September 30, 2021		Primary Drivers	Nine months ended September 30, 2020		Primary Drivers
Credit funds	$	17.5	Incentive fees that crystallized during the period from one alternative credit fund and from one CLO as a result of restructuring activity.	$	4.0	Incentive fees that crystallized during the period from one alternative credit fund, partially offset by a one-time reversal of incentive fees following management's decision to extend the measurement period after the fees were crystallized.
Real estate funds	1.9		Incentive fees generated from ACRE.	0.3		Incentive fees generated from ACRE.
Incentive fees	$	19.4		$	4.3

Principal Investment Income. Principal investment income increased by $2.8 million, or 25%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $78.1 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The activity for the three months ended September 30, 2021 was driven by market appreciation of several investments in funds within our private equity secondaries, real estate secondaries and special opportunities strategies. The activity for the nine months ended September 30, 2021 was primarily driven by market appreciation of various investments within our corporate private equity extended value fund, ACOF VI and within our private equity secondaries, real estate secondaries and special opportunities strategies. The COVID-19 pandemic caused extreme volatility during 2020. The global equity and credit markets experienced significant downturns in the first quarter of 2020 that were followed by a recovery in the second and third quarters of 2020.

    Administrative, Transaction and Other Fees. Administrative, transaction and other fees increased by $15.0 million, or 152%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $20.6 million, or 71%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase was primarily due to new fee streams following the completion of the Black Creek Acquisition. Black Creek serves as an integrated property development and real estate investment management specialist, generating various property-related fees, such as acquisition, development and property management, and the distribution of shares in our non-traded REITs. These fees collectively contributed $6.0 million for the three and nine months ended September 30, 2021. We also earn fees from the Black Creek funds that we manage for administrative and other services, which contributed $5.3 million for the three and nine months ended September 30, 2021. Separately, administrative fees from private funds increased by $1.2 million and $3.0 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively. Certain private credit funds pay administrative fees on invested capital and an increase in deployment resulted in an increase to this fee base. The increase for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was also driven by higher transaction fees for certain funds as a result of increased originations.

Compensation and Benefits. Compensation and benefits increased by $141.3 million, or 73%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $277.6 million, or 50%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase was primarily driven by headcount growth to support the expansion of our business, other strategic initiatives and acquisitions, and by higher incentive compensation and equity compensation attributable to improved operating performance and margin expansion from scaling our business. Average headcount for the year-to-date period increased by 25% to 1,674 professionals for the 2021 period from 1,336 professionals for the same period in 2020. Headcount growth attributable to the Landmark Acquisition and Black Creek Acquisition contributed $39.4 million and $45.0 million in recurring employment related costs to the three and nine months ended September 30, 2021, respectively. The performance-based, acquisition-related compensation arrangements

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that were established in connection with the Landmark Acquisition and Black Creek Acquisition also contributed $28.2 million and $32.8 million to the three and nine months ended September 30, 2021, respectively. Compensation and benefits are further driven by an increase in Part I Fees compensation of $7.8 million and $19.6 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. Part I Fees compensation is driven by Part I Fees revenue earned during the respective periods.

The following table presents equity compensation expense based on the different types of restricted unit awards. Amounts presented include recurring expense, accelerated expense recognized in connection with the achievement of a performance condition and reversal of previously recognized expense resulting from forfeitures.

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Non-recurring awards:
Multi-year future grants	$	8,588	$	—	$	(8,588)	—%	$	25,966	$	—	$	(25,966)	—%
Performance-based awards	186		300		114		38	20,499		980		(19,519)		NM
Performance-based awards - accelerated	29,415		—		(29,415)		—	43,426		3,749		(39,677)		NM
Other non-recurring awards	4,397		7,664		3,267		43	16,887		20,236		3,349		17
Total non-recurring awards	42,586		7,964		(34,622)		NM	106,778		24,965		(81,813)		NM
Recurring annual awards:
Discretionary awards	11,986		13,274		1,288		10	47,938		36,709		(11,229)		(31)
Bonus awards	11,419		9,098		(2,321)		(26)	36,428		29,902		(6,526)		(22)
Total recurring annual awards	23,405		22,372		(1,033)		(5)	84,366		66,611		(17,755)		(27)
Equity compensation expense, net	$	65,991	$	30,336	(35,655)		(118)	$	191,144	$	91,576	(99,568)		(109)

Equity compensation expense increased by $35.7 million and by $99.6 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively, primarily due to performance-based restricted units granted to certain executive officers in the first quarter of 2021 and to the approval of multi-year future grant awards to these executive officers, as well as to certain other senior leaders, that will be granted during the first quarter of 2022, 2023 and 2024. The 2021 periods included accelerated expense from the performance-based restricted awards from the vesting of Tranche II, III and IV of the performance-based restricted units as a result of meeting the applicable performance condition of $60.00, $65.00 and $75.00 per share, respectively, during the third quarter of 2021 and the vesting of Tranche I as a result of meeting the applicable performance condition of $55.00 per share during the second quarter of 2021. The nine months ended September 30, 2020 also included accelerated expense from the vesting of restricted units granted to our Chief Executive Officer as a result of achieving the applicable performance conditions of $35.00 per share. Additional equity compensation expense was incurred for the three and nine months ended September 30, 2021 from an increase in units awarded as part of the recurring annual award programs.

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

Performance Related Compensation. Performance related compensation increased by $208.8 million, or 171%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $1,017.4 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. Changes in performance related compensation are directly associated with the changes in carried interest allocation and incentive fees described above and may include performance allocations to charitable organizations as part of our philanthropic initiatives.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $64.5 million, or 92%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $95.1 million, or 50%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The Landmark Acquisition and Black Creek Acquisition have contributed $31.1 million and $37.9 million in general, administrative and other expenses to the three and nine months ended September 30, 2021, respectively. These expenses were primarily driven by amortization expense of $20.1 million and $26.8 million for the three and nine months ended September 30, 2021, respectively, related to the intangible assets recorded in connection with the Landmark Acquisition during the second quarter of 2021 and the Black Creek Acquisition during the third quarter of 2021. In addition, the SSG Acquisition during the second half of 2020 resulted in an increase in amortization expense of $17.8 million for the nine months ended September 30, 2021 when compared to the same period in 2020.

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Placement fees for the three and nine months ended September 30, 2021 increased by $33.3 million and $22.4 million, respectively, primarily due to new commitments to Ares Private Credit Solutions II, L.P. (“PCS II”) and our second U.S. senior direct lending fund. Certain expenses have also increased during the current period, including occupancy costs to support our growing headcount and information services and information technology to support the expansion of our business. Collectively, these expenses increased by $5.2 million and $10.6 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. The increase was also driven by higher professional service fees of $4.0 million and $7.4 million, respectively, for the three and nine months ended September 30, 2021, largely as a result of due diligence and legal expenses related to our recent acquisitions and higher recruiting fees to support the expanding platform.

There continue to be positive developments in the recovery from the COVID-19 pandemic that have reduced restrictions on travel and gathering. Those operating expenses that were impacted by the pandemic, particularly marketing sponsorships and events, increased during the third quarter of 2021.For the three months ended September 30, 2021, our travel, entertainment and marketing sponsorships expenses increased by $2.3 million when compared to the same period in 2020. We, however, recognized cost savings when comparing the nine months ended September 30, 2021 and 2020. For the three months ended March 31, 2020, our expenses reflected a pre-pandemic cost structure and are not comparable to the lower expenses incurred in our modified work environment during the three months ended March 31, 2021. Our operating expenses, most notably travel, entertainment and marketing sponsorships, and certain office services and fringe benefits from the modified remote working environment, decreased by $5.8 million for the nine months ended September 30, 2021, when compared to the same period in 2020. These expenses were $18.2 million lower for the nine months ended September 30, 2021 when compared to the pre-pandemic period in 2019, primarily driven by $12.2 million of travel expenses and $2.9 million of marketing expenses.

During the third quarter of 2020, we also recorded $3.8 million in one-time expenses related to expense concessions made to a limited number of funds.

Net Realized and Unrealized Gains (Losses) on Investments. Net realized and unrealized gains (losses) on investments increased from a loss of $2.6 million for the three months ended September 30, 2020 to a gain of $8.3 million for the three months ended September 30, 2021 and from a loss of $10.4 million for the nine months ended September 30, 2020 to a gain of $18.7 million for the nine months ended September 30, 2021. The activity for the three and nine months ended September 30, 2021 was primarily attributable to unrealized gains on certain strategic initiative related investments and on our U.S. CLO investments. The activity for the three months ended September 30, 2020 was primarily attributable to unrealized losses of certain strategic initiative related investments. The unrealized loss was partially offset by unrealized gains from CLO securities due to prices rebounding from the market lows that were driven by the COVID-19 pandemic. The activity for the nine months ended September 30, 2020 was primarily attributable to an unrealized loss from market depreciation of properties held by an investment vehicle in our U.S. real estate equity strategy, to net unrealized losses from CLO securities driven by the COVID-19 pandemic and unrealized losses of certain strategic initiative related investments.

Interest Expense. Interest expense increased by $4.7 million, or 69%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $6.9 million, or 38%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The issuance of the 2051 Subordinated Notes on the last day of the second quarter increased interest expense by $4.7 million for both the three and nine months ended September 30, 2021. The issuance of the 2030 Senior Notes late in the second quarter of 2020 increased interest expense by $6.1 million for the nine months ended September 30, 2021. The increase for the nine months ended September 30, 2020 was partially offset by a lower average outstanding balance of the Credit Facility in the current year period compared to the prior year period.

Other Income, Net. Other income, net increased by $34.5 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $20.8 million, or 212%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. Other income, net for the three and nine months ended September 30, 2021 included a $42.3 million bargain purchase gain from the Black Creek Acquisition. The bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets that we acquired exceeding the purchase consideration. The purchase agreement with Black Creek contains provisions that required us to record a contingent liability that is excluded from purchase consideration as its payment is subject to the continued and future services of senior professionals and advisors. Other income, net also includes the changes in fair value of contingent obligations recognized in connection with the Black Creek Acquisition. For the three and nine months ended September 30, 2021, we recorded $7.2 million in expense for the revaluation of contingent obligations. See “Note 9. Commitments and Contingencies” for a further description of the contingencies.

Other income, net also includes transaction gains (losses) associated with currency fluctuations impacting the revaluation of non-functional currency balances and is based on the fluctuations in currency exchange rates. Transaction gains

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(losses) fluctuated during the nine months ended September 30, 2021 primarily attributable to the British pound strengthening against Euro and creating transaction losses, and the fluctuation during the nine months ended September 30, 2020 was primarily attributable to the British pound weakening against the U.S. dollar and creating transaction gains.

Income Tax Expense Income tax expense increased by $12.0 million, or 65%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $82.4 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The changes in the comparative periods are primarily a result of increases in taxable income and weighted average daily ownership. The weighted average daily ownership for Ares Management Corporation (“AMC”) common stockholders increased from 55.6% and 53.3% for the three and nine months ended September 30, 2020, respectively, to 58.5% and 58.3% for the three and nine months ended September 30, 2021, respectively. The changes in ownership were primarily driven by the issuance of Class A common stock in connection with stock option exercises, vesting of restricted stock awards and private and public offerings of Class A and non-voting common stock. The increase in the weighted average daily ownership for the AMC common stockholders was partially offset by the issuance of AOG Units in connection with the Landmark Acquisition and the Black Creek Acquisition that increased the ownership of AOG Units not held by AMC.

Redeemable and Non-Controlling Interests. Net income (loss) attributable to redeemable and non-controlling interests in AOG entities represents results attributable to the holders of AOG Units and other ownership interests that are not held by AMC. In connection with the SSG Acquisition, the former owners of SSG retained an ownership interest in a subsidiary of an AOG entity that is reflected as redeemable interest in AOG entities. Net income attributable to redeemable interest in AOG entities is allocated based on the ownership percentage for periods presented.

Net income (loss) attributable to non-controlling interests in AOG entities is generally allocated based on the weighted average daily ownership of the other AOG unitholders, except for income (loss) generated from certain joint venture partnerships. Net income (loss) is allocated to other strategic distribution partners with whom we have established joint ventures based on the respective ownership percentages and to Crestline Denali Class B membership interests based on the activity of those financial interests. For the three and nine months ended September 30, 2021 and 2020, net income of $1.7 million, $3.4 million, $2.9 million, and net loss of $12.3 million, respectively, was also allocated to the Crestline Denali Class B membership interests related to the gains and losses from those CLO securities held.

Net income attributable to non-controlling interests in AOG entities increased by $32.1 million, or 62%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $215.7 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The changes in the comparative periods are a result of the respective changes in income before taxes and weighted average daily ownership. While income before taxes increased, the weighted average daily ownership for the non-controlling AOG unitholders decreased from 44.4% and 46.7% for the three and nine months ended September 30, 2020, respectively to 41.5% and 41.7% for the three and nine months ended September 30, 2021, respectively.

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Consolidated Results of Operations of the Consolidated Funds

The following table presents the results of operations of the Consolidated Funds:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Expenses of the Consolidated Funds	$	(12,104)	$	(6,019)	$	(6,085)	(101)%	$	(31,575)	$	(16,706)	$	(14,869)	(89)%
Net realized and unrealized gains (losses) on investments of Consolidated Funds	34,245		17,971		16,274		91	44,720		(153,268)		197,988		NM
Interest and other income of Consolidated Funds	104,028		116,581		(12,553)		(11)	333,745		346,120		(12,375)		(4)
Interest expense of Consolidated Funds	(61,578)		(66,322)		4,744		7	(191,577)		(222,860)		31,283		14
Income (loss) before taxes	64,591		62,211		2,380		4	155,313		(46,714)		202,027		NM
Income tax expense of Consolidated Funds	(2)		(117)		115		98	(76)		(147)		71		48
Net income (loss)	64,589		62,094		2,495		4	155,237		(46,861)		202,098		NM
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation	21,784		22,839		(1,055)		(5)	58,072		12,499		45,573		NM
Less: Other expense, net attributable to Ares Management Corporation eliminated upon consolidation	(4,565)		(3,372)		(1,193)		(35)	(5,090)		(20,767)		15,677		75
Net income (loss) attributable to non-controlling interests in Consolidated Funds	$	47,370	$	42,627	4,743		11	$	102,255	$	(38,593)	140,848		NM

NM - Not Meaningful

The results of operations of the Consolidated Funds primarily represents activity from certain CLOs that we are deemed to control. Expenses primarily reflect professional fees that were incurred as a result of debt issuance costs related to the issuance of new, refinanced or restructured CLOs. These fees were expensed in the period incurred, as CLO debt is recorded at fair value on our Consolidated Statements of Financial Condition. For the three and nine months ended September 30, 2021, expenses were driven by professional fees incurred from the issuance of a new U.S. CLO. The nine months ended September 30, 2021 also included the issuance of another new U.S. CLO and the restructure of our European CLO legal entities. For the three and nine months ended September 30, 2020, expenses were primarily driven by the issuance of one European CLO. Net realized and unrealized gains fluctuated for the comparative periods, primarily due to a significant change in the value of loans held by the CLOs. The CSLLI returned 1.1% and 4.7% for the quarter and year-to-date period of 2021 when compared to a 4.1% and negative 0.8% for the quarter and year-to-date period of 2020. The decrease in interest expense was attributable to the lower interest rates from newly issued and refinanced CLOs since the third quarter of 2020.

Revenues and other income (expense) attributable to AMC represents management fees, incentive fees, principal investment income and administrative, transaction and other fees that are attributable to AMC’s proportional share in the activity of the Consolidated Funds and is eliminated from the respective components of AMC's results upon consolidation. The activity for other income (expense) and principal investment income was primarily due to the price fluctuations associated with the COVID-19 pandemic previously mentioned, resulting in a decrease for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and an increase for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

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, 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 results 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.

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Non-GAAP Financial Measures

We use the following non-GAAP measures to make operating decisions, assess performance and allocate resources:

•Fee Related Earnings (“FRE”)

•Realized Income (“RI”)

These non-GAAP financial measures supplement and should be considered in addition to and not in lieu of, the results of operations, which are discussed further under “—Components of Consolidated Results of Operations” and are prepared in accordance with GAAP. The following table sets forth FRE and RI by reportable segment and OMG:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Fee Related Earnings:
Credit Group	$	175,957	$	125,107	$	50,850	41%	$	492,697	$	354,964	$	137,733	39%
Private Equity Group	36,950		27,429		9,521		35	80,712		81,319		(607)		(1)
Real Estate Group	24,261		7,794		16,467		211	47,375		24,831		22,544		91
Secondary Solutions Group	26,516		—		26,516		NM	34,266		—		34,266		NM
Strategic Initiatives	9,456		7,571		1,885		25	28,025		7,571		20,454		270
Operations Management Group	(90,803)		(61,070)		(29,733)		(49)	(225,369)		(171,793)		(53,576)		(31)
Fee Related Earnings	$	182,337	$	106,831	75,506		71	$	457,706	$	296,892	160,814		54
Realized Income:
Credit Group	$	182,152	$	127,667	$	54,485	43%	$	532,359	$	364,839	$	167,520	46%
Private Equity Group	47,938		65,342		(17,404)		(27)	122,477		166,963		(44,486)		(27)
Real Estate Group	26,722		8,275		18,447		223	55,607		36,502		19,105		52
Secondary Solutions Group	26,788		—		26,788		NM	34,535		—		34,535		NM
Strategic Initiatives	6,509		6,838		(329)		(5)	23,234		6,838		16,396		240
Operations Management Group	(91,233)		(61,714)		(29,519)		(48)	(225,596)		(179,341)		(46,255)		(26)
Realized Income	$	198,876	$	146,408	52,468		36	$	542,616	$	395,801	146,815		37

NM - Not Meaningful

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

	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2021		2020		2021		2020
Income before taxes	$	246,988	$	159,641	$	756,829	$	104,325
Adjustments:
Depreciation and amortization expense	36,668		14,336		71,742		26,197
Equity compensation expense	65,991		30,336		191,144		91,576
Acquisition-related compensation expense(1)	28,194		—		32,824		—
Acquisition and merger-related expense	7,967		3,490		26,188		9,815
Deferred placement fees	32,413		2,942		33,740		18,677
Other (income) expense, net	(42,025)		9,518		(42,490)		9,518
Net (income) expense of non-controlling interests in consolidated subsidiaries	(5,268)		(1,066)		(8,614)		15,681
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(47,372)		(42,744)		(102,331)		38,446
Total performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Total performance related compensation—unrealized	296,044		24,818		1,022,393		(61,010)
Total net investment (income) loss—unrealized	(5,407)		(2,375)		(57,112)		64,710
Realized Income	198,876		146,408		542,616		395,801
Total performance income—realized	(45,341)		(123,265)		(249,989)		(319,660)
Total performance related compensation—realized	33,728		97,538		185,306		252,575
Total investment income—realized	(4,926)		(13,850)		(20,227)		(31,824)
Fee Related Earnings	$	182,337	$	106,831	$	457,706	$	296,892

(1)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

For the specific components and calculations of these non-GAAP measures, as well as a reconciliation of the reportable segments to the most comparable measures in accordance with GAAP, see “Note 15. Segment Reporting”, to 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 OMG.

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Results of Operations by Segment

Credit Group—Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020

Fee Related Earnings:

The following table presents the components of the Credit Group's FRE:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Management fees	$	271,591	$	208,371	$	63,220	30%	$	764,702	$	606,596	$	158,106	26%
Other fees	5,798		4,898		900		18	18,494		12,057		6,437		53
Compensation and benefits	(86,502)		(74,373)		(12,129)		(16)	(252,783)		(222,063)		(30,720)		(14)
General, administrative and other expenses	(14,930)		(13,789)		(1,141)		(8)	(37,716)		(41,626)		3,910		9
Fee Related Earnings	$	175,957	$	125,107	50,850		41	$	492,697	$	354,964	137,733		39

Management Fees. The chart below presents Credit Group management fees and effective management fee rates:

Management fees on existing direct lending funds increased primarily from deployment of capital with Pathfinder, ACE IV, ACE V and Ares Senior Direct Lending Fund L.P. (“SDL”), collectively generating additional fees of $17.0 million and $43.0 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively. Management fees from ARCC, excluding Part I Fees described below, increased by $12.2 million and $22.8 million over the respective periods primarily due to an increase in the average size of ARCC's portfolio. The remaining increases in management fees from funds in existence in both periods was primarily driven by deployment of capital in other direct lending funds and SMAs. Part I Fees increased primarily due to an increase in pre-incentive fee net investment income generated by ARCC and CADC, driven by an increase in originations and in the average size of their portfolios. Management fees from CLOs also increased primarily due to the net addition of six CLOs for the three months ended

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September 30, 2021 compared to the three months ended September 30, 2020 and seven CLOs for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The launch of PCS II and our second U.S. senior direct lending fund also contributed to the increase in management fees, generating fees of $4.0 million and $5.8 million for the three and nine months ended September 30, 2021, respectively.

Other Fees. Other fees increased by $0.9 million, or 18%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and increased by $6.4 million, or 53%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increases were primarily driven by administrative fees from private funds. Certain private credit funds pay administrative fees on invested capital and an increase in deployment resulted in an increase to the fee basis. The increase for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was also driven by higher transaction fees for certain funds as a result of increased originations.

Compensation and Benefits. Compensation and benefits increased by $12.1 million, or 16%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $30.7 million, or 14%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase was primarily driven by an increase in Part I Fees compensation of $7.8 million and $19.6 million, by higher incentive compensation attributable to improved operating performance and margin expansion from scaling our business and by headcount growth and merit increases for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. The increases in compensation and benefits were further driven by increases in payroll related taxes of $4.2 million and $5.4 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively, primarily attributable to the vesting of non-recurring equity compensation awards. The increase in salaries and benefits is partially offset by lower discretionary payments made during the nine months ended September 30, 2021 when compared to the same period in 2020.

Average headcount for the year-to-date period increased by 6% to 429 investment and investment support professionals for the 2021 period from 406 professionals for the same period in 2020 as we added additional investment professionals to support our growing U.S. and European direct lending platforms.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $1.1 million, or 8%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and decreased by $3.9 million, or 9%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. In connection with our fundraising efforts, placement fees have increased by $1.8 million and $2.5 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. The increases were primarily associated with new commitments to PCS II and our second U.S. senior direct lending fund. Certain expenses have also increased during the current period, including information services and information technology to support the expansion of our business. Collectively, these expenses increased by $0.9 million and $1.6 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020.

There continue to be positive developments in the recovery from the COVID-19 pandemic that have reduced restrictions on travel and gathering. Those operating expenses that were impacted by the pandemic, particularly marketing sponsorships and events, increased during the third quarter of 2021. For the three months ended September 30, 2021, our travel, entertainment and marketing sponsorships expenses increased by $0.9 million when compared to the same period in 2020. We, however, recognized cost savings when comparing the nine months ended September 30, 2021 and 2020. For the three months ended March 31, 2020, our expenses reflected a pre-pandemic cost structure and are not comparable to the lower expenses incurred in our modified work environment during the three months ended March 31, 2021. Our operating expenses, most notably travel, entertainment and marketing sponsorships, and certain office services and fringe benefits from the modified remote working environment, decreased by $3.6 million for the nine months ended September 30, 2021, when compared to the same period in 2020.

During the third quarter of 2020, we also recorded $3.2 million in one-time expenses related to expense concessions made to a limited number of funds.

82

Realized Income:

The following table presents the components of the Credit Group's RI:

	Three months ended September 30,				Favorable (Unfavorable)				Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change
Fee Related Earnings	$	175,957	$	125,107	$	50,850	41	%	$	492,697	$	354,964	$	137,733	39	%
Performance income—realized	6,332		7,069		(737)		(10)		78,255		16,085		62,170		NM
Performance related compensation—realized	(3,079)		(4,131)		1,052		25		(49,433)		(12,142)		(37,291)		NM
Realized net performance income	3,253		2,938		315		11		28,822		3,943		24,879		NM
Investment income (loss)—realized	618		—		618		NM		1,858		(843)		2,701		NM
Interest and other investment income—realized	4,716		1,962		2,754		140		14,354		13,166		1,188		9
Interest expense	(2,392)		(2,340)		(52)		(2)		(5,372)		(6,391)		1,019		16
Realized net investment income (loss)	2,942		(378)		3,320		NM		10,840		5,932		4,908		83
Realized Income	$	182,152	$	127,667	54,485		43		$	532,359	$	364,839	167,520		46

NM - Not Meaningful

Realized net performance income for the three and nine months ended September 30, 2021 and 2020 was primarily attributable to tax distributions on direct lending funds with European-style waterfalls, driven by net investment income on an increasing invested capital base of those funds. The tax distributions were made to provide cash sufficient to pay tax liabilities attributable to the funds’ taxable income that is allocated to its carry participants prior to the funds making carried interest distributions. Realized net performance income for the three months ended September 30, 2020 was also attributable to incentive fees for an alternative credit fund that crystallized during the period.

Realized net investment income for the three and nine months ended September 30, 2021 and 2020 was primarily attributable to interest income generated from our CLO investments as well as income recognized in connection with distributions from an alternative credit fund. Realized net investment income for the nine months ended September 30, 2021 also included income recognized in connection with distributions from a commercial finance fund, while the three and nine months ended September 30, 2020 included a term loan investment that generated interest income.

83

Credit Group— Carried Interest and Incentive Fees

The following table presents the accrued carried interest and incentive fees receivable, also referred to as accrued performance income, and related performance compensation for the Credit Group:

	As of September 30, 2021						As of December 31, 2020
($ in thousands)	Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income		Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income
Accrued Carried Interest
ACE III	$	105,850	$	63,510	$	42,340	$	77,959	$	46,776	$	31,183
ACE IV	151,198		93,743		57,455		93,462		57,946		35,516
ACE V	34,929		20,958		13,971		2,435		1,461		974
PCS	130,163		76,768		53,395		101,656		60,084		41,572
Other credit funds	188,874		123,892		64,982		97,803		60,437		37,366
Total accrued carried interest	611,014		378,871		232,143		373,315		226,704		146,611
Incentive fees	1,333		805		528		31,653		18,601		13,052
Total Credit Group	$	612,347	$	379,676	$	232,671	$	404,968	$	245,305	$	159,663

The following table presents the change in accrued carried interest during the period for the Credit Group:

		As of December 31, 2020		Activity during the period						As of September 30, 2021
($ in thousands)	Waterfall Type	Accrued Carried Interest		Change in Unrealized		Realized		Other Adjustments		Accrued Carried Interest
ACE III	European	$	77,959	$	36,443	$	(8,646)	$	94	$	105,850
ACE IV	European	93,462		84,720		(26,984)		—		151,198
ACE V	European	2,435		32,494		—		—		34,929
PCS	European	101,656		45,332		(17,525)		700		130,163
Other credit funds	European	97,545		93,641		(6,089)		3,522		188,619
Other credit funds	American	258		(3)		—		—		255
Total Credit Group		$	373,315	$	292,627	$	(59,244)	$	4,316	$	611,014

84

Credit Group—Assets Under Management

The tables below present rollforwards of AUM for the Credit Group:

($ in millions)	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 6/30/2021	$	29,306	$	3,152	$	3,929	$	14,493	$	68,586	$	48,121	$	167,587
Net new par/equity commitments	151		284		427		3,173		3,795		1,220		9,050
Net new debt commitments	1,010		—		100		—		3,670		753		5,533
Capital reductions	(339)		—		—		—		(43)		1		(381)
Distributions	(21)		—		14		(273)		(392)		(272)		(944)
Redemptions	(82)		(81)		(65)		—		(39)		—		(267)
Change in fund value	(90)		36		56		123		776		(246)		655
Balance at 9/30/2021	$	29,935	$	3,391	$	4,461	$	17,516	$	76,353	$	49,577	$	181,233
Average AUM(1)	$	29,621	$	3,272	$	4,195	$	16,005	$	72,470	$	48,849	$	174,412
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 6/30/2020	$	25,451	$	2,660	$	2,812	$	8,821	$	50,784	$	26,885	$	117,413
Net new par/equity commitments	19		139		1		1,017		139		8,796		10,111
Net new debt commitments	501		—		—		—		1,200		—		1,701
Capital reductions	(38)		—		—		—		(46)		(122)		(206)
Distributions	(19)		—		(7)		(115)		(239)		(188)		(568)
Redemptions	(64)		(213)		(4)		—		(20)		—		(301)
Change in fund value	304		117		111		381		953		1,212		3,078
Balance at 9/30/2020	$	26,154	$	2,703	$	2,913	$	10,104	$	52,771	$	36,583	$	131,228
Average AUM(1)	$	25,803	$	2,682	$	2,863	$	9,463	$	51,778	$	31,734	$	124,323
(1) Represents the quarterly average of beginning and ending balances.
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 12/31/2020	$	27,967	$	2,863	$	2,953	$	12,897	$	56,516	$	42,276	$	145,472
Net new par/equity commitments	754		609		1,388		4,968		12,395		4,885		24,999
Net new debt commitments	2,306		—		100		—		7,966		3,124		13,496
Capital reductions	(603)		—		—		—		(1,801)		(87)		(2,491)
Distributions	(81)		—		8		(467)		(1,129)		(835)		(2,504)
Redemptions	(249)		(237)		(206)		(415)		(124)		(11)		(1,242)
Change in fund value	(159)		156		218		533		2,530		225		3,503
Balance at 9/30/2021	$	29,935	$	3,391	$	4,461	$	17,516	$	76,353	$	49,577	$	181,233
Average AUM(1)	$	28,913	$	3,083	$	3,669	$	14,712	$	65,202	$	45,774	$	161,353
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 12/31/2019	$	22,320	$	3,492	$	2,611	$	7,571	$	48,431	$	26,118	$	110,543
Acquisitions	2,693		—		—		—		—		—		2,693
Net new par/equity commitments	140		367		431		2,874		1,553		8,892		14,257
Net new debt commitments	1,236		—		—		—		3,349		1,119		5,704
Capital reductions	(70)		—		—		—		(128)		(152)		(350)
Distributions	(52)		—		(15)		(299)		(899)		(640)		(1,905)
Redemptions	(241)		(1,093)		(96)		(96)		(66)		—		(1,592)
Change in fund value	128		(63)		(18)		54		531		1,246		1,878
Balance at 9/30/2020	$	26,154	$	2,703	$	2,913	$	10,104	$	52,771	$	36,583	$	131,228
Average AUM(1)	$	24,649	$	2,922	$	2,640	$	8,495	$	50,306	$	28,912	$	117,924
(1) Represents a four-point average of quarter-end balances for each period.

    

85

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

    

AUM: $181.2 AUM: $131.2

FPAUM AUM not yet paying fees Non-fee paying(1)(2)

(1) Includes $8.5 billion of AUM of funds from which we indirectly earn management fees as of September 30, 2021 and 2020.

(2) Includes $1.0 billion and $0.6 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021 and 2020, respectively.

86

Credit Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Credit Group:

($ in millions)	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 6/30/2021	$	28,211	$	3,149	$	3,423	$	7,916	$	36,101	$	20,788	$	99,588
Commitments	1,099		284		514		303		664		—		2,864
Subscriptions/deployment/increase in leverage	19		—		41		391		3,153		2,491		6,095
Capital reductions	(290)		—		—		—		(36)		(9)		(335)
Distributions	(15)		—		(34)		(201)		(1,108)		(110)		(1,468)
Redemptions	(82)		(77)		(61)		—		(40)		(36)		(296)
Change in fund value	(128)		35		53		(90)		390		(306)		(46)
Balance at 9/30/2021	$	28,814	$	3,391	$	3,936	$	8,319	$	39,124	$	22,818	$	106,402
Average FPAUM(1)	$	28,513	$	3,270	$	3,680	$	8,118	$	37,613	$	21,803	$	102,997
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 6/30/2020	$	24,832	$	2,621	$	2,278	$	5,352	$	28,679	$	14,982	$	78,744
Commitments	9		126		1		48		139		—		323
Subscriptions/deployment/increase in leverage	15		13		7		152		1,699		266		2,152
Capital reductions	(38)		—		—		(227)		(27)		(255)		(547)
Distributions	(13)		—		(10)		(161)		(373)		(129)		(686)
Redemptions	(64)		(185)		(11)		—		(20)		(1)		(281)
Change in fund value	226		116		108		194		468		488		1,600
Balance at 9/30/2020	$	24,967	$	2,691	$	2,373	$	5,358	$	30,565	$	15,351	$	81,305
Average FPAUM(1)	$	24,900	$	2,657	$	2,326	$	5,355	$	29,622	$	15,167	$	80,027
(1) Represents the quarterly average of beginning and ending balances.
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 12/31/2020	$	27,171	$	2,861	$	2,457	$	6,331	$	32,337	$	16,860	$	88,017
Commitments	2,265		609		1,194		1,119		1,518		—		6,705
Subscriptions/deployment/increase in leverage	714		—		356		1,694		7,463		6,951		17,178
Capital reductions	(554)		—		(18)		—		(790)		(256)		(1,618)
Distributions	(37)		—		(68)		(441)		(2,656)		(581)		(3,783)
Redemptions	(249)		(234)		(189)		(294)		(99)		(233)		(1,298)
Change in fund value	(496)		155		204		(90)		1,351		77		1,201
Balance at 9/30/2021	$	28,814	$	3,391	$	3,936	$	8,319	$	39,124	$	22,818	$	106,402
Average FPAUM(1)	$	27,749	$	3,082	$	3,162	$	7,403	$	34,966	$	20,045	$	96,407
	Syndicated Loans		High Yield		Multi-Asset Credit		Alternative Credit		U.S. Direct Lending		European Direct Lending		Total Credit Group
Balance at 12/31/2019	$	21,458	$	3,495	$	2,144	$	4,340	$	27,876	$	12,567	$	71,880
Acquisitions	2,596		—		—		—		—		—		2,596
Commitments	1,309		354		379		527		275		—		2,844
Subscriptions/deployment/increase in leverage	15		13		57		1,184		5,220		3,202		9,691
Capital reductions	(89)		—		(59)		(227)		(857)		(287)		(1,519)
Distributions	(39)		—		(31)		(370)		(1,905)		(521)		(2,866)
Redemptions	(241)		(1,065)		(99)		(96)		(65)		(39)		(1,605)
Change in fund value	(42)		(66)		(18)		—		21		429		324
Change in fee basis	—		(40)		—		—		—		—		(40)
Balance at 9/30/2020	$	24,967	$	2,691	$	2,373	$	5,358	$	30,565	$	15,351	$	81,305
Average FPAUM(1)	$	23,845	$	2,912	$	2,127	$	4,805	$	28,982	$	14,251	$	76,922
(1) Represents a four-point average of quarter-end balances for each period.

87

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

    

FPAUM: $106.4 FPAUM: $81.3

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

(1)Includes $24.6 billion and $19.3 billion from funds that primarily invest in illiquid strategies as of September 30, 2021 and 2020, 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, 2021

ARCC contributed approximately 45% of the Credit Group’s total management fees for the nine months ended September 30, 2021. In addition, seven other significant funds, ACE III, ACE IV, ACE V, CADC, PCS, SDL and an open-ended secured finance fund, collectively contributed approximately 22% of the Credit Group’s management fees for the nine months ended September 30, 2021.

    The following table presents the performance data for our significant funds that are not drawdown funds in the Credit Group as of September 30, 2021:

				Returns(%)(1)
($ in millions)	Year of Inception	AUM		Current Quarter		Year-To-Date		Since Inception(2)		Primary Investment Strategy
Fund				Gross	Net	Gross	Net	Gross	Net
ARCC(3)	2004	$	23,683	N/A	4.2	N/A	16.6	N/A	12.0	U.S. Direct Lending
CADC(4)	2017	2,488		N/A	2.2	N/A	7.1	N/A	6.7	U.S. Direct Lending
Open-ended secured finance fund(5)	2018	1,893		0.8	0.7	3.0	2.6	3.3	2.6	Alternative Credit

(1)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.

(2)Since inception returns are annualized.

(3)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 financial statements filed with the SEC, which are not part of this report.

(4)Returns are shown for institutional share class. 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 can be found in its financial statements filed with the SEC, which are not part of this report.

(5)Gross returns do not reflect the deduction of management fees or other expenses. Net returns are calculated by subtracting the applicable management fees and other expenses from the gross returns on a monthly basis. This fund is a master/feeder structure and its AUM and returns include activity from its' investment in an affiliated Ares fund. Returns presented in the table are expressed in U.S. Dollars and are for the master fund, excluding the share class hedges. The current quarter, year-to-date, and since inception returns (gross / net) for the pound sterling hedged Cayman feeder, the fund's sole feeder, are as follows: 0.8% / 0.6%, 2.5% / 2.1% and 1.8% / 1.2%.

88

The following table presents the performance data of our significant drawdown funds as of September 30, 2021:

($ in millions)	Year of Inception	AUM		Original Capital Commitments		Capital Invested to Date		Realized Value(1)		Unrealized Value(2)		Total Value		MoIC		IRR(%)		Primary Investment Strategy
Fund														Gross(3)	Net(4)	Gross(5)	Net(6)
Funds Harvesting Investments
ACE III(7)	2015	$	5,250	$	2,822	$	2,539	$	836	$	2,676	$	3,512	1.5x	1.4x	11.9	8.6	European Direct Lending
PCS	2017	4,053		3,365		2,649		932		2,435		3,367		1.3x	1.2x	13.5	9.7	U.S. Direct Lending
Funds Deploying Capital
ACE IV Unlevered(8)	2018	10,800		2,851		2,429		225		2,519		2,744		1.2x	1.1x	9.2	6.6	European Direct Lending
ACE IV Levered(8)				4,819		4,056		523		4,356		4,879		1.3x	1.2x	13.7	10.1
SDL Unlevered	2018	5,267		922		681		120		630		750		1.1x	1.1x	9.8	7.3	U.S. Direct Lending
SDL Levered				2,045		1,510		398		1,395		1,793		1.3x	1.2x	19.1	14.1
ACE V Unlevered(9)	2020	15,540		7,026		1,367		1		1,446		1,447		1.1x	1.1x	N/A	N/A	European Direct Lending
ACE V Levered(9)				6,376		1,273		3		1,388		1,391		1.1x	1.1x	N/A	N/A

(1)Realized value represents the sum of all cash distributions to all 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.

(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 III is made up of two feeder funds, one denominated in U.S. dollars and one denominated in Euros. The gross and net IRR and MoIC presented in the table are for the Euro denominated feeder fund. The gross and net IRR for the U.S. dollar denominated feeder fund are 13.1% and 9.6%, respectively. The gross and net MoIC for the U.S. dollar denominated feeder fund are 1.6x and 1.4x, 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 III are for the combined fund and are converted to U.S. dollars at the prevailing quarter-end exchange rate.

(8)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. 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 are inclusive of a U.S. dollar denominated feeder fund, which has not been presented separately The gross and net IRR for ACE IV (G) Unlevered are 10.9% and 7.8%, respectively. The gross and net MoIC for ACE IV (G) Unlevered are 1.2x and 1.1x, respectively. The gross and net IRR for ACE IV (G) Levered are 15.1% and 11.0%, respectively. The gross and net MoIC for ACE IV (G) Levered 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 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.

(9)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. The gross and net MoIC presented in the chart are for ACE V (E) Unlevered and ACE V (E) Levered. Metrics for ACE V (E) Unlevered are inclusive of a Japanese yen denominated feeder fund, which has not been presented separately. Metrics for ACE V (E) Levered are inclusive of a U.S. dollar denominated feeder fund, which has not been presented separately. The gross and net MoIC for ACE V (G) Unlevered are 1.1x and 1.1x, respectively. The gross and net MoIC for ACE V (G) Levered are 1.1x 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 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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Private Equity Group—Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020

Fee Related Earnings:

The following table presents the components of the Private Equity Group's FRE:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Management fees	$	69,591	$	54,653	$	14,938	27%	$	171,019	$	160,206	$	10,813	7%
Other fees	370		2		368		NM	726		142		584		NM
Compensation and benefits	(26,773)		(21,224)		(5,549)		(26)	(73,534)		(62,946)		(10,588)		(17)
General, administrative and other expenses	(6,238)		(6,002)		(236)		(4)	(17,499)		(16,083)		(1,416)		(9)
Fee Related Earnings	$	36,950	$	27,429	9,521		35	$	80,712	$	81,319	(607)		(1)

NM - Not Meaningful

Management Fees. The chart below presents Private Equity Group management fees and effective management fee rates:

Management fees increased primarily due to additional commitments and one-time catch up fees. Management fees from ACOF VI increased by $28.6 million and $53.3 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020, and management fees from our first climate infrastructure fund increased by $5.1 million and $8.7 million, respectively, over the comparative periods. Excluding one-time catch up fees, management fees from ACOF VI increased by $17.0 million and $50.8 million over the comparative periods, offset by a decrease of $18.6 million and $55.1 million of fees from ACOF V over the same periods. The decrease in management fees from ACOF V over the comparative periods was due to the step down in fee rate and change in fee base from committed capital to invested capital in the first quarter of 2021 as a result of ACOF VI beginning to pay fees in the fourth quarter of 2020.

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Excluding one-time catch up fees, fees from our first climate infrastructure fund increased by $1.9 million and $6.2 million over the comparative periods. Management fees from ASOF increased by $4.9 million and $15.4 million from the respective periods that was driven by increased deployment.

The decreases in effective management fee rate for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 were primarily driven by the step down in fee rate to 0.75% for ACOF V, partially offset by increased deployment in ASOF that has a higher fee rate than the Private Equity Group’s average effective management fee rate.

Compensation and Benefits. Compensation and benefits increased by $5.5 million, or 26%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $10.6 million, or 17%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increases were driven by certain annual discretionary payments and by higher incentive compensation resulting from increased management fees, specifically one-time catch up fees from ACOF VI and our first climate infrastructure fund.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $0.2 million, or 4%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $1.4 million, or 9%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. In connection with our fundraising efforts, placement fees have increased by $1.1 million and $3.0 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. The increase was primarily associated with new commitments to ASOF, ACOF VI and our first climate infrastructure fund. The increase was also driven by higher professional service fees to support the expanding platform of $1.0 million for the nine months ended September 30, 2021 when compared to the same period in 2020.

There continue to be positive developments in the recovery from the COVID-19 pandemic that have reduced restrictions on travel and gathering. Those operating expenses that were impacted by the pandemic, particularly marketing sponsorships and events, increased during the third quarter of 2021. We, however, recognized cost savings when comparing the nine months ended September 30, 2021 and 2020. For the three months ended March 31, 2020, our expenses reflected a pre-pandemic cost structure and are not comparable to the lower expenses incurred in our modified work environment during the three months ended March 31, 2021. Our operating expenses, most notably travel, entertainment and marketing sponsorships, and certain office services and fringe benefits from the modified remote working environment, decreased by $1.2 million for the nine months ended September 30, 2021, when compared to the same period in 2020.

For the three and nine months ended September 30, 2020, we also recorded $0.9 million and $1.5 million, respectively, in association with the launch of ACOF VI, ASOF and AEOF.

Realized Income:

The following table presents the components of the Private Equity Group's RI:

	Three months ended September 30,				Favorable (Unfavorable)				Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change
Fee Related Earnings	$	36,950	$	27,429	$	9,521	35	%	$	80,712	$	81,319	$	(607)	(1)	%
Performance income—realized	34,316		115,997		(81,681)		(70)		159,479		276,469		(116,990)		(42)
Performance related compensation—realized	(27,483)		(93,284)		65,801		71		(127,706)		(222,949)		95,243		43
Realized net performance income	6,833		22,713		(15,880)		(70)		31,773		53,520		(21,747)		(41)
Investment income—realized	2,020		16,351		(14,331)		(88)		5,308		35,866		(30,558)		(85)
Interest and other investment income—realized	4,861		1,065		3,796		NM		10,716		2,364		8,352		NM
Interest expense	(2,726)		(2,216)		(510)		(23)		(6,032)		(6,106)		74		1
Realized net investment income	4,155		15,200		(11,045)		(73)		9,992		32,124		(22,132)		(69)
Realized Income	$	47,938	$	65,342	(17,404)		(27)		$	122,477	$	166,963	(44,486)		(27)

NM - Not Meaningful

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Realized net performance income and realized net investment income for the three and nine months ended September 30, 2021 was primarily attributable to realizations from monetization of ACOF IV’s investment in Farrow & Ball following the sale of the company and from the monetization of various assets in a fund within our special opportunities strategy. Realized net performance income for the nine months ended September 30, 2021 also included realizations from partial sales of ACOF IV’s position in AZEK. Realized net investment income for the nine months ended September 30, 2021 was also attributable to the monetization of various assets in an infrastructure and power fund and a special opportunities fund, offset by a realized loss recognized in connection with an Asian corporate private equity fund’s sale of its investment in a dairy farm company.

Realized net performance income and realized net investment income for the three and nine months ended September 30, 2020 were primarily attributable to realizations from the sale of ACOF III's remaining position in Floor & Decor Holdings, Inc. and the partial sale of ACOF IV's position in AZEK. Realized net performance income and realized net investment income for the nine months ended September 30, 2020 also included realizations from the monetization of ACOF IV's investment in National Veterinary Associates following the sale of the company. Realized net investment income for the three and nine months ended September 30, 2020 was also attributable to the monetization of an infrastructure and power fund's investment in a wind project.        

Private Equity Group—Carried Interest

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

	As of September 30, 2021						As of December 31, 2020
($ in thousands)	Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income		Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income
ACOF III	$	48,928	$	39,143	$	9,785	$	55,022	$	44,018	$	11,004
ACOF IV	363,532		290,826		72,706		345,748		276,598		69,150
ACOF V	532,215		425,772		106,443		—		—		—
ACOF VI	66,493		53,194		13,299		2,624		2,099		525
ASOF	305,758		214,031		91,727		113,313		79,319		33,994
EIF V	57,880		43,265		14,615		54,086		40,429		13,657
Other funds	28,717		18,664		10,053		175		175		—
Total Private Equity Group	$	1,403,523	$	1,084,895	$	318,628	$	570,968	$	442,638	$	128,330

The following table presents the change in accrued carried interest during the period for the Private Equity Group:

		As of December 31, 2020		Activity during the period				As of September 30, 2021
($ in thousands)	Waterfall Type	Accrued Carried Interest		Change in Unrealized		Realized		Accrued Carried Interest
ACOF III	American	$	55,022	$	98	$	(6,192)	$	48,928
ACOF IV	American	345,748		171,071		(153,287)		363,532
ACOF V	American	—		532,215		—		532,215
ACOF VI	American	2,624		63,869		—		66,493
ASOF	European	113,313		192,445		—		305,758
EIF V	European	54,086		3,794		—		57,880
Other funds	European	—		10,781		—		10,781
Other funds	American	175		17,761		—		17,936
Total Private Equity Group		$	570,968	$	992,034	$	(159,479)	$	1,403,523

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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		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 6/30/2021	$	20,603	$	6,307	$	3,822	$	30,732
Net new par/equity commitments	1,453		200		324		1,977
Net new debt commitments	—		200		—		200
Capital reductions	(2)		—		—		(2)
Distributions	(864)		(269)		(358)		(1,491)
Change in fund value	828		506		(54)		1,280
Balance at 9/30/2021	$	22,018	$	6,944	$	3,734	$	32,696
Average AUM(1)	$	21,311	$	6,626	$	3,778	$	31,715
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 6/30/2020	$	18,090	$	5,343	$	3,169	$	26,602
Net new par/equity commitments	270		(30)		235		475
Capital reductions	(3)		(15)		—		(18)
Distributions	(966)		(10)		(90)		(1,066)
Redemptions	(5)		—		—		(5)
Change in fund value	473		170		59		702
Balance at 9/30/2020	$	17,859	$	5,458	$	3,373	$	26,690
Average AUM(1)	$	17,975	$	5,401	$	3,271	$	26,647
(1) Represents the quarterly average of beginning and ending balances.
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 12/31/2020	$	18,233	$	5,721	$	3,485	$	27,439
Net new par/equity commitments	1,554		150		592		2,296
Net new debt commitments	—		200		—		200
Capital reductions	(7)		—		—		(7)
Distributions	(2,273)		(554)		(692)		(3,519)
Change in fund value	4,511		1,427		349		6,287
Balance at 9/30/2021	$	22,018	$	6,944	$	3,734	$	32,696
Average AUM(1)	$	20,059	$	6,241	$	3,672	$	29,972
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 12/31/2019	$	18,406	$	3,527	$	3,233	$	25,166
Net new par/equity commitments	3,558		1,800		235		5,593
Capital reductions	(8)		(125)		—		(133)
Distributions	(3,173)		(12)		(108)		(3,293)
Redemptions	(5)		—		—		(5)
Change in fund value	(919)		268		13		(638)
Balance at 9/30/2020	$	17,859	$	5,458	$	3,373	$	26,690
Average AUM(1)	$	17,357	$	4,511	$	3,251	$	25,119
(1) Represents a four-point average of quarter-end balances for each period.

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

    

AUM: $32.7 AUM: $26.7

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

(1) Includes $1.2 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021 and 2020.

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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		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 6/30/2021	$	11,748	$	3,259	$	3,725	$	18,732
Commitments	1,427		—		324		1,751
Subscriptions/deployment/increase in leverage	89		487		—		576
Distributions	(471)		(44)		(294)		(809)
Change in fund value	5		—		—		5
Change in fee basis	(6)		—		—		(6)
Balance at 9/30/2021	$	12,792	$	3,702	$	3,755	$	20,249
Average FPAUM(1)	$	12,270	$	3,481	$	3,740	$	19,491
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 6/30/2020	$	11,748	$	2,425	$	3,300	$	17,473
Commitments	—		—		210		210
Subscriptions/deployment/increase in leverage	16		294		—		310
Distributions	(170)		(42)		(7)		(219)
Change in fund value	(33)		—		—		(33)
Change in fee basis	(17)		—		(5)		(22)
Balance at 9/30/2020	$	11,544	$	2,677	$	3,498	$	17,719
Average FPAUM(1)	$	11,646	$	2,551	$	3,399	$	17,596
(1) Represents the quarterly average of beginning and ending balances.
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 12/31/2020	$	14,770	$	2,723	$	3,679	$	21,172
Commitments	1,579		—		592		2,171
Subscriptions/deployment/increase in leverage	535		1,308		—		1,843
Distributions	(1,332)		(329)		(341)		(2,002)
Change in fund value	5		—		—		5
Change in fee basis	(2,765)		—		(175)		(2,940)
Balance at 9/30/2021	$	12,792	$	3,702	$	3,755	$	20,249
Average FPAUM(1)	$	12,779	$	3,181	$	3,710	$	19,670
	Corporate Private Equity		Special Opportunities		Infrastructure & Power		Total Private Equity Group
Balance at 12/31/2019	$	11,968	$	1,720	$	3,352	$	17,040
Commitments	—		—		210		210
Subscriptions/deployment/increase in leverage	35		1,295		—		1,330
Distributions	(404)		(338)		(59)		(801)
Change in fund value	(39)		—		—		(39)
Change in fee basis	(16)		—		(5)		(21)
Balance at 9/30/2020	$	11,544	$	2,677	$	3,498	$	17,719
Average FPAUM(1)	$	11,753	$	2,184	$	3,376	$	17,313
(1) Represents a four-point average of quarter-end balances for each period.

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

        

FPAUM: $20.3 FPAUM: $17.7

Invested capital Capital commitments

Private Equity Group—Fund Performance Metrics as of September 30, 2021

Four significant funds, U.S. Power Fund IV (“USPF IV”), ACOF V, ASOF and ACOF VI, collectively contributed approximately 69% of the Private Equity Group’s management fees for the nine months ended September 30, 2021.

The following table presents the performance data as of September 30, 2021 for our significant funds in the Private Equity Group, all of which are drawdown funds:

($ in millions)	Year of Inception	AUM		Original Capital Commitments		Capital Invested to Date		Realized Value(1)		Unrealized Value(2)		Total Value		MoIC		IRR(%)		Primary Investment Strategy
Fund														Gross(3)	Net(4)	Gross(5)	Net(6)
Funds Harvesting Investments
USPF IV	2010	$	993	$	1,688	$	2,121	$	1,633	$	981	$	2,614	1.2x	1.1x	5.1	1.2	Infrastructure and Power
Funds Deploying Capital
ACOF V	2017	9,716		7,850		7,365		1,713		9,011		10,724		1.5x	1.3x	15.9	10.8	Corporate Private Equity
ASOF	2019	5,285		3,518		4,248		1,966		3,916		5,882		1.7x	1.6x	64.7	50.3	Special Opportunities
ACOF VI	2020	6,127		5,743		1,972		185		2,217		2,402		1.2x	1.1x	N/A	N/A	Corporate Private Equity

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

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

(3)For the corporate private equity and infrastructure and power funds, the gross MoIC is calculated at the investment-level and is based on the interests of all partners. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses. For the special opportunities funds, 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. The gross MoICs for the corporate private equity and special opportunities funds are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the gross MoIC would be 1.4x for ACOF V, 1.2x for ACOF VI, and 1.7x for ASOF.

(4)The net MoIC for USPF IV and ASOF is calculated at the fund-level. 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. The net MoIC for the corporate private equity funds is calculated at the investment level. For all funds, 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 and carried interest, other expenses and credit facility interest expenses, as applicable.

(5)For the corporate private equity and infrastructure and power funds, the gross IRR is an annualized since inception gross internal rate of return of cash flows to and from investments and the residual value of the investments at the end of the measurement period. Gross IRRs reflect returns to all partners. The cash flow dates used in the gross IRR calculation are assumed to occur at month-end. The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses. For the special opportunities funds 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 for the corporate private equity and special opportunities funds are also calculated before giving effect to any bridge financings. Inclusive of bridge financings, the gross IRRs would be 15.7% for ACOF V, "N/A" for ACOF VI, and 63.3% for ASOF.

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(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 non-fee paying limited partners 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.

Real Estate Group—Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020

Fee Related Earnings:

The following table presents the components of the Real Estate Group's FRE:

	Three months ended September 30,				Favorable (Unfavorable)				Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change
Management fees	$	55,160	$	23,787	$	31,373	132	%	$	115,602	$	71,459	$	44,143	62	%
Other fees	3,681		5		3,676		NM		4,604		716		3,888		NM
Compensation and benefits	(29,160)		(13,011)		(16,149)		(124)		(60,767)		(38,159)		(22,608)		(59)
General, administrative and other expenses	(5,420)		(2,987)		(2,433)		(81)		(12,064)		(9,185)		(2,879)		(31)
Fee Related Earnings	$	24,261	$	7,794	16,467		211		$	47,375	$	24,831	22,544		91

NM - Not Meaningful

Management Fees. The chart below presents Real Estate Group management fees and effective management fee rates:

Management fees increased for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 primarily due to the Black Creek Acquisition. Additional commitments to AREOF III increased fees by $1.4 million and $4.1 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively, and also generated one-time catch-up fees of $2.8 million for the nine

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months ended September 30, 2021. Additional commitments to Ares European Property Enhancement Partners III, SCSp. (“EPEP III”) also generated one-time catch-up fees of $6.8 million and $7.0 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively. Excluding one-time catch-up fees, fees from EPEP III increased by $2.6 million and $9.0 million over the respective periods. Management fees from real estate debt funds increased by $2.2 million and $4.7 million for the respective periods primarily due to the continued fundraising and subsequent deployment within these open-ended funds. Management fees included $2.0 million of one-time fees for the nine months ended September 30, 2020, driven by our Real Estate Group completing the sale of its stake in a 40-property pan-European logistics portfolio.

The decrease in effective management fee rate for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily due to deployment in real estate debt funds with effective management fee rates below 0.75% and to certain funds previously managed by Black Creek with effective management fee rates below 0.75%. The decrease in effective management fee rate is partially offset by an increase in management fees from real estate equity funds. Our most recent real estate equity funds pay a fee on committed capital that increases once that capital is invested. As a result, our effective management fee rate decreases immediately following capital raising and increases as capital is subsequently deployed.

Other Fees: Other fees increased by $3.7 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $3.9 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. These increases were primarily due to fees generated from funds previously managed by Black Creek, including property-related fees, such as acquisition, development and property management.

Compensation and Benefits. Compensation and benefits increased by $16.1 million, or 124%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $22.6 million, or 59%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase in salaries and benefits was primarily driven by headcount growth from the Black Creek Acquisition and in the U.S. real estate equity strategy, by higher incentive compensation attributable to improved operating performance and margin expansion from scaling our business. During the three months ended September 30, 2021, we recorded $8.1 million of compensation and benefit expenses associated with the investment professionals hired as part of the Black Creek Acquisition.

Average headcount for the third quarter of 2021 increased by 115% to 232 investment and investment support professionals for the 2021 period from 108 professionals for the same period in 2020, including 119 professionals from the Black Creek Acquisition. Average headcount for the year-to-date period increased by 48% to 148 investment and investment support professionals for the 2021 period from 100 professionals for the same period in 2020, including 40 professionals from the Black Creek Acquisition.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $2.4 million, or 81%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $2.9 million, or 31%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The change was principally driven by an increase in expenses of $2.0 million from the Black Creek Acquisition and by placement fees of $0.2 million and $0.8 million for the three and nine months ended September 30, 2021, respectively, primarily associated with new commitments to AREOF III.

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Realized Income:

The following table presents the components of the Real Estate Group's RI:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Fee Related Earnings	$	24,261	$	7,794	$	16,467	211%	$	47,375	$	24,831	$	22,544	91%
Performance income—realized	4,693		199		4,494		NM	12,255		27,106		(14,851)		(55)
Performance related compensation—realized	(3,166)		(123)		(3,043)		NM	(8,167)		(17,484)		9,317		53
Realized net performance income	1,527		76		1,451		NM	4,088		9,622		(5,534)		(58)
Investment income—realized	1,699		486		1,213		250	4,182		2,740		1,442		53
Interest and other investment income—realized	918		1,308		(390)		(30)	3,892		3,024		868		29
Interest expense	(1,683)		(1,389)		(294)		(21)	(3,930)		(3,715)		(215)		(6)
Realized net investment income	934		405		529		131	4,144		2,049		2,095		102
Realized Income	$	26,722	$	8,275	18,447		223	$	55,607	$	36,502	19,105		52

NM - Not Meaningful

Realized net performance income and realized net investment income for the three and nine months ended September 30, 2021 and 2020 were primarily attributable to realizations from the sale of multiple properties held in U.S. real estate equity funds. Realized net investment income for the nine months ended September 30, 2021 also included distributions from real estate debt vehicles, driven by operating income during the period.

Realized net performance income and realized net investment income also included realizations from the sale of a 40-property pan-European logistics portfolio held within multiple European real estate funds for the nine months ended September 30, 2020.

Real Estate Group— Carried Interest and Incentive Fees

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The following table presents the accrued carried interest and incentive fees receivable, also referred to as accrued performance income, and related performance compensation for the Real Estate Group:

	As of September 30, 2021						As of December 31, 2020
($ in thousands)	Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income		Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income
Accrued Carried Interest
US VIII	$	90,151	$	57,697	$	32,454	$	57,074	$	36,527	$	20,547
US IX	88,312		54,753		33,559		26,704		16,556		10,148
EF IV	66,766		40,061		26,705		55,829		33,498		22,331
EF V	61,308		42,915		18,393		—		—		—
AREOF III	17,490		10,494		6,996		—		—		—
Other real estate funds	94,105		58,420		35,685		61,962		38,535		23,427
Other fee generating funds(1)	3,825		—		3,825		2,786		—		2,786
Total accrued carried interest	421,957		264,340		157,617		204,355		125,116		79,239
Incentive fees	579		347		232		525		315		210
Total Real Estate Group	$	422,536	$	264,687	$	157,849	$	204,880	$	125,431	$	79,449

(1)Relates to investment income from AREA Sponsor Holdings LLC that is reclassified for segment reporting to align with the character of the underlying income generated.

The following table presents the change in accrued carried interest during the period for the Real Estate Group:

		As of December 31, 2020		Activity during the period						As of September 30, 2021
($ in thousands)	Waterfall Type	Accrued Carried Interest		Change in Unrealized		Realized		Other Adjustments		Accrued Carried Interest
US VIII	European	$	57,074	$	33,077	$	—	$	—	$	90,151
US IX	European	26,704		61,608		—		—		88,312
EF IV	American	55,829		10,937		—		—		66,766
EF V	American	—		61,306		—		2		61,308
AREOF III	European	—		17,490		—		—		17,490
Other real estate funds	European	29,518		10,845		(117)		—		40,246
Other real estate funds	American	32,444		31,615		(10,200)		—		53,859
Other fee generating funds(1)	European	426		18		—		(246)		198
Other fee generating funds(1)	American	2,360		1,267		—		—		3,627
Total Real Estate Group		$	204,355	$	228,163	$	(10,317)	$	(244)	$	421,957

(1)Relates to investment income from AREA Sponsor Holdings LLC that is reclassified for segment reporting to align with the character of the underlying income generated.

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Real Estate Group—Assets Under Management

The tables below present rollforwards of AUM for the Real Estate Group:

($ in millions)	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 6/30/2021	$	5,702	$	5,648	$	8,375	$	19,725
Acquisitions	13,719		—		—		13,719
Net new par/equity commitments	791		1,040		246		2,077
Net new debt commitments	—		—		250		250
Capital reductions	—		—		(41)		(41)
Distributions	(488)		(180)		(39)		(707)
Redemptions	(28)		—		—		(28)
Change in fund value	1,399		57		50		1,506
Balance at 9/30/2021	$	21,095	$	6,565	$	8,841	$	36,501
Average AUM(1)	$	13,399	$	6,107	$	8,608	$	28,114
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 6/30/2020	$	4,148	$	4,606	$	5,641	$	14,395
Acquisitions	30		(25)		21		26
Net new debt commitments	—		—		23		23
Capital reductions	—		—		(186)		(186)
Distributions	(70)		(71)		(20)		(161)
Change in fund value	82		171		29		282
Balance at 9/30/2020	$	4,190	$	4,681	$	5,508	$	14,379
Average AUM(1)	$	4,169	$	4,644	$	5,575	$	14,388
(1) Represents the quarterly average of beginning and ending balances.
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 12/31/2020	$	4,404	$	4,811	$	5,593	$	14,808
Acquisitions	13,719		—		—		13,719
Net new par/equity commitments	1,985		1,917		843		4,745
Net new debt commitments	—		—		2,655		2,655
Capital reductions	—		—		(273)		(273)
Distributions	(788)		(475)		(107)		(1,370)
Redemptions	(28)		—		(7)		(35)
Change in fund value	1,803		312		137		2,252
Balance at 9/30/2021	$	21,095	$	6,565	$	8,841	$	36,501
Average AUM(1)	$	9,028	$	5,449	$	7,565	$	22,042
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 12/31/2019	$	3,793	$	4,588	$	4,826	$	13,207
Net new par/equity commitments	664		687		641		1,992
Net new debt commitments	—		—		287		287
Capital reductions	—		—		(222)		(222)
Distributions	(214)		(722)		(57)		(993)
Change in fund value	(53)		128		33		108
Balance at 9/30/2020	$	4,190	$	4,681	$	5,508	$	14,379
Average AUM(1)	$	4,076	$	4,597	$	5,351	$	14,024
(1) Represents a four-point average of quarter-end balances for each period.

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

    

AUM: $36.5 AUM: $14.4

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

(1) Includes $0.4 billion and $0.3 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021 and 2020, respectively.

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Real Estate Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Real Estate Group:

($ in millions)	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 6/30/2021	$	4,365	$	4,339	$	3,113	$	11,817
Acquisitions	7,155		—		—		7,155
Commitments	721		602		—		1,323
Subscriptions/deployment/increase in leverage	931		234		299		1,464
Distributions	(114)		(158)		(103)		(375)
Redemptions	(28)		—		—		(28)
Change in fund value	610		(65)		43		588
Change in fee basis	—		(5)		—		(5)
Balance at 9/30/2021	$	13,640	$	4,947	$	3,352	$	21,939
Average FPAUM(1)	$	9,003	$	4,643	$	3,233	$	16,879
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 6/30/2020	$	3,508	$	3,965	$	1,858	$	9,331
Commitments	43		—		—		43
Subscriptions/deployment/increase in leverage	18		3		55		76
Capital reductions	—		—		(2)		(2)
Distributions	(17)		(48)		(20)		(85)
Change in fund value	—		130		26		156
Change in fee basis	(86)		—		—		(86)
Balance at 9/30/2020	$	3,466	$	4,050	$	1,917	$	9,433
Average FPAUM(1)	$	3,487	$	4,008	$	1,888	$	9,383
(1) Represents the quarterly average of beginning and ending balances.
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 12/31/2020	$	3,659	$	4,088	$	2,505	$	10,252
Acquisitions	7,155		—		—		7,155
Commitments	1,630		1,053		202		2,885
Subscriptions/deployment/increase in leverage	1,067		271		849		2,187
Capital reductions	—		—		(32)		(32)
Distributions	(322)		(298)		(283)		(903)
Redemptions	(28)		—		(7)		(35)
Change in fund value	611		(162)		118		567
Change in fee basis	(132)		(5)		—		(137)
Balance at 9/30/2021	$	13,640	$	4,947	$	3,352	$	21,939
Average FPAUM(1)	$	6,425	$	4,348	$	2,935	$	13,708
	U.S. Real Estate Equity		European Real Estate Equity		Real Estate Debt		Total Real Estate Group
Balance at 12/31/2019	$	2,635	$	3,792	$	1,536	$	7,963
Commitments	874		594		73		1,541
Subscriptions/deployment/increase in leverage	114		151		343		608
Capital reductions	—		(17)		(32)		(49)
Distributions	(71)		(267)		(56)		(394)
Change in fund value	—		108		53		161
Change in fee basis	(86)		(311)		—		(397)
Balance at 9/30/2020	$	3,466	$	4,050	$	1,917	$	9,433
Average FPAUM(1)	$	3,257	$	3,930	$	1,800	$	8,987
(1) Represents a four-point average of quarter-end balances for each period.

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

    

FPAUM: $21.9 FPAUM: $9.4

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

(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.

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

Real Estate Group—Fund Performance Metrics as of September 30, 2021

Five significant funds, EF V, AREOF III, Black Creek Diversified Property Fund, Inc. (“DPF”), Black Creek Industrial REIT IV, Inc. (“BCI IV”) and an open-ended industrial real estate fund, collectively contributed approximately 44% of the Real Estate Group’s management fees for the nine months ended September 30, 2021.

The following table presents the performance data for our significant funds that are not drawdown funds in the Real Estate Group as of September 30, 2021:

				Returns(%)(1)
($ in millions)	Year of Inception	AUM		Current Quarter		Year-To-Date		Since Inception(2)		Primary Investment Strategy
Fund				Gross	Net	Gross	Net	Gross	Net
Open-ended industrial real estate fund(3)	2017	$	3,819	10.1	8.7	28.9	24.2	27.2	22.4	U.S. Real Estate Equity
DPF(4)	2012	3,017		N/A	3.5	N/A	7.8	N/A	7.0	U.S. Real Estate Equity
BCI IV(5)	2017	4,407		N/A	10.5	N/A	18.3	N/A	9.5	U.S. Real Estate Equity

(1)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.

(2)Since inception returns are annualized.

(3)Gross returns do not reflect the deduction of management fees or other expenses. Net returns are calculated by subtracting the applicable management fees and other expenses from the gross returns on a quarterly basis.

(4)Returns are shown for institutional share class. 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. Additional information related to DPF can be found in its financial statements filed with the SEC, which are not part of this report.

(5)Returns are shown for institutional share class. 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 BCI IV can be found in its financial statements filed with the SEC, which are not part of this report.

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The following table presents the performance data of our significant drawdown funds as of as of September 30, 2021:

($ in millions)	Year of Inception	AUM		Original Capital Commitments		Capital Invested to Date		Realized Value(1)		Unrealized Value(2)		Total Value		MoIC		IRR(%)		Primary Investment Strategy
Fund														Gross(3)	Net(4)	Gross(5)	Net(6)
Funds Deploying Capital
EF V(7)	2018	$	2,288	$	1,968	$	1,080	$	332	$	1,196	$	1,528	1.4x	1.2x	24.8	15.9	European Real Estate Equity
AREOF III	2019	1,787		1,697		480		41		568		609		1.3x	1.2x	N/A	N/A	U.S. Real Estate Equity

(1)Realized value includes distributions of operating income, sales and financing proceeds received.

(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 investment level and is based on the interests of all partners. The gross MoIC for all funds is before giving effect to management fees, carried interest and other expenses, as applicable.

(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying partners and, if applicable, excludes interests attributable to the non fee-paying partners and/or the general partner which does not pay management fees, carried interest or has such fees rebated outside of the fund. The net MoIC is after giving effect to management fees, carried interest 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 investments and the residual value of the investments at the end of the measurement period. Gross IRRs reflect returns to all partners. Cash flows used in the gross IRR calculation are assumed to occur at quarter-end. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, as applicable.

(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 partners and, if applicable, exclude interests attributable to the non fee-paying partners and/or the general partner which does not pay management fees or carried interest or has such fees rebated outside of the fund. 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. 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)EF V is made up of two parallel funds, one denominated in U.S. dollars and one denominated in Euros. The gross and net IRR and MoIC presented in the table are for the Euro denominated parallel fund. The gross and net MoIC and IRR presented in the chart is for the Euro denominated parallel fund. The gross and net MoIC for the U.S. Dollar denominated parallel fund are 1.4x and 1.3x, respectively. The gross and net IRR for the U.S. Dollar denominated parallel fund are 25.2% and 17.5%, respectively. Original capital commitments are converted to U.S. dollars at the prevailing exchange rate at the time of fund's closing. All other values for EF V are for the combined fund and are converted to U.S. dollars at the prevailing quarter-end exchange rate.

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Secondary Solutions Group—Three and Nine Months Ended September 30, 2021

    The Secondary Solutions Group is an operating segment formed during the second quarter of 2021 in connection with the Landmark Acquisition that focuses on investing in secondary markets across a range of alternative asset class strategies, including private equity, real estate and infrastructure. The Secondary Solutions Group includes three significant funds, Landmark Equity Partners XV, L.P. (“LEP XV”), LEP XVI and LREP VIII, amongst other funds and related co-investment vehicles.

The following table presents the components of the Secondary Solutions Group's FRE and RI:

($ in thousands)	For the three months ended September 30, 2021		For the period June 2, 2021 through September 30, 2021
Management fees	$	41,064	$	53,962
Compensation and benefits	(11,955)		(16,244)
General, administrative and other expenses	(2,593)		(3,452)
Fee Related Earnings	$	26,516	$	34,266
Realized net investment income	272		269
Realized Income	$	26,788	$	34,535

Secondary Solutions Group—Management Fees

Management fees for the funds in the Secondary Solutions Group typically range from 0.50% to 1.00% of capital commitments, NAV of the underlying funds, or NAV plus unfunded commitments. Funds in each strategy are comprised of closed-end funds with either investment period termination or management contract termination dates and of co-investment accounts that generally do not have termination dates.

The activity for the period presented represents management fees recognized since the closing of the Landmark Acquisition on June 2, 2021. The effective management fee rate for the three months ended September 30, 2021 and for the period from June 2, 2021 through September 30, 2021 was 0.90% and 0.92%, respectively. The funds across the strategies had an average management contract term from the closing date of more than 10 years.

Secondary Solutions Group—Carried Interest

For funds in the Secondary Solutions Group, carried interest is allocated to us based on cumulative fund performance to date, subject to the achievement of minimum return levels in accordance with the respective terms in each fund’s governing documents. For the private equity and real estate secondaries strategies, carried interest represents 10.0% to 12.5% of each carried interest eligible fund’s profits, subject to a preferred return of approximately 8.0% per annum. We are entitled to carried interest from the funds with closings subsequent to the completion of the Landmark Acquisition and to carried interest we acquired through the purchase of an ownership interest in certain Landmark GP Entities.

The following table presents accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Secondary Solutions Group:

	As of September 30, 2021
($ in thousands)	Accrued Performance Income		Accrued Performance Compensation		Accrued Net Performance Income
LEP XVI	$	91,902	$	78,117	$	13,785
LREP VIII	50,497		42,923		7,574
Other fee generating funds	32,083		26,976		5,107
Total Secondary Solutions Group	$	174,482	$	148,016	$	26,466

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The following table presents the change in accrued carried interest during the period for the Secondary Solutions Group:

		Opening balance as of June 2, 2021		Activity during the period				As of September 30, 2021
($ in thousands)	Waterfall Type	Accrued Carried Interest		Change in Unrealized		Realized		Accrued Carried Interest
LEP XVI	European	37,281		54,621		—		91,902
LREP VIII	European	24,398		26,099		—		50,497
Other fee generating funds	European	15,146		16,937		—		32,083
Total Secondary Solutions Group		$	76,825	$	97,657	$	—	$	174,482

Secondary Solutions Group—Assets Under Management

The table below presents the rollforward of AUM for the Secondary Solutions Group:

($ in millions)	Private Equity Secondaries		Real Estate Secondaries		Infrastructure Secondaries		Total Secondary Solutions Group
Balance at 6/30/2021	$	12,316	$	5,570	$	1,590	$	19,476
Net new par/equity commitments	1,130		—		—		1,130
Distributions	(250)		(268)		(17)		(535)
Change in fund value	463		184		25		672
Balance at 9/30/2021	$	13,659	$	5,486	$	1,598	$	20,743
Average AUM(1)	$	12,988	$	5,528	$	1,594	$	20,110
(1) Represents the quarterly average of beginning and ending balances.
($ in millions)	Private Equity Secondaries		Real Estate Secondaries		Infrastructure Secondaries		Total Secondary Solutions Group
Balance at 12/31/2020	$	—	$	—	$	—	$	—
Acquisitions	12,275		5,641		1,597		19,513
Net new par/equity commitments	1,231		—		—		1,231
Distributions	(301)		(335)		(23)		(659)
Change in fund value	454		180		24		658
Balance at 9/30/2021	$	13,659	$	5,486	$	1,598	$	20,743
Average AUM(1)	$	12,750	$	5,566	$	1,595	$	19,911
(1) Represents the average calculated using AUM on the date of the Landmark Acquisition and on each subsequent quarter-end.

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

    

AUM: $20.8

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

(1) Includes $0.4 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021.

Secondary Solutions Group—Fee Paying AUM

The table below presents the rollforward of fee paying AUM for the Secondary Solutions Group:

($ in millions)	Private Equity Secondaries		Real Estate Secondaries		Infrastructure Secondaries		Total Secondary Solutions Group
Balance at 6/30/2021	$	10,828	$	4,928	$	1,171	$	16,927
Commitments	278		—		—		278
Subscriptions/deployment/increase in leverage	—		—		7		7
Distributions	(38)		(28)		(7)		(73)
Change in fund value	44		28		11		83
Change in fee basis	—		(37)		—		(37)
Balance at 9/30/2021	$	11,112	$	4,891	$	1,182	$	17,185
Average FPAUM(1)	$	10,970	$	4,910	$	1,177	$	17,057
(1) Represents the quarterly average of beginning and ending balances.
	Private Equity Secondaries		Real Estate Secondaries		Infrastructure Secondaries		Total Secondary Solutions Group
Balance at 12/31/2020	$	—	$	—	$	—	$	—
Acquisitions	10,740		4,928		1,171		16,839
Commitments	378		—		—		378
Subscriptions/deployment/increase in leverage	2		—		7		9
Distributions	(38)		(28)		(7)		(73)
Change in fund value	42		28		11		81
Change in fee basis	(12)		(37)		—		(49)
Balance at 9/30/2021	$	11,112	$	4,891	$	1,182	$	17,185
Average FPAUM(1)	$	10,893	$	4,916	$	1,175	$	16,984
(1) Represents the average calculated using FPAUM on the date of the Landmark Acquisition and on each subsequent quarter-end.

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The chart below presents FPAUM for the Secondary Solutions Group by its fee basis ($ in billions):

FPAUM: $17.2

Capital commitments Market value(1) Invested capital/other

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

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Secondary Solutions Group—Fund Performance Metrics as of September 30, 2021

Secondary Solutions includes three significant funds, LEP XV, LEP XVI and LREP VIII, that collectively contributed approximately 66% of the Secondary Solutions Group’s management fees for the nine months ended September 30, 2021.

The following table presents the performance data as of September 30, 2021 for our significant funds in the Secondary Solutions Group, all of which are drawdown funds:

($ in millions)	Year of Inception	AUM		Original Capital Commitments		Capital Invested to Date		Realized Value(1)		Unrealized Value(2)		Total Value		MoIC		IRR(%)		Primary Investment Strategy
Fund														Gross(3)	Net(4)	Gross(5)	Net(6)
Funds Harvesting Investments
LEP XV(7)	2013	$	2,362	$	3,250	$	2,626	$	2,085	$	1,768	$	3,853	1.6x	1.5x	20.9	15.2	Private Equity Secondaries
Funds Deploying Capital
LEP XVI(7)	2016	5,962		4,896		2,200		616		2,837		3,453		1.7x	1.6x	67.5	41.5	Private Equity Secondaries
LREP VIII(7)	2016	3,428		3,300		1,571		747		1,255		2,002		1.4x	1.3x	26.0	16.4	Real Estate Secondaries

*     For all funds in the Secondary Solutions Group, returns are calculated from results 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 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 each fund is presented on a combined basis with the affiliated parallel funds or accounts, given that the investments are substantially the same.

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Strategic Initiatives—Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020

Strategic Initiatives represents an all-other category formed in 2020 that includes operating segments and strategic investments that are seeking to broaden our distribution channels or expand our access to global markets. It includes the AUM and results of Ares SSG subsequent to the completion of the SSG Acquisition on July 1, 2020, Ares Insurance Solutions (“AIS”) and Aspida Holdings Ltd. (“Aspida”) following the acquisition of the outstanding common shares of F&G Reinsurance Ltd (rebranded to Aspida Life Re Ltd. post-acquisition, “Aspida Life Re”) on December 18, 2020 and SPACs subsequent to the consummation of AAC’s initial public offering on February 4, 2021.

Fee Related Earnings:

The following table presents the components of Strategic Initiatives’ FRE:

	Three months ended September 30,				Favorable (Unfavorable)				Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change
Management fees	$	16,544	$	13,320	$	3,224	24	%	$	48,963	$	13,320	$	35,643	268	%
Other fees	2		6		(4)		(67)		82		6		76		NM
Compensation and benefits	(5,316)		(4,241)		(1,075)		(25)		(15,440)		(4,241)		(11,199)		(264)
General, administrative and other expenses	(1,774)		(1,514)		(260)		(17)		(5,580)		(1,514)		(4,066)		(269)
Fee Related Earnings	$	9,456	$	7,571	1,885		25		$	28,025	$	7,571	20,454		270

NM - Not Meaningful

Management Fees. The chart below presents Strategic Initiatives management fees and effective management fee rates:

Management fees increased for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 primarily due to the acquisition of Aspida Life Re that occurred in the fourth quarter of 2020 and to additional commitments to SLO III. In addition, the increase for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was due to the full year-to-date impact of the SSG Acquisition which closed at the beginning of the third quarter of 2020.

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The decrease in effective management fee rate for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily driven by the acquisition of Aspida Life Re that occurred in the fourth quarter of 2020. The insurance strategy has an effective management fee rate below 0.50% and is driving the decrease in the overall effective management fee rate.

Compensation and Benefits. Compensation and benefits increased by $1.1 million, or 25%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $11.2 million, or 264%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase in salaries and benefits for the three months ended September 30, 2021 was primarily driven by headcount growth across the Asian special situations, Asian secured lending and insurance strategies. Average headcount for the third quarter of 2021 increased by 43% to 50 investment and investment support professionals from 35 professionals for the same period in 2020.

The increase in salaries and benefits for the nine months ended September 30, 2021 when compared to the same period in 2020 was also due to the full impact of the SSG Acquisition which closed at the beginning of the third quarter of 2020 and to the insurance platform which has been included within Strategic Initiatives subsequent to the acquisition of Aspida Life Re in the fourth quarter of 2020.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $0.3 million, or 17%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $4.1 million, or 269%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was due to the full impact of the SSG Acquisition which closed at the beginning of the third quarter of 2020.

Realized Income:

The following table presents the components of the Strategic Initiatives RI:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Fee Related Earnings	$	9,456	$	7,571	$	1,885	25%	$	28,025	$	7,571	$	20,454	270%
Investment income—realized	1,025		—		1,025		NM	1,347		—		1,347		NM
Interest and other investment income (loss)—realized	163		(4)		167		NM	2,824		(4)		2,828		NM
Interest expense	(4,135)		(729)		(3,406)		NM	(8,962)		(729)		(8,233)		NM
Realized net investment loss	(2,947)		(733)		(2,214)		NM	(4,791)		(733)		(4,058)		NM
Realized Income	$	6,509	$	6,838	(329)		(5)	$	23,234	$	6,838	16,396		240

NM - Not Meaningful

Realized net investment loss for the three and nine months ended September 30, 2021 and 2020 was primarily attributable to interest expense allocations based on the cost basis of investments. The activity for the nine months ended September 30, 2021 also included realized net investment income attributable to distributions from an investment vehicle that manages a portfolio of non-performing loans.

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Strategic Initiatives—Assets Under Management

The tables below present rollforwards of AUM for the Strategic Initiatives:

($ in millions)	Asian Special Situations		Asian Secured Lending		Insurance				SPACs		Total Strategic Initiatives
Balance at 6/30/2021	$	5,025	$	2,467	$	1,874	$	—	$	1,000	$	10,366
Net new par/equity commitments	—		70		143				—		213
Capital reductions	—		(29)		—				—		(29)
Distributions	252		(2)		(48)				—		202
Change in fund value	94		(21)		11				—		84
Balance at 9/30/2021	$	5,371	$	2,485	$	1,980			$	1,000	$	10,836
Average AUM(1)	$	5,198	$	2,476	$	1,927			$	1,000	$	10,601
	Asian Special Situations		Asian Secured Lending		Insurance				SPACs		Total Strategic Initiatives
Balance at 6/30/2020	$	—	$	—	$	—			$	—	$	—
Acquisitions	5,220		1,651		—				—		6,871
Net new par/equity commitments	—		190		—				—		190
Distributions	(122)		—		—				—		(122)
Change in fund value	(1)		2		—				—		1
Balance at 9/30/2020	$	5,097	$	1,843	$	—			$	—	$	6,940
Average AUM(2)	$	5,159	$	1,747	$	—			$	—	$	6,906
(1) Represents the quarterly average of beginning and ending balances.
(2) Represents the average calculated using AUM on the date of the SSG Acquisition and the subsequent quarter-end.
	Asian Special Situations		Asian Secured Lending		Insurance				SPACs		Total Strategic Initiatives
Balance at 12/31/2020	$	5,154	$	1,864	$	2,243			$	—	$	9,261
Net new par/equity commitments	3		620		(230)				1,000		1,393
Distributions	(73)		(2)		(103)				—		(178)
Change in fund value	287		3		70				—		360
Balance at 9/30/2021	$	5,371	$	2,485	$	1,980			$	1,000	$	10,836
Average AUM(1)	$	5,167	$	2,172	$	2,000			$	750	$	10,089
	Asian Special Situations		Asian Secured Lending		Insurance				SPACs		Total Strategic Initiatives
Balance at 12/31/2019	$	—	$	—	$	—			$	—	$	—
Acquisitions	5,220		1,651		—				—		6,871
Net new par/equity commitments	—		190		—				—		190
Distributions	(122)		—		—				—		(122)
Change in fund value	(1)		2		—				—		1
Balance at 9/30/2020	$	5,097	$	1,843	$	—			$	—	$	6,940
Average AUM(2)	$	5,159	$	1,747	$	—			$	—	$	6,906
(1) Represents a four-point average of quarter-end balances for each period.
(2) Represents the average calculated using AUM on the date of the SSG Acquisition and the subsequent quarter-end.

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

    

AUM: $10.8 AUM: $6.9

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

(1) Includes $0.1 billion of non-fee paying AUM based on our general partner commitment as of September 30, 2021 and 2020.

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Strategic Initiatives—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Strategic Initiatives:

($ in millions)	Asian Special Situations		Asian Secured Lending		Insurance		Total Strategic Initiatives
Balance at 6/30/2021	$	3,618	$	1,055	$	1,948	$	6,621
Commitments	—		—		233		233
Subscriptions/deployment/increase in leverage	236		143		—		379
Capital reductions	—		(121)		—		(121)
Distributions	(163)		(62)		(48)		(273)
Change in fund value	—		—		53		53
Balance at 9/30/2021	$	3,691	$	1,015	$	2,186	$	6,892
Average FPAUM(1)	$	3,655	$	1,035	$	2,067	$	6,757
	Asian Special Situations		Asian Secured Lending		Insurance		Total Strategic Initiatives
Balance at 6/30/2020	$	—	$	—	$	—	$	—
Acquisitions	3,615		568		—		4,183
Subscriptions/deployment/increase in leverage	96		182		—		278
Capital reductions	(22)		—		—		(22)
Distributions	(143)		(31)		—		(174)
Change in fee basis	24		—		—		24
Balance at 9/30/2020	$	3,570	$	719	$	—	$	4,289
Average FPAUM(2)	$	3,592	$	644	$	—	$	4,236
(1) Represents the quarterly average of beginning and ending balances.
(2) Represents the average calculated using FPAUM on the date of the SSG Acquisition and the subsequent quarter-end.
	Asian Special Situations		Asian Secured Lending		Insurance		Total Strategic Initiatives
Balance at 12/31/2020	$	3,614	$	739	$	2,243	$	6,596
Commitments	—		—		(66)		(66)
Subscriptions/deployment/increase in leverage	952		552		—		1,504
Capital reductions	(180)		(122)		—		(302)
Distributions	(695)		(154)		(103)		(952)
Change in fund value	—		—		112		112
Balance at 9/30/2021	$	3,691	$	1,015	$	2,186	$	6,892
Average FPAUM(1)	$	3,672	$	923	$	2,089	$	6,684
	Asian Special Situations		Asian Secured Lending		Insurance		Total Strategic Initiatives
Balance at 12/31/2019	$	—	$	—	$	—	$	—
Acquisition	3,615		568		—		4,183
Subscriptions/deployment/increase in leverage	96		182		—		278
Capital reductions	(22)		—		—		(22)
Distributions	(143)		(31)		—		(174)
Change in fee basis	24		—		—		24
Balance at 9/30/2020	$	3,570	$	719	$	—	$	4,289
Average FPAUM(2)	$	3,592	$	644	$	—	$	4,236
(1) Represents a four-point average of quarter-end balances for each period.
(2) Represents the average calculated using FPAUM on the date of the SSG Acquisition and the subsequent quarter-end.

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The charts below present FPAUM for the Strategic Initiatives by its fee basis ($ in billions):

    

FPAUM: $6.9 FPAUM: $4.3

Market value Invested capital/other Capital commitments

Strategic Initiatives—Fund Performance Metrics as of September 30, 2021

Strategic Initiatives includes one significant fund, SSG Capital Partners V, L.P. (“SSG Fund V”), that contributed approximately 35% of the management fees reported in Strategic Initiatives for the nine months ended September 30, 2021.

The following table presents the performance data as of September 30, 2021 for our significant fund reported in Strategic Initiatives, which is a drawdown fund:

($ in millions)	Year of Inception	AUM		Original Capital Commitments		Capital Invested to Date		Realized Value(1)		Unrealized Value(2)		Total Value		MoIC		IRR(%)		Primary Investment Strategy
Fund														Gross(3)	Net(4)	Gross(5)	Net(6)
Funds Deploying Capital
SSG Fund V	2018	$	2,073	$	1,878	$	1,570	$	804	$	958	$	1,762	1.2x	1.1x	45.1	25.5	Asian Special Situations

(1)Realized value represents the sum of all cash distributions to all 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.

(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 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 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, 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. The gross fund-level IRR 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 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 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.

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Operations Management Group—Three and Nine Months Ended September 30, 2021 Compared to Three and Nine Months Ended September 30, 2020

Fee Related Earnings:

The following table presents the components of the Operations Management Group’s FRE:

	Three months ended September 30,				Favorable (Unfavorable)			Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change	2021		2020		$ Change		% Change
Other fees	$	3,446	$	—	$	3,446	NM	$	3,446	$	—	$	3,446	NM
Compensation and benefits	(66,107)		(41,551)		(24,556)		(59)	(158,943)		(114,916)		$	(44,027)	(38)
General, administrative and other expenses	(28,142)		(19,519)		(8,623)		(44)	(69,872)		(56,877)		(12,995)		(23)
Fee Related Earnings	$	(90,803)	$	(61,070)	(29,733)		(49)	$	(225,369)	$	(171,793)	(53,576)		(31)

NM - Not Meaningful

Other Fees. Other fees of $3.4 million for the three and nine months ended September 30, 2021 represents fees earned through WMS for the sale and distribution of our non-traded REITs. The fees earned include trade-based commissions and facilitation fees as well as asset-based distribution fees that we earn following the Black Creek Acquisition.

Compensation and Benefits. Compensation and benefits increased by $24.6 million, or 59%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $44.0 million, or 38%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increases were primarily driven by the headcount growth from the Black Creek Acquisition and Landmark Acquisition, the expansion of our strategy and relationship management teams to support global fundraising, and the expansion of our business operations teams to support the growth of our business and other strategic initiatives. In connection with the sale and distribution of shares in our non-traded REITs, we incurred commission expense of $5.1 million during the three and nine months ended September 30, 2021. The increases in compensation and benefits were further driven by increases in payroll related taxes of $3.9 million and $5.2 million for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively, primarily attributable to the vesting of non-recurring equity compensation awards.

Average headcount increased by 43% to 1,055 operations management professionals for the third quarter of 2021 from 740 professionals for the same period in 2020. Average headcount for our operations management professionals increased by 44 to support the expansion of our team in India and by 6 in connection with the SSG Acquisition. Average headcount also increased by 232 professionals from the Landmark Acquisition and Black Creek Acquisition, including the increase from WMS. Average headcount increased by 28% to 868 operations management professionals for the year-to-date period from 679 professionals for the same period in 2020. Average headcount for our operations management professionals increased by 41 to support the expansion of our team in India and by 32 in connection with the SSG Acquisition. Average headcount also increased by 84 professionals from the Landmark Acquisition and Black Creek Acquisition, including the increase from WMS.

General, Administrative and Other Expenses. General, administrative and other expenses increased by $8.6 million, or 44%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 and by $13.0 million, or 23%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The change included an increase in general, administrative and other expenses of $1.4 million and $1.6 million for the three and nine months ended September 30, 2021, respectively, from the Black Creek Acquisition and Landmark Acquisition. The impact from the acquisitions has been excluded from the discussion below.

Certain expenses have also increased during the current period, including occupancy costs to support our growing headcount and information services and information technology to support the expansion of our business, despite the temporary cost savings recognized with our transition to a modified remote working environment. Collectively, these expenses increased by $0.7 million and $3.7 million for the three and nine months ended September 30, 2021, respectively, when compared to the same periods in 2020. The increase was also driven by higher professional service fees and recruiting fees of $3.0 million and $2.9 million, for the three and nine months ended September 30, 2021, respectively, largely to support the expanding platform. The three and nine months ended September 30, 2021 also included a $1.5 million donation to the Ares Charitable Foundation that launched in the second quarter of 2021.

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There continue to be positive developments in the recovery from the COVID-19 pandemic that have reduced restrictions on travel and gathering. Those operating expenses that were impacted by the pandemic, particularly marketing sponsorships and events, increased during the third quarter of 2021. For the three months ended September 30, 2021, our travel, entertainment and marketing sponsorships expenses increased by $0.8 million when compared to the same period in 2020. We, however, recognized cost savings when comparing the nine months ended September 30, 2021 and 2020. For the three months ended March 31, 2020, our expenses reflected a pre-pandemic cost structure and are not comparable to the lower expenses incurred in our modified work environment during the three months ended March 31, 2021. Our operating expenses, most notably travel, and certain office services and fringe benefits from the modified remote working environment, decreased by $1.5 million for the nine months ended September 30, 2021, when compared to the same period in 2020.

Realized Income:

The following table presents the components of the OMG's RI:

	Three months ended September 30,				Favorable (Unfavorable)				Nine months ended September 30,				Favorable (Unfavorable)
($ in thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change
Fee Related Earnings	$	(90,803)	$	(61,070)	$	(29,733)	(49)	%	$	(225,369)	$	(171,793)	$	(53,576)	(31)	%
Investment loss—realized	—		—		—		—		—		(5,698)		5,698		100
Interest and other investment income (loss)—realized	(270)		(503)		233		(46)		170		(588)		758		NM
Interest expense	(160)		(141)		(19)		(13)		(397)		(1,262)		865		69
Realized net investment loss	(430)		(644)		214		33		(227)		(7,548)		7,321		97
Realized Income	$	(91,233)	$	(61,714)	(29,519)		(48)		$	(225,596)	$	(179,341)	(46,255)		(26)

NM - Not Meaningful

Realized net investment loss for the nine months ended September 30, 2020 was primarily driven by a realized loss associated with the sale of a non–core insurance-related investment.

Liquidity and Capital Resources

Management assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. In the wake of the COVID-19 pandemic, management believes that the Company is well-positioned and its liquidity will continue to be sufficient for its foreseeable working capital needs, contractual obligations, dividend payments, pending acquisitions and strategic initiatives. For further discussion regarding the potential risks and impact of the COVID-19 pandemic on the Company, see “Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q.

Sources and Uses of Liquidity

Our sources of liquidity are (1) cash on hand, (2) net working capital, (3) cash from operations, including management fees, which are collected monthly, quarterly or semi-annually, and net realized performance income, which is unpredictable as to amount and timing, (4) fund distributions related to our investments that are also unpredictable as to amount and timing and (5) net borrowing from the Credit Facility. As of September 30, 2021, our cash and cash equivalents were $295.7 million, and we had $150.0 million borrowings outstanding under our Credit Facility. Our ability to draw from the Credit Facility is subject to a leverage and other covenants. We remain in compliance with all covenants as of September 30, 2021. 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 or declines in deployment, declines or write downs in valuations, or a slowdown or negatively impacted fundraising. In addition, management fees may be subject to deferral. Declines or delays and transaction activity may 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 (1) provide capital to facilitate the growth of our existing investment management businesses, (2) fund our investment commitments, (3) provide capital to facilitate our expansion into businesses that are complementary to our existing investment management businesses as well as other strategic growth initiatives, (4) pay operating expenses, including cash compensation to our employees, and make payments under the tax receivable agreement (“TRA”), (5) fund capital expenditures, (6) service our debt, (7) pay income taxes, (8) make dividend

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payments to our Class A and non-voting common stockholders in accordance with our dividend policies and (9) 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 the expected changes in our after-tax fee related earnings. If cash flows from operations were insufficient to fund dividends over a sustained period of time, we expect that we would suspend or reduce paying such dividends. In addition, there is no assurance that dividends would continue at the current levels or at all. The final dividend was paid to our Series A Preferred stockholders in connection with the redemption on June 30, 2021.

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 8. Debt” and “Note 14. Equity and Redeemable Interest” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Our 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 our reported cash flows. The primary cash flow activities of our Consolidated Funds include: (1) raising capital from third-party investors, which is reflected as non-controlling interests of our Consolidated Funds, (2) financing certain investments by issuing debt, (3) purchasing and selling investment securities, (4) generating cash through the realization of certain investments, (5) collecting interest and dividend income and (6) 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 typically not available for corporate liquidity needs, and debt of the Consolidated Funds is non–recourse to the Company except to the extent of the Company's investment in the fund.

Cash Flows

We consolidate funds where we are deemed to hold a controlling interest. The Consolidated Funds are not necessarily the same entities in each year presented due to changes in ownership, changes in limited partners' rights and the creation or termination of funds. The consolidation of these funds had no effect on cash flows attributable to us for the periods presented. As such, we evaluate the activity of the Consolidated Funds and the eliminations resulting from consolidation separately. The following tables and discussion summarize our condensed consolidated statements of cash flows by activities attributable to the Company and to our Consolidated Funds. For more details on the activity of the Company and Consolidated Funds, refer to “Note 16. Consolidation” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

	Nine months ended September 30,
($ in thousands)	2021		2020
Net cash provided by operating activities	$	368,259	$	480,848
Net cash used in the Consolidated Funds' operating activities, net of eliminations	(2,212,010)		(468,386)
Net cash provided by (used in) operating activities	(1,843,751)		12,462
Net cash used in the Company's investing activities	(1,072,578)		(126,437)
Net cash provided by the Company's financing activities	476,110		360,171
Net cash provided by the Consolidated Funds' financing activities, net of eliminations	2,216,874		467,379
Net cash provided by financing activities	2,692,984		827,550
Effect of exchange rate changes	(20,763)		16,793
Net change in cash and cash equivalents	$	(244,108)	$	730,368

Operating Activities

As summarized in the table below, cash flow from operations is principally composed of (i) cash generated from our core operating activities, primarily consisting of profits generated principally from management fees after covering for operating expenses, (ii) net realized performance income and (iii) net cash from investment related activities including purchases, sales and net realized investment income. We generated meaningful cash flow from operations in each period presented. Although cash generated from our core operating activities increased when compared to the prior year, cash provided by the Company’s operating activities decreased due to greater net purchases associated with our investment portfolio, which represent a use of cash, when compared to the prior year period.

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	Nine months ended September 30,				Favorable (Unfavorable)
	2021		2020		$ Change		% Change
Core operating activities	$	457,884	$	371,480	$	86,404	23%
Net realized performance income	53,515		78,585		(25,070)		(32)
Net cash from investment related activities	(143,140)		30,783		(173,923)		NM
Net cash provided by operating activities	$	368,259	$	480,848	(112,587)		(23)

NM - Not Meaningful

Net cash used in the Consolidated Funds' operating activities continues to be principally attributable to net purchases of investment securities by recently launched funds during both years.

Our increasing working capital needs reflect 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,
	2021		2020
Purchase of furniture, equipment and leasehold improvements, net of disposals	$	(15,152)	$	(8,608)
Acquisitions, net of cash acquired	(1,057,426)		(117,829)
Net cash used in investing activities	$	(1,072,578)	$	(126,437)

Net cash used in the Company's investing activities was principally composed of cash used to complete the Landmark Acquisition and Black Creek Acquisition in the current year period and cash used to complete the SSG Acquisition and purchase CLO collateral management agreements from Crestline Denali in the prior year period. We also used cash to purchase furniture, fixtures, equipment and leasehold improvements during both years to support the growth in our staffing levels and our expanding global presence.

Financing Activities

	Nine months ended September 30,
	2021		2020
Net proceeds from issuance of Class A and non-voting common stock	$	827,430	$	383,154
Net borrowings of Credit Facility	150,000		(70,000)
Proceeds from issuance of senior and subordinated notes	450,000		399,084
Class A and non-voting common stock dividends	(239,816)		(169,870)
AOG unitholder distributions	(198,752)		(165,087)
Series A Preferred Stock dividends	(10,850)		(16,275)
Redemption of Series A Preferred Stock	(310,000)		—
Stock option exercises	27,409		78,959
Taxes paid related to net share settlement of equity awards	(221,287)		(75,657)
Other financing activities	1,976		(4,137)
Net cash provided by the Company's financing activities	$	476,110	$	360,171

Net cash provided by the Company's financing activities for the nine months ended September 30, 2021 was principally composed of net proceeds from the public offering of Class A common stock, a private offering of Class A common stock and non-voting common stock to SMBC and the issuance of the 2051 Subordinated Notes. A portion of the proceeds were used to redeem the Series A Preferred Stock and to pay higher dividends and distributions to Class A and non-voting common stockholders and AOG unitholders, respectively, as we generated higher fee related earnings and increased our shareholder base.

In connection with the vesting of restricted units that are granted to our employees under the Equity Incentive Plan, we withhold shares equal to the fair value of our employee's withholding tax liabilities and pay the taxes on their behalf. This use of cash increased from the prior period primarily as a result of our appreciating stock price, which is the basis on which employee compensation is recognized. The net settlement of shares minimizes the dilutive impact of our Equity Incentive Plan as fewer shares are issued upon vesting. For the nine months ended September 30, 2021 and 2020, we retained and did not issue 3.8 million shares and 2.0 million shares, respectively.

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Net cash provided by the Company's financing activities for nine months ended September 30, 2020 was principally composed of net proceeds from the issuance of the 2030 Senior Notes to provide additional liquidity at a reduced cost of capital in response to the uncertainty caused by the COVID-19 pandemic and to leverage our growth in future periods. A portion of these proceeds was used to repay revolving borrowings under our Credit Facility. In addition, net cash provided by the Company's financing activities includes cash proceeds from the private offering of Class A common stock to SMBC. These proceeds were partially offset by cash used to pay higher dividends and distributions to Class A common stockholders and AOG unitholders, respectively.

	Nine months ended September 30,
	2021		2020
Contributions from redeemable and non-controlling interests in Consolidated Funds, net of eliminations	$	919,666	$	123,713
Distributions to non-controlling interests in Consolidated Funds, net of eliminations	(84,770)		(169,747)
Borrowings under loan obligations by Consolidated Funds	1,456,887		618,207
Repayments under loan obligations by Consolidated Funds	(74,909)		(104,794)
Net cash provided by the Consolidated Funds' financing activities	$	2,216,874	$	467,379

Net cash provided by the Consolidated Funds' financing activities for the nine months ended September 30, 2021 was principally attributable to contributions from shareholders in the initial public offering of the SPAC and to the borrowings of two newly issued CLOs.

Net cash provided by the Consolidated Funds’ financing activities for nine months ended September 30, 2020 was principally attributable to the borrowings of a newly issued CLO.

Capital Resources

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

We are required to maintain minimum net capital balances for regulatory purposes for our broker-dealer entities and certain subsidiaries operating outside the U.S. These net capital requirements in the U.S. are met in part by retaining cash, cash equivalents and investment securities. As a result, we may be restricted in our ability to transfer cash between different operating entities and jurisdictions. As of September 30, 2021, we were required to maintain approximately $37.4 million in net assets within these subsidiaries to meet regulatory net capital and capital adequacy requirements. We remain in compliance with all 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, 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 respect of subsequent exchanges are expected to be substantial. The TRA liability balance was $97.7 million as of September 30, 2021.

For a discussion of our debt obligations, including the debt obligations of our consolidated funds, see "Note 8. Debt,” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Series A Preferred Stock

The Series A Preferred Stock was redeemed in full on June 30, 2021. For a discussion of our equity, including the redemption of our Series A Preferred Stock, see "Note 14. Equity and Redeemable Interest,” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

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Critical Accounting Estimates

We prepare our 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 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. Actual results may also differ from our estimates and judgments due to risks and uncertainties. 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.

Except as disclosed below, there have been no material changes to the critical accounting estimates previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020. 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 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.

Acquisitions

Management’s determination of fair value of assets acquired and liabilities assumed at the acquisition date is based on the best information available in the circumstances and may incorporate management’s own assumptions and involve a significant degree of judgment. We use our best estimates and assumptions to accurately assign fair value to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets. For business combinations accounted for under the acquisition method, the excess of the purchase consideration, including the fair value of certain elements of contingent consideration as of the acquisition date, over the fair value of net assets acquired is recorded as goodwill. Conversely, any excess of the fair value of the net assets acquired over the purchase consideration is recognized as a bargain purchase gain. Examples of critical estimates in valuing certain of the intangible assets we have acquired include, but are not limited to, future expected cash inflows and outflows, expected useful life, discount rates and income tax rates. Our estimates for future cash flows are based on historical data, various internal estimates and certain external sources, and are based on assumptions that are consistent with the plans and estimates we are using to manage the underlying assets acquired. We estimate the useful lives of the intangible assets based on the expected period over which we anticipate generating economic benefit from the asset. We base our estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results.

Equity-Based Compensation

We granted certain restricted units with a vesting condition based upon the volume-weighted, average closing price of our Class A common stock meeting or exceeding a stated price for 30 consecutive calendar days on or prior to January 22, 2029, referred to as the market condition. Vesting is also generally subject to continued employment at the time such market condition is achieved. Under the terms of the awards, if the target price of the applicable market condition is not achieved by the close of business on January 22, 2029, the unvested market condition awards will be automatically canceled and forfeited for no consideration, with any expense that was previously recognized reversed. Restricted units subject to a market condition are not eligible to receive dividend equivalents.

The grant date fair values are based on a probability distributed Monte-Carlo simulation. Due to the existence of the market condition, the vesting period for the awards is not explicit, and as such, compensation expense is recognized on a straight-line basis over the median vesting period derived from the positive iterations of the Monte Carlo simulations where the market condition is achieved. The market conditions were met for the market condition awards and the associated compensation expense was accelerated during the nine months ended September 30, 2021.

Below is a summary of the significant assumptions used to estimate the grant date fair value of market condition awards:

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Closing price of the Company's common shares as of grant date	$45.76
Risk-free interest rate	0.88%
Volatility	35.0%
Dividend yield	3.5%
Cost of equity	10.0%

Recent Accounting Pronouncements

Information regarding recent accounting pronouncements and their impact on the Company can be found in “Note 2. Summary of Significant Accounting Policies” in the “Notes to the Condensed Consolidated Financial Statements” included in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

In the normal course of business, we engage in off-balance sheet arrangements, including transactions in derivatives, guarantees, commitments, indemnifications and potential contingent repayment obligations. See “Note 9. Commitments and Contingencies,” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Commitments and Contingencies

For further discussion of our capital commitments, indemnification arrangements and contingent obligations, see “Note 9. Commitments and Contingencies,” to our audited 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 investment funds and the sensitivity to movements in the fair value of their investments, including the effect on management fees, performance income and investment income. Uncertainty with respect to the economic effects of the COVID-19 pandemic has introduced uncertainty in the financial markets, and the effects of this uncertainty could materially impact our market risks, including those listed below. For additional information concerning the COVID-19 pandemic and its potential impact on our business and our operating results, see Item 1A. "Risk Factors" in our Annual Report on Form 10-K.

Market Risk

The market price of investments may significantly fluctuate during the period of investment. Investments may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets. The value of an investment may decline due to general market conditions, which are not specifically related to such investment, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. It may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

Our credit orientation has been a central tenet of our business across our debt and equity investment strategies. We believe the combination of high-quality proprietary information flow and a consistent, rigorous approach to managing investments across our strategies has been, and we believe will continue to be, a major driver of our strong risk-adjusted returns and the stability and predictability of our income.

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Credit Risk

We are party to agreements providing for various financial services and transactions that contain an element of risk in the event that the counterparties are unable to meet the terms of such agreements. In such agreements, we depend on the counterparty to make payment or otherwise perform. We generally endeavor to minimize our risk of exposure by limiting to reputable financial institutions the counterparties with which we enter into financial transactions. In other circumstances, availability of financing from financial institutions may be uncertain due to market events, and we may not be able to access these financing markets.

In the ordinary course of business, we may extend loans to our funds or guarantee credit facilities held by our funds and could be subject to risk of loss or repayment if our funds do not perform.

Certain of our funds’ investments include lower-rated and comparable quality unrated distressed investments and other instruments. These issuers can be more sensitive to adverse market conditions, such as a recession or increasing interest rates, as compared to higher rated issuers. We seek to minimize risk exposure by subjecting each prospective investment to our rigorous, credit-oriented investment approach.

At September 30, 2021 and December 31, 2020, we had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits. We seek to mitigate this exposure by monitoring the credit standing of these financial institutions.

There have been no material changes in our market risks for the nine months ended September 30, 2021. For additional information on our market risks, refer to our Annual Report on Form 10-K for the year ended December 31, 2020, which is accessible on the SEC's website at 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 effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2021. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, as of September 30, 2021, 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, 2021 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 are involved in various legal proceedings, lawsuits and claims incidental to the conduct of our business, some of which may be material. As of September 30, 2021 and December 31, 2020, we were not subject to any material pending legal proceedings. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us.

Item 1A.  Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors described below and in Part I, “Item 1A, Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, which could materially affect our business, financial condition and/or operating results. The risks described below and in our Annual Report on Form 10-K for the year ended December 31, 2020 are not the only risks facing us. 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.

The rapid development and fluidity of the ongoing COVID-19 pandemic, including the emergence and spread of the Delta variant, among other COVID-19 variants, precludes any prediction as to the ultimate adverse impact of the situation on economic and market conditions. In addition to the foregoing, the impact of the COVID-19 pandemic may exacerbate the potential adverse effects on our business, financial performance, operating results, cash flows and financial condition described in the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC. Our Annual Report on Form 10-K for the year ended December 31, 2020 is accessible on the SEC’s website at www.sec.gov.

Risks Related to Our Businesses

The COVID-19 pandemic has caused severe disruptions in the U.S. and global economy, has disrupted, and may continue to disrupt, industries in which we, our funds and our funds’ portfolio companies operate and could potentially negatively impact us, our funds or our funds’ portfolio companies.

Since the first quarter of 2020, the COVID-19 pandemic has resulted in a global and national health crisis, adversely impacted global commercial activity and contributed to significant volatility in equity and debt markets. Many countries and states in the United States, including those in which we, our funds’ and our funds’ portfolio companies operate, issued (and continue to re-issue) orders requiring the closure of, or certain restrictions on the operation of, nonessential businesses and/or requiring residents to stay at home. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both globally and in the United States. Such measures, as well as the general uncertainty surrounding the dangers and impact of the COVID-19 pandemic, have created significant disruption in supply chains and economic activity and have had a particularly adverse impact on the energy, hospitality, travel, retail and restaurant industries, as well as other industries, including industries in which certain of our funds’ portfolio companies operate. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. While several countries, as well as certain states, counties and cities in the United States, relaxed the early public health restrictions with a view to partially or fully reopening their economies, many cities, both globally and in the United States, subsequently experienced a surge in the reported number of cases and hospitalizations related to the COVID-19 pandemic. This increase in cases led to the re-introduction of such restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could lead to the re-introduction of such restrictions elsewhere. In December 2020, the Federal Food and Drug Administration authorized COVID‑19 vaccines and the distribution of such vaccines has commenced. However, it remains unclear how quickly “herd immunity” will be achieved and whether the restrictions that were imposed to slow the spread of the virus will be lifted entirely. These uncertainties could lead people to continue to refrain from participating in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may experience a recession, and we anticipate our and our funds’ business and operations, as well as the business and operations of our funds’ portfolio companies, could be materially adversely affected by a prolonged recession in the U.S. and other major markets.

The extent of the impact of the COVID-19 pandemic (including the restrictive measures taken in response thereto) on our and our funds’ operational and financial performance will depend on many factors, including the duration, severity and

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scope of the public health emergency, the actions taken by governmental authorities to contain its financial and economic impact, the continued implementation of travel advisories and restrictions, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of economic activity and the extent of its disruption to global, regional and local supply chains and economic markets, all of which are uncertain and difficult to assess. The COVID-19 pandemic is continuing as of the filing date of this Quarterly Report and its extended duration may have further adverse impacts on our business, financial performance, operating results, cash flows and financial condition, including the market price of shares of our securities, including for the reasons described below.

The effects of a public health crisis such as the COVID-19 pandemic may materially and adversely impact our value and performance and the value and performance of our funds and our funds’ portfolio companies. Further, the impact of the COVID-19 pandemic may not be fully reflected in the valuation of our or our funds’ investments, which may differ materially from the values that we may ultimately realize with respect to such investments. Our valuations, and particularly valuations of our interests in our funds and our funds’ investments, reflect a moment in time, are inherently uncertain, may fluctuate over short periods of time and are often based on subjective estimates, comparisons and qualitative evaluations of private information. Valuations, on an unrealized basis, can also be significantly affected by a variety of external factors including, but not limited to, public equity market volatility, industry trading multiples and interest rates, all of which have been impacted and continue to be impacted by the COVID-19 pandemic. It is uncertain whether such valuations may decline and could become increasingly difficult to ascertain depending on the pace of recovery. As a result, the valuations of our interests in our funds and our funds’ investments, may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. Accordingly, our funds may incur additional net unrealized losses or may incur realized losses in the future, which could have a material adverse effect on our business, financial condition and results of operations. Any public health emergency, including the COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on us, the fair value of our and our funds’ investments and could adversely impact our funds’ ability to fulfill our investment objectives.

Our ability to market and raise new or successor funds in the future may be impacted by the continuation and reintroduction of shelter-in-place orders, travel restrictions and social distancing requirements implemented in response to the COVID-19 pandemic. This may reduce or delay anticipated fee revenues. In addition, the significant volatility and declines in valuations in the global markets as well as liquidity concerns may impact our ability to raise funds or deter fund investors from investing in new or successor funds that we are marketing.

Our funds may experience a slowdown in the pace of their investment activity and capital deployment, which could also adversely affect the timing of raising capital for new or successor funds and could also impact the management fees we earn on funds that generate fees based on invested (and not committed) capital. While the increased volatility in the financial markets caused by the COVID-19 pandemic may present attractive investment opportunities, we or our funds may not be able to complete those investments due to, among other factors, increased competition or operational challenges such as our ability to obtain attractive financing, conduct due diligence and consummate the acquisition and disposition of investments for our funds because of continued and re-introduced shelter-in-place orders, travel restrictions and social distancing requirements.

If the impact of the COVID-19 pandemic and current market conditions continue, we and our funds may have fewer opportunities to successfully exit investments, due to, among other reasons, lower valuations, decreased revenues and earnings, lack of potential buyers with financial resources or access to financing to pursue an acquisition, lack of refinancing markets, resulting in a reduced ability to realize value from such investments at attractive valuations or at all, and thereby negatively impacting our realized income.

Adverse market conditions resulting from the COVID-19 pandemic may impact our liquidity. Our cash flows from management fees may be impacted by, among other things, a slowdown in fundraising or delayed deployment. Cash payment of adverse market conditions may make it difficult for us to refinance our existing indebtedness or obtain new indebtedness with similar terms and any failure to do so could have a material adverse effect on our business. The capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than we currently experience. While our senior professionals have historically made co-investments in our funds alongside our limited partners, thereby reducing our obligation to make such investments, due to financial uncertainty or liquidity concerns, our employees may be less likely to make co-investments, which would result in such general partner commitments remaining our obligation to fund and reducing our liquidity. In addition, our funds may be impacted due to failure by our fund investors to meet capital calls, which would negatively impact our funds’ ability to make investments or pay us management fees.

The COVID-19 pandemic is having a particularly severe impact on certain industries, including but not limited to the energy, hospitality, travel, retail and restaurant industries, which are industries in which some of our funds have made

126

investments. As of September 30, 2021, approximately 2% of our total AUM was invested in the energy sector (including oil and gas exploration and midstream investments) and approximately 2% in the retail sector that were challenged from the market disruption and volatility seen in the recent past as a result of the COVID-19 pandemic. Many of our funds’ portfolio companies in these industries have faced and are continuing to face operational and financial challenges resulting from the spread of COVID-19 and related governmental measures, such as the closure of stores, hotels, restaurants and other locations, restrictions on travel, quarantines or continued and re-introduced stay-at-home orders. As a result of these disruptions, the businesses, financial results and prospects of certain of these portfolio companies have already been severely affected and could continue to be so affected. These disruptions have caused and may in the future result in impairment and decrease in value of our funds’ investments, which may be material.

Our funds’ portfolio companies are also facing or may face in the future increased credit and liquidity risk due to volatility in financial markets, reduced or eliminated revenue streams, and limited or higher cost of access to preferred sources of funding. Changes in the debt financing markets are impacting, and, if the volatility in financial markets continues, may in the future impact, the ability of our funds’ portfolio companies to meet their respective financial obligations and continue as going concerns. This could lead to the insolvency and/or bankruptcy of these companies which would cause our funds to realize losses in respect of those investments. Any of the foregoing would adversely affect our results of operations, perhaps materially, and could harm our reputation.

Our funds may experience similar credit and liquidity risk. Failure of our funds to meet their financial obligations could result in our funds being required to repay indebtedness or other financial obligations immediately in whole or in part, together with any attendant costs, and our funds could be forced to sell some of their assets to fund such costs. Our funds could lose both invested capital in, and anticipated profits from, the affected investment.

Borrowers of loans and other credit instruments made by our funds may be unable to make their loan payments on a timely basis and meet their loan covenants, and tenants leasing real estate properties owned by our funds may not be able to pay rents in a timely manner or at all, resulting in a decrease in value of our funds’ credit and real estate investments and lower than expected returns. In addition, for variable interest instruments, lower reference rates resulting from government stimulus programs in response to the COVID-19 pandemic could lead to lower interest income for funds making loans.

The COVID-19 pandemic may adversely impact our business and operations since an extended period of remote working by our employees could strain our technology resources and introduce operational risks, including heightened cybersecurity risk. While we have taken steps to secure our networks and systems, remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the COVID-19 pandemic. In addition, our data security, data privacy, investor reporting and business continuity processes could be impacted by a third party’s inability to perform due to the COVID-19 pandemic or by failures of, or attacks on, their information systems and technology. In addition, COVID-19 presents a significant threat to our employees’ well-being and morale, and we may experience potential loss of productivity. If our senior management or other key personnel become ill or are otherwise unable to perform their duties for an extended period of time, we may experience a loss of productivity or a delay in the implementation of certain strategic plans. In addition to any potential impact of such extended illness on our operations, we may be exposed to the risk of litigation by our employees against us for, among other things, failure to take adequate steps to protect their well-being, particularly in the event they become sick after a return to the office. Further, local COVID-19 related laws can be subject to rapid change depending on public health developments, which can lead to confusion and make compliance with laws uncertain and subject us, our funds or our funds’ portfolio companies to increased risk of litigation for non-compliance.

Additionally, due to stay-at-home orders, travel restrictions, and other COVID-19 related responses, many of our staff cannot travel for in-person meetings and/or have been working remotely outside of their usual work location. This could create taxable presence or residency risks for our corporate entities, professionals, funds and portfolio companies, which could lead to increased tax liability and additional compliance complexities.

127

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 of 1933.

Except as set forth below, 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 ($ in thousands; except share data):

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (1)
July 1, 2021 - July 31, 2021	—	$	—	—	$	150,000
August 1, 2021 - August 31, 2021	—	—		—	150,000
September 1, 2021 - September 30, 2021	—	—		—	150,000
Total	—			—

(1)In February 2021, our board of directors approved the renewal of our stock repurchase program that authorizes the repurchase of up to $150 million of shares of our Class A common stock. Under this stock repurchase 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 February 2022. Repurchases under the program depend on the prevailing market conditions and other factors.

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

Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act

Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) and Section 13(r) of the Exchange Act, require an issuer to disclose in its annual and quarterly reports whether it or any of its affiliates have knowingly engaged in specified activities or transactions relating to Iran. On January 31, 2019, funds and accounts managed by Ares’ European direct lending strategy (together, the “Ares funds”) collectively acquired a 32% equity stake in Daisy Group Limited (“Daisy”). Daisy is a provider of communication services to businesses based in the United Kingdom. The Ares funds do not hold a majority equity interest in Daisy and do not have the right to appoint a majority of directors to Daisy’s board of directors.

Subsequent to completion of the Ares funds’ investment in Daisy, in connection with Ares’s routine quarterly survey of its investment funds’ portfolio companies, Daisy informed the Ares funds that it has customer contracts with Melli Bank Plc, Persia International Bank Plc and Bank Saderat Plc. Melli Bank Plc, Persia International Bank Plc and Bank Saderat Plc have been designated by the Office of Foreign Assets Control within the U.S. Department of Treasury pursuant to Executive Order 13324. Daisy generated a total of £84,806 in annual revenues (less than 0.02% of Daisy’s annual revenues) from its dealings with Melli Bank Plc, Persia International Bank Plc and Bank Saderat Plc and de minimis net profits. Daisy entered into the customer contracts with Melli Bank Plc, Persia International Bank Plc and Bank Saderat Plc prior to the Ares funds’ investment in Daisy.

Daisy has given notice of termination of the contracts to Melli Bank Plc, Persia International Bank Plc and Bank Saderat Plc. Following termination of the contracts, Daisy does not intend to engage in any further dealings or transactions with Melli Bank Plc, Persia International Bank Plc or Bank Saderat Plc.

128

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.
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).
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.
104*	Cover 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.

* 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.

129

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 5, 2021		By:	/s/ Michael J Arougheti
		Name:	Michael J Arougheti
		Title:	Co-Founder, Chief Executive Officer & President (Principal Executive Officer)
Dated: November 5, 2021		By:	/s/ Jarrod Phillips
		Name:	Jarrod Phillips
		Title:	Chief Financial Officer (Principal Financial and Accounting Officer)

130

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d- 14(a)

I, Michael J Arougheti, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Ares Management Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021

	/s/ Michael J Arougheti
Name:	Michael J Arougheti
Title:	Co-Founder, Chief Executive Officer & President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

I, Jarrod Phillips, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Ares Management Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021

	/s/ Jarrod Phillips
Name:	Jarrod Phillips
Title:	Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to

18 U.S.C. Section 1350

In connection with the Quarterly Report on Form 10-Q of Ares Management Corporation (the “Company”) for the quarter ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Michael J Arougheti, as Chief Executive Officer of the Company, and Jarrod Phillips, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 5, 2021

	/s/ Michael J Arougheti
Name:	Michael J Arougheti
Title:	Co-Founder, Chief Executive Officer & President (Principal Executive Officer)
	/s/ Jarrod Phillips
Name:	Jarrod Phillips
Title:	Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Ares Management Corporation and will be retained by Ares Management Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-36429
Entity Registrant Name	ARES MANAGEMENT CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0962035
Entity Address, Address Line One	2000 Avenue of the Stars
Entity Address, Address Line Two	12th Floor
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90067
City Area Code	310
Local Phone Number	201-4100
Title of 12(b) Security	Class A common stock, par value $0.01 per share
Trading Symbol	ARES
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001176948
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		167,613,551
Non- voting Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		3,489,911
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000
Class C Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		118,803,257

XML

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Assets
Intangible assets, net	$ 798,690			$ 222,088
Total assets	19,934,398			15,168,992
Liabilities
Operating lease liabilities	214,681
Total liabilities	15,295,223			12,596,852
Commitments and contingencies
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	0			298,761
Additional paid-in-capital	1,881,913			1,043,669
Retained earnings	(128,981)			(151,824)
Accumulated other comprehensive income (loss), net of tax	(2,571)			483
Total stockholders' equity	1,753,260			1,193,685
Total equity	3,540,526	$ 3,441,115	$ 2,420,568	2,471,774	$ 2,370,881	$ 2,003,748	$ 1,975,596	$ 1,858,598
Total liabilities, redeemable interest, non-controlling interests and equity	19,934,398			15,168,992
Class A Common Stock
Stockholders' Equity
Common stock	1,676			1,472
Non- voting Common Stock
Stockholders' Equity
Common stock	35			0
Class B Common Stock
Stockholders' Equity
Common stock	0			0
Class C Common Stock
Stockholders' Equity
Common stock	1,188			1,124
Consolidated Funds
Assets
Cash and cash equivalents	1,581,433			522,377
U.S. Treasury securities, at fair value	1,000,165			0
Investments, at fair value	10,360,854			10,877,097
Due from affiliates	9,059			17,172
Receivable for securities sold	187,230			121,225
Other assets	47,806			35,502
Liabilities
Accounts payable, accrued expenses and other liabilities	89,685			46,824
Due to affiliates	0			0
Payable for securities purchased	863,007			514,946
CLO loan obligations, at fair value	10,174,794			9,958,076
Fund borrowings	99,240			121,909
Redeemable interest	1,000,000	916,824	930,924	0
Non-controlling interests in Consolidated Funds	464,400			539,720
Ares Operating Group
Liabilities
Redeemable interest	98,649	$ 100,031	$ 99,808	100,366
Non-controlling interests in Ares Operating Group entities	1,322,866			738,369
Ares Management L.P
Assets
Cash and cash equivalents	295,704			539,812
Investments (includes accrued carried interest of $2,625,319 and $1,145,853 at September 30, 2021 and December 31, 2020, respectively)	3,322,665			1,682,759
Due from affiliates	493,411			405,887
Other assets	1,006,870			590,332
Intangible assets, net	1,452,690			222,087
Right-of-use operating lease assets	176,511			154,742
Liabilities
Accounts payable, accrued expenses and other liabilities	208,141			115,289
Accrued compensation	309,569			103,010
Due to affiliates	202,438			100,186
Performance related compensation payable	1,895,343			813,378
Debt obligations	1,238,325			642,998
Operating lease liabilities	214,681			180,236
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	0			298,761
Additional paid-in-capital	1,881,913			1,043,669
Retained earnings	(128,981)			(151,824)
Accumulated other comprehensive income (loss), net of tax	(2,571)			483
Total stockholders' equity	1,753,260			1,193,685
Ares Management L.P | Class A Common Stock
Stockholders' Equity
Common stock	1,676			1,472
Ares Management L.P | Non- voting Common Stock
Stockholders' Equity
Common stock	35
Ares Management L.P | Class B Common Stock
Stockholders' Equity
Common stock	0			0
Ares Management L.P | Class C Common Stock
Stockholders' Equity
Common stock	$ 1,188			$ 1,124

XML

Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Preferred stock, shares issued (in shares)	0	12,400,000
Preferred stock, shares outstanding (in shares)	0	12,400,000
Common stock, shares outstanding (in shares)	289,875,333	259,631,180
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,500,000,000	1,500,000,000
Common stock, shares issued (in shares)	167,581,165	147,182,562
Common stock, shares outstanding (in shares)	167,581,165	147,182,562
Non- voting Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	3,489,911	0
Common stock, shares outstanding (in shares)	3,489,911	0
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares issued (in shares)	1,000	1,000
Common stock, shares outstanding (in shares)	1,000	1,000
Class C Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	499,999,000	499,999,000
Common stock, shares issued (in shares)	118,803,257	112,447,618
Common stock, shares outstanding (in shares)	118,803,257	112,447,618
Ares Management L.P | Carried interest
Equity method investments:	$ 2,625,319	$ 1,145,853

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Total revenues	$ 948,719	$ 489,866	$ 2,901,926	$ 1,106,033
Expenses
Compensation and benefits	335,569		837,108
Performance related compensation	331,141		1,208,954
General, administrative and other expenses	134,453		285,471
Total expenses	813,267	392,580	2,363,108	958,106
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334		18,744
Interest and dividend income	1,376		6,818
Interest expense	(11,523)		(25,125)
Other income, net	36,654		30,686
Total other income (expense)	111,536	62,355	218,011	(43,602)
Income (loss) before taxes	246,988	159,641	756,829	104,325
Income tax expense	30,275	18,314	104,487	22,119
Net income (loss)	216,713	141,327	652,342	82,206
Net income attributable to Ares Management Corporation	84,726	47,545	284,748	72,880
Less: Series A Preferred Stock dividends paid	0	5,425	10,850	16,275
Less: Series A Preferred Stock redemption premium	0	0	11,239	0
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$ 84,726	$ 42,120	$ 262,659	$ 56,605
Class A Common Stock
Net income per share of Class A and non-voting common stock:
Basic (in dollars per share)	$ 0.49	$ 0.27	$ 1.55	$ 0.37
Diluted (in dollars per share)	$ 0.45	$ 0.27	$ 1.48	$ 0.37
Weighted-average shares of Class A and non-voting common stock:
Basic (in shares)	168,931,621	143,466,209	161,071,151	131,866,471
Diluted (in shares)	186,522,157	158,122,563	177,143,438	131,866,471
Consolidated Funds
Expenses
Expenses of Consolidated Funds	$ 12,104	$ 6,019	$ 31,575	$ 16,706
Other income (expense)
Net realized and unrealized gains (losses) on investments	34,245	17,971	44,720	(153,268)
Interest expense	(61,578)	(66,322)	(191,577)	(222,860)
Interest and other income of Consolidated Funds	104,028	116,581	333,745	346,120
Less: Net income (loss) attributable to non-controlling interests	47,370	42,627	102,255	(38,593)
Ares Operating Group
Other income (expense)
Net income (loss)	169,343	98,700	550,087	120,799
Less: Net income (loss) attributable to non-controlling interests	84,293	52,162	264,646	48,926
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities	324	(1,007)	693	(1,007)
Ares Management L.P
Revenues
Total revenues	948,719	489,866	2,901,926	1,106,033
Expenses
Compensation and benefits	335,569	194,267	837,108	559,482
Performance related compensation	331,141	122,356	1,208,954	191,565
General, administrative and other expenses	134,453	69,938	285,471	190,353
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334	(2,607)	18,744	(10,351)
Interest and dividend income	1,376	1,344	6,818	5,112
Interest expense	(11,523)	(6,815)	(25,125)	(18,203)
Other income, net	36,654	2,203	30,686	9,848
Management fees
Revenues
Total revenues	448,262		1,135,821
Management fees | Ares Management L.P
Revenues
Total revenues	448,262	292,434	1,135,821	823,150
Carried interest allocation
Revenues
Total revenues	460,651		1,610,707
Carried interest allocation | Ares Management L.P
Revenues
Total revenues	460,651	168,978	1,610,707	241,380
Incentive fees
Revenues
Total revenues	696		19,420
Incentive fees | Ares Management L.P
Revenues
Total revenues	696	7,194	19,420	4,276
Principal investment income
Revenues
Total revenues	14,250		86,477
Principal investment income | Ares Management L.P
Revenues
Total revenues	14,250	11,408	86,477	8,330
Administrative, transaction and other fees
Revenues
Total revenues	24,860		49,501
Administrative, transaction and other fees | Ares Management L.P
Revenues
Total revenues	$ 24,860	$ 9,852	$ 49,501	$ 28,897

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net income	$ 216,713	$ 141,327	$ 652,342	$ 82,206
Other comprehensive income:
Foreign currency translation adjustments, net of tax	(11,324)	16,893	(18,439)	5,372
Total comprehensive income	205,389	158,220	633,903	87,578
Ares Management L.P
Other comprehensive income:
Comprehensive income attributable to Ares Management Corporation	81,459	51,995	281,694	72,140
Consolidated Funds
Other comprehensive income:
Less: Comprehensive income (loss) attributable to non-controlling interests	42,015	50,300	89,784	(32,478)
Ares Operating Group
Net income	169,343	98,700	550,087	120,799
Other comprehensive income:
Less: Comprehensive income (loss) attributable to non-controlling interests	81,947	56,290	262,492	48,281
Less: Comprehensive loss attributable to redeemable interest	$ (32)	$ (365)	$ (67)	$ (365)

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Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non-Controlling interest Ares Operating Group	Non-Controlling interest Consolidated Funds	Series A Preferred Stock Preferred Stock	Class A Common Stock Common Stock	Non- voting Common Stock Common Stock	Class C Common Stock Common Stock
Beginning balance at Dec. 31, 2019	$ 1,858,598	$ 525,244	$ (50,820)	$ (6,047)	$ 472,288	$ 618,020	$ 298,761	$ 1,152		$ 0
Increase (Decrease) in Stockholders' Equity
Consolidation and deconsolidation of funds, net	(3,882)					(3,882)
Changes in ownership interests and related tax benefits	(74,079)	(196,670)			122,551			40
Issuances of common stock	383,334	382,061						121		1,152
Capital contributions	175,277				42,012	133,265
Dividends/Distributions	(125,755)		(51,090)		(55,748)	(13,492)	(5,425)
Net income (loss)	(275,797)		(36,461)		(78,355)	(166,406)	5,425
Currency translation adjustment, net of tax	(14,208)			(4,802)	(4,719)	(4,687)
Equity compensation	32,557	16,420			16,137
Stock option exercises	19,551	19,540						11
Ending balance at Mar. 31, 2020	1,975,596	746,595	(138,371)	(10,849)	514,166	562,818	298,761	1,324		1,152
Increase (Decrease) in Stockholders' Equity
Consolidation and deconsolidation of funds, net	1,475					1,475
Changes in ownership interests and related tax benefits	94	(9,702)			9,796			4		(4)
Expenses incurred upon issuance of common stock	(181)	(181)
Capital contributions	(9,341)				229	(9,570)
Dividends/Distributions	(259,831)		(57,620)		(59,949)	(136,837)	(5,425)
Net income (loss)	216,676		50,946		75,119	85,186	5,425
Currency translation adjustment, net of tax	2,687			(388)	(54)	3,129
Equity compensation	28,683	15,500			13,183
Stock option exercises	47,890	47,865						25
Ending balance at Jun. 30, 2020	2,003,748	800,077	(145,045)	(11,237)	552,490	506,201	298,761	1,353		1,148
Increase (Decrease) in Stockholders' Equity
Changes in ownership interests and related tax benefits	(3,751)	(122,555)			118,804			2		(2)
Issuances of common stock	305,338	305,261						77
Capital contributions	499	481				18
Dividends/Distributions	(135,393)		(61,159)		(49,391)	(19,418)	(5,425)
Net income (loss)	142,334		42,120		52,162	42,627	5,425
Currency translation adjustment, net of tax	16,251			4,450	4,128	7,673
Equity compensation	30,337	16,921			13,416
Stock option exercises	11,518	11,512						6
Ending balance at Sep. 30, 2020	2,370,881	1,011,697	(164,084)	(6,787)	691,609	537,101	298,761	1,438		1,146
Increase (Decrease) in Stockholders' Equity
Changes in ownership interests and related tax benefits	(21,409)	508			(21,922)			27		(22)
Issuances of common stock	1	1
Capital contributions	11,275				2,558	8,717
Dividends/Distributions	(199,008)		(61,577)		(50,246)	(81,760)	(5,425)
Net income (loss)	242,248		73,837		96,308	66,678	5,425
Currency translation adjustment, net of tax	22,460			7,270	6,206	8,984
Equity compensation	31,409	17,553			13,856
Stock option exercises	13,917	13,910						7
Ending balance at Dec. 31, 2020	2,471,774	1,043,669	(151,824)	483	738,369	539,720	298,761	1,472	$ 0	1,124
Increase (Decrease) in Stockholders' Equity
Changes in ownership interests and related tax benefits	(86,139)	(41,686)			(44,477)			26		(2)
Capital contributions	11,011					11,011
Dividends/Distributions	(186,022)		(74,684)		(67,084)	(38,829)	(5,425)
Net income (loss)	164,278		52,953		56,042	49,858	5,425
Currency translation adjustment, net of tax	(9,983)			(545)	(366)	(9,072)
Equity compensation	55,649	31,752			23,897
Ending balance at Mar. 31, 2021	2,420,568	1,033,735	(173,555)	(62)	706,381	552,688	298,761	1,498	0	1,122
Increase (Decrease) in Stockholders' Equity
Changes in ownership interests and related tax benefits	(22,016)	(165,886)			143,867			3		0
Issuances of common stock	827,430	827,273						122	35
Capital contributions	352,643				317,595	34,994				54
Redemption of preferred stock	(310,000)						(310,000)
Dividends/Distributions	(185,295)		(82,825)		(63,585)	(33,460)	(5,425)
Net income (loss)	270,982		124,980		124,311	5,027	16,664
Currency translation adjustment, net of tax	3,272			758	558	1,956
Equity compensation	69,504	41,003			28,501
Stock option exercises	14,027	14,019						8
Ending balance at Jun. 30, 2021	3,441,115	1,750,144	(131,400)	696	1,257,628	561,205	0	1,631	35	1,176
Increase (Decrease) in Stockholders' Equity
Changes in ownership interests and related tax benefits	(107,650)	79,787			(187,454)			38		(21)
Capital contributions	85,138				211,444	(126,339)				33
Dividends/Distributions	(162,871)		(82,307)		(68,083)	(12,481)
Net income (loss)	216,389		84,726		84,293	47,370
Currency translation adjustment, net of tax	(10,968)			(3,267)	(2,346)	(5,355)
Equity compensation	65,991	38,607			27,384
Stock option exercises	13,382	13,375						7
Ending balance at Sep. 30, 2021	$ 3,540,526	$ 1,881,913	$ (128,981)	$ (2,571)	$ 1,322,866	$ 464,400	$ 0	$ 1,676	$ 35	$ 1,188

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 652,342	$ 82,206
Net cash provided by (used in) operating activities	(1,843,751)	12,462
Cash flows from investing activities:
Net cash used in investing activities	(1,072,578)	(126,437)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Net cash provided by financing activities	2,692,984	827,550
Effect of exchange rate changes	(20,763)	16,793
Net change in cash and cash equivalents	(244,108)	730,368
Cash and cash equivalents, beginning of period	539,812
Cash and cash equivalents, end of period	295,704	868,752
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions	511,069	305,338
Consolidated Funds
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities	(1,688,085)	(766,399)
Cash flows due to changes in operating assets and liabilities	(729,703)	366,367
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	919,666	123,713
Distributions to non-controlling interests in Consolidated Funds	(84,770)	(169,747)
Borrowings under loan obligations by Consolidated Funds	1,456,887	618,207
Repayments under loan obligations by Consolidated Funds	(74,909)	(104,794)
Ares Management L.P
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities	71,133	184,586
Cash flows due to changes in operating assets and liabilities	(149,438)	145,702
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(15,152)	(8,608)
Acquisitions, net of cash acquired	(1,057,426)	(117,829)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock	827,430	383,154
Proceeds from Credit Facility	468,000	790,000
Proceeds from issuance of senior and subordinated notes	450,000	399,084
Repayments of Credit Facility	(318,000)	(860,000)
Dividends and distributions	(438,568)	(334,957)
Series A Preferred Stock dividends	(10,850)	(16,275)
Redemption of Series A Preferred Stock	(310,000)	0
Stock option exercises	27,409	78,959
Taxes paid related to net share settlement of equity awards	(221,287)	(75,657)
Other financing activities	1,976	(4,137)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Cash and cash equivalents, beginning of period	539,812	138,384
Cash and cash equivalents, end of period	$ 295,704	$ 868,752

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ORGANIZATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

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, Private Equity, Real Estate, Secondary Solutions and Strategic Initiatives. Information about segments should be read together with “Note 15. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various investment 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, and the Company's assets include equity interests in Ares Holdings Inc., Ares Offshore Holdings, Ltd., and Ares AI Holdings L.P. In this quarterly report, the following of the Company’s subsidiaries are collectively referred to as the “Ares Operating Group” or “AOG”: Ares Offshore Holdings L.P. (“Ares Offshore”), Ares Holdings L.P. (“Ares Holdings”), and Ares Investments L.P. (“Ares Investments”). The Company, indirectly through its wholly owned subsidiaries, is the general partner of each of the Ares Operating Group entities. The Company operates and controls all of the businesses and affairs of and conducts all of its material business activities through the Ares Operating Group.

On April 1, 2021, the Company completed an internal reorganization (the “Reorganization”) that simplified the organizational structure and merged Ares Offshore and Ares Investments with Ares Holdings. As a result of the Reorganization, Ares Holdings became the sole entity in the Ares Operating Group.

The Company and its wholly owned subsidiaries manages or controls certain entities that have been consolidated in the accompanying financials statements as described in “Note 2. Summary of Significant Accounting Policies.” These entities include Ares funds, co-investment entities, collateralized loan obligations or funds (collectively “CLOs”) and a special purpose acquisition company (“SPAC”) (collectively, the “Consolidated Funds”). In February 2021, the Company’s first sponsored SPAC, Ares Acquisition Corporation (NYSE: AAC) (“AAC”), consummated its initial public offering that raised capital of $1.0 billion. Prior to the completion of a business combination, the sponsor, a wholly owned subsidiary of the Company, owns the majority of the Class B ordinary shares outstanding of AAC, and consolidates AAC under the voting interest model.

Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows in the accompanying 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 Stockholders' Equity. 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 in the Consolidated Statements of Cash Flows.

Redeemable Interest and Non-Controlling Interests in Ares Operating Group Entities

The non-controlling interests in AOG entities represent a component of equity and net income attributable to the owners of the Ares Operating Group Units (“AOG Units”) that are not held directly or indirectly by the Company. These owners consist predominantly of Ares Owners Holdings L.P. but also include other strategic distribution partnerships with whom the Company has established joint ventures. Non-controlling interests in AOG entities are adjusted for contributions to and distributions from AOG during the reporting period and are allocated income from the AOG entities based on their historical ownership percentage for the proportional number of days in the reporting period.

On February 21, 2020, the Company completed its acquisition (“Crestline Acquisition”) of the Class A membership interests (the “Class A membership interests”) in Crestline Denali Capital LLC (“Crestline Denali”). The Class A membership interests entitle the Company to the fees associated with managing seven collateral management contracts. The Class B membership interests of Crestline Denali (the “Class B membership interests”) were retained by the former owners of Crestline Denali and represent the financial interests in the subordinated notes of the collateralized loan obligations. In connection with the Company's control over Crestline Denali, the Company also consolidates investments and financial results that are attributable to the Class B membership interests to which the Company has no economic rights or obligations. Equity and income (loss) attributable to the Class B membership interests is included within non-controlling interests in AOG entities.

On July 1, 2020, the Company completed its acquisition of a majority interest in SSG Capital Holdings Limited and its operating subsidiaries (“SSG”) in accordance with the purchase agreement entered into on January 21, 2020 (“SSG Acquisition”). In connection with the SSG Acquisition, the former owners of SSG retained an ownership interest in the operations acquired by the Company. In certain circumstances, the Company may acquire full ownership of SSG pursuant to a contractual arrangement that may be initiated by the Company or by the former owners of SSG. Since the acquisition of the remaining interest in SSG is not within the Company's sole discretion, the ownership interest held by the former owners of SSG is classified as a redeemable interest and represents mezzanine equity.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The 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 condensed consolidated financial statements are presented fairly and that estimates made in preparing its 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 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, 2020 filed with the Securities and Exchange Commission (“SEC”).

As of September 30, 2021, the impact of the outbreak of the novel coronavirus (“COVID-19”) pandemic continues to unfold. As a result, management's estimates and assumptions may be subject to a higher degree of variability and volatility that may result in material differences from the current period.

The condensed consolidated financial statements include the accounts and activities of the 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.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition, including the fair value of certain elements of contingent consideration, is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Contingent consideration obligations are recognized as of the acquisition date at fair value based on the probability that contingency will be realized. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities assumed is recorded as goodwill. Conversely, any excess of the fair value of the net assets acquired over the purchase consideration is recognized as a bargain purchase gain. Acquisition-related costs incurred in connection with a business combination are expensed as incurred.

U.S. Treasury Securities, at Fair Value

U.S. Treasury securities, at fair value represents U.S. Treasury bills that were purchased with funds raised through the initial public offering of AAC, a consolidated SPAC that is presented within Consolidated Funds. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement. The U.S. Treasury bills have original maturities greater than three months when purchased and therefore are recorded at fair value. Interest income received on such securities is separately presented from the overall change in fair value and is recognized within interest and other income of Consolidated Funds in the

Condensed Consolidated Statements of Operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net realized and unrealized gains (losses) on investments of Consolidated Funds in the Condensed Consolidated Statements of Operations.

Redeemable Interest in Consolidated Funds

Redeemable interest in Consolidated Funds represent the Class A ordinary shares issued by AAC that are redeemable for cash by the public shareholders in the event that AAC does not complete a business combination or tender offer associated with stockholder approval provisions. The class A ordinary shareholders have redemption rights that are considered to be outside of AAC’s control. At each balance sheet date, the carrying value of the redeemable interest is presented at the redemption amount. At September 30, 2021, all 100,000,000 Class A ordinary shares of AAC were classified outside of permanent equity.

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 condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. An entity may elect to adopt the amendments in ASU 2020-04 and ASU 2021-01 at any time after March 12, 2020 but no later than December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

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BUSINESS COMBINATIONS

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

3. BUSINESS COMBINATIONS

Acquisition of Landmark Partners, LLC (collectively with its subsidiaries, “Landmark”)

On June 2, 2021, a subsidiary of the Company completed the acquisition of 100% of the equity interests of Landmark, a subsidiary of BrightSphere Investment Group Inc. (NYSE: BSIG) and Landmark Investment Holdings L.P., in accordance with the purchase agreement entered into on March 30, 2021 (the “Landmark Acquisition”). As a result of the Landmark Acquisition, the Company expanded into the secondaries market with Landmark’s focus of managing private equity, real estate and infrastructure secondaries funds. Following the completion of the Landmark Acquisition, the results of Landmark are included in a newly created Secondary Solutions Group segment.

The acquisition date fair value of the consideration transferred totaled $1.1 billion, which consisted of the following:

Cash	$	803,829
Equity(1)	299,640
Total	$	1,103,469

(1)5,419,413 AOG Units were issued in connection with the Landmark Acquisition and increased Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

The following is a summary of the fair values of assets acquired and liabilities assumed for the Landmark Acquisition as of June 2, 2021, based upon third party valuations of certain intangible assets. The fair value of assets acquired and liabilities assumed are estimated to be:

Cash	$	25,685
Other tangible assets	23,411
Intangible assets:
Management contracts	425,880
Client relationships	197,160
Trade name	86,200
Total intangible assets	709,240
Total identifiable assets acquired	758,336
Accounts payable, accrued expenses and other liabilities	72,532
Net identifiable assets acquired	685,804
Goodwill	417,665
Net assets acquired	$	1,103,469

The Company incurred $4.9 million of acquisition related costs that were expensed and reported within general, administrative and other expenses within the Condensed Consolidated Statements of Operations.

The carrying value of goodwill associated with Landmark was $417.7 million as of the acquisition date and is entirely allocated to the Secondary Solutions Group segment. The goodwill is attributable primarily to expected synergies and the assembled workforce of Landmark.

In connection with the Landmark Acquisition, the Company allocated $425.9 million, $197.2 million and $86.2 million of the purchase price to the fair value of the management contracts, client relationships and trade name, respectively. The acquired management contracts and client relationships had a weighted average amortization period as of the acquisition date of 7.4 years and 11.8 years, respectively. The trade name was determined to have an indefinite useful life at the time of the Landmark Acquisition and is not subject to amortization as the Company intends Landmark to continue to operate under its brand name into perpetuity.

Landmark’s revenues and net income of $54.0 million and $26.8 million, respectively, are included in the Company’s Consolidated Statements of Operations for the period from June 2, 2021 through September 30, 2021.

Supplemental information of the Company’s consolidated results on an unaudited pro forma basis, as if the Landmark Acquisition had been consummated as of January 1, 2020, is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total revenues	$	948,719	$	527,105	$	2,966,540	$	1,214,989
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	87,542	$	37,570	$	257,361	$	41,263

The unaudited pro forma supplemental information is based on estimates and assumptions, which the Company believes are reasonable. These results are not necessarily indicative of the Company’s consolidated financial condition or statements of operations in future periods or the results that actually would have been realized had the Company and Landmark been a combined entity during the periods presented. These pro forma amounts have been calculated after applying the following adjustments that were directly attributable to the Landmark Acquisition:

•adjustments to include the impact of the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2020, together with the consequential tax effects;

•adjustments to include the AOG Units issued as consideration for the Landmark Acquisition, as if they were issued on January 1, 2020, and the resulting change in ownership attributable to Ares Management Corporation;

•adjustments to reflect the pro-rata economic ownership attributable to Ares Management Corporation;

•adjustments to reflect the tax effects of the Landmark Acquisition and the related adjustments as if Landmark had been included in the Company’s results as of January 1, 2020; and

•adjustments to include Landmark Acquisition related transaction costs in earnings for the nine months ended September 30, 2020.

Purchase of Landmark GP Interests

The Company acquired an ownership interest in Landmark Partners XVI - GP, L.P. and Landmark Real Estate Fund VIII – GP, L.P. (collectively referred to as the “Landmark GP Entities”). The ownership interest entitles the Company to 60% of the capital interests and a portion of the carried interest in Landmark Equity Partners XVI L.P., Landmark Real Estate Partners VIII L.P. and certain related co-investment vehicles. The Company’s control over Landmark GP Entities also results in the Company consolidating investments and financial results that are attributable to ownership interests that were retained by former Landmark owners. The economic rights retained by the former Landmark owners attributable to these interests are reflected as non-controlling interests in the AOG entities.

Acquisition of Black Creek Group

On July 1, 2021, a subsidiary of the Company completed the acquisition of 100% of the equity interests of Black Creek Group’s U.S. real estate investment advisory and distribution business (“Black Creek”) in accordance with the purchase agreement entered into on May 20, 2021 (the “Black Creek Acquisition”). Black Creek is a leading real estate investment management firm that operates in core and core-plus real estate strategies across two non-traded Real Estate Investment Trusts (“REITs”) and various institutional fund vehicles. Following the completion of the Black Creek Acquisition, the results of Black Creek are included within the Real Estate Group segment.

In connection with the Black Creek Acquisition, the Company recorded a bargain purchase gain of $42.3 million that has been presented within other income (expense), net in the Condensed Consolidated Statements of Operations. The bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets acquired exceeding the purchase consideration. The purchase agreement with Black Creek contains provisions obligating the Company to make a payment upon the achievement of certain revenue targets to certain senior professionals and advisors that is excluded from purchase consideration as it is subject to continued and future service. See “Note 9. Commitments and Contingencies” for a further description of this contingency.

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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

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 as of September 30, 2021	As of September 30,		As of December 31,
		2021		2020
Management contracts	6.5 years	$	641,737	$	210,857
Client relationships	11.2 years	229,501		25,141
Trade name	8.7 years	11,079		11,079
Finite-lived intangible assets		882,317		247,077
Foreign currency translation		1,530		3,093
Total finite-lived intangible assets		883,847		250,170
Less: accumulated amortization		(85,157)		(28,082)
Finite-lived intangible assets, net		798,690		222,088
Management contracts		567,800		—
Trade name		86,200		—
Indefinite-lived intangible assets		654,000		—
Intangible assets, net		$	1,452,690	$	222,088

In connection with the Black Creek Acquisition, the Company allocated $576.2 million and $7.2 million of the purchase consideration to the fair value of management contracts and client relationships, respectively. Certain management contracts were determined to have indefinite useful lives at the time of the Black Creek Acquisition and are not subject to amortization. The remaining management contracts and client relationships had a weighted average amortization period as of the acquisition date of 6.1 years and 12.0 years, respectively.

Amortization expense associated with intangible assets was $32.8 million and $11.1 million for the three months ended September 30, 2021 and 2020, respectively, and $60.7 million and $13.7 million for the nine months ended September 30, 2021 and 2020 and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the third quarter of 2021, the Company accelerated the amortization of a collateral management contract due to the redemption of that CLO and removed $3.4 million of intangible assets that were fully amortized.

Goodwill

The following table summarizes the carrying value of goodwill that is included within other assets in the Condensed Consolidated Statements of Financial Condition:

	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance as of December 31, 2020	$	32,196	$	58,600	$	53,120	$	—	$	227,131	$	371,047
Acquisitions	—		—		—		417,665		—		417,665
Foreign currency translation	—		—		219		(16)		(1,165)		(962)
Balance as of September 30, 2021	$	32,196	$	58,600	$	53,339	$	417,649	$	225,966	$	787,750

There was no impairment of goodwill recorded during the nine months ended September 30, 2021 and 2020. The impact of foreign currency translation is reflected within other comprehensive income.

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INVESTMENTS

9 Months Ended

Sep. 30, 2021

Investments in and Advances to Affiliates [Abstract]

INVESTMENTS

5. INVESTMENTS

The Company’s investments are comprised of the following:

					Percentage of total investments
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Equity method investments:
Equity method private investment partnership interests - principal (1)	$	492,482	$	366,471	14.8	%	21.8	%
Equity method - carried interest (1)	2,625,319		1,145,853		79.0		68.1
Equity method private investment partnership interests and other (held at fair value)(1)	117,015		92,196		3.5		5.5
Equity method private investment partnership interests and other(1)	32,132		23,883		1.0		1.4
Total equity method investments	3,266,948		1,628,403		98.3		96.8
Collateralized loan obligations (2)	32,724		31,766		1.0		1.9
Other fixed income	21,583		21,583		0.6		1.3
Collateralized loan obligations and other fixed income, at fair value	54,307		53,349		1.6		3.2
Common stock, at fair value	1,410		1,007		0.1		0.1
Total investments	$	3,322,665	$	1,682,759

(1)Investment or portion of the investment is denominated in foreign currency and is translated into U.S. dollars at each reporting date.

(2)As of September 30, 2021 and December 31, 2020, includes $3.2 million and $3.4 million, respectively, of collateralized loan obligations that are attributable to the Class B Membership Interests.

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, 2021 and 2020, no individual equity method investment held by the Company met the significance criteria.

The Company recognized net gains related to its equity method investments of $18.9 million and $8.9 million for the three months ended September 30, 2021 and 2020, respectively, and net gains of $99.3 million and $1.8 million for the nine months ended September 30, 2021 and 2020, respectively. The net gains were 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.

With respect to the Company's equity method investments, the material assets are expected to generate either long-term capital appreciation and/or interest 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.

Investments of the Consolidated Funds

Investments held in the Consolidated Funds are summarized below:

	Fair Value at				Percentage of total investments as of
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Fixed income investments:
Bonds	$	434,226	$	397,494	3.9	%	3.6%
Loans	9,389,769		10,012,948		82.6		92.1
U.S. Treasury securities	1,000,165		—		8.8		—
Investments in CLO warehouse	28,500		—		0.3		—
Total fixed income investments	10,852,660		10,410,442		95.6		95.7
Equity securities	264,202		227,031		2.3		2.1
Partnership interests	244,157		239,624		2.1		2.2
Total investments, at fair value	$	11,361,019	$	10,877,097

As of September 30, 2021, the SPAC’s investment in U.S. Treasury bills exceeded 5.0% of the Company’s total assets. The U.S. Treasury bills mature in November 2021 and have an interest yield of approximately 0.06%. At December 31, 2020, 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.

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FAIR VALUE

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE

6. FAIR VALUE

Fair Value Measurements

GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market price observability. Market price observability is affected by a number of factors, including the type of instrument and the characteristics specific to the instrument. Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value.

Financial assets and liabilities measured and reported at fair value are classified as follows:

•Level I—Quoted prices in active markets for identical instruments.

•Level II—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in inactive markets; and model-derived valuations with directly or indirectly observable significant inputs. Level II inputs include prices in markets with few transactions, non-current prices, prices for which little public information exists or prices that vary substantially over time or among brokered market makers. Other inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates.

•Level III—Valuations that rely on one or more significant unobservable inputs. These inputs reflect the Company’s assessment of the assumptions that market participants would use to value the instrument based on the best information available.

In some instances, an instrument may fall into more than one level of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair value measurement. The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument. The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period.

Contingent consideration: The Company generally determines the fair value of its contingent consideration liabilities by using a Monte Carlo simulation model. The model considers a range of assumptions including historical experience, prior period performance, current progress towards targets, probability-weighted scenarios, and management's own assumptions. The discount rate used is determined based on the weighted average cost of capital for the Company. The fair value of the

Company's contingent consideration liabilities are classified as Level III. Liabilities recorded in connection with the Company’s contingent consideration are included within accounts payable, accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Condition and the associated changes in fair value are included within other income (expense), net in the Condensed Consolidated Statements of Operations.

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, 2021:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	54,307	$	—	$	54,307
Common stock and other equity securities	—		1,410		108,397		—		109,807
Partnership interests	—		—		2,575		6,043		8,618
Total investments, at fair value	—		1,410		165,279		6,043		172,732
Derivatives-foreign exchange contracts and interest rate contracts	—		4,361		—		—		4,361
Total assets, at fair value	$	—	$	5,771	$	165,279	$	6,043	$	177,093
Liabilities, at fair value
Derivatives-foreign exchange contracts	—		(265)		—		—		(265)
Contingent consideration	—		—		(41,413)		—		(41,413)
Total liabilities, at fair value	$	—	$	(265)	$	(41,413)	$	—	$	(41,678)

    

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	406,253	$	27,973	$	—	$	434,226
Loans	—		9,015,066		374,703		—		9,389,769
U.S. Treasury securities	1,000,165		—		—		—		1,000,165
Investments in CLO warehouse	—		28,500		—		—		28,500
Total fixed income investments	1,000,165		9,449,819		402,676		—		10,852,660
Equity securities	3,366		1,590		259,246		—		264,202
Partnership interests	—		—		237,558		6,599		244,157
Total investments, at fair value	$	1,003,531	$	9,451,409	$	899,480	$	6,599	$	11,361,019
Derivatives:
Asset swaps-other	—		—		325		—		325
Total derivative assets, at fair value	—		—		325		—		325
Total assets, at fair value	$	1,003,531	$	9,451,409	$	899,805	$	6,599	$	11,361,344
Liabilities, at fair value
Derivatives:
Warrants	$	(17,000)	$	—	$	—	$	—	$	(17,000)
Asset swaps-other	—		—		(1,513)		—		(1,513)
Total derivative liabilities, at fair value	(17,000)		—		(1,513)		—		(18,513)
Loan obligations of CLOs	—		(10,174,794)		—		—		(10,174,794)
Total liabilities, at fair value	$	(17,000)	$	(10,174,794)	$	(1,513)	$	—	$	(10,193,307)

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31,2020:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	53,349	$	—	$	53,349
Common stock and other equity securities	—		1,007		88,412		—		89,419
Partnership interests	—		—		2,575		1,209		3,784
Total investments, at fair value	—		1,007		144,336		1,209		146,552
Derivatives-foreign exchange contracts	—		1,440		—		—		1,440
Total assets, at fair value	$	—	$	2,447	$	144,336	$	1,209	$	147,992
Liabilities, at fair value
Derivatives-foreign exchange contracts	$	—	$	(1,565)	$	—	$	—	$	(1,565)
Total liabilities, at fair value	$	—	$	(1,565)	$	—	$	—	$	(1,565)

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	397,485	$	9	$	—	$	397,494
Loans	—		9,470,651		542,297		—		10,012,948
Total fixed income investments	—		9,868,136		542,306		—		10,410,442
Equity securities	5,749		239		221,043		—		227,031
Partnership interests	—		—		231,857		7,767		239,624
Total investments, at fair value	5,749		9,868,375		995,206		7,767		10,877,097
Derivatives:
Asset swaps-other	—		—		1,104		—		1,104
Total assets, at fair value	$	5,749	$	9,868,375	$	996,310	$	7,767	$	10,878,201
Liabilities, at fair value
Derivatives:
Asset swaps-other	$	—	$	—	$	(44)	$	—	$	(44)
Loan obligations of CLOs	—		(9,958,076)		—		—		(9,958,076)
Total liabilities, at fair value	$	—	$	(9,958,076)	$	(44)	$	—	$	(9,958,120)

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	107,240	$	55,840	$	2,575	$	—	$	165,655
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	—		708		—		—		708
Sales/settlements(2)	—		(2,904)		—		—		(2,904)
Realized and unrealized appreciation (depreciation), net	1,157		663		—		(7,213)		(5,393)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	1,157	$	675	$	—	$	(7,213)	$	(5,381)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Transfer in	—		18,792		—		—		18,792
Transfer out	—		(209,282)		—		—		(209,282)
Purchases(1)	27,346		219,180		—		—		246,526
Sales/settlements(2)	(313)		(88,584)		(30,000)		625		(118,272)
Amortized discounts/premiums	—		394		—		—		394
Realized and unrealized appreciation (depreciation), net	2,913		6,750		12,280		(155)		21,788
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,912	$	1,607	$	12,280	$	(63)	$	16,736

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2020:

Level III Assets of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	67,355	$	2,575	$	84,634
Transfer in due to changes in consolidation	72,967		—		—		72,967
Purchases(1)	—		5,983		—		5,983
Sales/settlements(2)	—		(899)		—		(899)
Realized and unrealized appreciation (depreciation), net	(1,746)		3,175		—		1,429
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	3,175	$	—	$	1,429

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	42,259	$	586,287	$	312,636	$	1,402	$	942,584
Transfer in	—		96,671		—		—		96,671
Transfer out	—		(230,326)		—		—		(230,326)
Purchases(1)	150		118,558		—		—		118,708
Sales/settlements(2)	(25)		(73,010)		(2,000)		705		(74,330)
Amortized discounts/premiums	—		(135)		—		140		5
Realized and unrealized appreciation (depreciation), net	828		15,836		(1,402)		(393)		14,869
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	878	$	13,690	$	(1,402)	$	(604)	$	12,562

(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.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2020:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		3,686		—		76,653
Purchases(1)	—		7,285		—		7,285
Sales/settlements(2)	—		(1,587)		(32,430)		(34,017)
Realized and unrealized depreciation, net	(1,746)		(2,953)		(187)		(4,886)
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	(1,917)	$	5,511	$	1,848

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		392,672		—		—		392,037
Transfer in	—		146,839		—		—		146,839
Transfer out	—		(350,078)		—		—		(350,078)
Purchases(1)	551		256,514		64,000		—		321,065
Sales/settlements(2)	(714)		(249,027)		(58,000)		813		(306,928)
Amortized discounts/premiums	—		777		—		291		1,068
Realized and unrealized appreciation (depreciation), net	(41,978)		(22,952)		7,222		4,856		(52,852)
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(41,930)	$	(25,701)	$	7,222	$	4,439	$	(55,970)

(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.

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.

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, 2021:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A	N/A
	46,765		Discounted cash flow	Discount Rates	14.0% - 20.0%	15.3%
	46,928		Market approach	Multiple of Book Value	1.5x	N/A
Partnership interests	2,575		Other	N/A	N/A	N/A
Collateralized loan obligations	32,724		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A	N/A
Total assets	$	165,279
Liabilities
Contingent consideration	$	(8,600)	Monte Carlo simulation	Discount Rates	8%	N/A
				Volatility	17%	N/A
	$	(32,813)	Other	N/A	N/A	N/A
Total liabilities	$	(41,413)

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	896	Market approach	EBITDA multiple(2)	1.8x - 83.3x	15.3x
	14		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	258,336		Transaction price(1)	N/A	N/A	N/A
Partnership interest	237,558		Discounted cash flow	Discount rate	22.4%	22.4%
Fixed income securities
	261,064		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	98,055		Income approach	Yield	1.8%-54.7%	6.5%
	14,791		Transaction price	N/A	N/A	N/A
	28,766		Other	N/A	N/A	N/A
Derivative instruments	325		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	899,805
Liabilities
Derivative instruments	$	(1,513)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(1,513)

(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.

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, 2020:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A
	32,905		Discounted Cash Flow	Discount Rates	14.0% - 20.0%
	40,803		Market Approach	Multiple of Book Value	1.6x
Partnership interests	2,575		Other	N/A	N/A
Collateralized loan obligations	31,766		Broker quotes and/or 3rd party pricing services	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A
Total	$	144,336

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	438	Market approach	EBITDA multiple(2)	2.9x - 19.5x	13.4x
	32,528		Other	Net income multiple	30.0x	30.0x
				Illiquidity discount	25.0%	25.0%
	33		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	188,044		Transaction price(1)	N/A	N/A	N/A
Partnership interests	231,857		Discounted cash flow	Discount rate	23.8%	23.8%
Fixed income securities
	384,419		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	6,605		Market approach	EBITDA multiple(2)	6.5x - 7.8x	6.9x
	122,962		Income approach	Yield	2.7% - 48.1%	7.9%
	28,320		Other	N/A	N/A	N/A
Derivative instruments	1,104		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	996,310
Liabilities
Derivative instruments	$	(44)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(44)

(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 Company has an insurance-related investment in a private fund managed by a third party that is valued using NAV per share. The terms and conditions of this fund do not allow for redemptions without certain events or approvals that are outside the Company's control. This investment had a fair value of $6.0 million and $1.2 million as of September 30, 2021 and December 31, 2020. The Company has no unfunded commitments for this investment.

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DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

7. DERIVATIVE FINANCIAL INSTRUMENTS

In the normal course of business, the Company and the Consolidated Funds are exposed to certain risks relating to their ongoing operations and use various types of derivative instruments primarily to mitigate against credit and foreign exchange risk. The derivative instruments are not designated as hedging instruments under the accounting standards for derivatives and hedging. The Company recognizes all of its derivative instruments at fair value as either assets or liabilities in the Condensed Consolidated Statements of Financial Condition within other assets or accounts payable, accrued expenses and other liabilities, respectively. These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

The following tables identify the fair value and notional amounts of derivative contracts by major product type on a gross basis for the Company and the Consolidated Funds:

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
The Company	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Foreign exchange contracts	$	81,008	$	4,352	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565
Interest rate contracts	18,455		9		—		—		—		—		—		—
Total derivatives, at fair value(2)	$	99,463	$	4,361	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
Consolidated Funds	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Warrants	$	—	$	—	$	230,000	$	17,000	$	—	$	—	$	—	$	—
Asset swap - other	44,521		325		39,701		1,513		7,600		1,104		540		44
Total derivatives, at fair value(3)	$	44,521	$	325	$	269,701	$	18,513	$	7,600	$	1,104	$	540	$	44

(1)Represents the total contractual amount of derivative assets and liabilities outstanding.

(2)As of September 30, 2021 and December 31, 2020, the Company had the right to, but elected not to, offset $0.3 million and $1.6 million of its derivative liabilities.

(3)As of September 30, 2021 and December 31, 2020, the Consolidated Funds offset $0.3 million and $0.4 million of their derivative assets and liabilities, respectively.

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DEBT

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

DEBT

8. DEBT

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

					As of September 30, 2021			As of December 31, 2020
	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolver	3/31/2026	N/A		$	150,000	1.13%	$	—	—%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	247,802		4.21	247,285		4.21
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000		396,045		3.28	395,713		3.28
2051 Subordinated Notes(4)	6/30/2021	6/30/2051	450,000		444,478		4.13	—		—
Total debt obligations					$	1,238,325		$	642,998

(1)The AOG entities are borrowers under the Credit Facility, which provides a $1.090 billion revolving line of credit. It has a variable interest rate based on LIBOR 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. On March 31, 2021, the Company amended the Credit Facility to, among other things, extend the maturity date from March 2025 to March 2026. As of September 30, 2021, base rate loans bear interest calculated based on the base rate plus 0.125% and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.125%. The unused commitment fee is 0.10% per annum. There is a base rate and LIBOR floor of zero.     

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 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 Notes.

(4)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company, at 100.00% of par 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, 2021, 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 2024 and 2030 Senior Notes (the “Senior Notes”) and 2051 Subordinated Notes are recorded as a reduction of the corresponding debt obligation, and debt issuance costs related to the Credit Facility are included in other assets in the Condensed Consolidated Statements of Financial Condition. All debt issuance costs are amortized over the remaining term of the related obligation into interest expense in the Condensed Consolidated Statements of Operations.

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

	Credit Facility		Senior Notes		Subordinated Notes
Unamortized debt issuance costs as of December 31, 2020	$	5,232	$	4,283	$	—
Debt issuance costs incurred	1,282		—		5,568
Amortization of debt issuance costs	(929)		(446)		(46)
Unamortized debt issuance costs as of September 30, 2021	$	5,585	$	3,837	$	5,522

Loan Obligations of the Consolidated CLOs

Loan obligations of the Consolidated Funds that are CLOs (“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, 2021					As of December 31, 2020
	Loan Obligations		Fair Value of Loan Obligations		Weighted  Average  Remaining Maturity  In Years	Loan Obligations		Fair Value of Loan Obligations		Weighted Average Remaining Maturity  In Years
Senior secured notes(1)	$	9,577,725	$	9,561,079	9.5	$	9,796,442	$	9,665,804	10.1
Subordinated notes(2)	723,567		613,715		8.3	482,391		292,272		10.2
Total loan obligations of Consolidated CLOs	$	10,301,292	$	10,174,794		$	10,278,833	$	9,958,076

(1)Original borrowings under the senior secured notes totaled $9.6 billion, with various maturity dates ranging from September 2026 to July 2034. The weighted average interest rate as of September 30, 2021 was 1.96%.

(2)Original borrowings under the subordinated notes totaled $723.6 million, with various maturity dates ranging from September 2026 to July 2034. The notes do not have contractual interest rates; instead, holders of the notes receive distributions from 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, corporate bonds and other securities. 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 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, 2021 and December 31, 2020, the Consolidated Funds were in compliance with all covenants under such credit facilities.

The Consolidated Funds had the following revolving bank credit facilities and term loan outstanding:

				As of September 30, 2021			As of December 31, 2020
Consolidated Funds' Debt Facilities	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate	Outstanding Loan(1)		Effective Rate
Credit Facilities:
	3/4/2022	$	71,500	$	71,500	1.59%	$	71,500	1.59%
	7/1/2023	18,000		17,740		1.63	17,909		1.75
	1/15/2022(2)	—		—		—	32,500		2.75
	7/23/2024	75,000		10,000		2.65	N/A		N/A
	9/24/2026	150,000		—		N/A	N/A		N/A
Total borrowings of Consolidated Funds				$	99,240		$	121,909

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

(2)On July 23, 2021, the credit facility was terminated at the Consolidated Fund’s discretion.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

9. 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 in the Condensed Consolidated Statements of Financial Condition. As of September 30, 2021, 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, 2021 and December 31, 2020, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $732.8 million and $784.2 million, respectively.

Contingent Liabilities

In connection with the Landmark Acquisition, the Company established a management incentive program (the “Landmark MIP”) with certain professionals of Landmark. The Landmark MIP represents a contingent liability not to exceed $300.0 million and is based on the achievement of fundraising targets for certain Landmark funds during a measurement period.

The Company expects to settle this liability with a combination of 15% cash and 85% equity awards. Expense associated with the cash component is recognized ratably over the measurement period, which will end on the earlier of the final fundraising date or December 31, 2022. Expense associated with the equity component is recognized ratably over the service period, which will continue for four years beyond the measurement period end date. The Landmark MIP is remeasured each period with incremental changes in fair value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. At the measurement period end date, the cash component will be paid and restricted units for the balance of the Landmark MIP will be granted at fair value. The unpaid liability at the measurement period end date will be reclassified from liability to additional paid-in-capital and any difference between the fair value of the Landmark MIP at the measurement period end date and the previously recorded compensation expense will be recognized over the remaining four year service period as equity-based compensation expense. As of September 30, 2021, the fair value of the contingent liability was estimated to be $236.0 million. Compensation expense of $14.7 million and $19.3 million for the three months ended September 30, 2021 and for the period from June 2, 2021 through September 30, 2021, respectively, was recorded in the Condensed Consolidated Statements of Operations.

The purchase agreement with Black Creek contains provisions obligating the Company to make payments in an aggregate amount not to exceed $275.0 million to certain senior professionals and advisors upon the achievement of certain revenue targets through a measurement period no later than December 31, 2024. Because these future payments require continued service through the measurement period, this consideration is accounted for as compensation expense instead of as purchase consideration. The fair value of this contingent liability is remeasured at each reporting date with compensation expense recorded ratably over the service period, which is the Black Creek Acquisition date through the measurement period end date. As of September 30, 2021, the fair value of the contingent liability was $206.7 million and the Company recorded a contingent liability of $13.5 million within accrued compensation in the Consolidated Statements of Financial Condition. For the three months ended September 30 2021, compensation expense of $13.5 million was recorded within compensation and benefits expense within the Condensed Consolidated Statements of Operations.

The purchase agreement with Black Creek also contains a provision obligating the Company to make a payment to the sellers equal to 50% of the performance income realized for certain Black Creek funds for the year ended December 31, 2021. The fair value of this contingent obligation as of the acquisition date was $28.6 million. The contingent obligation is subject to remeasurement until settlement and changes in fair value from the acquisition date are recorded within other income (expense), net within the Condensed Consolidated Statements of Operations. As of September 30, 2021, the fair value of the contingent obligation was $32.8 million and recorded within due to affiliates within the Consolidated Statements of Financial Condition.

Performance Income

Performance income 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 (in most cases) exceed the preferred return threshold or (in all cases) the general partner receives 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 performance income 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.

At September 30, 2021 and December 31, 2020, if the Company assumed all existing investments were worthless, the amount of performance income subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $202.3 million and $326.4 million, respectively, of which approximately $158.0 million and $252.4 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such performance income. Management believes the possibility of all of the investments becoming worthless is remote. As of September 30, 2021 and December 31, 2020, if the funds were liquidated at their fair values, there would be no contingent repayment obligation or liability.

Litigation

From time to time, the Company is named as a defendant in legal actions relating to transactions 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 leases office space and certain office equipment. The Company's leases have remaining lease terms of one to twelve years. The tables below present certain supplemental quantitative disclosures regarding the Company's leases:

		As of September 30,		As of December 31,
	Classification	2021		2020
Operating lease assets	Right-of-use operating lease assets	$	176,511	$	154,742
Finance lease assets	Other assets(1)	1,164		1,386
Total lease assets		$	177,675	$	156,128
Operating lease liabilities	Operating lease liabilities	$	214,681	$	180,236
Finance lease obligations	Accounts payable, accrued expenses and other liabilities	977		1,273
Total lease liabilities		$	215,658	$	181,509

(1) Finance lease assets are recorded net of accumulated amortization of $1.4 million and $1.0 million as of September 30, 2021 and December 31, 2020, respectively.

Maturity of lease liabilities	Operating Leases		Finance Leases
2021	$	10,591	$	73
2022	41,989		598
2023	38,277		164
2024	36,579		162
2025	36,251		11
After 2025	66,683		—
Total future payments	230,370		1,008
Less: interest	15,689		31
Total lease liabilities	$	214,681	$	977

		Three months ended September 30,				Nine months ended September 30,
	Classification	2021		2020		2021		2020
Operating lease expense	General, administrative and other expenses	$	9,697	$	7,701	$	27,203	$	23,138
Finance lease expense:
Amortization of finance lease assets	General, administrative and other expenses	154		127		408		346
Interest on finance lease liabilities	Interest expense	7		11		24		33
Total lease expense		$	9,858	$	7,839	$	27,635	$	23,517

	Nine months ended September 30,
Other information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	26,704	$	23,098
Operating cash flows for finance leases	34		48
Financing cash flows for finance leases	463		412
Leased assets obtained in exchange for new finance lease liabilities	189		—
Leased assets obtained in exchange for new operating lease liabilities	55,461		12,477

	As of September 30,		As of December 31,
Lease term and discount rate	2021		2020
Weighted-average remaining lease terms (in years):
Operating leases	6.1		6.0
Finance leases	2.1		2.6
Weighted-average discount rate:
Operating leases	2.97	%	3.59	%
Finance leases	2.91	%	3.26	%

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

10. RELATED PARTY TRANSACTIONS

Substantially all of the Company’s revenue is earned from its affiliates, including management fees, carried interest allocation, incentive fees, principal investment income and administrative expense reimbursements. The related accounts receivable are included within due from affiliates within the Condensed Consolidated Statements of Financial Condition, except that accrued carried interest allocations, which is predominantly due from affiliated funds, is presented separately within investments in 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.

The Company also has entered into agreements to be reimbursed for its expenses incurred for providing administrative services to certain related parties, including ARCC, ACRE, ARDC, Ivy Hill Asset Management, L.P., ACF FinCo I L.P. and

CION Ares Diversified Credit Fund. As a result of the Black Creek Acquisition, the Company is party to agreements with each Black Creek fund to provide various services, such as administration, acquisition, development and property management, among others.

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 or performance income.

Performance income 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,
	2021		2020
Due from affiliates:
Management fees receivable from non-consolidated funds	$	347,078	$	308,581
Incentive fee receivable from non-consolidated funds	579		21,495
Payments made on behalf of and amounts due from non-consolidated funds and employees	145,754		75,811
Due from affiliates—Company	$	493,411	$	405,887
Amounts due from portfolio companies and non-consolidated funds	$	9,059	$	17,172
Due from affiliates—Consolidated Funds	$	9,059	$	17,172
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	7,959	$	4,808
Tax receivable agreement liability	97,698		62,505
Undistributed carried interest and incentive fees	64,675		27,322
Payments made by non-consolidated funds on behalf of and payable by the Company	32,106		5,551
Due to affiliates—Company	$	202,438	$	100,186

Due from 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. Amounts advanced on behalf of Consolidated Funds are eliminated in consolidation. 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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INCOME TAXES

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

11. 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. For the three and nine months ended September 30, 2021, the Company recorded income tax expense of $30.3 million and $104.5 million. For the three and nine months ended September 30, 2020, the Company recorded income tax expense of $18.3 million and $22.1 million, respectively.

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 entities that are consolidated in the Company's condensed consolidated financial statements. For the three and nine months ended September 30, 2021 and 2020, 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, 2021 and December 31, 2020, the Company recorded a net deferred tax asset of $29.9 million and $70.0 million, respectively, within other assets in 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 no longer subject to income tax audits by taxing authorities for any years prior to 2017. 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 condensed consolidated financial statements.

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

12. EARNINGS PER SHARE

For the three and nine months ended September 30, 2021, the Company had 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. Additional information on the issuance of the non-voting common stock is discussed in “Note 14. Equity and Redeemable Interests.”

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 method.

For the three and nine months ended September 30, 2021 and the three months ended September 30, 2020, the treasury stock method was the more dilutive method. For the nine months ended September 30, 2020, the two-class method was the more dilutive method.

The computation of diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 excludes the following restricted units and AOG units, as their effect would have been anti-dilutive:

	Three months ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Restricted units	450	572	167	—
AOG Units	119,855,724	114,726,173	115,394,058	—

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
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	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	(1,440)		(2,757)		(8,142)		(7,715)
Undistributed earnings allocable to participating unvested restricted units	(306)		—		(2,858)		—
Net income available to Class A and non-voting common stockholders	$	82,980	$	39,363	$	251,659	$	48,890
Basic weighted-average shares of Class A and non-voting common stock	168,931,621		143,466,209		161,071,151		131,866,471
Basic earnings per share of Class A and non-voting common stock	$	0.49	$	0.27	$	1.55	$	0.37
Diluted earnings per share of Class A and non-voting common stock:
Net income available to Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	—		—		—		(7,715)
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	48,890
Effect of dilutive shares:
Restricted units	12,273,068		9,762,645		10,807,242		—
Options	5,317,468		4,893,709		5,265,045		—
Diluted weighted-average shares of Class A and non-voting common stock	186,522,157		158,122,563		177,143,438		131,866,471
Diluted earnings per share of Class A and non-voting common stock	$	0.45	$	0.27	$	1.48	$	0.37
Dividend declared and paid per Class A and non-voting common stock	$	0.47	$	0.40	$	1.41	$	1.20

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EQUITY COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

EQUITY COMPENSATION

13. EQUITY COMPENSATION

Equity Incentive Plan

Equity-based compensation is granted under the Company's 2014 Equity Incentive Plan (as amended, 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, 2021, the total number of shares available for issuance under the Equity Incentive Plan reset to 44,510,451 shares and as of September 30, 2021, 38,972,964 shares remain available for issuance.

Generally, unvested restricted units 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.

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Restricted units	$	36,390	$	30,036	$	127,219	$	86,804
Restricted units with a market condition	29,601		300		63,925		4,729
Options	—		—		—		43
Equity-based compensation expense	$	65,991	$	30,336	$	191,144	$	91,576

Restricted Units

Each restricted unit represents an unfunded, unsecured right of the holder to receive a share of the Company's Class A common stock on a specific date. The restricted units generally vest and are settled in shares of Class A common stock either (i) at a rate of one-third per year, beginning on the third anniversary of the grant date, (ii) in their entirety on the fifth anniversary of the grant date, (iii) at a rate of one quarter per year, beginning on the second anniversary of the grant date or the holder's employment commencement date, or (iv) at a rate of one third per year, beginning on the first anniversary of 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 restricted units 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, 2021, 8.2 million restricted units vested and 4.4 million shares of Class A common stock were delivered to the holders. For the nine months ended September 30, 2020, 4.7 million restricted units vested and 2.6 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 as described in the subsequent sections, 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”). During the nine months ended September 30, 2021, the Company declared dividends of $0.47 per share to Class A common stockholders at the close of business on March 17, 2021, June 16, 2021 and September 16, 2021. For the three and nine months ended September 30, 2021, Dividend Equivalents were made to the holders of restricted units in the aggregate amount of $6.4 million and $21.7 million, respectively, which are presented as dividends within the Condensed Consolidated Statements of Changes in Equity. When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense in the Condensed Consolidated Statements of Operations.

During the first quarter of 2021, in addition to grants awarded in 2021, the Company approved the future grant of restricted units to certain senior executives in each of 2022, 2023 and 2024, subject to the holder’s continued employment and acceleration in certain instances. The vesting period of these awards are at a rate of 25% per year, beginning on the second anniversary of the grant date. Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period. The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date.

The following table presents unvested restricted units' activity:

	Restricted Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	16,299,664	$	24.30
Granted	9,667,989	46.16
Vested	(6,278,948)	20.70
Forfeited	(1,255,502)	30.48
Balance - September 30, 2021	18,433,203	$	36.33

The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $504.8 million as of September 30, 2021 and is expected to be recognized over the remaining weighted average period of 3.5 years.

Performance-Based Restricted Unit Awards with a Market Condition

During the first quarter of 2021, the Company granted certain restricted units with a vesting condition contingent upon the volume-weighted, average closing price of the Company’s Class A common stock meeting or exceeding a stated price for 30 consecutive calendar days on or prior to January 22, 2029, referred to as the market condition. 537,500 restricted units with a market condition of $55.00 per share (“Tranche I”), 537,500 restricted units with a market condition of $60.00 per share (“Tranche II”), 537,500 restricted units with a market condition of $65.00 per share (“Tranche III”) and 537,500 restricted units with a market condition of $75.00 per share (“Tranche IV”) were granted. Vesting is also generally subject to continued employment at the time such market condition is achieved, subject to certain exceptions upon certain qualifying terminations of employment. Under the terms of the awards, if the target price of the applicable market condition is not achieved by the close of business on January 22, 2029, the unvested market condition awards will be automatically canceled and forfeited for no consideration. Restricted units subject to a market condition are not eligible to receive a Dividend Equivalent.

The grant date fair values for Tranche I, Tranche II, Tranche III and Tranche IV awards were $37.28, $34.47, $31.92 and $27.75 per unit, respectively, based on a probability distributed Monte-Carlo simulation. Due to the existence of the market condition, the vesting period for the awards is not explicit, and as such, compensation expense is recognized on a straight-line basis over the median vesting period derived from the positive iterations of the Monte Carlo simulation where the market condition was achieved. The median vesting period is 0.7 years, 1.2 years, 1.6 years and 2.3 years for Tranche I, Tranche II, Tranche III and Tranche IV, respectively.

Below is a summary of the significant assumptions used to estimate the grant date fair value of market condition awards:

Closing price of the Company's common shares as of valuation date	$45.76
Risk-free interest rate	0.88%
Volatility	35.0%
Dividend yield	3.5%
Cost of equity	10.0%

The following table presents the market condition awards' activity:

	Market Condition Awards Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	—	$	—
Granted	2,150,000	32.86
Vested	(1,925,000)	33.21
Forfeited	(225,000)	29.84
Balance - September 30, 2021	—	$	—

During the nine months ended September 30, 2021, the market-priced vesting condition was met for all four tranches of the market condition awards and resulted in the acceleration of $43.4 million of compensation expense. Tranche I was met during the second quarter of 2021 and Tranche II, III and IV were met during the third quarter of 2021, and the compensation expense was accelerated during each of the quarters of $14.0 million and $29.4 million, respectively.

Options

A summary of options activity during the nine months ended September 30, 2021 is presented below:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (in years)	Aggregate Intrinsic Value
Balance - January 1, 2021	8,312,203	$	18.99	3.4	$	233,251
Granted	—	—		—	—
Exercised	(1,489,789)	18.94		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Balance - September 30, 2021	6,822,414	$	19.00	2.6	$	374,073
Exercisable at September 30, 2021	6,822,414	$	19.00	2.6	$	374,073

Net cash proceeds from exercises of stock options were $27.4 million for the nine months ended September 30, 2021. The Company realized tax benefits of approximately $9.6 million from those exercises.

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EQUITY AND REDEEMABLE INTEREST

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

EQUITY AND REDEEMABLE INTEREST

14. 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. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting 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 2021, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 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 February 2022. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the nine months ended September 30, 2021 and 2020, the Company did not repurchase any shares as part of the stock repurchase program.

On April 5, 2021, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with SMBC. Pursuant to the Purchase Agreement, the Company agreed to issue and sell to SMBC approximately $250.0 million of the Company’s common stock (consisting of 3,489,911 shares of non-voting common stock and 1,234,200 shares of Class A common stock) at a price per share equal to the public offering price of Class A common stock being offered pursuant to the Offering (as defined below), less underwriting discounts and commissions (the “Private Placement”). The Private Placement closed on April 8, 2021 and resulted in gross proceeds to the Company of approximately $250.0 million before deducting offering expenses.

On April 6, 2021, the Company entered into an underwriting agreement pursuant to which the Company agreed to issue and sell 10,925,000 shares of the Class A common stock (including 1,425,000 shares of Class A common stock sold pursuant to the exercise of the underwriters' option to purchase additional shares of Class A common stock) (collectively, the “Offering”). The Offering closed on April 8, 2021 and resulted in gross proceeds to the Company of approximately $578.2 million before deducting offering expenses.

Offering expenses for the Private Placement and Offering amounted to approximately $0.7 million. The expenses have been recorded as a reduction in the proceeds received and are presented on a net basis together with issuances of common stock in additional paid-in-capital within the Condensed Consolidated Statements of Changes in Equity.

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

	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance - January 1, 2021	147,182,562	—	1,000	112,447,618	259,631,180
Issuance of stock(1)	12,159,200	3,489,911	—	8,744,296	24,393,407
Exchanges of AOG Units	2,330,367	—	—	(2,330,367)	—
Redemptions of AOG Units	—	—	—	(58,290)	(58,290)
Stock option exercises, net of shares withheld for tax	1,460,388	—	—	—	1,460,388
Vesting of restricted stock awards, net of shares withheld for tax	4,448,648	—	—	—	4,448,648
Balance - September 30, 2021	167,581,165	3,489,911	1,000	118,803,257	289,875,333

(1) Issuances of Class C Common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

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

							Daily Average Ownership
	As of September 30, 2021			As of December 31, 2020				Three months ended September 30,				Nine months ended September 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest			2021		2020		2021		2020
Ares Management Corporation	171,071,076	59.02	%	147,182,562	56.69	%		58.50	%	55.57	%	58.26	%	53.33	%
Ares Owners Holdings, L.P.	118,803,257	40.98		112,447,618	43.31			41.50		44.43		41.74		46.67
Total	289,874,333	100.00	%	259,630,180	100.00	%

Preferred Stock

As of December 31, 2020, the Company had 12,400,000 shares of the Series A Preferred Stock outstanding. As and if declared by the Company’s board of directors, dividends on the Series A Preferred Stock are payable quarterly at a rate per annum equal to 7.00%. The Series A Preferred Stock could be redeemed at the Company’s option, in whole or in part, at any time on or after June 30, 2021, at a price per share of $25.00.

On June 30, 2021 (the “Redemption Date”), the Company redeemed all shares of the Series A Preferred Stock outstanding at a redemption price per share of $25.00. The redemption price did not include any accrued dividends as the Redemption Date occurred on the dividend payment date. On the Redemption Date, the Company paid $310.0 million for the redemption of the Series A Preferred Stock and $5.4 million for the previously announced dividend of $0.4375 per share. The excess of the redemption price over the carrying value of the Series A Preferred Stock of approximately $11.2 million relates to the original issuance costs and is presented as a reduction to net income available to common stockholders and to non-controlling interests in AOG entities within the Condensed Consolidated Statements of Operations.

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in Ares Operating Group entities:

	Total
Balance - January 1, 2021	$	100,366
Net income	32
Currency translation adjustment, net of tax	(590)
Balance- March 31, 2021	$	99,808
Net income	$	337
Currency translation adjustment, net of tax	186
Distribution	(300)
Balance- June 30, 2021	$	100,031
Net income	$	324
Currency translation adjustment, net of tax	(356)
Distribution	(1,350)
Balance- September 30, 2021	$	98,649

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

	Total
Balance - January 1, 2021	$	—
Redemption value	930,924
Balance- March 31, 2021	$	930,924
Change in redemption value	(14,100)
Balance- June 30, 2021	$	916,824
Change in redemption value	83,176
Balance- September 30, 2021	$	1,000,000

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SEGMENT REPORTING

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

15. SEGMENT REPORTING

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

Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including syndicated loans, high yield bonds, multi-asset credit, alternative credit investments and direct lending. The syndicated loans strategy focuses on evaluating individual credit opportunities related primarily to non-investment grade senior secured loans and primarily targets first lien secured debt, with a secondary focus on second lien secured loans and subordinated and other unsecured loans. The high yield bond strategy seeks to deliver a diversified portfolio of liquid, traded non-investment grade corporate bonds, including secured, unsecured and subordinated debt instruments. Multi-asset credit is a “go anywhere” strategy designed to offer investors a flexible solution to global credit investing by allowing us to tactically allocate between multiple asset classes in various market conditions. The alternative credit strategy seeks to capitalize on asset-focused investment opportunities that fall outside of traditional, well-defined markets such as corporate debt, real estate and private equity. The alternative credit strategy emphasizes downside protection and capital preservation through a focus on investments that tend to share the following key attributes: asset security, covenants, structural protections and cash flow velocity. The direct lending strategy is one of the largest self-originating direct lenders to the U.S. and European markets and has a multi-channel origination strategy designed to address a broad set of investment opportunities in the middle market. The direct lending team maintains a flexible investment strategy with the capability to invest in first lien senior secured loans (including “unitranche” loans which are loans that combine senior and subordinated debt, generally in a first lien position), second lien senior secured loans, subordinated debt, preferred equity and non-control equity co-investments in private middle market companies. U.S. direct lending activities are managed through a publicly traded business development company, ARCC, as well as through private commingled funds and separately managed accounts (“SMAs”).

Private Equity Group: The Private Equity Group manages investment strategies broadly categorizes its investment activities into three strategies: Corporate Private Equity, Special Opportunities and Infrastructure and Power. In the Corporate Private Equity strategy, the Company targets four principal transactions types: prudently leveraged control buyouts, growth equity, rescue/deleveraging capital and distressed buyouts/discounted debt accumulation together with the broad resources of potential investment opportunities. This flexible capital approach, together with the broad resources of the Ares platform, widens our universe of potential investment opportunities and allows us to remain active in different markets and to be highly selective in making investments across various market environments. In the Special Opportunities strategy, the Company employs a flexible capital strategy to target non-control positions across a broad spectrum of stressed, distressed and opportunistic situations. The Infrastructure and Power strategy targets value-added approach that seeks to source and structure essential infrastructure assets with strong downside protection and potential for capital appreciation throughout the climate infrastructure, natural gas generation, and energy transportation sectors.

Real Estate Group: The Real Estate Group manages comprehensive real estate equity and debt strategies, focusing on activities categorized as core, value-add, and opportunistic. Real Estate equity strategies involve high-quality properties and locations and de-risked developments with an opportunity to create value through repositioning, lease-up, re-tenanting, redevelopment, and/or complex recapitalizations. The group targets assets located in liquid markets with diversified economies in order to deliver compelling, risk-adjusted returns through a combination of asset selectivity and disciplined portfolio management. The U.S. core investment activities focus on the acquisition of assets secured by long-term cash flows and durable tenancy diversified across geographies and end-user industries. The core strategy encompasses industrial, multifamily, office, necessity-based retail, and other property types across major metropolitan economies. The value-add investment activities focus on acquiring underperforming, income-producing, institutional-quality assets that can be improved through select value-creation initiatives across the U.S. and Europe. The opportunistic activities focus on capitalizing on distressed and special situations, repositioning underperforming assets and undertaking select development and redevelopment projects across the U.S. and Europe. Additionally, the Ares Real Estate Group has specialized operating and investment capabilities specifically in the industrial sector through its vertically integrated operating platform. The Company’s debt strategies leverage the Real Estate Group’s diverse sources of capital to directly originate and invest in a wide range of financing opportunities in the U.S. In addition to managing private commingled funds and SMAs investing in equity and debt strategies, the Real Estate Group also makes investments through Black Creek Diversified Property Fund, Inc. (“DPF”) and Black Creek Industrial REIT IV, Inc. (“BCI IV”), its non-traded REITs, and ACRE, a publicly traded commercial mortgage REIT.

Secondary Solutions Group: The Secondary Solutions Group was formed during the second quarter of 2021 in connection with the Landmark Acquisition. The Secondary Solutions Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate and infrastructure. The Company acquires interests across a range of partnership vehicles, including funds, multi-asset portfolios and single asset joint ventures. Each strategy focuses on recapitalizing and restructuring the funds, including transactions that can address pending fund maturity, strategy change or the need for additional equity capital. The private equity secondaries strategy targets opportunities in non-competitive channels and makes investments in durable, performing assets with attractive capital structures. In the real estate secondaries strategy, the Company seeks broad diversification by property sector and geography and to drive investment results through underwriting, transaction structuring and portfolio construction. In the infrastructure secondaries strategy, the Company focuses on achieving diversification through a portfolio that provides inflation protection and exposure to uncorrelated assets.

Strategic Initiatives: The Company began reflecting the Strategic Initiatives category beginning in the third quarter of 2020. It represents an all other category that includes operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets including Ares SSG, Ares Insurance Solutions (“AIS”) and AAC.

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. The OMG includes Ares Wealth Management Solutions (“WMS”) that 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 investment companies and partnerships, which reimburse the OMG for expenses equal to the costs of services provided. The OMG’s revenues and expenses are not allocated to the Company’s reportable segments but the Company does consider the cost structure of the OMG when evaluating its financial performance.

Segment Profit Measures: These measures supplement and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

Fee related earnings (“FRE”) is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes performance income, performance related compensation, investment income from the Consolidated Funds and non-consolidated funds and certain other items that the Company believes are not indicative of its core operating performance.

Realized income (“RI”) 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 (a) operating results of the Consolidated Funds, (b) depreciation and amortization expense, (c) the effects of changes arising from corporate actions, (d) unrealized gains and losses related to performance income and investment performance and (e) 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. Management believes RI is a more appropriate metric to evaluate the Company's current business operations.

Management 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.

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

	Three months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	271,591	$	69,591	$	55,160	$	41,064	16,544		$	453,950	$	—	$	453,950
Other fees	5,798		370		3,681		—		2		9,851		3,446		13,297
Compensation and benefits	(86,502)		(26,773)		(29,160)		(11,955)		(5,316)		(159,706)		(66,107)		(225,813)
General, administrative and other expenses	(14,930)		(6,238)		(5,420)		(2,593)		(1,774)		(30,955)		(28,142)		(59,097)
Fee related earnings	175,957		36,950		24,261		26,516		9,456		273,140		(90,803)		182,337
Performance income—realized	6,332		34,316		4,693		—		—		45,341		—		45,341
Performance related compensation—realized	(3,079)		(27,483)		(3,166)		—		—		(33,728)		—		(33,728)
Realized net performance income	3,253		6,833		1,527		—		—		11,613		—		11,613
Investment income—realized	618		2,020		1,699		—		1,025		5,362		—		5,362
Interest and other investment income (expense)—realized	4,716		4,861		918		699		163		11,357		(270)		11,087
Interest expense	(2,392)		(2,726)		(1,683)		(427)		(4,135)		(11,363)		(160)		(11,523)
Realized net investment income (loss)	2,942		4,155		934		272		(2,947)		5,356		(430)		4,926
Realized income	$	182,152	$	47,938	$	26,722	$	26,788	$	6,509	$	290,109	$	(91,233)	$	198,876
	Three months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	208,371	$	54,653	$	23,787	$	—	$	13,320	$	300,131	$	—	$	300,131
Other fees	4,898		2		5		—		6		4,911		—		4,911
Compensation and benefits	(74,373)		(21,224)		(13,011)		—		(4,241)		(112,849)		(41,551)		(154,400)
General, administrative and other expenses	(13,789)		(6,002)		(2,987)		—		(1,514)		(24,292)		(19,519)		(43,811)
Fee related earnings	125,107		27,429		7,794		—		7,571		167,901		(61,070)		106,831
Performance income—realized	7,069		115,997		199		—		—		123,265		—		123,265
Performance related compensation—realized	(4,131)		(93,284)		(123)		—		—		(97,538)		—		(97,538)
Realized net performance income	2,938		22,713		76		—		—		25,727		—		25,727
Investment income—realized	—		16,351		486		—		—		16,837		—		16,837
Interest and other investment income (expense)—realized	1,962		1,065		1,308		—		(4)		4,331		(503)		3,828
Interest expense	(2,340)		(2,216)		(1,389)		—		(729)		(6,674)		(141)		(6,815)
Realized net investment income (loss)	(378)		15,200		405		—		(733)		14,494		(644)		13,850
Realized income	$	127,667	$	65,342	$	8,275	$	—	$	6,838	$	208,122	$	(61,714)	$	146,408

	Nine months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	764,702	$	171,019	$	115,602	$	53,962	$	48,963	$	1,154,248	$	—	$	1,154,248
Other fees	18,494		726		4,604		—		82		23,906		3,446		27,352
Compensation and benefits	(252,783)		(73,534)		(60,767)		(16,244)		(15,440)		(418,768)		(158,943)		(577,711)
General, administrative and other expenses	(37,716)		(17,499)		(12,064)		(3,452)		(5,580)		(76,311)		(69,872)		(146,183)
Fee related earnings	492,697		80,712		47,375		34,266		28,025		683,075		(225,369)		457,706
Performance income—realized	78,255		159,479		12,255		—		—		249,989		—		249,989
Performance related compensation—realized	(49,433)		(127,706)		(8,167)		—		—		(185,306)		—		(185,306)
Realized net performance income	28,822		31,773		4,088		—		—		64,683		—		64,683
Investment income—realized	1,858		5,308		4,182		—		1,347		12,695		—		12,695
Interest and other investment income—realized	14,354		10,716		3,892		701		2,824		32,487		170		32,657
Interest expense	(5,372)		(6,032)		(3,930)		(432)		(8,962)		(24,728)		(397)		(25,125)
Realized net investment income (loss)	10,840		9,992		4,144		269		(4,791)		20,454		(227)		20,227
Realized income	$	532,359	$	122,477	$	55,607	$	34,535	$	23,234	$	768,212	$	(225,596)	$	542,616
	Nine months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	606,596	$	160,206	$	71,459	$	—	$	13,320	$	851,581	$	—	$	851,581
Other fees	12,057		142		716		—		6		12,921		—		12,921
Compensation and benefits	(222,063)		(62,946)		(38,159)		—		(4,241)		(327,409)		(114,916)		(442,325)
General, administrative and other expenses	(41,626)		(16,083)		(9,185)		—		(1,514)		(68,408)		(56,877)		(125,285)
Fee related earnings	354,964		81,319		24,831		—		7,571		468,685		(171,793)		296,892
Performance income—realized	16,085		276,469		27,106		—		—		319,660		—		319,660
Performance related compensation—realized	(12,142)		(222,949)		(17,484)		—		—		(252,575)		—		(252,575)
Realized net performance income	3,943		53,520		9,622		—		—		67,085		—		67,085
Investment income (loss)—realized	(843)		35,866		2,740		—		—		37,763		(5,698)		32,065
Interest and other investment income (expense)—realized	13,166		2,364		3,024		—		(4)		18,550		(588)		17,962
Interest expense	(6,391)		(6,106)		(3,715)		—		(729)		(16,941)		(1,262)		(18,203)
Realized net investment income (loss)	5,932		32,124		2,049		—		(733)		39,372		(7,548)		31,824
Realized income	$	364,839	$	166,963	$	36,502	$	—	$	6,838	$	575,142	$	(179,341)	$	395,801

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Segment revenues
Management fees	$	453,950	$	300,131	$	1,154,248	$	851,581
Other fees	9,851		4,911		23,906		12,921
Performance income—realized	45,341		123,265		249,989		319,660
Total segment revenues	$	509,142	$	428,307	$	1,428,143	$	1,184,162
Segment expenses
Compensation and benefits	$	159,706	$	112,849	$	418,768	$	327,409
General, administrative and other expenses	30,955		24,292		76,311		68,408
Performance related compensation—realized	33,728		97,538		185,306		252,575
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392
Segment realized net investment income
Investment income—realized	$	5,362	$	16,837	$	12,695	$	37,763
Interest and other investment income —realized	11,357		4,331		32,487		18,550
Interest expense	(11,363)		(6,674)		(24,728)		(16,941)
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

    

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated revenue	$	948,719	$	489,866	$	2,901,926	$	1,106,033
Performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Management fees of Consolidated Funds eliminated in consolidation	11,051		11,719		33,416		33,601
Incentive fees of Consolidated Funds eliminated in consolidation	—		—		1,528		(70)
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	4,264		4,448		13,157		12,249
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG revenue	(3,446)		—		(3,446)		—
Performance income (loss) reclass(2)	680		(291)		1,285		(3,664)
Principal investment income, net of eliminations	(14,250)		(11,408)		(86,477)		(8,330)
Net income of non-controlling interests in consolidated subsidiaries	(6,927)		(4,323)		(16,795)		(5,808)
Total consolidation adjustments and reconciling items	(439,577)		(61,559)		(1,473,783)		78,129
Total segment revenue	$	509,142	$	428,307	$	1,428,143	$	1,184,162

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

(2)Related to performance income for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated expenses	$	813,267	$	392,580	$	2,363,108	$	958,106
Performance related compensation-unrealized	(296,044)		(24,818)		(1,022,393)		61,010
Expenses of Consolidated Funds added in consolidation	(23,206)		(17,737)		(66,653)		(50,237)
Expenses of Consolidated Funds eliminated in consolidation	11,102		11,718		35,078		33,531
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG expenses	(94,249)		(61,070)		(228,815)		(171,793)
Acquisition and merger-related expense	(754)		(3,474)		(18,364)		(9,430)
Equity compensation expense	(65,991)		(30,336)		(191,144)		(91,576)
Acquisition-related compensation expense(2)	(28,194)		—		(32,824)		—
Deferred placement fees	(32,413)		(2,942)		(33,740)		(18,677)
Depreciation and amortization expense	(36,668)		(14,336)		(71,742)		(26,197)
Expense of non-controlling interests in consolidated subsidiaries	(6,829)		(5,690)		(17,372)		(8,630)
Total consolidation adjustments and reconciling items	(588,878)		(157,901)		(1,682,723)		(309,714)
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392

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

(2)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated other income (expense)	$	111,536	$	62,355	$	218,011	$	(43,602)
Investment (income) loss—unrealized	(3,609)		1,479		(60,588)		83,369
Interest and other investment (income) loss—unrealized	(1,405)		(1,390)		3,057		(10,330)
Other (income) loss from Consolidated Funds added in consolidation, net	(76,287)		(68,132)		(178,195)		20,719
Other expense from Consolidated Funds eliminated in consolidation, net	(4,973)		(3,470)		(13,783)		(11,478)
OMG other (income) expense	37		(1,820)		646		(781)
Performance (income) loss reclass(1)	(680)		291		(1,285)		3,664
Principal investment income (loss)	20,719		18,080		96,448		(24,951)
Other (income) expense, net	(34,812)		9,534		(34,666)		9,903
Other (income) loss of non-controlling interests in consolidated subsidiaries	(5,170)		(2,433)		(9,191)		12,859
Total consolidation adjustments and reconciling items	(106,180)		(47,861)		(197,557)		82,974
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

(1)Related to performance income for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

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,
	2021		2020		2021		2020
Income before taxes	$	246,988	$	159,641	$	756,829	$	104,325
Adjustments:
Depreciation and amortization expense	36,668		14,336		71,742		26,197
Equity compensation expense	65,991		30,336		191,144		91,576
Acquisition-related compensation expense(1)	28,194		—		32,824		—
Acquisition and merger-related expense	7,967		3,490		26,188		9,815
Deferred placement fees	32,413		2,942		33,740		18,677
OMG expense, net	90,840		59,250		226,015		171,012
Other (income) expense, net	(42,025)		9,518		(42,490)		9,518
Net (income) expense of non-controlling interests in consolidated subsidiaries	(5,268)		(1,066)		(8,614)		15,681
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(47,372)		(42,744)		(102,331)		38,446
Total performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Total performance related compensation—unrealized	296,044		24,818		1,022,393		(61,010)
Total investment (income) loss—unrealized	(5,014)		89		(57,531)		73,039
Realized income	290,109		208,122		768,212		575,142
Total performance income—realized	(45,341)		(123,265)		(249,989)		(319,660)
Total performance related compensation—realized	33,728		97,538		185,306		252,575
Total investment income—realized	(5,356)		(14,494)		(20,454)		(39,372)
Fee related earnings	$	273,140	$	167,901	$	683,075	$	468,685

(1)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

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CONSOLIDATION

9 Months Ended

Sep. 30, 2021

Condensed Financial Information Disclosure [Abstract]

CONSOLIDATION

16. CONSOLIDATION

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 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 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,
	2021		2020
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs(1)	$	340,988	$	224,203
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs(1)	478,164		391,963
Assets of consolidated VIEs	12,190,617		11,580,003
Liabilities of consolidated VIEs	11,238,928		10,716,438

(1)As of September 30, 2021 and December 31, 2020, 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 $104.4 million and $107.7 million, respectively.

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	$	38,597	$	42,627	$	84,285	$	(38,593)

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, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	295,704	$	—	$	—	$	295,704
Investments (includes $2,625,319 of accrued carried interest)	3,804,023		—		(481,358)		3,322,665
Due from affiliates	517,504		—		(24,093)		493,411
Other assets	1,006,870		—		—		1,006,870
Intangible assets, net	1,452,690		—		—		1,452,690
Right-of-use operating lease assets	176,511		—		—		176,511
Assets of Consolidated Funds
Cash and cash equivalents	—		1,581,433		—		1,581,433
U.S. Treasury securities, at fair value	—		1,000,165		—		1,000,165
Investments, at fair value	—		10,356,640		4,214		10,360,854
Due from affiliates	—		19,089		(10,030)		9,059
Receivable for securities sold	—		187,230		—		187,230
Other assets	—		47,806		—		47,806
Total assets	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398
Liabilities
Accounts payable, accrued expenses and other liabilities	$	218,171	$	—	$	(10,030)	$	208,141
Accrued compensation	309,569		—		—		309,569
Due to affiliates	202,438		—		—		202,438
Performance related compensation payable	1,895,343		—		—		1,895,343
Debt obligations	1,238,325		—		—		1,238,325
Operating lease liabilities	214,681		—		—		214,681
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		102,883		(13,198)		89,685
Due to affiliates	—		19,880		(19,880)		—
Payable for securities purchased	—		863,007		—		863,007
CLO loan obligations, at fair value	—		10,220,040		(45,246)		10,174,794
Fund borrowings	—		99,240		—		99,240
Total liabilities	4,078,527		11,305,050		(88,354)		15,295,223
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		1,000,000		—		1,000,000
Redeemable interest in Ares Operating Group entities	98,649		—		—		98,649
Non-controlling interest in Consolidated Funds	—		887,313		(422,913)		464,400
Non-controlling interest in Ares Operating Group entities	1,322,866		—		—		1,322,866
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero shares issued and outstanding)	—		—		—		—
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (167,581,165 shares issued and outstanding)	1,676		—		—		1,676
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 (118,803,257 shares issued and outstanding)	1,188		—		—		1,188
Additional paid-in-capital	1,881,913		—		—		1,881,913
Retained earnings	(128,981)		—		—		(128,981)
Accumulated other comprehensive loss, net of tax	(2,571)		—		—		(2,571)
Total stockholders' equity	1,753,260		—		—		1,753,260
Total equity	3,076,126		887,313		(422,913)		3,540,526
Total liabilities, redeemable interest, non-controlling interests and equity	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398

	As of December 31, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	539,812	$	—	$	—	$	539,812
Investments (includes $1,145,853 of accrued carried interest)	2,064,517		—		(381,758)		1,682,759
Due from affiliates	426,021		—		(20,134)		405,887
Other assets	590,543		—		(211)		590,332
Intangible assets, net	222,087		—		—		222,087
Right-of-use operating lease assets	154,742		—		—		154,742
Assets of Consolidated Funds
Cash and cash equivalents	—		522,377		—		522,377
Investments, at fair value	—		10,873,522		3,575		10,877,097
Due from affiliates	—		27,377		(10,205)		17,172
Receivable for securities sold	—		121,225		—		121,225
Other assets	—		35,502		—		35,502
Total assets	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992
Liabilities
Accounts payable, accrued expenses and other liabilities	$	125,494	$	—	$	(10,205)	$	115,289
Accrued compensation	103,010		—		—		103,010
Due to affiliates	100,186		—		—		100,186
Performance related compensation payable	813,378		—		—		813,378
Debt obligations	642,998		—		—		642,998
Operating lease liabilities	180,236		—		—		180,236
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		46,824		—		46,824
Due to affiliates	—		16,770		(16,770)		—
Payable for securities purchased	—		514,946		—		514,946
CLO loan obligations	—		10,015,989		(57,913)		9,958,076
Fund borrowings	—		121,909		—		121,909
Total liabilities	1,965,302		10,716,438		(84,888)		12,596,852
Commitments and contingencies
Redeemable interest in Ares Operating Group entities	100,366		—		—		100,366
Non-controlling interest in Consolidated Funds	—		863,565		(323,845)		539,720
Non-controlling interest in Ares Operating Group entities	738,369		—		—		738,369
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 (147,182,562 shares issued and outstanding)	1,472		—		—		1,472
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 (112,447,618 share issued and outstanding)	1,124		—		—		1,124
Additional paid-in-capital	1,043,669		—		—		1,043,669
Retained earnings	(151,824)		—		—		(151,824)
Accumulated other comprehensive income, net of tax	483		—		—		483
Total stockholders' equity	1,193,685		—		—		1,193,685
Total equity	1,932,054		863,565		(323,845)		2,471,774
Total liabilities, redeemable interest, non-controlling interests and equity	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992

	Three months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	459,313	$	—	$	(11,051)	$	448,262
Carried interest allocation	460,651		—		—		460,651
Incentive fees	696		—		—		696
Principal investment income	20,719		—		(6,469)		14,250
Administrative, transaction and other fees	29,124		—		(4,264)		24,860
Total revenues	970,503		—		(21,784)		948,719
Expenses
Compensation and benefits	335,569		—		—		335,569
Performance related compensation	331,141		—		—		331,141
General, administrative and other expense	134,453		—		—		134,453
Expenses of the Consolidated Funds	—		23,206		(11,102)		12,104
Total expenses	801,163		23,206		(11,102)		813,267
Other income (expense)
Net realized and unrealized gains on investments	2,759		—		5,575		8,334
Interest and dividend income	2,702		—		(1,326)		1,376
Interest expense	(11,523)		—		—		(11,523)
Other income, net	36,338		—		316		36,654
Net realized and unrealized gains on investments of the Consolidated Funds	—		36,695		(2,450)		34,245
Interest and other income of the Consolidated Funds	—		104,344		(316)		104,028
Interest expense of the Consolidated Funds	—		(64,752)		3,174		(61,578)
Total other income	30,276		76,287		4,973		111,536
Income before taxes	199,616		53,081		(5,709)		246,988
Income tax expense	30,273		2		—		30,275
Net income	169,343		53,079		(5,709)		216,713
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		53,079		(5,709)		47,370
Net income attributable to Ares Operating Group entities	169,343		—		—		169,343
Less: Net income attributable to redeemable interest in Ares Operating Group entities	324		—		—		324
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	84,293		—		—		84,293
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	—	$	—	$	84,726

	Three months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	304,153	$	—	$	(11,719)	$	292,434
Carried interest allocation	168,978		—		—		168,978
Incentive fees	7,194		—		—		7,194
Principal investment income	18,080		—		(6,672)		11,408
Administrative, transaction and other fees	14,300		—		(4,448)		9,852
Total revenues	512,705		—		(22,839)		489,866
Expenses
Compensation and benefits	194,267		—		—		194,267
Performance related compensation	122,356		—		—		122,356
General, administrative and other expense	69,938		—		—		69,938
Expenses of the Consolidated Funds	—		17,737		(11,718)		6,019
Total expenses	386,561		17,737		(11,718)		392,580
Other income (expense)
Net realized and unrealized gains (losses) on investments	2,303		—		(4,910)		(2,607)
Interest and dividend income	1,602		—		(258)		1,344
Interest expense	(6,815)		—		—		(6,815)
Other income (expense), net	(6,337)		—		8,540		2,203
Net realized and unrealized gains on investments of the Consolidated Funds	—		9,850		8,121		17,971
Interest and other income of the Consolidated Funds	—		126,100		(9,519)		116,581
Interest expense of the Consolidated Funds	—		(67,818)		1,496		(66,322)
Total other income (expense)	(9,247)		68,132		3,470		62,355
Income before taxes	116,897		50,395		(7,651)		159,641
Income tax expense	18,197		117		—		18,314
Net income	98,700		50,278		(7,651)		141,327
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		50,278		(7,651)		42,627
Net income attributable to Ares Operating Group entities	98,700		—		—		98,700
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	52,162		—		—		52,162
Net income attributable to Ares Management Corporation	47,545		—		—		47,545
Less: Series A Preferred Stock dividends paid	5,425		—		—		5,425
Net income attributable to Ares Management Corporation Class A common stockholders	$	42,120	$	—	$	—	$	42,120

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,169,237	$	—	$	(33,416)	$	1,135,821
Carried interest allocation	1,610,707		—		—		1,610,707
Incentive fees	20,948		—		(1,528)		19,420
Principal investment income	96,448		—		(9,971)		86,477
Administrative, transaction and other fees	62,658		—		(13,157)		49,501
Total revenues	2,959,998		—		(58,072)		2,901,926
Expenses
Compensation and benefits	837,108		—		—		837,108
Performance related compensation	1,208,954		—		—		1,208,954
General, administrative and other expense	285,471		—		—		285,471
Expenses of the Consolidated Funds	—		66,653		(35,078)		31,575
Total expenses	2,331,533		66,653		(35,078)		2,363,108
Other income (expense)
Net realized and unrealized gains on investments	10,602		—		8,142		18,744
Interest and dividend income	9,695		—		(2,877)		6,818
Interest expense	(25,125)		—		—		(25,125)
Other income, net	30,861		—		(175)		30,686
Net realized and unrealized gains on investments of the Consolidated Funds	—		46,541		(1,821)		44,720
Interest and other income of the Consolidated Funds	—		333,570		175		333,745
Interest expense of the Consolidated Funds	—		(201,916)		10,339		(191,577)
Total other income	26,033		178,195		13,783		218,011
Income before taxes	654,498		111,542		(9,211)		756,829
Income tax expense	104,411		76		—		104,487
Net income	550,087		111,466		(9,211)		652,342
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		111,466		(9,211)		102,255
Net income attributable to Ares Operating Group entities	550,087		—		—		550,087
Less: Net income attributable to redeemable interest in Ares Operating Group entities	693		—		—		693
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	264,646		—		—		264,646
Net income attributable to Ares Management Corporation	284,748		—		—		284,748
Less: Series A Preferred Stock dividends paid	10,850		—		—		10,850
Less: Series A Preferred Stock redemption premium	11,239		—		—		11,239
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	262,659	$	—	$	—	$	262,659

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	856,751	$	—	$	(33,601)	$	823,150
Carried interest allocation	241,380		—		—		241,380
Incentive fees	4,206		—		70		4,276
Principal investment income (loss)	(24,951)		—		33,281		8,330
Administrative, transaction and other fees	41,146		—		(12,249)		28,897
Total revenues	1,118,532		—		(12,499)		1,106,033
Expenses
Compensation and benefits	559,482		—		—		559,482
Performance related compensation	191,565		—		—		191,565
General, administrative and other expense	190,353		—		—		190,353
Expenses of the Consolidated Funds	—		50,237		(33,531)		16,706
Total expenses	941,400		50,237		(33,531)		958,106
Other income (expense)
Net realized and unrealized losses on investments	(25,360)		—		15,009		(10,351)
Interest and dividend income	8,102		—		(2,990)		5,112
Interest expense	(18,203)		—		—		(18,203)
Other income, net	1,100		—		8,748		9,848
Net realized and unrealized losses on investments of the Consolidated Funds	—		(148,826)		(4,442)		(153,268)
Interest and other income of the Consolidated Funds	—		355,639		(9,519)		346,120
Interest expense of the Consolidated Funds	—		(227,532)		4,672		(222,860)
Total other expense	(34,361)		(20,719)		11,478		(43,602)
Income (loss) before taxes	142,771		(70,956)		32,510		104,325
Income tax expense	21,972		147		—		22,119
Net income (loss)	120,799		(71,103)		32,510		82,206
Less: Net loss attributable to non-controlling interests in Consolidated Funds	—		(71,103)		32,510		(38,593)
Net income attributable to Ares Operating Group entities	120,799		—		—		120,799
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	48,926		—		—		48,926
Net income attributable to Ares Management Corporation	72,880		—		—		72,880
Less: Series A Preferred Stock dividends paid	16,275		—		—		16,275
Net income attributable to Ares Management Corporation Class A common stockholders	$	56,605	$	—	$	—	$	56,605

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	550,087	$	111,466	$	(9,211)	$	652,342
Adjustments to reconcile net income to net cash provided by (used in) operating activities	(28,467)		—		99,600		71,133
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(1,697,529)		9,444		(1,688,085)
Cash flows due to changes in operating assets and liabilities	(153,361)		—		3,923		(149,438)
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	—		343,253		(1,072,956)		(729,703)
Net cash provided by (used in) operating activities	368,259		(1,242,810)		(969,200)		(1,843,751)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(15,152)		—		—		(15,152)
Acquisitions, net of cash acquired	(1,057,426)		—		—		(1,057,426)
Net cash used in investing activities	(1,072,578)		—		—		(1,072,578)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock	827,430		—		—		827,430
Proceeds from Credit Facility	468,000		—		—		468,000
Proceeds from subordinated notes	450,000		—		—		450,000
Repayments of Credit Facility	(318,000)		—		—		(318,000)
Dividends and distributions	(438,568)		—		—		(438,568)
Series A Preferred Stock dividends	(10,850)		—		—		(10,850)
Redemption of Series A Preferred Stock	(310,000)		—		—		(310,000)
Stock option exercises	27,409		—		—		27,409
Taxes paid related to net share settlement of equity awards	(221,287)		—		—		(221,287)
Other financing activities	1,976		—		—		1,976
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		1,027,454		(107,788)		919,666
Distributions to non-controlling interests in Consolidated Funds	—		(102,701)		17,931		(84,770)
Borrowings under loan obligations by Consolidated Funds	—		1,456,887		—		1,456,887
Repayments under loan obligations by Consolidated Funds	—		(74,909)		—		(74,909)
Net cash provided by financing activities	476,110		2,306,731		(89,857)		2,692,984
Effect of exchange rate changes	(15,899)		(4,864)		—		(20,763)
Net change in cash and cash equivalents	(244,108)		1,059,057		(1,059,057)		(244,108)
Cash and cash equivalents, beginning of period	539,812		522,377		(522,377)		539,812
Cash and cash equivalents, end of period	$	295,704	$	1,581,434	$	(1,581,434)	$	295,704
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions	$	511,069	$	—	$	—	$	511,069

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income (loss)	$	120,799	$	(71,103)	$	32,510	$	82,206
Adjustments to reconcile net income to net cash provided by operating activities	207,358		—		(22,772)		184,586
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(733,607)		(32,792)		(766,399)
Cash flows due to changes in operating assets and liabilities	152,691		—		(6,989)		145,702
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		105,992		260,375		366,367
Net cash provided by (used in) operating activities	480,848		(698,718)		230,332		12,462
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(8,608)		—		—		(8,608)
Cash paid for asset acquisition	(117,829)		—		—		(117,829)
Net cash used in investing activities	(126,437)		—		—		(126,437)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock	383,154		—		—		383,154
Proceeds from Credit Facility	790,000		—		—		790,000
Proceeds from Senior Notes	399,084		—		—		399,084
Repayments of Credit Facility	(860,000)		—		—		(860,000)
Dividends and distributions	(334,957)		—		—		(334,957)
Series A Preferred Stock dividends	(16,275)		—		—		(16,275)
Stock option exercises	78,959		—		—		78,959
Taxes paid related to net share settlement of equity awards	(75,657)		—		—		(75,657)
Other financing activities	(4,137)		—		—		(4,137)
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		138,760		(15,047)		123,713
Distributions to non-controlling interests in Consolidated Funds	—		(195,598)		25,851		(169,747)
Borrowings under loan obligations by Consolidated Funds	—		618,207		—		618,207
Repayments under loan obligations by Consolidated Funds	—		(104,794)		—		(104,794)
Net cash provided by financing activities	360,171		456,575		10,804		827,550
Effect of exchange rate changes	15,786		1,007		—		16,793
Net change in cash and cash equivalents	730,368		(241,137)		241,137		730,368
Cash and cash equivalents, beginning of period	138,384		606,321		(606,321)		138,384
Cash and cash equivalents, end of period	$	868,752	$	365,185	$	(365,185)	$	868,752
Supplemental disclosure of non-cash financing activities
Issuance of Class A common stock in connection with acquisitions	$	305,388	$	—	$	—	$	305,338

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after September 30, 2021 through the date the condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure:

In October 2021, the Company's board of directors declared a quarterly dividend of $0.47 per share of Class A and non-voting common stock payable on December 31, 2021 to common stockholders of record at the close of business on December 17, 2021.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The 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 condensed consolidated financial statements are presented fairly and that estimates made in preparing its 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 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, 2020 filed with the Securities and Exchange Commission (“SEC”).

As of September 30, 2021, the impact of the outbreak of the novel coronavirus (“COVID-19”) pandemic continues to unfold. As a result, management's estimates and assumptions may be subject to a higher degree of variability and volatility that may result in material differences from the current period.

The condensed consolidated financial statements include the accounts and activities of the AOG entities, their consolidated subsidiaries and certain Consolidated Funds. All intercompany balances and transactions have been eliminated upon consolidation.

Reclassifications

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

Business Combinations

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition, including the fair value of certain elements of contingent consideration, is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Contingent consideration obligations are recognized as of the acquisition date at fair value based on the probability that contingency will be realized. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities assumed is recorded as goodwill. Conversely, any excess of the fair value of the net assets acquired over the purchase consideration is recognized as a bargain purchase gain. Acquisition-related costs incurred in connection with a business combination are expensed as incurred.

U.S. Treasury Securities, at Fair Value

U.S. Treasury Securities, at Fair Value

U.S. Treasury securities, at fair value represents U.S. Treasury bills that were purchased with funds raised through the initial public offering of AAC, a consolidated SPAC that is presented within Consolidated Funds. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement. The U.S. Treasury bills have original maturities greater than three months when purchased and therefore are recorded at fair value. Interest income received on such securities is separately presented from the overall change in fair value and is recognized within interest and other income of Consolidated Funds in the

Condensed Consolidated Statements of Operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net realized and unrealized gains (losses) on investments of Consolidated Funds in the Condensed Consolidated Statements of Operations.

Redeemable Interest in Consolidated Funds

Redeemable Interest in Consolidated FundsRedeemable interest in Consolidated Funds represent the Class A ordinary shares issued by AAC that are redeemable for cash by the public shareholders in the event that AAC does not complete a business combination or tender offer associated with stockholder approval provisions. The class A ordinary shareholders have redemption rights that are considered to be outside of AAC’s control. At each balance sheet date, the carrying value of the redeemable interest is presented at the redemption amount.

Recent Accounting Pronouncements

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 condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. An entity may elect to adopt the amendments in ASU 2020-04 and ASU 2021-01 at any time after March 12, 2020 but no later than December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

Fair Value Measurements

GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market price observability. Market price observability is affected by a number of factors, including the type of instrument and the characteristics specific to the instrument. Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value.

Financial assets and liabilities measured and reported at fair value are classified as follows:

•Level I—Quoted prices in active markets for identical instruments.

•Level II—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in inactive markets; and model-derived valuations with directly or indirectly observable significant inputs. Level II inputs include prices in markets with few transactions, non-current prices, prices for which little public information exists or prices that vary substantially over time or among brokered market makers. Other inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates.

•Level III—Valuations that rely on one or more significant unobservable inputs. These inputs reflect the Company’s assessment of the assumptions that market participants would use to value the instrument based on the best information available.

In some instances, an instrument may fall into more than one level of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair value measurement. The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument. The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period.

Contingent consideration: The Company generally determines the fair value of its contingent consideration liabilities by using a Monte Carlo simulation model. The model considers a range of assumptions including historical experience, prior period performance, current progress towards targets, probability-weighted scenarios, and management's own assumptions. The discount rate used is determined based on the weighted average cost of capital for the Company. The fair value of the

Company's contingent consideration liabilities are classified as Level III. Liabilities recorded in connection with the Company’s contingent consideration are included within accounts payable, accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Condition and the associated changes in fair value are included within other income (expense), net in the Condensed Consolidated Statements of Operations.

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BUSINESS COMBINATIONS (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions Fair Value Consideration Transferred

The acquisition date fair value of the consideration transferred totaled $1.1 billion, which consisted of the following:

Cash	$	803,829
Equity(1)	299,640
Total	$	1,103,469

(1)5,419,413 AOG Units were issued in connection with the Landmark Acquisition and increased Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The fair value of assets acquired and liabilities assumed are estimated to be:

Cash	$	25,685
Other tangible assets	23,411
Intangible assets:
Management contracts	425,880
Client relationships	197,160
Trade name	86,200
Total intangible assets	709,240
Total identifiable assets acquired	758,336
Accounts payable, accrued expenses and other liabilities	72,532
Net identifiable assets acquired	685,804
Goodwill	417,665
Net assets acquired	$	1,103,469

Schedule of Business Acquisition, Pro Forma Information

Supplemental information of the Company’s consolidated results on an unaudited pro forma basis, as if the Landmark Acquisition had been consummated as of January 1, 2020, is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total revenues	$	948,719	$	527,105	$	2,966,540	$	1,214,989
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	87,542	$	37,570	$	257,361	$	41,263

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GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Value for the Company's Intangible Assets

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

	Weighted Average Amortization Period as of September 30, 2021	As of September 30,		As of December 31,
		2021		2020
Management contracts	6.5 years	$	641,737	$	210,857
Client relationships	11.2 years	229,501		25,141
Trade name	8.7 years	11,079		11,079
Finite-lived intangible assets		882,317		247,077
Foreign currency translation		1,530		3,093
Total finite-lived intangible assets		883,847		250,170
Less: accumulated amortization		(85,157)		(28,082)
Finite-lived intangible assets, net		798,690		222,088
Management contracts		567,800		—
Trade name		86,200		—
Indefinite-lived intangible assets		654,000		—
Intangible assets, net		$	1,452,690	$	222,088

Schedule of Goodwill Rollforward

The following table summarizes the carrying value of goodwill that is included within other assets in the Condensed Consolidated Statements of Financial Condition:

	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total
Balance as of December 31, 2020	$	32,196	$	58,600	$	53,120	$	—	$	227,131	$	371,047
Acquisitions	—		—		—		417,665		—		417,665
Foreign currency translation	—		—		219		(16)		(1,165)		(962)
Balance as of September 30, 2021	$	32,196	$	58,600	$	53,339	$	417,649	$	225,966	$	787,750

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INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Investments in and Advances to Affiliates [Abstract]

Summary of Investments Held

The Company’s investments are comprised of the following:

					Percentage of total investments
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Equity method investments:
Equity method private investment partnership interests - principal (1)	$	492,482	$	366,471	14.8	%	21.8	%
Equity method - carried interest (1)	2,625,319		1,145,853		79.0		68.1
Equity method private investment partnership interests and other (held at fair value)(1)	117,015		92,196		3.5		5.5
Equity method private investment partnership interests and other(1)	32,132		23,883		1.0		1.4
Total equity method investments	3,266,948		1,628,403		98.3		96.8
Collateralized loan obligations (2)	32,724		31,766		1.0		1.9
Other fixed income	21,583		21,583		0.6		1.3
Collateralized loan obligations and other fixed income, at fair value	54,307		53,349		1.6		3.2
Common stock, at fair value	1,410		1,007		0.1		0.1
Total investments	$	3,322,665	$	1,682,759

(1)Investment or portion of the investment is denominated in foreign currency and is translated into U.S. dollars at each reporting date.

(2)As of September 30, 2021 and December 31, 2020, includes $3.2 million and $3.4 million, respectively, of collateralized loan obligations that are attributable to the Class B Membership Interests.

Investments held in the Consolidated Funds are summarized below:

	Fair Value at				Percentage of total investments as of
	September 30,		December 31,		September 30,		December 31,
	2021		2020		2021		2020
Fixed income investments:
Bonds	$	434,226	$	397,494	3.9	%	3.6%
Loans	9,389,769		10,012,948		82.6		92.1
U.S. Treasury securities	1,000,165		—		8.8		—
Investments in CLO warehouse	28,500		—		0.3		—
Total fixed income investments	10,852,660		10,410,442		95.6		95.7
Equity securities	264,202		227,031		2.3		2.1
Partnership interests	244,157		239,624		2.1		2.2
Total investments, at fair value	$	11,361,019	$	10,877,097

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FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Valuation of Investments and Other Financial Instruments by Fair Value Hierarchy Levels

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, 2021:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	54,307	$	—	$	54,307
Common stock and other equity securities	—		1,410		108,397		—		109,807
Partnership interests	—		—		2,575		6,043		8,618
Total investments, at fair value	—		1,410		165,279		6,043		172,732
Derivatives-foreign exchange contracts and interest rate contracts	—		4,361		—		—		4,361
Total assets, at fair value	$	—	$	5,771	$	165,279	$	6,043	$	177,093
Liabilities, at fair value
Derivatives-foreign exchange contracts	—		(265)		—		—		(265)
Contingent consideration	—		—		(41,413)		—		(41,413)
Total liabilities, at fair value	$	—	$	(265)	$	(41,413)	$	—	$	(41,678)

    

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	406,253	$	27,973	$	—	$	434,226
Loans	—		9,015,066		374,703		—		9,389,769
U.S. Treasury securities	1,000,165		—		—		—		1,000,165
Investments in CLO warehouse	—		28,500		—		—		28,500
Total fixed income investments	1,000,165		9,449,819		402,676		—		10,852,660
Equity securities	3,366		1,590		259,246		—		264,202
Partnership interests	—		—		237,558		6,599		244,157
Total investments, at fair value	$	1,003,531	$	9,451,409	$	899,480	$	6,599	$	11,361,019
Derivatives:
Asset swaps-other	—		—		325		—		325
Total derivative assets, at fair value	—		—		325		—		325
Total assets, at fair value	$	1,003,531	$	9,451,409	$	899,805	$	6,599	$	11,361,344
Liabilities, at fair value
Derivatives:
Warrants	$	(17,000)	$	—	$	—	$	—	$	(17,000)
Asset swaps-other	—		—		(1,513)		—		(1,513)
Total derivative liabilities, at fair value	(17,000)		—		(1,513)		—		(18,513)
Loan obligations of CLOs	—		(10,174,794)		—		—		(10,174,794)
Total liabilities, at fair value	$	(17,000)	$	(10,174,794)	$	(1,513)	$	—	$	(10,193,307)

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31,2020:

Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	53,349	$	—	$	53,349
Common stock and other equity securities	—		1,007		88,412		—		89,419
Partnership interests	—		—		2,575		1,209		3,784
Total investments, at fair value	—		1,007		144,336		1,209		146,552
Derivatives-foreign exchange contracts	—		1,440		—		—		1,440
Total assets, at fair value	$	—	$	2,447	$	144,336	$	1,209	$	147,992
Liabilities, at fair value
Derivatives-foreign exchange contracts	$	—	$	(1,565)	$	—	$	—	$	(1,565)
Total liabilities, at fair value	$	—	$	(1,565)	$	—	$	—	$	(1,565)

Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	397,485	$	9	$	—	$	397,494
Loans	—		9,470,651		542,297		—		10,012,948
Total fixed income investments	—		9,868,136		542,306		—		10,410,442
Equity securities	5,749		239		221,043		—		227,031
Partnership interests	—		—		231,857		7,767		239,624
Total investments, at fair value	5,749		9,868,375		995,206		7,767		10,877,097
Derivatives:
Asset swaps-other	—		—		1,104		—		1,104
Total assets, at fair value	$	5,749	$	9,868,375	$	996,310	$	7,767	$	10,878,201
Liabilities, at fair value
Derivatives:
Asset swaps-other	$	—	$	—	$	(44)	$	—	$	(44)
Loan obligations of CLOs	—		(9,958,076)		—		—		(9,958,076)
Total liabilities, at fair value	$	—	$	(9,958,076)	$	(44)	$	—	$	(9,958,120)

Summary of Changes in the Fair Value of the Level III Investments, Assets

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	107,240	$	55,840	$	2,575	$	—	$	165,655
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	—		708		—		—		708
Sales/settlements(2)	—		(2,904)		—		—		(2,904)
Realized and unrealized appreciation (depreciation), net	1,157		663		—		(7,213)		(5,393)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	1,157	$	675	$	—	$	(7,213)	$	(5,381)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Transfer in	—		18,792		—		—		18,792
Transfer out	—		(209,282)		—		—		(209,282)
Purchases(1)	27,346		219,180		—		—		246,526
Sales/settlements(2)	(313)		(88,584)		(30,000)		625		(118,272)
Amortized discounts/premiums	—		394		—		—		394
Realized and unrealized appreciation (depreciation), net	2,913		6,750		12,280		(155)		21,788
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,912	$	1,607	$	12,280	$	(63)	$	16,736

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2020:

Level III Assets of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	67,355	$	2,575	$	84,634
Transfer in due to changes in consolidation	72,967		—		—		72,967
Purchases(1)	—		5,983		—		5,983
Sales/settlements(2)	—		(899)		—		(899)
Realized and unrealized appreciation (depreciation), net	(1,746)		3,175		—		1,429
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	3,175	$	—	$	1,429

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	42,259	$	586,287	$	312,636	$	1,402	$	942,584
Transfer in	—		96,671		—		—		96,671
Transfer out	—		(230,326)		—		—		(230,326)
Purchases(1)	150		118,558		—		—		118,708
Sales/settlements(2)	(25)		(73,010)		(2,000)		705		(74,330)
Amortized discounts/premiums	—		(135)		—		140		5
Realized and unrealized appreciation (depreciation), net	828		15,836		(1,402)		(393)		14,869
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	878	$	13,690	$	(1,402)	$	(604)	$	12,562

(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.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2020:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		3,686		—		76,653
Purchases(1)	—		7,285		—		7,285
Sales/settlements(2)	—		(1,587)		(32,430)		(34,017)
Realized and unrealized depreciation, net	(1,746)		(2,953)		(187)		(4,886)
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	(1,917)	$	5,511	$	1,848

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		392,672		—		—		392,037
Transfer in	—		146,839		—		—		146,839
Transfer out	—		(350,078)		—		—		(350,078)
Purchases(1)	551		256,514		64,000		—		321,065
Sales/settlements(2)	(714)		(249,027)		(58,000)		813		(306,928)
Amortized discounts/premiums	—		777		—		291		1,068
Realized and unrealized appreciation (depreciation), net	(41,978)		(22,952)		7,222		4,856		(52,852)
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(41,930)	$	(25,701)	$	7,222	$	4,439	$	(55,970)

(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.

Summary of Changes in the Fair Value of the Level III Investments, Liabilities

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	107,240	$	55,840	$	2,575	$	—	$	165,655
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	—		708		—		—		708
Sales/settlements(2)	—		(2,904)		—		—		(2,904)
Realized and unrealized appreciation (depreciation), net	1,157		663		—		(7,213)		(5,393)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	1,157	$	675	$	—	$	(7,213)	$	(5,381)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Transfer in	—		18,792		—		—		18,792
Transfer out	—		(209,282)		—		—		(209,282)
Purchases(1)	27,346		219,180		—		—		246,526
Sales/settlements(2)	(313)		(88,584)		(30,000)		625		(118,272)
Amortized discounts/premiums	—		394		—		—		394
Realized and unrealized appreciation (depreciation), net	2,913		6,750		12,280		(155)		21,788
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,912	$	1,607	$	12,280	$	(63)	$	16,736

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended September 30, 2020:

Level III Assets of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	67,355	$	2,575	$	84,634
Transfer in due to changes in consolidation	72,967		—		—		72,967
Purchases(1)	—		5,983		—		5,983
Sales/settlements(2)	—		(899)		—		(899)
Realized and unrealized appreciation (depreciation), net	(1,746)		3,175		—		1,429
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	3,175	$	—	$	1,429

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	42,259	$	586,287	$	312,636	$	1,402	$	942,584
Transfer in	—		96,671		—		—		96,671
Transfer out	—		(230,326)		—		—		(230,326)
Purchases(1)	150		118,558		—		—		118,708
Sales/settlements(2)	(25)		(73,010)		(2,000)		705		(74,330)
Amortized discounts/premiums	—		(135)		—		140		5
Realized and unrealized appreciation (depreciation), net	828		15,836		(1,402)		(393)		14,869
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	878	$	13,690	$	(1,402)	$	(604)	$	12,562

(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.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2021:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

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

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

The following tables set forth a summary of changes in the fair value of the Level III measurements for the nine months ended September 30, 2020:

Level III Assets and Liabilities of the Company	Equity  Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		3,686		—		76,653
Purchases(1)	—		7,285		—		7,285
Sales/settlements(2)	—		(1,587)		(32,430)		(34,017)
Realized and unrealized depreciation, net	(1,746)		(2,953)		(187)		(4,886)
Balance, end of period	$	85,925	$	75,614	$	2,575	$	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,746)	$	(1,917)	$	5,511	$	1,848

Level III Net Assets of Consolidated Funds	Equity  Securities		Fixed  Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		392,672		—		—		392,037
Transfer in	—		146,839		—		—		146,839
Transfer out	—		(350,078)		—		—		(350,078)
Purchases(1)	551		256,514		64,000		—		321,065
Sales/settlements(2)	(714)		(249,027)		(58,000)		813		(306,928)
Amortized discounts/premiums	—		777		—		291		1,068
Realized and unrealized appreciation (depreciation), net	(41,978)		(22,952)		7,222		4,856		(52,852)
Balance, end of period	$	43,212	$	513,881	$	309,234	$	1,854	$	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(41,930)	$	(25,701)	$	7,222	$	4,439	$	(55,970)

(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.

Summary of Quantitative Inputs and Assumptions used for Level III Inputs

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, 2021:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A	N/A
	46,765		Discounted cash flow	Discount Rates	14.0% - 20.0%	15.3%
	46,928		Market approach	Multiple of Book Value	1.5x	N/A
Partnership interests	2,575		Other	N/A	N/A	N/A
Collateralized loan obligations	32,724		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A	N/A
Total assets	$	165,279
Liabilities
Contingent consideration	$	(8,600)	Monte Carlo simulation	Discount Rates	8%	N/A
				Volatility	17%	N/A
	$	(32,813)	Other	N/A	N/A	N/A
Total liabilities	$	(41,413)

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	896	Market approach	EBITDA multiple(2)	1.8x - 83.3x	15.3x
	14		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	258,336		Transaction price(1)	N/A	N/A	N/A
Partnership interest	237,558		Discounted cash flow	Discount rate	22.4%	22.4%
Fixed income securities
	261,064		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	98,055		Income approach	Yield	1.8%-54.7%	6.5%
	14,791		Transaction price	N/A	N/A	N/A
	28,766		Other	N/A	N/A	N/A
Derivative instruments	325		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	899,805
Liabilities
Derivative instruments	$	(1,513)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(1,513)

(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.

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, 2020:

Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range
Assets
Equity securities	$	14,704	Transaction price(1)	N/A	N/A
	32,905		Discounted Cash Flow	Discount Rates	14.0% - 20.0%
	40,803		Market Approach	Multiple of Book Value	1.6x
Partnership interests	2,575		Other	N/A	N/A
Collateralized loan obligations	31,766		Broker quotes and/or 3rd party pricing services	N/A	N/A
Other fixed income	21,583		Other	N/A	N/A
Total	$	144,336

Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	438	Market approach	EBITDA multiple(2)	2.9x - 19.5x	13.4x
	32,528		Other	Net income multiple	30.0x	30.0x
				Illiquidity discount	25.0%	25.0%
	33		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	188,044		Transaction price(1)	N/A	N/A	N/A
Partnership interests	231,857		Discounted cash flow	Discount rate	23.8%	23.8%
Fixed income securities
	384,419		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	6,605		Market approach	EBITDA multiple(2)	6.5x - 7.8x	6.9x
	122,962		Income approach	Yield	2.7% - 48.1%	7.9%
	28,320		Other	N/A	N/A	N/A
Derivative instruments	1,104		Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	996,310
Liabilities
Derivative instruments	$	(44)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(44)

(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.

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value and Notional Amounts of Derivative Contracts by Major Product Type on a Gross Basis

The following tables identify the fair value and notional amounts of derivative contracts by major product type on a gross basis for the Company and the Consolidated Funds:

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
The Company	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Foreign exchange contracts	$	81,008	$	4,352	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565
Interest rate contracts	18,455		9		—		—		—		—		—		—
Total derivatives, at fair value(2)	$	99,463	$	4,361	$	9,868	$	265	$	30,040	$	1,440	$	39,362	$	1,565

	As of September 30, 2021								As of December 31, 2020
	Assets				Liabilities				Assets				Liabilities
Consolidated Funds	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Warrants	$	—	$	—	$	230,000	$	17,000	$	—	$	—	$	—	$	—
Asset swap - other	44,521		325		39,701		1,513		7,600		1,104		540		44
Total derivatives, at fair value(3)	$	44,521	$	325	$	269,701	$	18,513	$	7,600	$	1,104	$	540	$	44

(1)Represents the total contractual amount of derivative assets and liabilities outstanding.

(2)As of September 30, 2021 and December 31, 2020, the Company had the right to, but elected not to, offset $0.3 million and $1.6 million of its derivative liabilities.

(3)As of September 30, 2021 and December 31, 2020, the Consolidated Funds offset $0.3 million and $0.4 million of their derivative assets and liabilities, respectively.

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DEBT (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Borrowings Outstanding

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

					As of September 30, 2021			As of December 31, 2020
	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolver	3/31/2026	N/A		$	150,000	1.13%	$	—	—%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	247,802		4.21	247,285		4.21
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000		396,045		3.28	395,713		3.28
2051 Subordinated Notes(4)	6/30/2021	6/30/2051	450,000		444,478		4.13	—		—
Total debt obligations					$	1,238,325		$	642,998

(1)The AOG entities are borrowers under the Credit Facility, which provides a $1.090 billion revolving line of credit. It has a variable interest rate based on LIBOR 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. On March 31, 2021, the Company amended the Credit Facility to, among other things, extend the maturity date from March 2025 to March 2026. As of September 30, 2021, base rate loans bear interest calculated based on the base rate plus 0.125% and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.125%. The unused commitment fee is 0.10% per annum. There is a base rate and LIBOR floor of zero.     

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 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 Notes.

(4)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company, at 100.00% of par 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.

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

	Credit Facility		Senior Notes		Subordinated Notes
Unamortized debt issuance costs as of December 31, 2020	$	5,232	$	4,283	$	—
Debt issuance costs incurred	1,282		—		5,568
Amortization of debt issuance costs	(929)		(446)		(46)
Unamortized debt issuance costs as of September 30, 2021	$	5,585	$	3,837	$	5,522

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

	As of September 30, 2021					As of December 31, 2020
	Loan Obligations		Fair Value of Loan Obligations		Weighted  Average  Remaining Maturity  In Years	Loan Obligations		Fair Value of Loan Obligations		Weighted Average Remaining Maturity  In Years
Senior secured notes(1)	$	9,577,725	$	9,561,079	9.5	$	9,796,442	$	9,665,804	10.1
Subordinated notes(2)	723,567		613,715		8.3	482,391		292,272		10.2
Total loan obligations of Consolidated CLOs	$	10,301,292	$	10,174,794		$	10,278,833	$	9,958,076

(1)Original borrowings under the senior secured notes totaled $9.6 billion, with various maturity dates ranging from September 2026 to July 2034. The weighted average interest rate as of September 30, 2021 was 1.96%.

(2)Original borrowings under the subordinated notes totaled $723.6 million, with various maturity dates ranging from September 2026 to July 2034. The notes do not have contractual interest rates; instead, holders of the notes receive distributions from the excess cash flows generated by each Consolidated CLO.

The Consolidated Funds had the following revolving bank credit facilities and term loan outstanding:

				As of September 30, 2021			As of December 31, 2020
Consolidated Funds' Debt Facilities	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate	Outstanding Loan(1)		Effective Rate
Credit Facilities:
	3/4/2022	$	71,500	$	71,500	1.59%	$	71,500	1.59%
	7/1/2023	18,000		17,740		1.63	17,909		1.75
	1/15/2022(2)	—		—		—	32,500		2.75
	7/23/2024	75,000		10,000		2.65	N/A		N/A
	9/24/2026	150,000		—		N/A	N/A		N/A
Total borrowings of Consolidated Funds				$	99,240		$	121,909

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

(2)On July 23, 2021, the credit facility was terminated at the Consolidated Fund’s discretion.

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Lease

The tables below present certain supplemental quantitative disclosures regarding the Company's leases:

		As of September 30,		As of December 31,
	Classification	2021		2020
Operating lease assets	Right-of-use operating lease assets	$	176,511	$	154,742
Finance lease assets	Other assets(1)	1,164		1,386
Total lease assets		$	177,675	$	156,128
Operating lease liabilities	Operating lease liabilities	$	214,681	$	180,236
Finance lease obligations	Accounts payable, accrued expenses and other liabilities	977		1,273
Total lease liabilities		$	215,658	$	181,509

(1) Finance lease assets are recorded net of accumulated amortization of $1.4 million and $1.0 million as of September 30, 2021 and December 31, 2020, respectively.

		Three months ended September 30,				Nine months ended September 30,
	Classification	2021		2020		2021		2020
Operating lease expense	General, administrative and other expenses	$	9,697	$	7,701	$	27,203	$	23,138
Finance lease expense:
Amortization of finance lease assets	General, administrative and other expenses	154		127		408		346
Interest on finance lease liabilities	Interest expense	7		11		24		33
Total lease expense		$	9,858	$	7,839	$	27,635	$	23,517

	Nine months ended September 30,
Other information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	26,704	$	23,098
Operating cash flows for finance leases	34		48
Financing cash flows for finance leases	463		412
Leased assets obtained in exchange for new finance lease liabilities	189		—
Leased assets obtained in exchange for new operating lease liabilities	55,461		12,477

	As of September 30,		As of December 31,
Lease term and discount rate	2021		2020
Weighted-average remaining lease terms (in years):
Operating leases	6.1		6.0
Finance leases	2.1		2.6
Weighted-average discount rate:
Operating leases	2.97	%	3.59	%
Finance leases	2.91	%	3.26	%

Operating Lease, Liability, Maturity

Maturity of lease liabilities	Operating Leases		Finance Leases
2021	$	10,591	$	73
2022	41,989		598
2023	38,277		164
2024	36,579		162
2025	36,251		11
After 2025	66,683		—
Total future payments	230,370		1,008
Less: interest	15,689		31
Total lease liabilities	$	214,681	$	977

Finance Lease, Liability, Maturity

Maturity of lease liabilities	Operating Leases		Finance Leases
2021	$	10,591	$	73
2022	41,989		598
2023	38,277		164
2024	36,579		162
2025	36,251		11
After 2025	66,683		—
Total future payments	230,370		1,008
Less: interest	15,689		31
Total lease liabilities	$	214,681	$	977

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RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Schedule of Amounts Due from and to Affiliates

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,
	2021		2020
Due from affiliates:
Management fees receivable from non-consolidated funds	$	347,078	$	308,581
Incentive fee receivable from non-consolidated funds	579		21,495
Payments made on behalf of and amounts due from non-consolidated funds and employees	145,754		75,811
Due from affiliates—Company	$	493,411	$	405,887
Amounts due from portfolio companies and non-consolidated funds	$	9,059	$	17,172
Due from affiliates—Consolidated Funds	$	9,059	$	17,172
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	7,959	$	4,808
Tax receivable agreement liability	97,698		62,505
Undistributed carried interest and incentive fees	64,675		27,322
Payments made by non-consolidated funds on behalf of and payable by the Company	32,106		5,551
Due to affiliates—Company	$	202,438	$	100,186

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Earnings per Common Unit

The computation of diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 excludes the following restricted units and AOG units, as their effect would have been anti-dilutive:

	Three months ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Restricted units	450	572	167	—
AOG Units	119,855,724	114,726,173	115,394,058	—

Schedule of the Computation of Basic and Diluted Earnings per Common Unit

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
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	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	(1,440)		(2,757)		(8,142)		(7,715)
Undistributed earnings allocable to participating unvested restricted units	(306)		—		(2,858)		—
Net income available to Class A and non-voting common stockholders	$	82,980	$	39,363	$	251,659	$	48,890
Basic weighted-average shares of Class A and non-voting common stock	168,931,621		143,466,209		161,071,151		131,866,471
Basic earnings per share of Class A and non-voting common stock	$	0.49	$	0.27	$	1.55	$	0.37
Diluted earnings per share of Class A and non-voting common stock:
Net income available to Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	56,605
Distributions on unvested restricted units	—		—		—		(7,715)
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	42,120	$	262,659	$	48,890
Effect of dilutive shares:
Restricted units	12,273,068		9,762,645		10,807,242		—
Options	5,317,468		4,893,709		5,265,045		—
Diluted weighted-average shares of Class A and non-voting common stock	186,522,157		158,122,563		177,143,438		131,866,471
Diluted earnings per share of Class A and non-voting common stock	$	0.45	$	0.27	$	1.48	$	0.37
Dividend declared and paid per Class A and non-voting common stock	$	0.47	$	0.40	$	1.41	$	1.20

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EQUITY COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Equity-based Compensation Expense, Net of Assumed Forfeitures

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Restricted units	$	36,390	$	30,036	$	127,219	$	86,804
Restricted units with a market condition	29,601		300		63,925		4,729
Options	—		—		—		43
Equity-based compensation expense	$	65,991	$	30,336	$	191,144	$	91,576

Summary of Unvested Restricted Units' Activity

The following table presents unvested restricted units' activity:

	Restricted Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	16,299,664	$	24.30
Granted	9,667,989	46.16
Vested	(6,278,948)	20.70
Forfeited	(1,255,502)	30.48
Balance - September 30, 2021	18,433,203	$	36.33

The following table presents the market condition awards' activity:

	Market Condition Awards Units	Weighted Average Grant Date Fair Value Per Unit
Balance - January 1, 2021	—	$	—
Granted	2,150,000	32.86
Vested	(1,925,000)	33.21
Forfeited	(225,000)	29.84
Balance - September 30, 2021	—	$	—

Schedule of Weighted Average Assumptions used for Fair Value

Below is a summary of the significant assumptions used to estimate the grant date fair value of market condition awards:

Closing price of the Company's common shares as of valuation date	$45.76
Risk-free interest rate	0.88%
Volatility	35.0%
Dividend yield	3.5%
Cost of equity	10.0%

Summary of Unvested Options Activity

A summary of options activity during the nine months ended September 30, 2021 is presented below:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (in years)	Aggregate Intrinsic Value
Balance - January 1, 2021	8,312,203	$	18.99	3.4	$	233,251
Granted	—	—		—	—
Exercised	(1,489,789)	18.94		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Balance - September 30, 2021	6,822,414	$	19.00	2.6	$	374,073
Exercisable at September 30, 2021	6,822,414	$	19.00	2.6	$	374,073

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EQUITY AND REDEEMABLE INTEREST (Tables)

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Schedule of Stock by Class

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

	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance - January 1, 2021	147,182,562	—	1,000	112,447,618	259,631,180
Issuance of stock(1)	12,159,200	3,489,911	—	8,744,296	24,393,407
Exchanges of AOG Units	2,330,367	—	—	(2,330,367)	—
Redemptions of AOG Units	—	—	—	(58,290)	(58,290)
Stock option exercises, net of shares withheld for tax	1,460,388	—	—	—	1,460,388
Vesting of restricted stock awards, net of shares withheld for tax	4,448,648	—	—	—	4,448,648
Balance - September 30, 2021	167,581,165	3,489,911	1,000	118,803,257	289,875,333

(1) Issuances of Class C Common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

Schedule of Ownership Interests

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

							Daily Average Ownership
	As of September 30, 2021			As of December 31, 2020				Three months ended September 30,				Nine months ended September 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest			2021		2020		2021		2020
Ares Management Corporation	171,071,076	59.02	%	147,182,562	56.69	%		58.50	%	55.57	%	58.26	%	53.33	%
Ares Owners Holdings, L.P.	118,803,257	40.98		112,447,618	43.31			41.50		44.43		41.74		46.67
Total	289,874,333	100.00	%	259,630,180	100.00	%

Schedule of Redeemable Interests

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in Ares Operating Group entities:

	Total
Balance - January 1, 2021	$	100,366
Net income	32
Currency translation adjustment, net of tax	(590)
Balance- March 31, 2021	$	99,808
Net income	$	337
Currency translation adjustment, net of tax	186
Distribution	(300)
Balance- June 30, 2021	$	100,031
Net income	$	324
Currency translation adjustment, net of tax	(356)
Distribution	(1,350)
Balance- September 30, 2021	$	98,649

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

	Total
Balance - January 1, 2021	$	—
Redemption value	930,924
Balance- March 31, 2021	$	930,924
Change in redemption value	(14,100)
Balance- June 30, 2021	$	916,824
Change in redemption value	83,176
Balance- September 30, 2021	$	1,000,000

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SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Financial Results for Company's Operating Segments, as well as the OMG

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

	Three months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	271,591	$	69,591	$	55,160	$	41,064	16,544		$	453,950	$	—	$	453,950
Other fees	5,798		370		3,681		—		2		9,851		3,446		13,297
Compensation and benefits	(86,502)		(26,773)		(29,160)		(11,955)		(5,316)		(159,706)		(66,107)		(225,813)
General, administrative and other expenses	(14,930)		(6,238)		(5,420)		(2,593)		(1,774)		(30,955)		(28,142)		(59,097)
Fee related earnings	175,957		36,950		24,261		26,516		9,456		273,140		(90,803)		182,337
Performance income—realized	6,332		34,316		4,693		—		—		45,341		—		45,341
Performance related compensation—realized	(3,079)		(27,483)		(3,166)		—		—		(33,728)		—		(33,728)
Realized net performance income	3,253		6,833		1,527		—		—		11,613		—		11,613
Investment income—realized	618		2,020		1,699		—		1,025		5,362		—		5,362
Interest and other investment income (expense)—realized	4,716		4,861		918		699		163		11,357		(270)		11,087
Interest expense	(2,392)		(2,726)		(1,683)		(427)		(4,135)		(11,363)		(160)		(11,523)
Realized net investment income (loss)	2,942		4,155		934		272		(2,947)		5,356		(430)		4,926
Realized income	$	182,152	$	47,938	$	26,722	$	26,788	$	6,509	$	290,109	$	(91,233)	$	198,876
	Three months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	208,371	$	54,653	$	23,787	$	—	$	13,320	$	300,131	$	—	$	300,131
Other fees	4,898		2		5		—		6		4,911		—		4,911
Compensation and benefits	(74,373)		(21,224)		(13,011)		—		(4,241)		(112,849)		(41,551)		(154,400)
General, administrative and other expenses	(13,789)		(6,002)		(2,987)		—		(1,514)		(24,292)		(19,519)		(43,811)
Fee related earnings	125,107		27,429		7,794		—		7,571		167,901		(61,070)		106,831
Performance income—realized	7,069		115,997		199		—		—		123,265		—		123,265
Performance related compensation—realized	(4,131)		(93,284)		(123)		—		—		(97,538)		—		(97,538)
Realized net performance income	2,938		22,713		76		—		—		25,727		—		25,727
Investment income—realized	—		16,351		486		—		—		16,837		—		16,837
Interest and other investment income (expense)—realized	1,962		1,065		1,308		—		(4)		4,331		(503)		3,828
Interest expense	(2,340)		(2,216)		(1,389)		—		(729)		(6,674)		(141)		(6,815)
Realized net investment income (loss)	(378)		15,200		405		—		(733)		14,494		(644)		13,850
Realized income	$	127,667	$	65,342	$	8,275	$	—	$	6,838	$	208,122	$	(61,714)	$	146,408

	Nine months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	764,702	$	171,019	$	115,602	$	53,962	$	48,963	$	1,154,248	$	—	$	1,154,248
Other fees	18,494		726		4,604		—		82		23,906		3,446		27,352
Compensation and benefits	(252,783)		(73,534)		(60,767)		(16,244)		(15,440)		(418,768)		(158,943)		(577,711)
General, administrative and other expenses	(37,716)		(17,499)		(12,064)		(3,452)		(5,580)		(76,311)		(69,872)		(146,183)
Fee related earnings	492,697		80,712		47,375		34,266		28,025		683,075		(225,369)		457,706
Performance income—realized	78,255		159,479		12,255		—		—		249,989		—		249,989
Performance related compensation—realized	(49,433)		(127,706)		(8,167)		—		—		(185,306)		—		(185,306)
Realized net performance income	28,822		31,773		4,088		—		—		64,683		—		64,683
Investment income—realized	1,858		5,308		4,182		—		1,347		12,695		—		12,695
Interest and other investment income—realized	14,354		10,716		3,892		701		2,824		32,487		170		32,657
Interest expense	(5,372)		(6,032)		(3,930)		(432)		(8,962)		(24,728)		(397)		(25,125)
Realized net investment income (loss)	10,840		9,992		4,144		269		(4,791)		20,454		(227)		20,227
Realized income	$	532,359	$	122,477	$	55,607	$	34,535	$	23,234	$	768,212	$	(225,596)	$	542,616
	Nine months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	606,596	$	160,206	$	71,459	$	—	$	13,320	$	851,581	$	—	$	851,581
Other fees	12,057		142		716		—		6		12,921		—		12,921
Compensation and benefits	(222,063)		(62,946)		(38,159)		—		(4,241)		(327,409)		(114,916)		(442,325)
General, administrative and other expenses	(41,626)		(16,083)		(9,185)		—		(1,514)		(68,408)		(56,877)		(125,285)
Fee related earnings	354,964		81,319		24,831		—		7,571		468,685		(171,793)		296,892
Performance income—realized	16,085		276,469		27,106		—		—		319,660		—		319,660
Performance related compensation—realized	(12,142)		(222,949)		(17,484)		—		—		(252,575)		—		(252,575)
Realized net performance income	3,943		53,520		9,622		—		—		67,085		—		67,085
Investment income (loss)—realized	(843)		35,866		2,740		—		—		37,763		(5,698)		32,065
Interest and other investment income (expense)—realized	13,166		2,364		3,024		—		(4)		18,550		(588)		17,962
Interest expense	(6,391)		(6,106)		(3,715)		—		(729)		(16,941)		(1,262)		(18,203)
Realized net investment income (loss)	5,932		32,124		2,049		—		(733)		39,372		(7,548)		31,824
Realized income	$	364,839	$	166,963	$	36,502	$	—	$	6,838	$	575,142	$	(179,341)	$	395,801

Schedule of Segment’ Revenue, Expenses and Realized Net Investment Income

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Segment revenues
Management fees	$	453,950	$	300,131	$	1,154,248	$	851,581
Other fees	9,851		4,911		23,906		12,921
Performance income—realized	45,341		123,265		249,989		319,660
Total segment revenues	$	509,142	$	428,307	$	1,428,143	$	1,184,162
Segment expenses
Compensation and benefits	$	159,706	$	112,849	$	418,768	$	327,409
General, administrative and other expenses	30,955		24,292		76,311		68,408
Performance related compensation—realized	33,728		97,538		185,306		252,575
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392
Segment realized net investment income
Investment income—realized	$	5,362	$	16,837	$	12,695	$	37,763
Interest and other investment income —realized	11,357		4,331		32,487		18,550
Interest expense	(11,363)		(6,674)		(24,728)		(16,941)
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

Schedule of Segment Revenues Components

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated revenue	$	948,719	$	489,866	$	2,901,926	$	1,106,033
Performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Management fees of Consolidated Funds eliminated in consolidation	11,051		11,719		33,416		33,601
Incentive fees of Consolidated Funds eliminated in consolidation	—		—		1,528		(70)
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	4,264		4,448		13,157		12,249
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG revenue	(3,446)		—		(3,446)		—
Performance income (loss) reclass(2)	680		(291)		1,285		(3,664)
Principal investment income, net of eliminations	(14,250)		(11,408)		(86,477)		(8,330)
Net income of non-controlling interests in consolidated subsidiaries	(6,927)		(4,323)		(16,795)		(5,808)
Total consolidation adjustments and reconciling items	(439,577)		(61,559)		(1,473,783)		78,129
Total segment revenue	$	509,142	$	428,307	$	1,428,143	$	1,184,162

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

(2)Related to performance income for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

Schedule of Segment Expenses Components

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated expenses	$	813,267	$	392,580	$	2,363,108	$	958,106
Performance related compensation-unrealized	(296,044)		(24,818)		(1,022,393)		61,010
Expenses of Consolidated Funds added in consolidation	(23,206)		(17,737)		(66,653)		(50,237)
Expenses of Consolidated Funds eliminated in consolidation	11,102		11,718		35,078		33,531
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG expenses	(94,249)		(61,070)		(228,815)		(171,793)
Acquisition and merger-related expense	(754)		(3,474)		(18,364)		(9,430)
Equity compensation expense	(65,991)		(30,336)		(191,144)		(91,576)
Acquisition-related compensation expense(2)	(28,194)		—		(32,824)		—
Deferred placement fees	(32,413)		(2,942)		(33,740)		(18,677)
Depreciation and amortization expense	(36,668)		(14,336)		(71,742)		(26,197)
Expense of non-controlling interests in consolidated subsidiaries	(6,829)		(5,690)		(17,372)		(8,630)
Total consolidation adjustments and reconciling items	(588,878)		(157,901)		(1,682,723)		(309,714)
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392

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

(2)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

Schedule of Segment Other Income (Expense) Components

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

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated other income (expense)	$	111,536	$	62,355	$	218,011	$	(43,602)
Investment (income) loss—unrealized	(3,609)		1,479		(60,588)		83,369
Interest and other investment (income) loss—unrealized	(1,405)		(1,390)		3,057		(10,330)
Other (income) loss from Consolidated Funds added in consolidation, net	(76,287)		(68,132)		(178,195)		20,719
Other expense from Consolidated Funds eliminated in consolidation, net	(4,973)		(3,470)		(13,783)		(11,478)
OMG other (income) expense	37		(1,820)		646		(781)
Performance (income) loss reclass(1)	(680)		291		(1,285)		3,664
Principal investment income (loss)	20,719		18,080		96,448		(24,951)
Other (income) expense, net	(34,812)		9,534		(34,666)		9,903
Other (income) loss of non-controlling interests in consolidated subsidiaries	(5,170)		(2,433)		(9,191)		12,859
Total consolidation adjustments and reconciling items	(106,180)		(47,861)		(197,557)		82,974
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

(1)Related to performance income for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

Reconciliation of Segment Results to the Company's Income before Taxes and Total Assets

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,
	2021		2020		2021		2020
Income before taxes	$	246,988	$	159,641	$	756,829	$	104,325
Adjustments:
Depreciation and amortization expense	36,668		14,336		71,742		26,197
Equity compensation expense	65,991		30,336		191,144		91,576
Acquisition-related compensation expense(1)	28,194		—		32,824		—
Acquisition and merger-related expense	7,967		3,490		26,188		9,815
Deferred placement fees	32,413		2,942		33,740		18,677
OMG expense, net	90,840		59,250		226,015		171,012
Other (income) expense, net	(42,025)		9,518		(42,490)		9,518
Net (income) expense of non-controlling interests in consolidated subsidiaries	(5,268)		(1,066)		(8,614)		15,681
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(47,372)		(42,744)		(102,331)		38,446
Total performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Total performance related compensation—unrealized	296,044		24,818		1,022,393		(61,010)
Total investment (income) loss—unrealized	(5,014)		89		(57,531)		73,039
Realized income	290,109		208,122		768,212		575,142
Total performance income—realized	(45,341)		(123,265)		(249,989)		(319,660)
Total performance related compensation—realized	33,728		97,538		185,306		252,575
Total investment income—realized	(5,356)		(14,494)		(20,454)		(39,372)
Fee related earnings	$	273,140	$	167,901	$	683,075	$	468,685

(1)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

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CONSOLIDATION (Tables)

9 Months Ended

Sep. 30, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule of Interest in VIEs

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,
	2021		2020
Maximum exposure to loss attributable to the Company's investment in non-consolidated VIEs(1)	$	340,988	$	224,203
Maximum exposure to loss attributable to the Company's investment in consolidated VIEs(1)	478,164		391,963
Assets of consolidated VIEs	12,190,617		11,580,003
Liabilities of consolidated VIEs	11,238,928		10,716,438

(1)As of September 30, 2021 and December 31, 2020, 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 $104.4 million and $107.7 million, respectively.

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	$	38,597	$	42,627	$	84,285	$	(38,593)

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, results from operations and cash flows:

	As of September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	295,704	$	—	$	—	$	295,704
Investments (includes $2,625,319 of accrued carried interest)	3,804,023		—		(481,358)		3,322,665
Due from affiliates	517,504		—		(24,093)		493,411
Other assets	1,006,870		—		—		1,006,870
Intangible assets, net	1,452,690		—		—		1,452,690
Right-of-use operating lease assets	176,511		—		—		176,511
Assets of Consolidated Funds
Cash and cash equivalents	—		1,581,433		—		1,581,433
U.S. Treasury securities, at fair value	—		1,000,165		—		1,000,165
Investments, at fair value	—		10,356,640		4,214		10,360,854
Due from affiliates	—		19,089		(10,030)		9,059
Receivable for securities sold	—		187,230		—		187,230
Other assets	—		47,806		—		47,806
Total assets	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398
Liabilities
Accounts payable, accrued expenses and other liabilities	$	218,171	$	—	$	(10,030)	$	208,141
Accrued compensation	309,569		—		—		309,569
Due to affiliates	202,438		—		—		202,438
Performance related compensation payable	1,895,343		—		—		1,895,343
Debt obligations	1,238,325		—		—		1,238,325
Operating lease liabilities	214,681		—		—		214,681
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		102,883		(13,198)		89,685
Due to affiliates	—		19,880		(19,880)		—
Payable for securities purchased	—		863,007		—		863,007
CLO loan obligations, at fair value	—		10,220,040		(45,246)		10,174,794
Fund borrowings	—		99,240		—		99,240
Total liabilities	4,078,527		11,305,050		(88,354)		15,295,223
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		1,000,000		—		1,000,000
Redeemable interest in Ares Operating Group entities	98,649		—		—		98,649
Non-controlling interest in Consolidated Funds	—		887,313		(422,913)		464,400
Non-controlling interest in Ares Operating Group entities	1,322,866		—		—		1,322,866
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero shares issued and outstanding)	—		—		—		—
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (167,581,165 shares issued and outstanding)	1,676		—		—		1,676
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 (118,803,257 shares issued and outstanding)	1,188		—		—		1,188
Additional paid-in-capital	1,881,913		—		—		1,881,913
Retained earnings	(128,981)		—		—		(128,981)
Accumulated other comprehensive loss, net of tax	(2,571)		—		—		(2,571)
Total stockholders' equity	1,753,260		—		—		1,753,260
Total equity	3,076,126		887,313		(422,913)		3,540,526
Total liabilities, redeemable interest, non-controlling interests and equity	$	7,253,302	$	13,192,363	$	(511,267)	$	19,934,398

	As of December 31, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	539,812	$	—	$	—	$	539,812
Investments (includes $1,145,853 of accrued carried interest)	2,064,517		—		(381,758)		1,682,759
Due from affiliates	426,021		—		(20,134)		405,887
Other assets	590,543		—		(211)		590,332
Intangible assets, net	222,087		—		—		222,087
Right-of-use operating lease assets	154,742		—		—		154,742
Assets of Consolidated Funds
Cash and cash equivalents	—		522,377		—		522,377
Investments, at fair value	—		10,873,522		3,575		10,877,097
Due from affiliates	—		27,377		(10,205)		17,172
Receivable for securities sold	—		121,225		—		121,225
Other assets	—		35,502		—		35,502
Total assets	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992
Liabilities
Accounts payable, accrued expenses and other liabilities	$	125,494	$	—	$	(10,205)	$	115,289
Accrued compensation	103,010		—		—		103,010
Due to affiliates	100,186		—		—		100,186
Performance related compensation payable	813,378		—		—		813,378
Debt obligations	642,998		—		—		642,998
Operating lease liabilities	180,236		—		—		180,236
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		46,824		—		46,824
Due to affiliates	—		16,770		(16,770)		—
Payable for securities purchased	—		514,946		—		514,946
CLO loan obligations	—		10,015,989		(57,913)		9,958,076
Fund borrowings	—		121,909		—		121,909
Total liabilities	1,965,302		10,716,438		(84,888)		12,596,852
Commitments and contingencies
Redeemable interest in Ares Operating Group entities	100,366		—		—		100,366
Non-controlling interest in Consolidated Funds	—		863,565		(323,845)		539,720
Non-controlling interest in Ares Operating Group entities	738,369		—		—		738,369
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 (147,182,562 shares issued and outstanding)	1,472		—		—		1,472
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 (112,447,618 share issued and outstanding)	1,124		—		—		1,124
Additional paid-in-capital	1,043,669		—		—		1,043,669
Retained earnings	(151,824)		—		—		(151,824)
Accumulated other comprehensive income, net of tax	483		—		—		483
Total stockholders' equity	1,193,685		—		—		1,193,685
Total equity	1,932,054		863,565		(323,845)		2,471,774
Total liabilities, redeemable interest, non-controlling interests and equity	$	3,997,722	$	11,580,003	$	(408,733)	$	15,168,992

Schedule of Results from Operations

	Three months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	459,313	$	—	$	(11,051)	$	448,262
Carried interest allocation	460,651		—		—		460,651
Incentive fees	696		—		—		696
Principal investment income	20,719		—		(6,469)		14,250
Administrative, transaction and other fees	29,124		—		(4,264)		24,860
Total revenues	970,503		—		(21,784)		948,719
Expenses
Compensation and benefits	335,569		—		—		335,569
Performance related compensation	331,141		—		—		331,141
General, administrative and other expense	134,453		—		—		134,453
Expenses of the Consolidated Funds	—		23,206		(11,102)		12,104
Total expenses	801,163		23,206		(11,102)		813,267
Other income (expense)
Net realized and unrealized gains on investments	2,759		—		5,575		8,334
Interest and dividend income	2,702		—		(1,326)		1,376
Interest expense	(11,523)		—		—		(11,523)
Other income, net	36,338		—		316		36,654
Net realized and unrealized gains on investments of the Consolidated Funds	—		36,695		(2,450)		34,245
Interest and other income of the Consolidated Funds	—		104,344		(316)		104,028
Interest expense of the Consolidated Funds	—		(64,752)		3,174		(61,578)
Total other income	30,276		76,287		4,973		111,536
Income before taxes	199,616		53,081		(5,709)		246,988
Income tax expense	30,273		2		—		30,275
Net income	169,343		53,079		(5,709)		216,713
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		53,079		(5,709)		47,370
Net income attributable to Ares Operating Group entities	169,343		—		—		169,343
Less: Net income attributable to redeemable interest in Ares Operating Group entities	324		—		—		324
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	84,293		—		—		84,293
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	84,726	$	—	$	—	$	84,726

	Three months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	304,153	$	—	$	(11,719)	$	292,434
Carried interest allocation	168,978		—		—		168,978
Incentive fees	7,194		—		—		7,194
Principal investment income	18,080		—		(6,672)		11,408
Administrative, transaction and other fees	14,300		—		(4,448)		9,852
Total revenues	512,705		—		(22,839)		489,866
Expenses
Compensation and benefits	194,267		—		—		194,267
Performance related compensation	122,356		—		—		122,356
General, administrative and other expense	69,938		—		—		69,938
Expenses of the Consolidated Funds	—		17,737		(11,718)		6,019
Total expenses	386,561		17,737		(11,718)		392,580
Other income (expense)
Net realized and unrealized gains (losses) on investments	2,303		—		(4,910)		(2,607)
Interest and dividend income	1,602		—		(258)		1,344
Interest expense	(6,815)		—		—		(6,815)
Other income (expense), net	(6,337)		—		8,540		2,203
Net realized and unrealized gains on investments of the Consolidated Funds	—		9,850		8,121		17,971
Interest and other income of the Consolidated Funds	—		126,100		(9,519)		116,581
Interest expense of the Consolidated Funds	—		(67,818)		1,496		(66,322)
Total other income (expense)	(9,247)		68,132		3,470		62,355
Income before taxes	116,897		50,395		(7,651)		159,641
Income tax expense	18,197		117		—		18,314
Net income	98,700		50,278		(7,651)		141,327
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		50,278		(7,651)		42,627
Net income attributable to Ares Operating Group entities	98,700		—		—		98,700
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	52,162		—		—		52,162
Net income attributable to Ares Management Corporation	47,545		—		—		47,545
Less: Series A Preferred Stock dividends paid	5,425		—		—		5,425
Net income attributable to Ares Management Corporation Class A common stockholders	$	42,120	$	—	$	—	$	42,120

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,169,237	$	—	$	(33,416)	$	1,135,821
Carried interest allocation	1,610,707		—		—		1,610,707
Incentive fees	20,948		—		(1,528)		19,420
Principal investment income	96,448		—		(9,971)		86,477
Administrative, transaction and other fees	62,658		—		(13,157)		49,501
Total revenues	2,959,998		—		(58,072)		2,901,926
Expenses
Compensation and benefits	837,108		—		—		837,108
Performance related compensation	1,208,954		—		—		1,208,954
General, administrative and other expense	285,471		—		—		285,471
Expenses of the Consolidated Funds	—		66,653		(35,078)		31,575
Total expenses	2,331,533		66,653		(35,078)		2,363,108
Other income (expense)
Net realized and unrealized gains on investments	10,602		—		8,142		18,744
Interest and dividend income	9,695		—		(2,877)		6,818
Interest expense	(25,125)		—		—		(25,125)
Other income, net	30,861		—		(175)		30,686
Net realized and unrealized gains on investments of the Consolidated Funds	—		46,541		(1,821)		44,720
Interest and other income of the Consolidated Funds	—		333,570		175		333,745
Interest expense of the Consolidated Funds	—		(201,916)		10,339		(191,577)
Total other income	26,033		178,195		13,783		218,011
Income before taxes	654,498		111,542		(9,211)		756,829
Income tax expense	104,411		76		—		104,487
Net income	550,087		111,466		(9,211)		652,342
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		111,466		(9,211)		102,255
Net income attributable to Ares Operating Group entities	550,087		—		—		550,087
Less: Net income attributable to redeemable interest in Ares Operating Group entities	693		—		—		693
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	264,646		—		—		264,646
Net income attributable to Ares Management Corporation	284,748		—		—		284,748
Less: Series A Preferred Stock dividends paid	10,850		—		—		10,850
Less: Series A Preferred Stock redemption premium	11,239		—		—		11,239
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	262,659	$	—	$	—	$	262,659

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	856,751	$	—	$	(33,601)	$	823,150
Carried interest allocation	241,380		—		—		241,380
Incentive fees	4,206		—		70		4,276
Principal investment income (loss)	(24,951)		—		33,281		8,330
Administrative, transaction and other fees	41,146		—		(12,249)		28,897
Total revenues	1,118,532		—		(12,499)		1,106,033
Expenses
Compensation and benefits	559,482		—		—		559,482
Performance related compensation	191,565		—		—		191,565
General, administrative and other expense	190,353		—		—		190,353
Expenses of the Consolidated Funds	—		50,237		(33,531)		16,706
Total expenses	941,400		50,237		(33,531)		958,106
Other income (expense)
Net realized and unrealized losses on investments	(25,360)		—		15,009		(10,351)
Interest and dividend income	8,102		—		(2,990)		5,112
Interest expense	(18,203)		—		—		(18,203)
Other income, net	1,100		—		8,748		9,848
Net realized and unrealized losses on investments of the Consolidated Funds	—		(148,826)		(4,442)		(153,268)
Interest and other income of the Consolidated Funds	—		355,639		(9,519)		346,120
Interest expense of the Consolidated Funds	—		(227,532)		4,672		(222,860)
Total other expense	(34,361)		(20,719)		11,478		(43,602)
Income (loss) before taxes	142,771		(70,956)		32,510		104,325
Income tax expense	21,972		147		—		22,119
Net income (loss)	120,799		(71,103)		32,510		82,206
Less: Net loss attributable to non-controlling interests in Consolidated Funds	—		(71,103)		32,510		(38,593)
Net income attributable to Ares Operating Group entities	120,799		—		—		120,799
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,007)		—		—		(1,007)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	48,926		—		—		48,926
Net income attributable to Ares Management Corporation	72,880		—		—		72,880
Less: Series A Preferred Stock dividends paid	16,275		—		—		16,275
Net income attributable to Ares Management Corporation Class A common stockholders	$	56,605	$	—	$	—	$	56,605

Schedule of Cash Flows

	Nine months ended September 30, 2021
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	550,087	$	111,466	$	(9,211)	$	652,342
Adjustments to reconcile net income to net cash provided by (used in) operating activities	(28,467)		—		99,600		71,133
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(1,697,529)		9,444		(1,688,085)
Cash flows due to changes in operating assets and liabilities	(153,361)		—		3,923		(149,438)
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	—		343,253		(1,072,956)		(729,703)
Net cash provided by (used in) operating activities	368,259		(1,242,810)		(969,200)		(1,843,751)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(15,152)		—		—		(15,152)
Acquisitions, net of cash acquired	(1,057,426)		—		—		(1,057,426)
Net cash used in investing activities	(1,072,578)		—		—		(1,072,578)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock	827,430		—		—		827,430
Proceeds from Credit Facility	468,000		—		—		468,000
Proceeds from subordinated notes	450,000		—		—		450,000
Repayments of Credit Facility	(318,000)		—		—		(318,000)
Dividends and distributions	(438,568)		—		—		(438,568)
Series A Preferred Stock dividends	(10,850)		—		—		(10,850)
Redemption of Series A Preferred Stock	(310,000)		—		—		(310,000)
Stock option exercises	27,409		—		—		27,409
Taxes paid related to net share settlement of equity awards	(221,287)		—		—		(221,287)
Other financing activities	1,976		—		—		1,976
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		1,027,454		(107,788)		919,666
Distributions to non-controlling interests in Consolidated Funds	—		(102,701)		17,931		(84,770)
Borrowings under loan obligations by Consolidated Funds	—		1,456,887		—		1,456,887
Repayments under loan obligations by Consolidated Funds	—		(74,909)		—		(74,909)
Net cash provided by financing activities	476,110		2,306,731		(89,857)		2,692,984
Effect of exchange rate changes	(15,899)		(4,864)		—		(20,763)
Net change in cash and cash equivalents	(244,108)		1,059,057		(1,059,057)		(244,108)
Cash and cash equivalents, beginning of period	539,812		522,377		(522,377)		539,812
Cash and cash equivalents, end of period	$	295,704	$	1,581,434	$	(1,581,434)	$	295,704
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions	$	511,069	$	—	$	—	$	511,069

	Nine months ended September 30, 2020
	Consolidated Company  Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income (loss)	$	120,799	$	(71,103)	$	32,510	$	82,206
Adjustments to reconcile net income to net cash provided by operating activities	207,358		—		(22,772)		184,586
Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(733,607)		(32,792)		(766,399)
Cash flows due to changes in operating assets and liabilities	152,691		—		(6,989)		145,702
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		105,992		260,375		366,367
Net cash provided by (used in) operating activities	480,848		(698,718)		230,332		12,462
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(8,608)		—		—		(8,608)
Cash paid for asset acquisition	(117,829)		—		—		(117,829)
Net cash used in investing activities	(126,437)		—		—		(126,437)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock	383,154		—		—		383,154
Proceeds from Credit Facility	790,000		—		—		790,000
Proceeds from Senior Notes	399,084		—		—		399,084
Repayments of Credit Facility	(860,000)		—		—		(860,000)
Dividends and distributions	(334,957)		—		—		(334,957)
Series A Preferred Stock dividends	(16,275)		—		—		(16,275)
Stock option exercises	78,959		—		—		78,959
Taxes paid related to net share settlement of equity awards	(75,657)		—		—		(75,657)
Other financing activities	(4,137)		—		—		(4,137)
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		138,760		(15,047)		123,713
Distributions to non-controlling interests in Consolidated Funds	—		(195,598)		25,851		(169,747)
Borrowings under loan obligations by Consolidated Funds	—		618,207		—		618,207
Repayments under loan obligations by Consolidated Funds	—		(104,794)		—		(104,794)
Net cash provided by financing activities	360,171		456,575		10,804		827,550
Effect of exchange rate changes	15,786		1,007		—		16,793
Net change in cash and cash equivalents	730,368		(241,137)		241,137		730,368
Cash and cash equivalents, beginning of period	138,384		606,321		(606,321)		138,384
Cash and cash equivalents, end of period	$	868,752	$	365,185	$	(365,185)	$	868,752
Supplemental disclosure of non-cash financing activities
Issuance of Class A common stock in connection with acquisitions	$	305,388	$	—	$	—	$	305,338

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ORGANIZATION (Details) $ in Billions	1 Months Ended
	Feb. 28, 2021 USD ($)	Feb. 21, 2020 contract
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Proceeds from IPO | $	$ 1.0
Number of collateral management contracts acquired | contract		7

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	Sep. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	289,875,333	259,631,180
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	167,581,165	147,182,562
Class A Common Stock | Ares Acquisition Corporation
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	100,000,000

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BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		4 Months Ended	9 Months Ended
	Jul. 01, 2021	Jun. 02, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Asset Acquisition [Line Items]
Acquisition and merger-related expense		$ 4,900
Goodwill		$ 417,700	$ 787,750		$ 787,750	$ 787,750		$ 371,047
Total revenues					54,000
Net income					$ 26,800
Landmark Acquisition
Asset Acquisition [Line Items]
Business combination equity interest in acquiree, percentage		100.00%
Business combination, consideration transferred		$ 1,103,469
Goodwill		417,665
Total revenues			948,719	$ 527,105		2,966,540	$ 1,214,989
Net income			$ 87,542	$ 37,570		$ 257,361	$ 41,263
Landmark Acquisition | Management contracts
Asset Acquisition [Line Items]
Acquisition and merger-related expense		$ 425,900
Acquired finite lived intangible assets useful life		7 years 4 months 24 days
Landmark Acquisition | Client relationships
Asset Acquisition [Line Items]
Acquisition and merger-related expense		$ 197,200
Acquired finite lived intangible assets useful life		11 years 9 months 18 days
Landmark Acquisition | Trade name
Asset Acquisition [Line Items]
Acquisition and merger-related expense		$ 86,200
Landmark Partners XVI - GP
Asset Acquisition [Line Items]
Business combination equity interest in acquiree, percentage		60.00%
Black Creek Acquisition
Asset Acquisition [Line Items]
Business combination equity interest in acquiree, percentage	100.00%
Bargain purchase gain	$ 42,300
Black Creek Acquisition | Management contracts
Asset Acquisition [Line Items]
Acquisition and merger-related expense	$ 576,200
Acquired finite lived intangible assets useful life	6 years 1 month 6 days
Black Creek Acquisition | Client relationships
Asset Acquisition [Line Items]
Acquisition and merger-related expense	$ 7,200
Acquired finite lived intangible assets useful life	12 years

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BUSINESS COMBINATIONS - Acquisition Date Fair Value (Details) - Landmark Acquisition $ in Thousands	Jun. 02, 2021 USD ($) shares
Asset Acquisition [Line Items]
Cash	$ 803,829
Equity	299,640
Total	$ 1,103,469
Ares Operating Group
Asset Acquisition [Line Items]
Equity interest issued or issuable (in shares) | shares	5,419,413

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BUSINESS COMBINATIONS - Fair Value of Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 02, 2021	Dec. 31, 2020
Intangible assets:
Goodwill	$ 787,750	$ 417,700	$ 371,047
Landmark Acquisition
Asset Acquisition [Line Items]
Cash		25,685
Other tangible assets		23,411
Intangible assets:
Total intangible assets		709,240
Total identifiable assets acquired		758,336
Accounts payable, accrued expenses and other liabilities		72,532
Net identifiable assets acquired		685,804
Goodwill		417,665
Net assets acquired		1,103,469
Landmark Acquisition | Management contracts
Intangible assets:
Total intangible assets		425,880
Landmark Acquisition | Client relationships
Intangible assets:
Total intangible assets		197,160
Landmark Acquisition | Trade name
Intangible assets:
Total intangible assets		$ 86,200

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BUSINESS COMBINATIONS - Supplemental Information on Unaudited Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Total revenues			$ 54,000
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders			$ 26,800
Landmark Acquisition
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Total revenues	$ 948,719	$ 527,105		$ 2,966,540	$ 1,214,989
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$ 87,542	$ 37,570		$ 257,361	$ 41,263

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GOODWILL AND INTANGIBLE ASSETS - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-lived intangible assets, net
Finite-lived intangible assets	$ 882,317	$ 247,077
Foreign currency translation	1,530	3,093
Total finite-lived intangible assets	883,847	250,170
Less: accumulated amortization	(85,157)	(28,082)
Finite-lived intangible assets, net	798,690	222,088
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	654,000	0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible assets, net	1,452,690	222,088
Management contracts
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	567,800	0
Trade name
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 86,200	0
Management contracts
Finite-lived intangible assets, net
Weighted average amortization period	6 years 6 months
Finite-lived intangible assets	$ 641,737	210,857
Client relationships
Finite-lived intangible assets, net
Weighted average amortization period	11 years 2 months 12 days
Finite-lived intangible assets	$ 229,501	25,141
Trade name
Finite-lived intangible assets, net
Weighted average amortization period	8 years 8 months 12 days
Finite-lived intangible assets	$ 11,079	$ 11,079

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GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)			3 Months Ended		9 Months Ended
	Jul. 01, 2021	Jun. 02, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition and merger-related expense		$ 4,900,000
Goodwill impairment					$ 0	$ 0
Management contracts
Acquired Finite-Lived Intangible Assets [Line Items]
Fully-amortized intangibles, amount removed during the period				$ 3,400,000
General, administrative and other expense
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense			$ 32,800,000	$ 11,100,000	$ 60,700,000	$ 13,700,000
Black Creek Acquisition | Management contracts
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition and merger-related expense	$ 576,200,000
Acquired finite lived intangible assets useful life	6 years 1 month 6 days
Black Creek Acquisition | Client relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Acquisition and merger-related expense	$ 7,200,000
Acquired finite lived intangible assets useful life	12 years

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GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 371,047
Acquisitions	417,665
Foreign currency translation	(962)
Goodwill, ending balance	787,750
Credit Group
Goodwill [Roll Forward]
Goodwill, beginning balance	32,196
Acquisitions	0
Foreign currency translation	0
Goodwill, ending balance	32,196
Private Equity Group
Goodwill [Roll Forward]
Goodwill, beginning balance	58,600
Acquisitions	0
Foreign currency translation	0
Goodwill, ending balance	58,600
Real Estate Group
Goodwill [Roll Forward]
Goodwill, beginning balance	53,120
Acquisitions	0
Foreign currency translation	219
Goodwill, ending balance	53,339
Secondary Solutions Group
Goodwill [Roll Forward]
Goodwill, beginning balance	0
Acquisitions	417,665
Foreign currency translation	(16)
Goodwill, ending balance	417,649
Strategic Initiatives
Goodwill [Roll Forward]
Goodwill, beginning balance	227,131
Acquisitions	0
Foreign currency translation	(1,165)
Goodwill, ending balance	$ 225,966

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INVESTMENTS - Fair Value Investments, excluding Equity Method Investments Held at Fair Value (Details) - Ares Management L.P - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments
Partnership interests	$ 8,618	$ 3,784
Collateralized loan obligations	32,724	31,766
Other fixed income	172,732	146,552
Common stock, at fair value	109,807	89,419
Total investments	$ 3,322,665	$ 1,682,759
Percentage of total investments	1.00%	1.90%
Crestline Denali Class B Interests
Investments
Collateralized loan obligations	$ 3,200	$ 3,400
Partnership Interests
Investments
Equity method investments:	$ 3,266,948	$ 1,628,403
Percentage of total investments	98.30%	96.80%
Other fixed income
Investments
Other fixed income	$ 21,583	$ 21,583
Percentage of total investments	0.60%	1.30%
Collateralized loan obligations and other fixed income, at fair value
Investments
Collateralized loan obligations	$ 54,307	$ 53,349
Percentage of total investments	1.60%	3.20%
Common stock, at fair value
Investments
Common stock, at fair value	$ 1,410	$ 1,007
Percentage of total investments	0.10%	0.10%
Partnership Interests
Investments
Equity method investments:	$ 492,482	$ 366,471
Percentage of total investments	14.80%	21.80%
Equity method - carried interest
Investments
Equity method investments:	$ 2,625,319	$ 1,145,853
Percentage of total investments	79.00%	68.10%
Equity method private investment partnership interests and other (held at fair value)
Investments
Equity method investments:	$ 117,015	$ 92,196
Percentage of total investments	3.50%	5.50%
Equity method private investment partnership interests and other
Investments
Partnership interests	$ 32,132	$ 23,883
Percentage of total investments	1.00%	1.40%

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INVESTMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments in and Advances to Affiliates [Abstract]
Equity method investments gains	$ 18.9	$ 8.9	$ 99.3	$ 1.8

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INVESTMENTS - Investments of the Consolidated Funds (Details) - Consolidated Funds - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments
Total investments, at fair value	$ 11,361,019	$ 10,877,097
Percent of total assets	5.00%	5.00%
Percentage of interest yield	0.06%
Fixed income investments:
Investments
Total investments, at fair value	$ 10,852,660	$ 10,410,442
Percentage of total investments	95.60%	95.70%
Fixed income investments: | Bonds
Investments
Total investments, at fair value	$ 434,226	$ 397,494
Percentage of total investments	3.90%	3.60%
Fixed income investments: | Loans
Investments
Total investments, at fair value	$ 9,389,769	$ 10,012,948
Percentage of total investments	82.60%	92.10%
Fixed income investments: | U.S. Treasury securities
Investments
Total investments, at fair value	$ 1,000,165	$ 0
Percentage of total investments	8.80%	0.00%
Fixed income investments: | Investments in CLO warehouse
Investments
Total investments, at fair value	$ 28,500	$ 0
Percentage of total investments	0.30%	0.00%
Equity securities
Investments
Total investments, at fair value	$ 264,202	$ 227,031
Percentage of total investments	2.30%	2.10%
Partnership interests
Investments
Total investments, at fair value	$ 244,157	$ 239,624
Percentage of total investments	2.10%	2.20%

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FAIR VALUE - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Consolidated Funds
Assets, at fair value
Collateralized loan obligations and other fixed income	$ 10,852,660	$ 10,410,442
Common stock and other equity securities	264,202	227,031
Partnership interests	244,157	239,624
Total investments, at fair value	11,361,019	10,877,097
Total derivative assets, at fair value	325
Total assets, at fair value	11,361,344	10,878,201
Liabilities, at fair value
Derivative liabilities	(18,513)
Loan obligations of CLOs	(10,174,794)	(9,958,076)
Total liabilities, at fair value	(10,193,307)	(9,958,120)
Consolidated Funds | Asset swaps-other
Assets, at fair value
Total derivative assets, at fair value	325	1,104
Liabilities, at fair value
Derivative liabilities	(1,513)	(44)
Consolidated Funds | Warrants
Liabilities, at fair value
Derivative liabilities	(17,000)
Consolidated Funds | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	28,500
Consolidated Funds | Bonds
Assets, at fair value
Collateralized loan obligations and other fixed income	434,226	397,494
Consolidated Funds | Loans
Assets, at fair value
Collateralized loan obligations and other fixed income	9,389,769	10,012,948
Consolidated Funds | U.S. Treasury securities
Assets, at fair value
Collateralized loan obligations and other fixed income	1,000,165
Consolidated Funds | Level I
Assets, at fair value
Collateralized loan obligations and other fixed income	1,000,165	0
Common stock and other equity securities	3,366	5,749
Partnership interests	0	0
Total investments, at fair value	1,003,531	5,749
Total derivative assets, at fair value	0
Total assets, at fair value	1,003,531	5,749
Liabilities, at fair value
Derivative liabilities	(17,000)
Loan obligations of CLOs	0	0
Total liabilities, at fair value	(17,000)	0
Consolidated Funds | Level I  | Asset swaps-other
Assets, at fair value
Total derivative assets, at fair value	0	0
Liabilities, at fair value
Derivative liabilities	0	0
Consolidated Funds | Level I  | Warrants
Liabilities, at fair value
Derivative liabilities	(17,000)
Consolidated Funds | Level I  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Consolidated Funds | Level I  | Bonds
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Consolidated Funds | Level I  | Loans
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Consolidated Funds | Level I  | U.S. Treasury securities
Assets, at fair value
Collateralized loan obligations and other fixed income	1,000,165
Consolidated Funds | Level II
Assets, at fair value
Collateralized loan obligations and other fixed income	9,449,819	9,868,136
Common stock and other equity securities	1,590	239
Partnership interests	0	0
Total investments, at fair value	9,451,409	9,868,375
Total derivative assets, at fair value	0
Total assets, at fair value	9,451,409	9,868,375
Liabilities, at fair value
Derivative liabilities	0
Loan obligations of CLOs	(10,174,794)	(9,958,076)
Total liabilities, at fair value	(10,174,794)	(9,958,076)
Consolidated Funds | Level II  | Asset swaps-other
Assets, at fair value
Total derivative assets, at fair value	0	0
Liabilities, at fair value
Derivative liabilities	0	0
Consolidated Funds | Level II  | Warrants
Liabilities, at fair value
Derivative liabilities	0
Consolidated Funds | Level II  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	28,500
Consolidated Funds | Level II  | Bonds
Assets, at fair value
Collateralized loan obligations and other fixed income	406,253	397,485
Consolidated Funds | Level II  | Loans
Assets, at fair value
Collateralized loan obligations and other fixed income	9,015,066	9,470,651
Consolidated Funds | Level II  | U.S. Treasury securities
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Consolidated Funds | Level III
Assets, at fair value
Collateralized loan obligations and other fixed income	402,676	542,306
Common stock and other equity securities	259,246	221,043
Partnership interests	237,558	231,857
Total investments, at fair value	899,480	995,206
Total derivative assets, at fair value	325
Total assets, at fair value	899,805	996,310
Liabilities, at fair value
Derivative liabilities	(1,513)	(44)
Loan obligations of CLOs	0	0
Total liabilities, at fair value	(1,513)	(44)
Consolidated Funds | Level III  | Asset swaps-other
Assets, at fair value
Total derivative assets, at fair value	325	1,104
Liabilities, at fair value
Derivative liabilities	(1,513)	(44)
Consolidated Funds | Level III  | Warrants
Liabilities, at fair value
Derivative liabilities	0
Consolidated Funds | Level III  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Consolidated Funds | Level III  | Bonds
Assets, at fair value
Collateralized loan obligations and other fixed income	27,973	9
Consolidated Funds | Level III  | Loans
Assets, at fair value
Collateralized loan obligations and other fixed income	374,703	542,297
Consolidated Funds | Level III  | U.S. Treasury securities
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Consolidated Funds | Investments Measured at NAV
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Common stock and other equity securities	0	0
Partnership interests	6,599	7,767
Total investments, at fair value	6,599	7,767
Total derivative assets, at fair value	0
Total assets, at fair value	6,599	7,767
Liabilities, at fair value
Derivative liabilities	0
Loan obligations of CLOs	0	0
Total liabilities, at fair value	0	0
Consolidated Funds | Investments Measured at NAV | Asset swaps-other
Assets, at fair value
Total derivative assets, at fair value	0	0
Liabilities, at fair value
Derivative liabilities	0	0
Consolidated Funds | Investments Measured at NAV | Warrants
Liabilities, at fair value
Derivative liabilities	0
Consolidated Funds | Investments Measured at NAV | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Consolidated Funds | Investments Measured at NAV | Bonds
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Consolidated Funds | Investments Measured at NAV | Loans
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Consolidated Funds | Investments Measured at NAV | U.S. Treasury securities
Assets, at fair value
Collateralized loan obligations and other fixed income	0
Ares Management L.P
Assets, at fair value
Common stock and other equity securities	109,807	89,419
Partnership interests	8,618	3,784
Total investments, at fair value	172,732	146,552
Total assets, at fair value	177,093	147,992
Liabilities, at fair value
Derivative liabilities		(1,565)
Contingent consideration	(41,413)
Total liabilities, at fair value	(41,678)	(1,565)
Ares Management L.P | Derivatives-foreign exchange contracts and interest rate contracts
Assets, at fair value
Total derivative assets, at fair value	4,361
Ares Management L.P | Derivatives-foreign exchange contracts
Assets, at fair value
Total derivative assets, at fair value		1,440
Liabilities, at fair value
Derivative liabilities	(265)
Ares Management L.P | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	54,307	53,349
Ares Management L.P | Level I
Assets, at fair value
Common stock and other equity securities	0	0
Partnership interests	0	0
Total investments, at fair value	0	0
Total assets, at fair value	0	0
Liabilities, at fair value
Derivative liabilities		0
Contingent consideration	0
Total liabilities, at fair value	0	0
Ares Management L.P | Level I  | Derivatives-foreign exchange contracts and interest rate contracts
Assets, at fair value
Total derivative assets, at fair value	0
Ares Management L.P | Level I  | Derivatives-foreign exchange contracts
Assets, at fair value
Total derivative assets, at fair value		0
Liabilities, at fair value
Derivative liabilities	0
Ares Management L.P | Level I  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Ares Management L.P | Level II
Assets, at fair value
Common stock and other equity securities	1,410	1,007
Partnership interests	0	0
Total investments, at fair value	1,410	1,007
Total assets, at fair value	5,771	2,447
Liabilities, at fair value
Derivative liabilities		(1,565)
Contingent consideration	0
Total liabilities, at fair value	(265)	(1,565)
Ares Management L.P | Level II  | Derivatives-foreign exchange contracts and interest rate contracts
Assets, at fair value
Total derivative assets, at fair value	4,361
Ares Management L.P | Level II  | Derivatives-foreign exchange contracts
Assets, at fair value
Total derivative assets, at fair value		1,440
Liabilities, at fair value
Derivative liabilities	(265)
Ares Management L.P | Level II  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	0	0
Ares Management L.P | Level III
Assets, at fair value
Common stock and other equity securities	108,397	88,412
Partnership interests	2,575	2,575
Total investments, at fair value	165,279	144,336
Total assets, at fair value	165,279	144,336
Liabilities, at fair value
Derivative liabilities		0
Contingent consideration	(41,413)
Total liabilities, at fair value	(41,413)	0
Ares Management L.P | Level III  | Derivatives-foreign exchange contracts and interest rate contracts
Assets, at fair value
Total derivative assets, at fair value	0
Ares Management L.P | Level III  | Derivatives-foreign exchange contracts
Assets, at fair value
Total derivative assets, at fair value		0
Liabilities, at fair value
Derivative liabilities	0
Ares Management L.P | Level III  | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	54,307	53,349
Ares Management L.P | Investments Measured at NAV
Assets, at fair value
Common stock and other equity securities	0	0
Partnership interests	6,043	1,209
Total investments, at fair value	6,043	1,209
Total assets, at fair value	6,043	1,209
Liabilities, at fair value
Derivative liabilities		0
Contingent consideration	0
Total liabilities, at fair value	0	0
Ares Management L.P | Investments Measured at NAV | Derivatives-foreign exchange contracts and interest rate contracts
Assets, at fair value
Total derivative assets, at fair value	0
Ares Management L.P | Investments Measured at NAV | Derivatives-foreign exchange contracts
Assets, at fair value
Total derivative assets, at fair value		0
Liabilities, at fair value
Derivative liabilities	0
Ares Management L.P | Investments Measured at NAV | Collateralized loan obligations and other fixed income, at fair value
Assets, at fair value
Collateralized loan obligations and other fixed income	$ 0	$ 0

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FAIR VALUE - Changes in Fair Value of Level III Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Funds
Level III Net Assets of Consolidated Funds
Balance, beginning of period	$ 938,346	$ 942,584	$ 996,265	$ 717,030
Transfer in (out) due to changes in consolidation			(49,483)	392,037
Transfer in	18,792	96,671	50,013	146,839
Transfer out	(209,282)	(230,326)	(216,210)	(350,078)
Purchases	246,526	118,708	486,627	321,065
Sales/settlements	(118,272)	(74,330)	(403,581)	(306,928)
Amortized discounts/premiums	394	5	1,465	1,068
Realized and unrealized appreciation (depreciation), net	21,788	14,869	33,196	(52,852)
Balance, end of period	898,292	868,181	898,292	868,181
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	16,736	12,562	26,521	(55,970)
Consolidated Funds | Equity securities
Level III Net Assets of Consolidated Funds
Balance, beginning of period	229,300	42,259	221,043	85,988
Transfer in (out) due to changes in consolidation			(157)	(635)
Transfer in	0	0	2,195	0
Transfer out	0	0	(33)	0
Purchases	27,346	150	36,201	551
Sales/settlements	(313)	(25)	(876)	(714)
Amortized discounts/premiums	0	0	1	0
Realized and unrealized appreciation (depreciation), net	2,913	828	872	(41,978)
Balance, end of period	259,246	43,212	259,246	43,212
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	2,912	878	790	(41,930)
Consolidated Funds | Fixed Income
Level III Net Assets of Consolidated Funds
Balance, beginning of period	455,426	586,287	542,305	339,136
Transfer in (out) due to changes in consolidation			(49,326)	392,672
Transfer in	18,792	96,671	47,818	146,839
Transfer out	(209,282)	(230,326)	(216,177)	(350,078)
Purchases	219,180	118,558	437,426	256,514
Sales/settlements	(88,584)	(73,010)	(371,006)	(249,027)
Amortized discounts/premiums	394	(135)	1,464	777
Realized and unrealized appreciation (depreciation), net	6,750	15,836	10,172	(22,952)
Balance, end of period	402,676	513,881	402,676	513,881
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	1,607	13,690	2,700	(25,701)
Consolidated Funds | Partnership Interests
Level III Net Assets of Consolidated Funds
Balance, beginning of period	255,278	312,636	231,857	296,012
Transfer in (out) due to changes in consolidation			0	0
Transfer in	0	0	0	0
Transfer out	0	0	0	0
Purchases	0	0	13,000	64,000
Sales/settlements	(30,000)	(2,000)	(32,000)	(58,000)
Amortized discounts/premiums	0	0	0	0
Realized and unrealized appreciation (depreciation), net	12,280	(1,402)	24,701	7,222
Balance, end of period	237,558	309,234	237,558	309,234
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	12,280	(1,402)	24,701	7,222
Consolidated Funds | Derivatives, Net
Level III Net Assets of Consolidated Funds
Balance, beginning of period	(1,658)	1,402	1,060	(4,106)
Transfer in (out) due to changes in consolidation			0	0
Transfer in	0	0	0	0
Transfer out	0	0	0	0
Purchases	0	0	0	0
Sales/settlements	625	705	301	813
Amortized discounts/premiums	0	140	0	291
Realized and unrealized appreciation (depreciation), net	(155)	(393)	(2,549)	4,856
Balance, end of period	(1,188)	1,854	(1,188)	1,854
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	(63)	(604)	(1,670)	4,439
Ares Management L.P
Level III Net Assets of Consolidated Funds
Balance, beginning of period	165,655	84,634	144,336	119,079
Transfer in (out) due to changes in consolidation		72,967	7,623	76,653
Established in connection with acquisition	(34,200)		(34,200)
Purchases	708	5,983	20,967	7,285
Sales/settlements	(2,904)	(899)	(12,120)	(34,017)
Realized and unrealized appreciation (depreciation), net	(5,393)	1,429	(2,740)	(4,886)
Balance, end of period	123,866	164,114	123,866	164,114
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	(5,381)	(1,429)	(4,191)	1,848
Ares Management L.P | Contingent Consideration
Level III Liabilities of the Company
Balance, beginning of period	0		0
Transfer in due to changes in consolidation			0
Established in connection with acquisition	(34,200)		(34,200)
Purchases	0		0
Sales/settlements	0		0
Realized and unrealized appreciation (depreciation), net	(7,213)		(7,213)
Balance, end of period	(41,413)		(41,413)
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	(7,213)		(7,213)
Ares Management L.P | Equity securities
Level III Net Assets of Consolidated Funds
Balance, beginning of period	107,240	14,704	88,412	14,704
Transfer in (out) due to changes in consolidation		72,967	0	72,967
Established in connection with acquisition	0		0
Purchases	0	0	19,278	0
Sales/settlements	0	0	0	0
Realized and unrealized appreciation (depreciation), net	1,157	(1,746)	707	(1,746)
Balance, end of period	108,397	85,925	108,397	85,925
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	1,157	1,746	707	(1,746)
Ares Management L.P | Fixed Income
Level III Net Assets of Consolidated Funds
Balance, beginning of period	55,840	67,355	53,349	69,183
Transfer in (out) due to changes in consolidation		0	7,623	3,686
Established in connection with acquisition	0		0
Purchases	708	5,983	1,689	7,285
Sales/settlements	(2,904)	(899)	(12,120)	(1,587)
Realized and unrealized appreciation (depreciation), net	663	3,175	3,766	(2,953)
Balance, end of period	54,307	75,614	54,307	75,614
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	675	(3,175)	2,315	(1,917)
Ares Management L.P | Partnership Interests
Level III Net Assets of Consolidated Funds
Balance, beginning of period	2,575	2,575	2,575	35,192
Transfer in (out) due to changes in consolidation		0	0	0
Established in connection with acquisition	0		0
Purchases	0	0	0	0
Sales/settlements	0	0	0	(32,430)
Realized and unrealized appreciation (depreciation), net	0	0	0	(187)
Balance, end of period	2,575	2,575	2,575	2,575
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$ 0	$ 0	$ 0	$ 5,511

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FAIR VALUE - Valuation Techniques (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Consolidated Funds
Assets
Equity securities	$ 264,202	$ 227,031
Partnership interests	244,157	239,624
Collateralized loan obligations	10,174,794	9,958,076
Other fixed income	10,852,660	10,410,442
Derivative instruments	325
Total derivative assets, at fair value	11,361,344	10,878,201
Liabilities
Derivative instruments	(18,513)
Total liabilities, at fair value	(10,193,307)	(9,958,120)
Consolidated Funds | Level III
Assets
Equity securities	259,246	221,043
Partnership interests	237,558	231,857
Collateralized loan obligations	0	0
Other fixed income	402,676	542,306
Derivative instruments	325
Total derivative assets, at fair value	899,805	996,310
Liabilities
Derivative instruments	(1,513)	(44)
Total liabilities, at fair value	(1,513)	$ (44)
Consolidated Funds | Level III  | Discount Rates
Significant Unobservable Input(s)
Partnership interest		0.238
Consolidated Funds | Level III  | Discount Rates | Weighted Average
Significant Unobservable Input(s)
Partnership interest		0.238
Consolidated Funds | Level III  | Illiquidity discount
Significant Unobservable Input(s)
Equity securities		0.250
Consolidated Funds | Level III  | Illiquidity discount | Weighted Average
Significant Unobservable Input(s)
Equity securities		0.250
Consolidated Funds | Level III  | Transaction price
Assets
Equity securities	258,336	$ 188,044
Other fixed income	14,791
Consolidated Funds | Level III  | Discounted Cash Flow
Assets
Partnership interests	$ 237,558	231,857
Consolidated Funds | Level III  | Discounted Cash Flow | Discount Rates
Significant Unobservable Input(s)
Partnership interest	0.224
Consolidated Funds | Level III  | Discounted Cash Flow | Discount Rates | Weighted Average
Significant Unobservable Input(s)
Partnership interest	0.224
Consolidated Funds | Level III  | Market Approach
Assets
Equity securities	$ 896	438
Other fixed income		$ 6,605
Consolidated Funds | Level III  | Market Approach | EBITDA multiple | Minimum
Significant Unobservable Input(s)
Equity securities	1.8	2.9
Fixed income securities		6.5
Consolidated Funds | Level III  | Market Approach | EBITDA multiple | Maximum
Significant Unobservable Input(s)
Equity securities	83.3	19.5
Fixed income securities		7.8
Consolidated Funds | Level III  | Market Approach | EBITDA multiple | Weighted Average
Significant Unobservable Input(s)
Equity securities	15.3	13.4
Fixed income securities		6.9
Consolidated Funds | Level III  | Other
Assets
Equity securities		$ 32,528
Other fixed income	$ 28,766	$ 28,320
Consolidated Funds | Level III  | Other | Net income multiple
Significant Unobservable Input(s)
Equity securities		30.0
Consolidated Funds | Level III  | Other | Net income multiple | Weighted Average
Significant Unobservable Input(s)
Equity securities		30.0
Consolidated Funds | Level III  | Broker quotes and/or 3rd party pricing services
Assets
Equity securities	14	$ 33
Other fixed income	261,064	384,419
Derivative instruments	325	1,104
Liabilities
Derivative instruments	(1,513)
Consolidated Funds | Level III  | Income approach
Assets
Other fixed income	$ 98,055	$ 122,962
Consolidated Funds | Level III  | Income approach | Yield | Minimum
Significant Unobservable Input(s)
Fixed income securities	1.8	0.027
Consolidated Funds | Level III  | Income approach | Yield | Maximum
Significant Unobservable Input(s)
Fixed income securities	54.7	0.481
Consolidated Funds | Level III  | Income approach | Yield | Weighted Average
Significant Unobservable Input(s)
Fixed income securities	6.5	0.079
Ares Management L.P
Assets
Equity securities	$ 109,807	$ 89,419
Partnership interests	8,618	3,784
Total derivative assets, at fair value	177,093	147,992
Liabilities
Contingent consideration	(41,413)
Derivative instruments		(1,565)
Total liabilities, at fair value	(41,678)	(1,565)
Ares Management L.P | Level III
Assets
Equity securities	108,397	88,412
Partnership interests	2,575	2,575
Total derivative assets, at fair value	165,279	144,336
Liabilities
Contingent consideration	(41,413)
Derivative instruments		0
Total liabilities, at fair value	(41,413)	0
Ares Management L.P | Level III  | Transaction price
Assets
Equity securities	14,704	14,704
Ares Management L.P | Level III  | Discounted Cash Flow
Assets
Equity securities	$ 46,765	$ 32,905
Ares Management L.P | Level III  | Discounted Cash Flow | Discount Rates | Minimum
Significant Unobservable Input(s)
Equity securities	0.140	0.140
Ares Management L.P | Level III  | Discounted Cash Flow | Discount Rates | Maximum
Significant Unobservable Input(s)
Equity securities	0.200	0.200
Ares Management L.P | Level III  | Discounted Cash Flow | Discount Rates | Weighted Average
Significant Unobservable Input(s)
Equity securities	0.153
Ares Management L.P | Level III  | Market Approach
Assets
Equity securities	$ 46,928	$ 40,803
Ares Management L.P | Level III  | Market Approach | Multiple of Book Value
Significant Unobservable Input(s)
Equity securities	1.5	1.6
Ares Management L.P | Level III  | Other
Assets
Partnership interests	$ 2,575	$ 2,575
Other fixed income	21,583	21,583
Liabilities
Contingent consideration	(32,813)
Ares Management L.P | Level III  | Broker quotes and/or 3rd party pricing services
Assets
Collateralized loan obligations	32,724	$ 31,766
Ares Management L.P | Level III  | Monte Carlo simulation
Liabilities
Contingent consideration	$ (8,600)
Ares Management L.P | Level III  | Monte Carlo simulation | Discount Rates
Significant Unobservable Input(s)
Contingent consideration	8
Ares Management L.P | Level III  | Monte Carlo simulation | Volatility
Significant Unobservable Input(s)
Contingent consideration	0.17

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FAIR VALUE - Investments Using NAV per Share (Details) - Investments Measured at NAV - Non-core investments - USD ($)	Sep. 30, 2021	Dec. 31, 2020
FAIR VALUE
Fair value	$ 6,000,000	$ 1,200,000
Unfunded commitments	$ 0	$ 0

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Consolidated Funds
Assets
Notional amount, assets	$ 44,521	$ 7,600
Fair Value	325	1,104
Liabilities
Notional amount, liabilities	269,701	540
Fair Value	18,513	44
Derivative liability, amount offset	(300)	(400)
Derivative asset, amount offset	300	400
Consolidated Funds | Warrants
Assets
Notional amount, assets	0	0
Fair Value	0	0
Liabilities
Notional amount, liabilities	230,000	0
Fair Value	17,000	0
Consolidated Funds | Asset swap - other
Assets
Notional amount, assets	44,521	7,600
Fair Value	325	1,104
Liabilities
Notional amount, liabilities	39,701	540
Fair Value	1,513	44
Ares Management L.P
Assets
Notional amount, assets	99,463	30,040
Fair Value	4,361	1,440
Liabilities
Notional amount, liabilities	9,868	39,362
Fair Value	265	1,565
Derivative liability, amount offset	(300)	(1,600)
Ares Management L.P | Foreign exchange contracts
Assets
Notional amount, assets	81,008	30,040
Fair Value	4,352	1,440
Liabilities
Notional amount, liabilities	9,868	39,362
Fair Value	265	1,565
Ares Management L.P | Interest rate contracts
Assets
Notional amount, assets	18,455	0
Fair Value	9	0
Liabilities
Notional amount, liabilities	0	0
Fair Value	$ 0	$ 0

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DEBT - Debt Obligations (Details) - Ares Management L.P - USD ($)	1 Months Ended			9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Oct. 31, 2014	Sep. 30, 2021	Dec. 31, 2020
DEBT
Carrying Value				$ 1,238,325,000	$ 642,998,000
US Treasury
DEBT
Interest rate	3.237%
Debt term	5 years
Credit Facility
DEBT
Carrying Value				$ 150,000,000	$ 0
Interest Rate				1.13%	0.00%
Maximum borrowing capacity				$ 1,090,000,000.00
Unused commitment fees				0.10%
Interest rate				0.00%
Credit Facility | Base rate
DEBT
Interest rate spread				0.125%
Credit Facility | LIBOR
DEBT
Interest rate spread				1.125%
Senior Notes 2024
DEBT
Original Borrowing Amount				$ 250,000,000
Carrying Value				$ 247,802,000	$ 247,285,000
Interest Rate				4.21%	4.21%
Debt issuance rate			98.27%
Senior Notes 2030
DEBT
Original Borrowing Amount				$ 400,000,000
Carrying Value				$ 396,045,000	$ 395,713,000
Interest Rate				3.28%	3.28%
Debt issuance rate		99.77%
Subordinated Notes 2051
DEBT
Original Borrowing Amount				$ 450,000,000
Carrying Value				$ 444,478,000	$ 0
Interest Rate				4.13%	0.00%
Interest rate	4.125%
Debt issuance rate	100.00%

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DEBT - Debt Issuance Costs (Details) - Ares Management L.P $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Credit Facility
Debt Issuance Costs
Unamortized debt issuance costs, beginning balance	$ 5,232
Debt issuance costs incurred	1,282
Amortization of debt issuance costs	(929)
Unamortized debt issuance costs, ending balance	5,585
Senior Notes
Debt Issuance Costs
Unamortized debt issuance costs, beginning balance	4,283
Debt issuance costs incurred	0
Amortization of debt issuance costs	(446)
Unamortized debt issuance costs, ending balance	3,837
Subordinated Notes
Debt Issuance Costs
Unamortized debt issuance costs, beginning balance	0
Debt issuance costs incurred	5,568
Amortization of debt issuance costs	(46)
Unamortized debt issuance costs, ending balance	$ 5,522

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DEBT - Loan Obligations of the Consolidated CLOs (Details) - Consolidated Funds - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
DEBT
Fair Value of Loan Obligations	$ 10,174,794	$ 9,958,076
Loan obligations of Consolidated CLOs
DEBT
Loan Obligations	10,301,292	10,278,833
Fair Value of Loan Obligations	10,174,794	9,958,076
Senior secured notes | Loan obligations of Consolidated CLOs
DEBT
Loan Obligations	9,577,725	9,796,442
Fair Value of Loan Obligations	$ 9,561,079	$ 9,665,804
Weighted  Average Remaining Maturity  In Years	9 years 6 months	10 years 1 month 6 days
Debt instrument face amount	$ 9,600,000
Weighted average interest rate	1.96%
Subordinated notes | Loan obligations of Consolidated CLOs
DEBT
Loan Obligations	$ 723,567	$ 482,391
Fair Value of Loan Obligations	$ 613,715	$ 292,272
Weighted  Average Remaining Maturity  In Years	8 years 3 months 18 days	10 years 2 months 12 days
Debt instrument face amount	$ 723,600

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DEBT - Credit Facilities of the Consolidated Funds (Details) - Consolidated Funds - USD ($)	Sep. 30, 2021	Dec. 31, 2020
DEBT
Total borrowings of Consolidated Funds	$ 99,240,000	$ 121,909,000
Credit Facility Maturing 3/4/2022
DEBT
Maximum borrowing capacity	71,500,000
Outstanding loan	$ 71,500,000	$ 71,500,000
Effective Rate	1.59%	1.59%
Credit Facility Maturing 7/1/2023
DEBT
Maximum borrowing capacity	$ 18,000,000
Outstanding loan	$ 17,740,000	$ 17,909,000
Effective Rate	1.63%	1.75%
Credit Facility Maturing 1/15/2022
DEBT
Maximum borrowing capacity	$ 0
Outstanding loan	$ 0	$ 32,500,000
Effective Rate	0.00%	2.75%
Credit Facility Maturing 7/23/2024
DEBT
Maximum borrowing capacity	$ 75,000,000
Outstanding loan	$ 10,000,000
Effective Rate	2.65%
Credit Facility Maturing 9/24/2026
DEBT
Maximum borrowing capacity	$ 150,000,000
Outstanding loan	$ 0

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	3 Months Ended	4 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2021	Jul. 01, 2021	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
Unfunded capital commitments	$ 732,800,000	$ 732,800,000	$ 732,800,000		$ 784,200,000
Performance Income
Carried interest, contingent repayment obligations	0	0	0		0
Performance income
Performance Income
Performance income subject to potential clawback provision	202,300,000	202,300,000	202,300,000		326,400,000
Performance income subject to potential claw back provision that are reimbursable by professionals	158,000,000	158,000,000	158,000,000		$ 252,400,000
Landmark Acquisition
COMMITMENTS AND CONTINGENCIES
Commitment, maximum amount	300,000,000	300,000,000	$ 300,000,000
Business combination, percentage			15.00%
Business combination equity awards percentage			85.00%
Vesting period			4 years
Estimated fair value of the contingent consideration liability	236,000,000	236,000,000	$ 236,000,000
Compensation expense	14,700,000	19,300,000
Black Creek Acquisition
COMMITMENTS AND CONTINGENCIES
Commitment, maximum amount	275,000,000	275,000,000	275,000,000
Compensation expense	13,500,000
Fair value of contingent liability	206,700,000	206,700,000	206,700,000
Contingent consideration	32,800,000	32,800,000	32,800,000	$ 28,600,000
Payment percentage of performance income obligation				50.00%
Black Creek Acquisition | Accrued Compensation
COMMITMENTS AND CONTINGENCIES
Contingent consideration	$ 13,500,000	$ 13,500,000	$ 13,500,000

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COMMITMENTS AND CONTINGENCIES - Leases: Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating lease liabilities	$ 214,681
Finance lease obligations	977
Accumulated amortization	$ 1,400	$ 1,000
Finance lease assets [Extensible List]	Other assets
Finance lease, liability [Extensible List]	Accounts Payable and Accrued Liabilities
Ares Management L.P
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 176,511	154,742
Finance lease assets	1,164	1,386
Total lease assets	177,675	156,128
Operating lease liabilities	214,681	180,236
Finance lease obligations	977	1,273
Total lease liabilities	$ 215,658	$ 181,509
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	12 years

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COMMITMENTS AND CONTINGENCIES - Leases: Maturity of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Operating Leases
2021	$ 10,591
2022	41,989
2023	38,277
2024	36,579
2025	36,251
After 2025	66,683
Total future payments	230,370
Less: interest	15,689
Operating lease liabilities	214,681
Finance Leases
2021	73
2022	598
2023	164
2024	162
2025	11
After 2025	0
Total future payments	1,008
Less: interest	31
Total lease liabilities	$ 977

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COMMITMENTS AND CONTINGENCIES - Leases: Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease expense	$ 9,697	$ 7,701	$ 27,203	$ 23,138
Amortization of finance lease assets	154	127	408	346
Interest on finance lease liabilities	7	11	24	33
Total lease expense	$ 9,858	$ 7,839	$ 27,635	$ 23,517

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COMMITMENTS AND CONTINGENCIES - Leases: Other Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 26,704	$ 23,098
Operating cash flows for finance leases	34	48
Financing cash flows for finance leases	463	412
Leased assets obtained in exchange for new finance lease liabilities	189	0
Leased assets obtained in exchange for new operating lease liabilities	$ 55,461	$ 12,477

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COMMITMENTS AND CONTINGENCIES - Leases: Lease Term and Discount Rate (Details)	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease terms, operating lease	6 years 1 month 6 days	6 years
Weighted-average remaining lease terms, finance lease	2 years 1 month 6 days	2 years 7 months 6 days
Weighted-average discount rate, operating lease	2.97%	3.59%
Weighted-average discount rate, finance lease	2.91%	3.26%

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Consolidated Funds
Due from affiliates:
Due from affiliates	$ 9,059	$ 17,172
Due to affiliates:
Due to affiliates—Company	0	0
Consolidated Funds | Affiliated entity
Due from affiliates:
Due from affiliates	9,059	17,172
Ares Management L.P
Due from affiliates:
Due from affiliates	493,411	405,887
Due to affiliates:
Due to affiliates—Company	202,438	100,186
Ares Management L.P | Affiliated entity
Due from affiliates:
Management fees receivable from non-consolidated funds	347,078	308,581
Incentive fee receivable from non-consolidated funds	579	21,495
Payments made on behalf of and amounts due from non-consolidated funds and employees	145,754	75,811
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	7,959	4,808
Tax receivable agreement liability	97,698	62,505
Undistributed carried interest and incentive fees	64,675	27,322
Payments made by non-consolidated funds on behalf of and payable by the Company	$ 32,106	$ 5,551

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INCOME TAXES - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 30,275	$ 18,314	$ 104,487	$ 22,119
Deferred tax asset	$ 29,900		$ 29,900		$ 70,000

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EARNINGS PER SHARE - Antidilutive (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOG
Earnings per common unit
Antidilutive securities excluded from calculation of earnings per common unit (in shares)	119,855,724	114,726,173	115,394,058	0
Restricted units
Earnings per common unit
Antidilutive securities excluded from calculation of earnings per common unit (in shares)	450	572	167	0

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EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 16, 2021	Jun. 16, 2021	Mar. 17, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
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				$ 84,726	$ 42,120	$ 262,659	$ 56,605
Distributions on unvested restricted units				(1,440)	(2,757)	(8,142)	(7,715)
Undistributed earnings allocable to participating unvested restricted units				(306)	0	(2,858)	0
Net income available to Class A and non-voting common stockholders				82,980	39,363	251,659	48,890
Diluted earnings per share of Class A and non-voting common stock:
Net income available to Class A and non-voting common stockholders				84,726	42,120	262,659	56,605
Distributions on unvested restricted units				0	0	0	(7,715)
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders				$ 84,726	$ 42,120	$ 262,659	$ 48,890
Dividend declared and paid per Class A and non-voting common stock (in dollars per share)	$ 0.47	$ 0.47	$ 0.47
Restricted units
Diluted earnings per share of Class A and non-voting common stock:
Effect of dilutive shares (in shares)				12,273,068	9,762,645	10,807,242	0
Options
Diluted earnings per share of Class A and non-voting common stock:
Effect of dilutive shares (in shares)				5,317,468	4,893,709	5,265,045	0
Class A Common Stock
Basic earnings per share of Class A and non-voting common stock:
Basic weighted-average shares of Class A and non-voting common stock (in shares)				168,931,621	143,466,209	161,071,151	131,866,471
Basic earnings per share of Class A and non-voting common stock (in dollars per share)				$ 0.49	$ 0.27	$ 1.55	$ 0.37
Diluted earnings per share of Class A and non-voting common stock:
Diluted weighted-average shares of Class A and non-voting common stock (in shares)				186,522,157	158,122,563	177,143,438	131,866,471
Diluted earnings per share of Class A and non-voting common stock (in dollars per share)				$ 0.45	$ 0.27	$ 1.48	$ 0.37
Dividend declared and paid per Class A and non-voting common stock (in dollars per share)				$ 0.47	$ 0.40	$ 1.41	$ 1.20

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EQUITY COMPENSATION - Equity Incentive Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jan. 01, 2021
Equity compensation
Equity-based compensation expense	$ 65,991	$ 30,336	$ 191,144	$ 91,576
Restricted units
Equity compensation
Equity-based compensation expense	36,390	30,036	127,219	86,804
Restricted units with a market condition
Equity compensation
Equity-based compensation expense	29,601	300	63,925	4,729
Options
Equity compensation
Equity-based compensation expense	$ 0	$ 0	$ 0	$ 43
Ares Management L.P
Equity compensation
Total number of shares available for grant under the equity incentive plan (in shares)	38,972,964		38,972,964		44,510,451

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EQUITY COMPENSATION - Restricted Units (Details) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended		9 Months Ended
	Sep. 16, 2021	Jun. 16, 2021	Mar. 17, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity compensation
Dividend declared and paid per class A common stock (in dollars per share)	$ 0.47	$ 0.47	$ 0.47
Distribution equivalents made to holders				$ 6.4		$ 21.7
Class A Common Stock
Equity compensation
Shares delivered in period						4,400,000	2,600,000
Dividend declared and paid per class A common stock (in dollars per share)				$ 0.47	$ 0.40	$ 1.41	$ 1.20
Restricted units
Equity compensation
Shares delivered in period						8,200,000	4,700,000
Restricted Units
Balance at the beginning of the period (in shares)						16,299,664
Granted (in shares)						9,667,989
Vested (in shares)						(6,278,948)
Forfeited (in shares)						(1,255,502)
Balance at the end of the period (in shares)				18,433,203		18,433,203
Weighted Average Grant Date Fair Value Per Unit
Balance at the beginning of the period (in dollars per share)						$ 24.30
Granted (in dollars per share)						46.16
Vested (in dollars per share)						20.70
Forfeited (in dollars per share)						30.48
Balance at the end of the period (in dollars per share)				$ 36.33		$ 36.33
Unrecognized compensation expenses				$ 504.8		$ 504.8
Weighted average period of compensation expense expected to be recognized						3 years 6 months
Restricted units | Third Anniversary of Grant Date
Equity compensation
Annual award vesting percentage						33.33%
Restricted units | First Anniversary of Grant Date
Equity compensation
Annual award vesting percentage						25.00%
Restricted units | First Anniversary
Equity compensation
Annual award vesting percentage						33.33%
Restricted units | Senior executives
Equity compensation
Annual award vesting percentage						25.00%

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EQUITY COMPENSATION - Performance-Based Restricted Unit Awards with a Market Condition (Details) - Restricted units with a market condition - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2021	Mar. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Equity compensation
Granted restricted unit consecutive calendar days		30 days
Granted (in shares)			2,150,000
Weighted average grant date fair value (in dollars per share)			$ 0		$ 0
Fair Value
Closing price of the Company's common shares as of valuation date (in dollars per share)			$ 45.76
Risk-free interest rate			0.88%
Volatility			35.00%
Dividend yield			3.50%
Cost of equity			10.00%
Market Condition Awards Units
Balance at the beginning of the period (in shares)	0	0	0
Granted (in shares)			2,150,000
Vested (in shares)			(1,925,000)
Forfeited (in shares)			(225,000)
Balance at the end of the period (in shares)			0
Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value (in dollars per share)			$ 0		$ 0
Granted (in dollars per share)			32.86
Vested (in dollars per share)			33.21
Forfeited (in dollars per share)			$ 29.84
Share-based compensation expense			$ 43.4
Tranche I
Equity compensation
Granted (in shares)		537,500
Weighted average price of shares purchased (in dollars per share)		$ 55.00
Weighted average grant date fair value (in dollars per share)	$ 37.28
Vesting period	8 months 12 days
Market Condition Awards Units
Granted (in shares)		537,500
Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value (in dollars per share)	$ 37.28
Unrecognized compensation expenses				$ 14.0
Tranche II
Equity compensation
Granted (in shares)		537,500
Weighted average price of shares purchased (in dollars per share)		$ 60.00
Weighted average grant date fair value (in dollars per share)	$ 34.47
Vesting period	1 year 2 months 12 days
Market Condition Awards Units
Granted (in shares)		537,500
Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value (in dollars per share)	$ 34.47
Unrecognized compensation expenses			29.4
Tranche III
Equity compensation
Granted (in shares)		537,500
Weighted average price of shares purchased (in dollars per share)		$ 65.00
Weighted average grant date fair value (in dollars per share)	$ 31.92
Vesting period	1 year 7 months 6 days
Market Condition Awards Units
Granted (in shares)		537,500
Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value (in dollars per share)	$ 31.92
Unrecognized compensation expenses			29.4
Tranche IV
Equity compensation
Granted (in shares)		537,500
Weighted average price of shares purchased (in dollars per share)		$ 75.00
Weighted average grant date fair value (in dollars per share)	$ 27.75
Vesting period	2 years 3 months 18 days
Market Condition Awards Units
Granted (in shares)		537,500
Weighted Average Grant Date Fair Value Per Unit
Weighted average grant date fair value (in dollars per share)	$ 27.75
Unrecognized compensation expenses			$ 29.4

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EQUITY COMPENSATION - Summary Of Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Options
Exercised (in shares)	(1,460,388)
Aggregate Intrinsic Value
Net cash proceeds from exercises of stock options	$ 27,400
Options
Options
Balance at the beginning of the period (in shares)	8,312,203
Granted (in shares)	0
Exercised (in shares)	(1,489,789)
Expired (in shares)	0
Forfeited (in shares)	0
Balance at the end of the period (in shares)	6,822,414	8,312,203
Exercisable at the end of the period (in shares)	6,822,414
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per shares)	$ 18.99
Granted (in dollars per shares)	0
Exercised (in dollars per shares)	18.94
Expired (in dollars per shares)	0
Forfeited (in dollars per shares)	0
Balance at the end of the period (in dollars per shares)	19.00	$ 18.99
Exercisable at the end of the period (in dollars per shares)	$ 19.00
Weighted Average Remaining Life (in years)
Weighted average remaining life	2 years 7 months 6 days	3 years 4 months 24 days
Exercisable at the end of the period	2 years 7 months 6 days
Aggregate Intrinsic Value
Beginning balance	$ 374,073	$ 233,251
Ending balance	374,073	$ 233,251
Exercisable	374,073
Employee Stock
Aggregate Intrinsic Value
Tax benefits of exercises	$ 9,600

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EQUITY AND REDEEMABLE INTEREST - Common Stock (Details) - USD ($)				9 Months Ended
	Apr. 08, 2021	Apr. 06, 2021	Apr. 05, 2021	Sep. 30, 2021	Feb. 28, 2021	Dec. 31, 2020	Sep. 30, 2020
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)				259,631,180
Issuance of stock (in shares)				24,393,407
Stock option exercises, net of shares withheld for tax (in shares)				1,460,388
Vesting of restricted stock awards, net of shares withheld for tax (in shares)				4,448,648
Ending balance (in shares)				289,875,333
Private Placement
Class of Stock [Line Items]
Proceeds from sale of shares			$ 250,000,000
Proceeds from issuance of stock	$ 250,000,000
Underwritten
Class of Stock [Line Items]
Proceeds from issuance of stock	578,200,000
Fees related to stock issuance	$ 700,000
Ares Operating Group
Increase (Decrease) in Stockholders' Equity
Exchanges of AOG units (in shares)				0
Redemptions of AOG Units (in shares)				(58,290)
Class A Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)				$ 0.01		$ 0.01
Authorized amount					$ 150,000,000
Stock repurchase program, number of shares repurchased (in shares)				0			0
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)				147,182,562
Issuance of stock (in shares)				12,159,200
Stock option exercises, net of shares withheld for tax (in shares)				1,460,388
Vesting of restricted stock awards, net of shares withheld for tax (in shares)				4,448,648
Ending balance (in shares)				167,581,165
Class A Common Stock | Private Placement
Class of Stock [Line Items]
Number of shares sold (in shares)			1,234,200
Class A Common Stock | Underwritten
Class of Stock [Line Items]
Number of shares sold (in shares)		10,925,000
Number of shares sold to underwriters (in shares)		1,425,000
Class A Common Stock | Ares Operating Group
Increase (Decrease) in Stockholders' Equity
Exchanges of AOG units (in shares)				2,330,367
Redemptions of AOG Units (in shares)				0
Non- voting Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)				$ 0.01		0.01
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)				0
Issuance of stock (in shares)				3,489,911
Stock option exercises, net of shares withheld for tax (in shares)				0
Vesting of restricted stock awards, net of shares withheld for tax (in shares)				0
Ending balance (in shares)				3,489,911
Non- voting Common Stock | Private Placement
Class of Stock [Line Items]
Number of shares sold (in shares)			3,489,911
Non- voting Common Stock | Ares Operating Group
Increase (Decrease) in Stockholders' Equity
Exchanges of AOG units (in shares)				0
Redemptions of AOG Units (in shares)				0
Class B Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)				$ 0.01		0.01
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)				1,000
Issuance of stock (in shares)				0
Stock option exercises, net of shares withheld for tax (in shares)				0
Vesting of restricted stock awards, net of shares withheld for tax (in shares)				0
Ending balance (in shares)				1,000
Class B Common Stock | Ares Operating Group
Increase (Decrease) in Stockholders' Equity
Exchanges of AOG units (in shares)				0
Redemptions of AOG Units (in shares)				0
Class C Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)				$ 0.01		$ 0.01
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)				112,447,618
Issuance of stock (in shares)				8,744,296
Stock option exercises, net of shares withheld for tax (in shares)				0
Vesting of restricted stock awards, net of shares withheld for tax (in shares)				0
Ending balance (in shares)				118,803,257
Class C Common Stock | Ares Operating Group
Increase (Decrease) in Stockholders' Equity
Exchanges of AOG units (in shares)				(2,330,367)
Redemptions of AOG Units (in shares)				(58,290)

XML

EQUITY AND REDEEMABLE INTEREST - Common Stock Offering (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Class of Stock [Line Items]
AOG units (in shares)	289,874,333		289,874,333		259,630,180
Ares Operating Group
Class of Stock [Line Items]
Direct Ownership Interest	100.00%		100.00%		100.00%
Ares Owners Holdings, L.P.
Class of Stock [Line Items]
AOG units (in shares)	118,803,257		118,803,257		112,447,618
Ares Owners Holdings, L.P. | Ares Operating Group
Class of Stock [Line Items]
Direct Ownership Interest	40.98%		40.98%		43.31%
Daily Average Ownership	41.50%	44.43%	41.74%	46.67%
Ares Operating Group
Class of Stock [Line Items]
AOG units (in shares)	171,071,076		171,071,076		147,182,562
Ares Operating Group | Ares Operating Group
Class of Stock [Line Items]
Direct Ownership Interest	59.02%		59.02%		56.69%
Daily Average Ownership	58.50%	55.57%	58.26%	53.33%

XML

EQUITY AND REDEEMABLE INTEREST - Preferred Stock (Details) - Series A Preferred Stock - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Dividend rate, percentage		7.00%
Redemption price (in dollars per share)	$ 25.00
Dividends, preferred stock, cash	$ 310.0
Preferred dividends in arrears value	$ 5.4
Preferred stock dividends per share declared (in dollars per share)	$ 0.4375
Fees related to stock issuance	$ 11.2
Preferred Equity
Class of Stock [Line Items]
Partners' capital (in shares)		12,400,000

XML

EQUITY AND REDEEMABLE INTEREST - Redeemable Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Ares Operating Group
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	$ 100,031	$ 99,808	$ 100,366
Net income	324	337	32
Currency translation adjustment, net of tax	(356)	186	(590)
Distribution	(1,350)	(300)
Ending balance	98,649	100,031	99,808
Consolidated Funds
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	916,824	930,924	0
Change in redemption value	83,176	(14,100)	930,924
Ending balance	$ 1,000,000	$ 916,824	$ 930,924

XML

SEGMENT REPORTING - Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment reporting
Total revenues	$ 948,719	$ 489,866	$ 2,901,926	$ 1,106,033
Compensation and benefits	(335,569)		(837,108)
General, administrative and other expenses	(134,453)		(285,471)
Operating segment
Segment reporting
Fee related earnings	(273,140)	(167,901)	(683,075)	(468,685)
Performance income—realized	45,341	123,265	249,989	319,660
Performance related compensation—realized	(33,728)	(97,538)	(185,306)	(252,575)
Realized net investment income (loss)	5,356	14,494	20,454	39,372
Realized income (loss)	(290,109)	(208,122)	(768,212)	(575,142)
OMG
Segment reporting
Total revenues	(3,446)	0	(3,446)	0
Compensation and benefits	(66,107)	(41,551)	(158,943)	(114,916)
General, administrative and other expenses	(28,142)	(19,519)	(69,872)	(56,877)
Fee related earnings	(90,803)	(61,070)	(225,369)	(171,793)
Performance income—realized	0	0	0	0
Performance related compensation—realized	0	0	0	0
Realized net performance income	0	0	0	0
Investment income (loss)—realized	0	0	0	(5,698)
Interest and other investment income (expense)—realized	(270)	(503)	170	(588)
Interest expense	(160)	(141)	(397)	(1,262)
Realized net investment income (loss)	(430)	(644)	(227)	(7,548)
Realized income (loss)	(91,233)	(61,714)	(225,596)	(179,341)
Total
Segment reporting
Compensation and benefits	(225,813)	(154,400)	(577,711)	(442,325)
General, administrative and other expenses	(59,097)	(43,811)	(146,183)	(125,285)
Fee related earnings	182,337	106,831	457,706	296,892
Performance income—realized	45,341	123,265	249,989	319,660
Performance related compensation—realized	(33,728)	(97,538)	(185,306)	(252,575)
Realized net performance income	11,613	25,727	64,683	67,085
Investment income (loss)—realized	5,362	16,837	12,695	32,065
Interest and other investment income (expense)—realized	11,087	3,828	32,657	17,962
Interest expense	(11,523)	(6,815)	(25,125)	(18,203)
Realized net investment income (loss)	4,926	13,850	20,227	31,824
Realized income (loss)	198,876	146,408	542,616	395,801
Ares Management L.P
Segment reporting
Total revenues	948,719	489,866	2,901,926	1,106,033
Compensation and benefits	(335,569)	(194,267)	(837,108)	(559,482)
General, administrative and other expenses	(134,453)	(69,938)	(285,471)	(190,353)
Ares Management L.P | Operating segment
Segment reporting
Compensation and benefits	(159,706)	(112,849)	(418,768)	(327,409)
General, administrative and other expenses	(30,955)	(24,292)	(76,311)	(68,408)
Fee related earnings	273,140	167,901	683,075	468,685
Performance income—realized	45,341	123,265	249,989	319,660
Performance related compensation—realized	(33,728)	(97,538)	(185,306)	(252,575)
Realized net performance income	11,613	25,727	64,683	67,085
Investment income (loss)—realized	5,362	16,837	12,695	37,763
Interest and other investment income (expense)—realized	11,357	4,331	32,487	18,550
Interest expense	(11,363)	(6,674)	(24,728)	(16,941)
Realized net investment income (loss)	5,356	14,494	20,454	39,372
Realized income (loss)	290,109	208,122	768,212	575,142
Ares Management L.P | Operating segment | Credit Group
Segment reporting
Compensation and benefits	(86,502)	(74,373)	(252,783)	(222,063)
General, administrative and other expenses	(14,930)	(13,789)	(37,716)	(41,626)
Fee related earnings	175,957	125,107	492,697	354,964
Performance income—realized	6,332	7,069	78,255	16,085
Performance related compensation—realized	(3,079)	(4,131)	(49,433)	(12,142)
Realized net performance income	3,253	2,938	28,822	3,943
Investment income (loss)—realized	618	0	1,858	(843)
Interest and other investment income (expense)—realized	4,716	1,962	14,354	13,166
Interest expense	(2,392)	(2,340)	(5,372)	(6,391)
Realized net investment income (loss)	2,942	(378)	10,840	5,932
Realized income (loss)	182,152	127,667	532,359	364,839
Ares Management L.P | Operating segment | Private Equity Group
Segment reporting
Compensation and benefits	(26,773)	(21,224)	(73,534)	(62,946)
General, administrative and other expenses	(6,238)	(6,002)	(17,499)	(16,083)
Fee related earnings	36,950	27,429	80,712	81,319
Performance income—realized	34,316	115,997	159,479	276,469
Performance related compensation—realized	(27,483)	(93,284)	(127,706)	(222,949)
Realized net performance income	6,833	22,713	31,773	53,520
Investment income (loss)—realized	2,020	16,351	5,308	35,866
Interest and other investment income (expense)—realized	4,861	1,065	10,716	2,364
Interest expense	(2,726)	(2,216)	(6,032)	(6,106)
Realized net investment income (loss)	4,155	15,200	9,992	32,124
Realized income (loss)	47,938	65,342	122,477	166,963
Ares Management L.P | Operating segment | Real Estate Group
Segment reporting
Compensation and benefits	(29,160)	(13,011)	(60,767)	(38,159)
General, administrative and other expenses	(5,420)	(2,987)	(12,064)	(9,185)
Fee related earnings	24,261	7,794	47,375	24,831
Performance income—realized	4,693	199	12,255	27,106
Performance related compensation—realized	(3,166)	(123)	(8,167)	(17,484)
Realized net performance income	1,527	76	4,088	9,622
Investment income (loss)—realized	1,699	486	4,182	2,740
Interest and other investment income (expense)—realized	918	1,308	3,892	3,024
Interest expense	(1,683)	(1,389)	(3,930)	(3,715)
Realized net investment income (loss)	934	405	4,144	2,049
Realized income (loss)	26,722	8,275	55,607	36,502
Ares Management L.P | Operating segment | Secondary Solutions Group
Segment reporting
Compensation and benefits	(11,955)	0	(16,244)	0
General, administrative and other expenses	(2,593)	0	(3,452)	0
Fee related earnings	26,516	0	34,266	0
Performance income—realized	0	0	0	0
Performance related compensation—realized	0	0	0	0
Realized net performance income	0	0	0	0
Investment income (loss)—realized	0	0	0	0
Interest and other investment income (expense)—realized	699	0	701	0
Interest expense	(427)	0	(432)	0
Realized net investment income (loss)	272	0	269	0
Realized income (loss)	26,788	0	34,535	0
Ares Management L.P | Operating segment | Strategic Initiatives
Segment reporting
Compensation and benefits	(5,316)	(4,241)	(15,440)	(4,241)
General, administrative and other expenses	(1,774)	(1,514)	(5,580)	(1,514)
Fee related earnings	9,456	7,571	28,025	7,571
Performance income—realized	0	0	0	0
Performance related compensation—realized	0	0	0	0
Realized net performance income	0	0	0	0
Investment income (loss)—realized	1,025	0	1,347	0
Interest and other investment income (expense)—realized	163	(4)	2,824	(4)
Interest expense	(4,135)	(729)	(8,962)	(729)
Realized net investment income (loss)	(2,947)	(733)	(4,791)	(733)
Realized income (loss)	6,509	6,838	23,234	6,838
Management fees
Segment reporting
Total revenues	448,262		1,135,821
Management fees | OMG
Segment reporting
Total revenues	0	0	0	0
Management fees | Total
Segment reporting
Total revenues	453,950	300,131	1,154,248	851,581
Management fees | Ares Management L.P
Segment reporting
Total revenues	448,262	292,434	1,135,821	823,150
Management fees | Ares Management L.P | Operating segment
Segment reporting
Total revenues	453,950	300,131	1,154,248	851,581
Management fees | Ares Management L.P | Operating segment | Credit Group
Segment reporting
Total revenues	271,591	208,371	764,702	606,596
Management fees | Ares Management L.P | Operating segment | Private Equity Group
Segment reporting
Total revenues	69,591	54,653	171,019	160,206
Management fees | Ares Management L.P | Operating segment | Real Estate Group
Segment reporting
Total revenues	55,160	23,787	115,602	71,459
Management fees | Ares Management L.P | Operating segment | Secondary Solutions Group
Segment reporting
Total revenues	41,064	0	53,962	0
Management fees | Ares Management L.P | Operating segment | Strategic Initiatives
Segment reporting
Total revenues	16,544	13,320	48,963	13,320
Other fees | OMG
Segment reporting
Total revenues	3,446	0	3,446	0
Other fees | Total
Segment reporting
Total revenues	13,297	4,911	27,352	12,921
Other fees | Ares Management L.P | Operating segment
Segment reporting
Total revenues	9,851	4,911	23,906	12,921
Other fees | Ares Management L.P | Operating segment | Credit Group
Segment reporting
Total revenues	5,798	4,898	18,494	12,057
Other fees | Ares Management L.P | Operating segment | Private Equity Group
Segment reporting
Total revenues	370	2	726	142
Other fees | Ares Management L.P | Operating segment | Real Estate Group
Segment reporting
Total revenues	3,681	5	4,604	716
Other fees | Ares Management L.P | Operating segment | Secondary Solutions Group
Segment reporting
Total revenues	0	0	0	0
Other fees | Ares Management L.P | Operating segment | Strategic Initiatives
Segment reporting
Total revenues	$ 2	$ 6	$ 82	$ 6

XML

SEGMENT REPORTING - Revenue, Expenses and Realized Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment revenues
Total revenues	$ 948,719	$ 489,866	$ 2,901,926	$ 1,106,033
Total segment revenues	509,142	428,307	1,428,143	1,184,162
Segment expenses
Compensation and benefits	335,569		837,108
General, administrative and other expenses	134,453		285,471
Total expenses	813,267	392,580	2,363,108	958,106
Segment other income
Total other income (expense)	111,536	62,355	218,011	(43,602)
Management fees
Segment revenues
Total revenues	448,262		1,135,821
Operating segment
Segment revenues
Performance income—realized	45,341	123,265	249,989	319,660
Segment expenses
Total performance related compensation—realized	33,728	97,538	185,306	252,575
Ares Management L.P
Segment revenues
Total revenues	948,719	489,866	2,901,926	1,106,033
Segment expenses
Compensation and benefits	335,569	194,267	837,108	559,482
General, administrative and other expenses	134,453	69,938	285,471	190,353
Ares Management L.P | Management fees
Segment revenues
Total revenues	448,262	292,434	1,135,821	823,150
Ares Management L.P | Operating segment
Segment revenues
Performance income—realized	45,341	123,265	249,989	319,660
Total segment revenues	509,142	428,307	1,428,143	1,184,162
Segment expenses
Compensation and benefits	159,706	112,849	418,768	327,409
General, administrative and other expenses	30,955	24,292	76,311	68,408
Total performance related compensation—realized	33,728	97,538	185,306	252,575
Total expenses	224,389	234,679	680,385	648,392
Segment other income
Investment income—realized	5,362	16,837	12,695	37,763
Interest and other investment income—realized	11,357	4,331	32,487	18,550
Interest expense	(11,363)	(6,674)	(24,728)	(16,941)
Total other income (expense)	5,356	14,494	20,454	39,372
Ares Management L.P | Operating segment | Management fees
Segment revenues
Total revenues	453,950	300,131	1,154,248	851,581
Ares Management L.P | Operating segment | Other fees
Segment revenues
Total revenues	$ 9,851	$ 4,911	$ 23,906	$ 12,921

XML

SEGMENT REPORTING - Revenue Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue adjustment
Total revenues	$ 948,719	$ 489,866	$ 2,901,926	$ 1,106,033
Principal investment income, net of eliminations	(5,356)	(14,494)	(20,454)	(39,372)
Total segment revenue	509,142	428,307	1,428,143	1,184,162
Ares Management L.P
Revenue adjustment
Total revenues	948,719	489,866	2,901,926	1,106,033
Operating segment | Ares Management L.P
Revenue adjustment
Performance (income) loss—unrealized	(415,317)	(52,488)	(1,381,697)	77,866
Total segment revenue	509,142	428,307	1,428,143	1,184,162
Reconciling items
Revenue adjustment
Principal investment income, net of eliminations	(20,719)	(18,080)	(96,448)	24,951
Total segment revenue	(439,577)	(61,559)	(1,473,783)	78,129
Reconciling items | Non-Controlling interest | Subsidiaries
Revenue adjustment
Total segment revenue	(6,927)	(4,323)	(16,795)	(5,808)
Reconciling items | Performance income reclass
Revenue adjustment
Performance income (loss) reclass	680	(291)	1,285	(3,664)
OMG
Revenue adjustment
Total revenues	(3,446)	0	(3,446)	0
Management fees
Revenue adjustment
Total revenues	448,262		1,135,821
Management fees | Ares Management L.P
Revenue adjustment
Total revenues	448,262	292,434	1,135,821	823,150
Management fees | Operating segment | Ares Management L.P
Revenue adjustment
Total revenues	453,950	300,131	1,154,248	851,581
Management fees | OMG
Revenue adjustment
Total revenues	0	0	0	0
Management fees | Consolidated Funds | Eliminations
Revenue adjustment
Total segment revenue	11,051	11,719	33,416	33,601
Incentive fees
Revenue adjustment
Total revenues	696		19,420
Incentive fees | Ares Management L.P
Revenue adjustment
Total revenues	696	7,194	19,420	4,276
Incentive fees | Consolidated Funds | Eliminations
Revenue adjustment
Total revenues	0	0	1,528	(70)
Administrative, transaction and other fees
Revenue adjustment
Total revenues	24,860		49,501
Administrative, transaction and other fees | Ares Management L.P
Revenue adjustment
Total revenues	24,860	9,852	49,501	28,897
Administrative, transaction and other fees | Reconciling items
Revenue adjustment
Total revenues	(15,632)	(9,216)	(34,754)	(27,715)
Administrative, transaction and other fees | Consolidated Funds | Reconciling items
Revenue adjustment
Total revenues	4,264	4,448	13,157	12,249
Principal investment income
Revenue adjustment
Total revenues	14,250		86,477
Principal investment income | Ares Management L.P
Revenue adjustment
Total revenues	14,250	11,408	86,477	8,330
Principal investment income | Reconciling items
Revenue adjustment
Principal investment income, net of eliminations	$ (14,250)	$ (11,408)	$ (86,477)	$ (8,330)

XML

SEGMENT REPORTING - Expenses (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 02, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		$ 813,267	$ 392,580	$ 2,363,108	$ 958,106
Acquisition and merger-related expense	$ 4,900
Equity compensation expense		65,991	30,336	191,144	91,576
Operating segment
Segment Reporting, Other Significant Reconciling Item [Line Items]
Acquisition and merger-related expense		7,967	3,490	26,188	9,815
Equity compensation expense		65,991	30,336	191,144	91,576
Acquisition-related compensation expense		(28,194)	0	(32,824)	0
Deferred placement fees		32,413	2,942	33,740	18,677
Depreciation and amortization expense		36,668	14,336	71,742	26,197
Operating segment | Ares Management L.P
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		224,389	234,679	680,385	648,392
Performance related compensation-unrealized		(296,044)	(24,818)	(1,022,393)	61,010
Operating segment | Consolidated Funds
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		813,267	392,580	2,363,108	958,106
Reconciling items
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		(588,878)	(157,901)	(1,682,723)	(309,714)
Administrative fees		(15,632)	(9,216)	(34,754)	(27,715)
Acquisition and merger-related expense		(754)	(3,474)	(18,364)	(9,430)
Equity compensation expense		(65,991)	(30,336)	(191,144)	(91,576)
Acquisition-related compensation expense		(28,194)	0	(32,824)	0
Deferred placement fees		(32,413)	(2,942)	(33,740)	(18,677)
Depreciation and amortization expense		(36,668)	(14,336)	(71,742)	(26,197)
Reconciling items | Non-Controlling interest | Subsidiaries
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		(6,829)	(5,690)	(17,372)	(8,630)
Reconciling items | Consolidated Funds
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses of Consolidated Funds added in consolidation		(23,206)	(17,737)	(66,653)	(50,237)
Expenses of Consolidated Funds eliminated in consolidation		11,102	11,718	35,078	33,531
OMG
Segment Reporting, Other Significant Reconciling Item [Line Items]
Expenses		$ 94,249	$ 61,070	$ 228,815	$ 171,793

XML

SEGMENT REPORTING - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	$ 111,536	$ 62,355	$ 218,011	$ (43,602)
Other income, net	36,654		30,686
Principal investment income (loss)	5,356	14,494	20,454	39,372
Ares Management L.P
Segment Reporting, Other Significant Reconciling Item [Line Items]
Other income, net	36,654	2,203	30,686	9,848
Operating segment
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total investment (income) loss—unrealized	(5,014)	89	(57,531)	73,039
Other (income) expense, net	42,025	(9,518)	42,490	(9,518)
Operating segment | Ares Management L.P
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	5,356	14,494	20,454	39,372
Total investment (income) loss—unrealized	(3,609)	1,479	(60,588)	83,369
Interest and other investment (income) loss—unrealized	(1,405)	(1,390)	3,057	(10,330)
Operating segment | Consolidated Funds
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	111,536	62,355	218,011	(43,602)
Reconciling items
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	(106,180)	(47,861)	(197,557)	82,974
Principal investment income (loss)	20,719	18,080	96,448	(24,951)
Other (income) expense, net	(34,812)	9,534	(34,666)	9,903
Reconciling items | Subsidiaries | Non-Controlling interest
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	(5,170)	(2,433)	(9,191)	12,859
Reconciling items | Performance income reclass
Segment Reporting, Other Significant Reconciling Item [Line Items]
Performance (income) loss reclass	(680)	291	(1,285)	3,664
Reconciling items | Consolidated Funds
Segment Reporting, Other Significant Reconciling Item [Line Items]
Other (income) loss from Consolidated Funds added in consolidation, net	(76,287)	(68,132)	(178,195)	20,719
Eliminations | Consolidated Funds
Segment Reporting, Other Significant Reconciling Item [Line Items]
Other income, net	(4,973)	(3,470)	(13,783)	(11,478)
OMG
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total segment realized net investment income	$ (37)	$ 1,820	$ (646)	$ 781

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SEGMENT REPORTING - Reconciliation of Income Before Taxes (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 02, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Economic net income
Income before taxes		$ 246,988	$ 159,641	$ 756,829	$ 104,325
Adjustments:
Equity compensation expense		65,991	30,336	191,144	91,576
Acquisition and merger-related expense	$ 4,900
Consolidated Funds
Adjustments:
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations		47,370	42,627	102,255	(38,593)
Total investment income—realized		(104,028)	(116,581)	(333,745)	(346,120)
Operating segment
Economic net income
Income before taxes		246,988	159,641	756,829	104,325
Adjustments:
Depreciation and amortization expense		36,668	14,336	71,742	26,197
Equity compensation expense		65,991	30,336	191,144	91,576
Acquisition-related compensation expense		28,194	0	32,824	0
Acquisition and merger-related expense		7,967	3,490	26,188	9,815
Deferred placement fees		32,413	2,942	33,740	18,677
Other (income) expense, net		(42,025)	9,518	(42,490)	9,518
Total performance (income) loss—unrealized		(415,317)	(52,488)	(1,381,697)	77,866
Total performance related compensation—unrealized		296,044	24,818	1,022,393	(61,010)
Total investment (income) loss—unrealized		(5,014)	89	(57,531)	73,039
Realized income		290,109	208,122	768,212	575,142
Total performance income—realized		(45,341)	(123,265)	(249,989)	(319,660)
Total performance related compensation—realized		33,728	97,538	185,306	252,575
Total investment income—realized		(5,356)	(14,494)	(20,454)	(39,372)
Fee related earnings		273,140	167,901	683,075	468,685
Operating segment | Consolidated Funds
Adjustments:
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations		(47,372)	(42,744)	(102,331)	38,446
OMG
Adjustments:
OMG expense, net		90,840	59,250	226,015	171,012
Realized income		91,233	61,714	225,596	179,341
Total performance income—realized		0	0	0	0
Total performance related compensation—realized		0	0	0	0
Total investment income—realized		430	644	227	7,548
Fee related earnings		90,803	61,070	225,369	171,793
Subsidiaries | Operating segment
Adjustments:
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations		$ (5,268)	$ (1,066)	$ (8,614)	$ 15,681

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CONSOLIDATION - Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Variable Interest Entity [Line Items]
Assets of consolidated VIEs	$ 19,934,398		$ 19,934,398		$ 15,168,992
Liabilities of consolidated VIEs	15,295,223		15,295,223		12,596,852
Collateralized loan obligations and other fixed income, at fair value
Variable Interest Entity [Line Items]
Maximum exposure to loss attributable to the company's investment in VIEs	104,400		104,400		107,700
Consolidated Funds
Variable Interest Entity [Line Items]
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	47,370	$ 42,627	102,255	$ (38,593)
Non-Consolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Maximum exposure to loss attributable to the company's investment in VIEs	340,988		340,988		224,203
Consolidated VIEs
Variable Interest Entity [Line Items]
Maximum exposure to loss attributable to the company's investment in VIEs	478,164		478,164		391,963
Consolidated VIEs | Consolidated Funds
Variable Interest Entity [Line Items]
Assets of consolidated VIEs	12,190,617		12,190,617		11,580,003
Liabilities of consolidated VIEs	11,238,928		11,238,928		$ 10,716,438
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	$ 38,597	$ 42,627	$ 84,285	$ (38,593)

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CONSOLIDATION - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Assets
Intangible assets, net	$ 798,690			$ 222,088
Total assets	19,934,398			15,168,992
Liabilities
Operating lease liabilities	214,681
Total liabilities	15,295,223			12,596,852
Commitments and contingencies
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	0			298,761
Additional paid-in-capital	1,881,913			1,043,669
Retained earnings	(128,981)			(151,824)
Accumulated other comprehensive loss, net of tax	(2,571)			483
Total stockholders' equity	1,753,260			1,193,685
Total equity	3,540,526	$ 3,441,115	$ 2,420,568	2,471,774	$ 2,370,881	$ 2,003,748	$ 1,975,596	$ 1,858,598
Total liabilities, redeemable interest, non-controlling interests and equity	$ 19,934,398			$ 15,168,992
Preferred stock, par value (in dollars per share)	$ 0.01			$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000,000			1,000,000,000
Preferred stock, shares issued (in shares)	0			12,400,000
Preferred stock, shares outstanding (in shares)	0			12,400,000
Common stock, shares outstanding (in shares)	289,875,333			259,631,180
Class A Common Stock
Stockholders' Equity
Common stock	$ 1,676			$ 1,472
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized (in shares)	1,500,000,000			1,500,000,000
Common stock, shares issued (in shares)	167,581,165			147,182,562
Common stock, shares outstanding (in shares)	167,581,165			147,182,562
Non- voting Common Stock
Stockholders' Equity
Common stock	$ 35			$ 0
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized (in shares)	500,000,000			500,000,000
Common stock, shares issued (in shares)	3,489,911			0
Common stock, shares outstanding (in shares)	3,489,911			0
Class B Common Stock
Stockholders' Equity
Common stock	$ 0			$ 0
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized (in shares)	1,000			1,000
Common stock, shares issued (in shares)	1,000			1,000
Common stock, shares outstanding (in shares)	1,000			1,000
Class C Common Stock
Stockholders' Equity
Common stock	$ 1,188			$ 1,124
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized (in shares)	499,999,000			499,999,000
Common stock, shares issued (in shares)	118,803,257			112,447,618
Common stock, shares outstanding (in shares)	118,803,257			112,447,618
Eliminations
Assets
Total assets	$ (511,267)			$ (408,733)
Liabilities
Total liabilities	(88,354)			(84,888)
Commitments and contingencies
Stockholders' Equity
Total equity	(422,913)			(323,845)
Total liabilities, redeemable interest, non-controlling interests and equity	(511,267)			(408,733)
Consolidated Funds
Assets
Cash and cash equivalents	1,581,433			522,377
U.S. Treasury securities, at fair value	1,000,165			0
Investments, at fair value	10,360,854			10,877,097
Due from affiliates	9,059			17,172
Receivable for securities sold	187,230			121,225
Other assets	47,806			35,502
Liabilities
Accounts payable, accrued expenses and other liabilities	89,685			46,824
Due to affiliates	0			0
Payable for securities purchased	863,007			514,946
CLO loan obligations, at fair value	10,174,794			9,958,076
Fund borrowings	99,240			121,909
Redeemable interest	1,000,000	916,824	930,924	0
Non-controlling interests in Consolidated Funds	464,400			539,720
Consolidated Funds | Reportable legal entity
Assets
Cash and cash equivalents	1,581,433			522,377
U.S. Treasury securities, at fair value	1,000,165
Investments, at fair value	10,356,640			10,873,522
Due from affiliates	19,089			27,377
Receivable for securities sold	187,230			121,225
Other assets	47,806			35,502
Total assets	13,192,363			11,580,003
Liabilities
Accounts payable, accrued expenses and other liabilities	102,883			46,824
Due to affiliates	19,880			16,770
Payable for securities purchased	863,007			514,946
CLO loan obligations, at fair value	10,220,040			10,015,989
Fund borrowings	99,240			121,909
Total liabilities	11,305,050			10,716,438
Commitments and contingencies
Redeemable interest	1,000,000
Non-controlling interests in Consolidated Funds	887,313			863,565
Stockholders' Equity
Total equity	887,313			863,565
Total liabilities, redeemable interest, non-controlling interests and equity	13,192,363			11,580,003
Consolidated Funds | Eliminations
Assets
Investments, at fair value	4,214			3,575
Due from affiliates	(10,030)			(10,205)
Liabilities
Accounts payable, accrued expenses and other liabilities	(13,198)
Due to affiliates	(19,880)			(16,770)
CLO loan obligations, at fair value	(45,246)			(57,913)
Non-controlling interests in Consolidated Funds	(422,913)			(323,845)
Ares Operating Group
Liabilities
Redeemable interest	98,649	$ 100,031	$ 99,808	100,366
Non-controlling interests in Ares Operating Group entities	1,322,866			738,369
Ares Operating Group | Reportable legal entity
Liabilities
Non-controlling interests in Ares Operating Group entities	1,322,866			738,369
Ares Management L.P
Assets
Cash and cash equivalents	295,704			539,812
Total investments	3,322,665			1,682,759
Due from affiliates	493,411			405,887
Other assets	1,006,870			590,332
Intangible assets, net	1,452,690			222,087
Right-of-use operating lease assets	176,511			154,742
Liabilities
Accounts payable, accrued expenses and other liabilities	208,141			115,289
Accrued compensation	309,569			103,010
Due to affiliates	202,438			100,186
Performance related compensation payable	1,895,343			813,378
Debt obligations	1,238,325			642,998
Operating lease liabilities	214,681			180,236
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	0			298,761
Additional paid-in-capital	1,881,913			1,043,669
Retained earnings	(128,981)			(151,824)
Accumulated other comprehensive loss, net of tax	(2,571)			483
Total stockholders' equity	1,753,260			1,193,685
Ares Management L.P | Carried interest
Stockholders' Equity
Equity method investments:	2,625,319			1,145,853
Ares Management L.P | Class A Common Stock
Stockholders' Equity
Common stock	1,676			1,472
Ares Management L.P | Non- voting Common Stock
Stockholders' Equity
Common stock	35
Ares Management L.P | Class B Common Stock
Stockholders' Equity
Common stock	0			0
Ares Management L.P | Class C Common Stock
Stockholders' Equity
Common stock	1,188			1,124
Ares Management L.P | Reportable legal entity
Assets
Cash and cash equivalents	295,704			539,812
Total investments	3,804,023			2,064,517
Due from affiliates	517,504			426,021
Other assets	1,006,870			590,543
Intangible assets, net	1,452,690			222,087
Right-of-use operating lease assets	176,511			154,742
Total assets	7,253,302			3,997,722
Liabilities
Accounts payable, accrued expenses and other liabilities	218,171			125,494
Accrued compensation	309,569			103,010
Due to affiliates	202,438			100,186
Performance related compensation payable	1,895,343			813,378
Debt obligations	1,238,325			642,998
Operating lease liabilities	214,681			180,236
Total liabilities	4,078,527			1,965,302
Commitments and contingencies
Stockholders' Equity
Series A Preferred Stock, $0.01 par value, 1,000,000,000 shares authorized (zero and 12,400,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	0			298,761
Additional paid-in-capital	1,881,913			1,043,669
Retained earnings	(128,981)			(151,824)
Accumulated other comprehensive loss, net of tax	(2,571)			483
Total stockholders' equity	1,753,260			1,193,685
Total equity	3,076,126			1,932,054
Total liabilities, redeemable interest, non-controlling interests and equity	7,253,302			3,997,722
Ares Management L.P | Reportable legal entity | Class A Common Stock
Stockholders' Equity
Common stock	1,676			1,472
Ares Management L.P | Reportable legal entity | Non- voting Common Stock
Stockholders' Equity
Common stock	35
Ares Management L.P | Reportable legal entity | Class B Common Stock
Stockholders' Equity
Common stock	0
Ares Management L.P | Reportable legal entity | Class C Common Stock
Stockholders' Equity
Common stock	1,188			1,124
Ares Management L.P | Eliminations
Assets
Total investments	(481,358)			(381,758)
Due from affiliates	(24,093)			(20,134)
Other assets				(211)
Liabilities
Accounts payable, accrued expenses and other liabilities	(10,030)			(10,205)
Ares Management L.P | Ares Operating Group | Reportable legal entity
Liabilities
Redeemable interest	$ 98,649			$ 100,366

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CONSOLIDATION - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Total revenues	$ 948,719	$ 489,866	$ 2,901,926	$ 1,106,033
Expenses
Compensation and benefits	335,569		837,108
Performance related compensation	331,141		1,208,954
General, administrative and other expenses	134,453		285,471
Total expenses	813,267	392,580	2,363,108	958,106
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334		18,744
Interest and dividend income	1,376		6,818
Interest expense	(11,523)		(25,125)
Other income (expense), net	36,654		30,686
Total other income (expense)	111,536	62,355	218,011	(43,602)
Income (loss) before taxes	246,988	159,641	756,829	104,325
Income tax expense	30,275	18,314	104,487	22,119
Net income (loss)	216,713	141,327	652,342	82,206
Net income attributable to Ares Management Corporation	84,726	47,545	284,748	72,880
Less: Series A Preferred Stock dividends paid	0	5,425	10,850	16,275
Less: Series A Preferred Stock redemption premium	0	0	11,239	0
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	84,726	42,120	262,659	56,605
Eliminations
Revenues
Total revenues	(21,784)	(22,839)	(58,072)	(12,499)
Expenses
Compensation and benefits	0	0
Performance related compensation	0	0
General, administrative and other expenses	0	0
Total expenses	(11,102)	(11,718)	(35,078)	(33,531)
Other income (expense)
Net realized and unrealized gains (losses) on investments	5,575	(4,910)	8,142	15,009
Interest and dividend income	(1,326)	(258)	(2,877)	(2,990)
Other income (expense), net	316	8,540	(175)	8,748
Total other income (expense)	4,973	3,470	13,783	11,478
Income (loss) before taxes	(5,709)	(7,651)	(9,211)	32,510
Income tax expense	0	0
Net income (loss)	(5,709)	(7,651)	(9,211)	32,510
Less: Series A Preferred Stock dividends paid		0
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	0	0	0
Consolidated Funds
Expenses
Expenses of Consolidated Funds	12,104	6,019	31,575	16,706
Other income (expense)
Net realized and unrealized gains (losses) on investments	34,245	17,971	44,720	(153,268)
Interest expense	(61,578)	(66,322)	(191,577)	(222,860)
Interest and other income of Consolidated Funds	104,028	116,581	333,745	346,120
Less: Net income (loss) attributable to non-controlling interests	47,370	42,627	102,255	(38,593)
Consolidated Funds | Reportable legal entity
Revenues
Total revenues	0	0	0	0
Expenses
Expenses of Consolidated Funds	23,206	17,737	66,653	50,237
Total expenses	23,206	17,737	66,653	50,237
Other income (expense)
Net realized and unrealized gains (losses) on investments	36,695	9,850	46,541	(148,826)
Interest expense	(64,752)	(67,818)	(201,916)	(227,532)
Interest and other income of Consolidated Funds	104,344	126,100	333,570	355,639
Total other income (expense)	76,287	68,132	178,195	(20,719)
Income (loss) before taxes	53,081	50,395	111,542	(70,956)
Income tax expense	2	117	76	147
Net income (loss)	53,079	50,278	111,466	(71,103)
Less: Net income (loss) attributable to non-controlling interests	53,079	50,278	111,466	(71,103)
Consolidated Funds | Eliminations
Expenses
Expenses of Consolidated Funds	(11,102)	(11,718)	(35,078)	(33,531)
Other income (expense)
Net realized and unrealized gains (losses) on investments	(2,450)	8,121	(1,821)	(4,442)
Interest expense	3,174	1,496	10,339	4,672
Interest and other income of Consolidated Funds	(316)	(9,519)	175	(9,519)
Less: Net income (loss) attributable to non-controlling interests	(5,709)	(7,651)	(9,211)	32,510
Ares Operating Group
Other income (expense)
Net income (loss)	169,343	98,700	550,087	120,799
Less: Net income (loss) attributable to non-controlling interests	84,293	52,162	264,646	48,926
Less: Net income (loss) attributable to redeemable interest	324	(1,007)	693	(1,007)
Ares Operating Group | Reportable legal entity
Other income (expense)
Less: Net income (loss) attributable to non-controlling interests				48,926
Ares Operating Group | Eliminations
Other income (expense)
Net income (loss)	0
Less: Net income (loss) attributable to non-controlling interests		0
Consolidated Company  Entities
Revenues
Total revenues	948,719	489,866	2,901,926	1,106,033
Expenses
Compensation and benefits	335,569	194,267	837,108	559,482
Performance related compensation	331,141	122,356	1,208,954	191,565
General, administrative and other expenses	134,453	69,938	285,471	190,353
Other income (expense)
Net realized and unrealized gains (losses) on investments	8,334	(2,607)	18,744	(10,351)
Interest and dividend income	1,376	1,344	6,818	5,112
Interest expense	(11,523)	(6,815)	(25,125)	(18,203)
Other income (expense), net	36,654	2,203	30,686	9,848
Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	970,503	512,705	2,959,998	1,118,532
Expenses
Compensation and benefits	335,569	194,267	837,108	559,482
Performance related compensation	331,141	122,356	1,208,954	191,565
General, administrative and other expenses	134,453	69,938	285,471	190,353
Total expenses	801,163	386,561	2,331,533	941,400
Other income (expense)
Net realized and unrealized gains (losses) on investments	2,759	2,303	10,602	(25,360)
Interest and dividend income	2,702	1,602	9,695	8,102
Interest expense	(11,523)	(6,815)	(25,125)	(18,203)
Other income (expense), net	36,338	(6,337)	30,861	1,100
Total other income (expense)	30,276	(9,247)	26,033	(34,361)
Income (loss) before taxes	199,616	116,897	654,498	142,771
Income tax expense	30,273	18,197	104,411	21,972
Net income (loss)	169,343	98,700	550,087	120,799
Net income attributable to Ares Management Corporation		47,545	284,748	72,880
Less: Series A Preferred Stock dividends paid		5,425	10,850	16,275
Less: Series A Preferred Stock redemption premium			11,239
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	84,726	42,120	262,659	56,605
Consolidated Company  Entities  | Consolidated Funds | Reportable legal entity
Other income (expense)
Less: Net income (loss) attributable to non-controlling interests				0
Consolidated Company  Entities  | Ares Operating Group | Reportable legal entity
Other income (expense)
Net income (loss)	169,343	98,700	550,087	120,799
Less: Net income (loss) attributable to non-controlling interests	84,293	52,162	264,646
Less: Net income (loss) attributable to redeemable interest	324	(1,007)	693	(1,007)
Management fees
Revenues
Total revenues	448,262		1,135,821
Management fees | Eliminations
Revenues
Total revenues	(11,051)	(11,719)	(33,416)	(33,601)
Management fees | Consolidated Company  Entities
Revenues
Total revenues	448,262	292,434	1,135,821	823,150
Management fees | Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	459,313	304,153	1,169,237	856,751
Carried interest allocation
Revenues
Total revenues	460,651		1,610,707
Carried interest allocation | Eliminations
Revenues
Total revenues	0	0
Carried interest allocation | Consolidated Company  Entities
Revenues
Total revenues	460,651	168,978	1,610,707	241,380
Carried interest allocation | Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	460,651	168,978	1,610,707	241,380
Incentive fees
Revenues
Total revenues	696		19,420
Incentive fees | Eliminations
Revenues
Total revenues	0	0	(1,528)	70
Incentive fees | Consolidated Company  Entities
Revenues
Total revenues	696	7,194	19,420	4,276
Incentive fees | Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	696	7,194	20,948	4,206
Principal investment income
Revenues
Total revenues	14,250		86,477
Principal investment income | Eliminations
Revenues
Total revenues	(6,469)	(6,672)	(9,971)	33,281
Principal investment income | Consolidated Company  Entities
Revenues
Total revenues	14,250	11,408	86,477	8,330
Principal investment income | Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	20,719	18,080	96,448	(24,951)
Administrative, transaction and other fees
Revenues
Total revenues	24,860		49,501
Administrative, transaction and other fees | Eliminations
Revenues
Total revenues	(4,264)	(4,448)	(13,157)	(12,249)
Administrative, transaction and other fees | Consolidated Company  Entities
Revenues
Total revenues	24,860	9,852	49,501	28,897
Administrative, transaction and other fees | Consolidated Company  Entities  | Reportable legal entity
Revenues
Total revenues	$ 29,124	$ 14,300	$ 62,658	$ 41,146

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CONSOLIDATION - Cash Flow Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 216,713	$ 141,327	$ 652,342	$ 82,206
Net cash provided by (used in) operating activities			(1,843,751)	12,462
Cash flows from investing activities:
Net cash used in investing activities			(1,072,578)	(126,437)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Net cash provided by financing activities			2,692,984	827,550
Effect of exchange rate changes			(20,763)	16,793
Net change in cash and cash equivalents			(244,108)	730,368
Cash and cash equivalents, beginning of period			539,812
Cash and cash equivalents, end of period	295,704	868,752	295,704	868,752
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions			511,069	305,338
Reportable legal entity
Cash flows from financing activities:
Proceeds from issuance of senior and subordinated notes				399,084
Redemption of Series A Preferred Stock			(310,000)
Eliminations
Cash flows from operating activities:
Net income	(5,709)	(7,651)	(9,211)	32,510
Net cash provided by (used in) operating activities			(969,200)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Net cash provided by financing activities			(89,857)	10,804
Effect of exchange rate changes			0	0
Net change in cash and cash equivalents			(1,059,057)	241,137
Cash and cash equivalents, beginning of period			(522,377)	(606,321)
Cash and cash equivalents, end of period	(1,581,434)	(365,185)	(1,581,434)	(365,185)
Consolidated Funds
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities			(1,688,085)	(766,399)
Cash flows due to changes in operating assets and liabilities			(729,703)	366,367
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			919,666	123,713
Distributions to non-controlling interests in Consolidated Funds			(84,770)	(169,747)
Borrowings under loan obligations by Consolidated Funds			1,456,887	618,207
Repayments under loan obligations by Consolidated Funds			(74,909)	(104,794)
Consolidated Funds | Reportable legal entity
Cash flows from operating activities:
Net income	53,079	50,278	111,466	(71,103)
Adjustments to reconcile net income to net cash provided by (used in) operating activities			(1,697,529)	(733,607)
Cash flows due to changes in operating assets and liabilities			343,253	105,992
Net cash provided by (used in) operating activities			(1,242,810)	(698,718)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			1,027,454	138,760
Distributions to non-controlling interests in Consolidated Funds			(102,701)	(195,598)
Borrowings under loan obligations by Consolidated Funds			1,456,887	618,207
Repayments under loan obligations by Consolidated Funds			(74,909)	(104,794)
Net cash provided by financing activities			2,306,731	456,575
Effect of exchange rate changes			(4,864)	1,007
Net change in cash and cash equivalents			1,059,057	(241,137)
Cash and cash equivalents, beginning of period			522,377	606,321
Cash and cash equivalents, end of period	1,581,434	365,185	1,581,434	365,185
Consolidated Funds | Eliminations
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities			9,444	(32,792)
Cash flows due to changes in operating assets and liabilities			(1,072,956)	260,375
Net cash provided by (used in) operating activities				230,332
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds			(107,788)	(15,047)
Distributions to non-controlling interests in Consolidated Funds			17,931	25,851
Borrowings under loan obligations by Consolidated Funds				0
Repayments under loan obligations by Consolidated Funds				0
Ares Management L.P
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities			71,133	184,586
Cash flows due to changes in operating assets and liabilities			(149,438)	145,702
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(15,152)	(8,608)
Acquisitions, net of cash acquired			(1,057,426)	(117,829)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock			827,430	383,154
Proceeds from Credit Facility			468,000	790,000
Proceeds from issuance of senior and subordinated notes			450,000	399,084
Repayments of Credit Facility			(318,000)	(860,000)
Dividends and distributions			(438,568)	(334,957)
Series A Preferred Stock dividends			(10,850)	(16,275)
Redemption of Series A Preferred Stock			(310,000)	0
Stock option exercises			27,409	78,959
Taxes paid related to net share settlement of equity awards			(221,287)	(75,657)
Other financing activities			1,976	(4,137)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Cash and cash equivalents, beginning of period			539,812	138,384
Cash and cash equivalents, end of period	295,704	868,752	295,704	868,752
Ares Management L.P | Reportable legal entity
Cash flows from operating activities:
Net income	169,343	98,700	550,087	120,799
Adjustments to reconcile net income to net cash provided by (used in) operating activities			(28,467)	207,358
Cash flows due to changes in operating assets and liabilities			(153,361)	152,691
Net cash provided by (used in) operating activities			368,259	480,848
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals			(15,152)	(8,608)
Acquisitions, net of cash acquired			(1,057,426)	(117,829)
Net cash used in investing activities			(1,072,578)	(126,437)
Cash flows from financing activities:
Net proceeds from issuance of Class A and non-voting common stock			827,430	383,154
Proceeds from Credit Facility			468,000	790,000
Proceeds from issuance of senior and subordinated notes			450,000
Repayments of Credit Facility			(318,000)	(860,000)
Dividends and distributions			(438,568)	(334,957)
Series A Preferred Stock dividends			(10,850)	(16,275)
Stock option exercises			27,409	78,959
Taxes paid related to net share settlement of equity awards			(221,287)	(75,657)
Other financing activities			1,976	(4,137)
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Net cash provided by financing activities			476,110	360,171
Effect of exchange rate changes			(15,899)	15,786
Net change in cash and cash equivalents			(244,108)	730,368
Cash and cash equivalents, beginning of period			539,812	138,384
Cash and cash equivalents, end of period	$ 295,704	$ 868,752	295,704	868,752
Supplemental disclosure of non-cash financing activities:
Issuance of AOG Units in connection with acquisitions			511,069	305,388
Ares Management L.P | Eliminations
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by (used in) operating activities			99,600	(22,772)
Cash flows due to changes in operating assets and liabilities			$ 3,923	$ (6,989)

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SUBSEQUENT EVENTS (Details)	1 Months Ended
	Oct. 31, 2021 $ / shares
Subsequent event
Subsequent events
Quarterly distribution declared (in dollars per share)	$ 0.47