RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2022

10. RELATED PARTY TRANSACTIONS

Substantially all of the Company’s revenue is earned from its affiliates. The related accounts receivable are included within due from affiliates in 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 has also entered into agreements to be reimbursed for its expenses incurred in providing administrative services to certain related parties, including our public vehicles. The Company is also party to agreements with certain private funds that pay administrative fees based on invested capital and with certain real estate funds to provide various services, such as administration, acquisition, development, property management, fees from the distribution of shares in our non-traded REITs, 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, carried interest or incentive fees.

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 June 30,		As of December 31,

	2022		2021
Due from affiliates:
Management fees receivable from non-consolidated funds	$	430,712	$	372,249
Incentive fee receivable from non-consolidated funds	11,069		211,243
Payments made on behalf of and amounts due from non-consolidated funds and employees	110,356		86,891
Due from affiliates—Company	$	552,137	$	670,383
Amounts due from non-consolidated funds	$	7,159	$	7,234
Due from affiliates—Consolidated Funds	$	7,159	$	7,234
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	7,102	$	10,160
Tax receivable agreement liability	98,975		100,542
Undistributed carried interest and incentive fees	10,648		66,494
Payments made by non-consolidated funds on behalf of and payable by the Company	16,697		21,357
Due to affiliates—Company	$	133,422	$	198,553

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.