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CONSOLIDATION (Tables)

6 Months Ended

Jun. 30, 2023

Condensed Financial Information Disclosure [Abstract]

The Company’s interests in consolidated and non-consolidated VIEs, as presented within the Condensed Consolidated Statements of Financial Condition, its respective maximum exposure to loss relating to non-consolidated VIEs, and its net income attributable to non-controlling interests related to consolidated VIEs, as presented within the Condensed Consolidated Statements of Operations, are as follows:


	As of June 30,		As of December 31,

	2023		2022
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)	$	410,725	$	393,549
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)	786,662		537,239
Assets of consolidated VIEs	14,186,814		13,128,088
Liabilities of consolidated VIEs	12,443,170		11,593,867

(1)As of June 30, 2023 and December 31, 2022, the Company’s maximum exposure of loss for CLO securities was equal to the cumulative fair value of our capital interest in CLOs and totaled $77.9 million and $82.0 million, respectively.


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Net income (loss) attributable to non-controlling interests related to consolidated VIEs	$	63,461	$	(18,725)	$	100,592	$	19,737

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 June 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	276,827	$	—	$	—	$	276,827
Investments (includes $3,524,644 of accrued carried interest)	5,272,838		—		(806,612)		4,466,226
Due from affiliates	766,101		—		(122,657)		643,444
Other assets	252,646		—		—		252,646
Right-of-use operating lease assets	170,911		—		—		170,911
Intangible assets, net	1,130,673		—		—		1,130,673
Goodwill	998,020		—		—		998,020
Assets of Consolidated Funds
Cash and cash equivalents	—		812,164		—		812,164
Investments held in trust account	—		1,000,949		—		1,000,949
Investments, at fair value	—		13,090,939		—		13,090,939
Due from affiliates	—		22,432		(11,044)		11,388
Receivable for securities sold	—		197,729		—		197,729
Other assets	—		66,890		—		66,890
Total assets	$	8,868,016	$	15,191,103	$	(940,313)	$	23,118,806
Liabilities
Accounts payable, accrued expenses and other liabilities	$	278,207	$	—	$	(11,009)	$	267,198
Accrued compensation	250,790		—		—		250,790
Due to affiliates	192,153		—		—		192,153
Performance related compensation payable	2,579,564		—		—		2,579,564
Debt obligations	2,299,731		—		—		2,299,731

Operating lease liabilities	206,816		—		—		206,816
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		237,560		(12,266)		225,294
Due to affiliates	—		123,612		(122,692)		920
Payable for securities purchased	—		554,555		—		554,555
CLO loan obligations, at fair value	—		11,557,946		(96,947)		11,460,999
Fund borrowings	—		65,050		—		65,050
Total liabilities	5,807,261		12,538,723		(242,914)		18,103,070
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		1,000,749		—		1,000,749
Redeemable interest in Ares Operating Group entities	22,517		—		—		22,517
Non-controlling interest in Consolidated Funds	—		1,651,631		(680,322)		971,309
Non-controlling interest in Ares Operating Group entities	1,277,871		—		(6,714)		1,271,157
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (181,231,808 shares issued and outstanding)	1,812		—		—		1,812
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 (119,674,321 shares issued and outstanding)	1,197		—		—		1,197
Additional paid-in-capital	2,192,536		—		(10,363)		2,182,173
Accumulated deficit	(425,526)		—		—		(425,526)
Accumulated other comprehensive loss, net of tax	(9,687)		—		—		(9,687)
Total stockholders’ equity	1,760,367		—		(10,363)		1,750,004
Total equity	3,038,238		1,651,631		(697,399)		3,992,470
Total liabilities, redeemable interest, non-controlling interests and equity	$	8,868,016	$	15,191,103	$	(940,313)	$	23,118,806


	As of December 31, 2022
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	389,987	$	—	$	—	$	389,987
Investments (includes $3,106,577 of accrued carried interest)	4,515,955		—		(541,221)		3,974,734
Due from affiliates	949,532		—		(191,060)		758,472
Other assets	381,137		—		—		381,137
Right-of-use operating lease assets	155,950		—		—		155,950
Intangible assets, net	1,208,220		—		—		1,208,220
Goodwill	999,656		—		—		999,656
Assets of Consolidated Funds
Cash and cash equivalents	—		724,641		—		724,641
Investments held in trust account	—		1,013,382		—		1,013,382
Investments, at fair value	—		12,187,392		3,859		12,191,251
Due from affiliates	—		26,531		(10,742)		15,789
Receivable for securities sold	—		124,050		—		124,050
Other assets	—		65,570		—		65,570
Total assets	$	8,600,437	$	14,141,566	$	(739,164)	$	22,002,839
Liabilities
Accounts payable, accrued expenses and other liabilities	$	242,663	$	—	$	(10,742)	$	231,921
Accrued compensation	510,130		—		—		510,130
Due to affiliates	252,798		—		—		252,798
Performance related compensation payable	2,282,209		—		—		2,282,209
Debt obligations	2,273,854		—		—		2,273,854
Operating lease liabilities	190,616		—		—		190,616
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		175,435		(7,149)		168,286
Due to affiliates	—		191,238		(187,201)		4,037
Payable for securities purchased	—		314,193		—		314,193
CLO loan obligations, at fair value	—		10,797,332		(95,612)		10,701,720
Fund borrowings	—		168,046		—		168,046
Total liabilities	5,752,270		11,646,244		(300,704)		17,097,810
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		1,013,282		—		1,013,282
Redeemable interest in Ares Operating Group entities	93,129		—		—		93,129
Non-controlling interest in Consolidated Funds	—		1,482,040		(407,684)		1,074,356
Non-controlling interest in Ares Operating Group entities	1,147,269		—		(12,246)		1,135,023
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (173,892,036 shares issued and outstanding)	1,739		—		—		1,739
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 (117,231,288 shares issued and outstanding)	1,172		—		—		1,172
Additional paid-in-capital	1,989,284		—		(18,530)		1,970,754
Accumulated deficit	(369,475)		—		—		(369,475)
Accumulated other comprehensive loss, net of tax	(14,986)		—		—		(14,986)
Total stockholders’ equity	1,607,769		—		(18,530)		1,589,239
Total equity	2,755,038		1,482,040		(438,460)		3,798,618
Total liabilities, redeemable interest, non-controlling interests and equity	$	8,600,437	$	14,141,566	$	(739,164)	$	22,002,839

Schedule of Results from Operations


	Three months ended June 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	627,276	$	—	$	(12,005)	$	615,271
Carried interest allocation	422,412		—		(3,946)		418,466
Incentive fees	7,950		—		—		7,950
Principal investment income	65,242		—		(58,354)		6,888
Administrative, transaction and other fees	46,846		—		(2,135)		44,711
Total revenues	1,169,726		—		(76,440)		1,093,286
Expenses
Compensation and benefits	367,550		—		—		367,550
Performance related compensation	315,780		—		—		315,780
General, administrative and other expense	141,184		—		(31)		141,153
Expenses of the Consolidated Funds	—		25,395		(12,140)		13,255
Total expenses	824,514		25,395		(12,171)		837,738
Other income (expense)
Net realized and unrealized gains (losses) on investments	(4,555)		—		10,036		5,481
Interest and dividend income	5,487		—		(2,797)		2,690
Interest expense	(25,839)		—		—		(25,839)
Other expense, net	(6,098)		—		211		(5,887)
Net realized and unrealized gains on investments of the Consolidated Funds	—		96,288		2,138		98,426
Interest and other income of the Consolidated Funds	—		234,665		(211)		234,454
Interest expense of the Consolidated Funds	—		(184,019)		1,115		(182,904)
Total other income (expense), net	(31,005)		146,934		10,492		126,421
Income before taxes	314,207		121,539		(53,777)		381,969
Income tax expense	49,633		81		—		49,714
Net income	264,574		121,458		(53,777)		332,255
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		121,458		(53,777)		67,681
Net income attributable to Ares Operating Group entities	264,574		—		—		264,574
Less: Net income attributable to redeemable interest in Ares Operating Group entities	734		—		—		734
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	119,326		—		—		119,326



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	144,514	$	—	$	—	$	144,514


	Three months ended June 30, 2022
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	531,922	$	—	$	(11,362)	$	520,560
Carried interest allocation	47,304		—		—		47,304
Incentive fees	4,675		—		—		4,675
Principal investment income (loss)	13,493		—		(17,880)		(4,387)
Administrative, transaction and other fees	37,593		—		(4,315)		33,278
Total revenues	634,987		—		(33,557)		601,430
Expenses
Compensation and benefits	375,775		—		—		375,775
Performance related compensation	41,073		—		—		41,073
General, administrative and other expense	122,793		—		(227)		122,566
Expenses of the Consolidated Funds	—		24,865		(11,411)		13,454
Total expenses	539,641		24,865		(11,638)		552,868
Other income (expense)
Net realized and unrealized losses on investments	(10,433)		—		8,658		(1,775)
Interest and dividend income	8,375		—		(6,899)		1,476
Interest expense	(17,221)		—		—		(17,221)
Other income, net	5,998		—		(189)		5,809
Net realized and unrealized losses on investments of the Consolidated Funds	—		(6,806)		(1,101)		(7,907)
Interest and other income of the Consolidated Funds	—		117,186		189		117,375
Interest expense of the Consolidated Funds	—		(82,810)		3,557		(79,253)
Total other income (expense), net	(13,281)		27,570		4,215		18,504
Income before taxes	82,065		2,705		(17,704)		67,066
Income tax expense	13,437		23		—		13,460
Net income	68,628		2,682		(17,704)		53,606
Less: Net income (loss) attributable to non-controlling interests in Consolidated Funds	—		2,682		(17,704)		(15,022)
Net income attributable to Ares Operating Group entities	68,628		—		—		68,628
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(457)		—		—		(457)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	29,354		—		—		29,354



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	39,731	$	—	$	—	$	39,731


	Six months ended June 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,239,393	$	—	$	(23,606)	$	1,215,787
Carried interest allocation	577,307		—		(7,353)		569,954
Incentive fees	17,011		—		(138)		16,873
Principal investment income	100,699		—		(71,053)		29,646
Administrative, transaction and other fees	81,366		—		(6,978)		74,388
Total revenues	2,015,776		—		(109,128)		1,906,648
Expenses
Compensation and benefits	728,331		—		—		728,331
Performance related compensation	427,438		—		—		427,438
General, administrative and other expense	289,872		—		(374)		289,498
Expenses of the Consolidated Funds	—		45,036		(23,929)		21,107
Total expenses	1,445,641		45,036		(24,303)		1,466,374
Other income (expense)
Net realized and unrealized gains on investments	3,297		—		3,699		6,996
Interest and dividend income	12,663		—		(6,134)		6,529
Interest expense	(50,825)		—		—		(50,825)
Other expense, net	(7,112)		—		302		(6,810)
Net realized and unrealized gains on investments of the Consolidated Funds	—		94,219		14,907		109,126
Interest and other income of the Consolidated Funds	—		457,694		(302)		457,392
Interest expense of the Consolidated Funds	—		(342,062)		2,471		(339,591)
Total other income (expense), net	(41,977)		209,851		14,943		182,817
Income before taxes	528,158		164,815		(69,882)		623,091
Income tax expense	82,961		559		—		83,520
Net income	445,197		164,256		(69,882)		539,571
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		164,256		(69,882)		94,374
Net income attributable to Ares Operating Group entities	445,197		—		—		445,197
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,090)		—		—		(1,090)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	207,734		—		—		207,734



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	238,553	$	—	$	—	$	238,553


	Six months ended June 30, 2022
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,020,733	$	—	$	(22,841)	$	997,892
Carried interest allocation	225,593		—		—		225,593
Incentive fees	21,131		—		(34)		21,097
Principal investment income	27,983		—		(24,044)		3,939
Administrative, transaction and other fees	76,992		—		(9,084)		67,908
Total revenues	1,372,432		—		(56,003)		1,316,429
Expenses
Compensation and benefits	729,612		—		—		729,612
Performance related compensation	173,884		—		—		173,884
General, administrative and other expense	243,316		—		(227)		243,089
Expenses of the Consolidated Funds	—		40,942		(22,975)		17,967
Total expenses	1,146,812		40,942		(23,202)		1,164,552
Other income (expense)
Net realized and unrealized gains (losses) on investments	(15,359)		—		21,693		6,334
Interest and dividend income	11,785		—		(8,807)		2,978
Interest expense	(32,867)		—		—		(32,867)
Other income, net	6,788		—		805		7,593
Net realized and unrealized gains on investments of the Consolidated Funds	—		16,205		(8,144)		8,061
Interest and other income of the Consolidated Funds	—		238,470		(805)		237,665
Interest expense of the Consolidated Funds	—		(160,257)		6,991		(153,266)
Total other income (expense), net	(29,653)		94,418		11,733		76,498
Income before taxes	195,967		53,476		(21,068)		228,375
Income tax expense	33,823		48		—		33,871
Net income	162,144		53,428		(21,068)		194,504
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		53,428		(21,068)		32,360
Net income attributable to Ares Operating Group entities	162,144		—		—		162,144
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(58)		—		—		(58)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	76,608		—		—		76,608



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	85,594	$	—	$	—	$	85,594

Schedule of Cash Flows


	Six months ended June 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	445,197	$	164,256	$	(69,882)	$	539,571
Adjustments to reconcile net income to net cash provided by operating activities	(108,264)		—		258,037		149,773








Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(869,324)		(14,907)		(884,231)





Cash flows due to changes in operating assets and liabilities	130,743		—		(61,317)		69,426





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		144,378		(10,397)		133,981




Net cash provided by (used in) operating activities	467,676		(560,690)		101,534		8,520
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(21,127)		—		—		(21,127)

Net cash used in investing activities	(21,127)		—		—		(21,127)
Cash flows from financing activities:

Proceeds from Credit Facility	495,000		—		—		495,000

Repayments of Credit Facility	(470,000)		—		—		(470,000)

Dividends and distributions	(510,501)		—		—		(510,501)



Stock option exercises	53,140		—		—		53,140
Taxes paid related to net share settlement of equity awards	(133,570)		—		—		(133,570)
Other financing activities	1,554		—		—		1,554
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		880,426		(199,435)		680,991
Distributions to non-controlling interests in Consolidated Funds	—		(46,303)		10,378		(35,925)
Redemptions of redeemable interests in Consolidated Funds	—		(538,985)		—		(538,985)
Borrowings under loan obligations by Consolidated Funds	—		535,464		—		535,464
Repayments under loan obligations by Consolidated Funds	—		(174,669)		—		(174,669)
Net cash provided by (used in) financing activities	(564,377)		655,933		(189,057)		(97,501)
Effect of exchange rate changes	4,668		(7,720)		—		(3,052)
Net change in cash and cash equivalents	(113,160)		87,523		(87,523)		(113,160)
Cash and cash equivalents, beginning of period	389,987		724,641		(724,641)		389,987
Cash and cash equivalents, end of period	$	276,827	$	812,164	$	(812,164)	$	276,827
Supplemental disclosure of non-cash financing activities:
Issuance of Class A common stock in connection with acquisition-related activity	$	116,101	$	—	$	—	$	116,101
Issuance of AOG Units in connection with settlement of management incentive program	$	245,647	$	—	$	—	$	245,647


	Six months ended June 30, 2022
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	162,144	$	53,428	$	(21,068)	$	194,504
Adjustments to reconcile net income to net cash provided by operating activities	147,828		—		(86,755)		61,073







Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds	—		(863,947)		8,144		(855,803)





Cash flows due to changes in operating assets and liabilities	48,203		—		108,957		157,160





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(255,233)		130,101		(125,132)




Net cash provided by (used in) operating activities	358,175		(1,065,752)		139,379		(568,198)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(18,448)		—		—		(18,448)
Acquisitions, net of cash acquired	(301,677)		—		—		(301,677)
Net cash used in investing activities	(320,125)		—		—		(320,125)
Cash flows from financing activities:

Proceeds from Credit Facility	700,000		—		—		700,000
Proceeds from senior notes	488,915		—		—		488,915

Repayments of Credit Facility	(720,000)		—		—		(720,000)
Dividends and distributions	(406,366)		—		—		(406,366)


Stock option exercises	8,644		—		—		8,644
Taxes paid related to net share settlement of equity awards	(189,485)		—		—		(189,485)
Other financing activities	1,834		—		—		1,834
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		242,975		(24,695)		218,280
Distributions to non-controlling interests in Consolidated Funds	—		(164,035)		110,397		(53,638)

Borrowings under loan obligations by Consolidated Funds	—		814,183		—		814,183
Repayments under loan obligations by Consolidated Funds	—		(46,873)		—		(46,873)
Net cash provided by (used in) financing activities	(116,458)		846,250		85,702		815,494
Effect of exchange rate changes	(12,380)		(5,579)		—		(17,959)
Net change in cash and cash equivalents	(90,788)		(225,081)		225,081		(90,788)
Cash and cash equivalents, beginning of period	343,655		1,049,191		(1,049,191)		343,655
Cash and cash equivalents, end of period	$	252,867	$	824,110	$	(824,110)	$	252,867
Supplemental disclosure of non-cash financing activities:
Issuance of Class A common stock in connection with acquisition-related activity	$	12,835	$	—	$	—	$	12,835

- Definition

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

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