GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

3. 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 (in years) as of December 31, 2023	As of December 31,

		2023		2022
Management contracts	4.3	$	604,242	$	586,077
Client relationships	8.5	200,920		262,301
Trade name	N/A	—		11,079
Other	0.8	500		500
Finite-lived intangible assets		805,662		859,957
Foreign currency translation		1,126		935
Total finite-lived intangible assets		806,788		860,892
Less: accumulated amortization		(316,093)		(220,472)
Finite-lived intangible assets, net		490,695		640,420


Indefinite-lived management contracts		567,800		567,800
Intangible assets, net		$	1,058,495	$	1,208,220

On October 2, 2023, the Company completed the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”). The Crescent Point Acquisition adds complementary investment capabilities to expand the Company’s presence in the Asia-Pacific region. Following the completion of the Crescent Point Acquisition, the results of Crescent Point are presented within

the Private Equity Group. The Company allocated $32.7 million and $22.3 million of the purchase price to the fair value of the acquired management contracts and client relationships, respectively. The acquired management contracts and client relationships had a weighted average amortization period from the date of acquisition of 5.5 years and 9.0 years, respectively.

During the year ended December 31, 2023, the Company recorded non-cash impairment charges of $78.7 million, including: (i) $65.7 million to the carrying value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”) that are included within the Secondaries Group, where the primary indicator of impairment was the lower expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition; (ii) $4.6 million and $0.7 million to the fair value of management contracts of certain funds within the Real Assets Group and Credit Group, respectively, in connection with lower than expected future fee revenue generated from these funds; and (iii) $7.8 million to the carrying value of SSG trade name as the Company rebranded Ares SSG as APAC credit and discontinued the use of the SSG trade name.

During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $181.6 million to the fair value of a trade name and management contracts related to: (i) the decision to rebrand its secondaries group as Ares Secondaries and to discontinue the ongoing use of the Landmark trade name; (ii) the fair value of certain management contracts in connection with lower than expected fee paying assets under management; and (iii) the shorter expected lives of certain funds as a result of returning capital to fund investors sooner than initially planned.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $126.0 million, $133.6 million and $91.3 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is presented within general, administrative and other expenses within the Consolidated Statements of Operations. During the year ended December 31, 2023, the Company removed $109.3 million of impaired and fully-amortized intangible assets.

As of December 31, 2023, future annual amortization of finite-lived intangible assets for the years 2024 through 2028 and thereafter is estimated to be:


Year	Amortization
2024	$	115,722
2025	102,987
2026	77,047
2027	62,907
2028	38,904
Thereafter	93,128
Total	$	490,695

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:


	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total
Balance as of December 31, 2021	$	32,196	$	58,600	$	53,339	$	417,738	$	226,099	$	787,972
Acquisitions	—		—		213,314		(96)		—		213,218
Reallocation	—		(10,530)		10,530		—		—		—
Foreign currency translation	—		—		—		(22)		(1,512)		(1,534)
Balance as of December 31, 2022	32,196		48,070		277,183		417,620		224,587		999,656
Acquisitions	—		124,392		22		—		—		124,414
Reallocation	224,587		—		—		—		(224,587)		—
Foreign currency translation	(104)		—		—		10		—		(94)
Balance as of December 31, 2023	$	256,679	$	172,462	$	277,205	$	417,630	$	—	$	1,123,976

In connection with the Crescent Point Acquisition, the Company allocated $124.4 million of the purchase price to goodwill.

In connection with the SSG Buyout described in “Note 13. Equity and Redeemable Interest,” the former Ares SSG reporting unit has been transferred in its entirety to the Credit Group and the total goodwill of $224.6 million has been reallocated accordingly.

There was no impairment of goodwill recorded during the years ended December 31, 2023 and 2022. The impact of foreign currency translation is reflected within other comprehensive income within the Consolidated Statements of Comprehensive Income.