RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

9. 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 within the Consolidated Statements of Financial Condition, except that accrued carried interest, which is predominantly due from affiliated funds, is presented separately within investments within the 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 is reimbursed for expenses incurred in providing administrative services to certain related parties, including our publicly-traded and non-traded vehicles. In addition, certain private funds pay administrative fees based on invested capital. The Company is also party to agreements with certain funds which pay fees to the Company to provide various property-related services, such as acquisition, development and property management as well as fees for the sale and distribution of fund shares in our non-traded vehicles.

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.

Carried interest and incentive fees 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 December 31,
	2023		2022
Due from affiliates:
Management fees receivable from non-consolidated funds	$	560,629	$	456,314
Incentive fee receivable from non-consolidated funds	159,098		169,979
Payments made on behalf of and amounts due from non-consolidated funds and employees	177,019		132,179
Due from affiliates—Company	$	896,746	$	758,472
Amounts due from non-consolidated funds	$	14,151	$	15,789
Due from affiliates—Consolidated Funds	$	14,151	$	15,789
Due to affiliates:
Management fee received in advance and rebates payable to non-consolidated funds	$	9,585	$	8,701
Tax receivable agreement liability	191,299		118,466
Undistributed carried interest and incentive fees	33,374		121,332
Payments made by non-consolidated funds on behalf of and payable by the Company	5,996		4,299
Due to affiliates—Company	$	240,254	$	252,798
Amounts due to portfolio companies and non-consolidated funds	$	3,554	$	4,037
Due to affiliates—Consolidated Funds	$	3,554	$	4,037

Due from and Due to 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. Conversely, Consolidated Funds and non-consolidated funds may pay certain expenses that are reimbursed by the Company. 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.