CONSOLIDATION (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31,		As of December 31,

	2024		2023
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)	$	399,885	$	503,376
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)	908,198		910,600
Assets of consolidated VIEs	15,335,745		15,484,962
Liabilities of consolidated VIEs	13,058,395		13,409,257

(1)As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure of loss for CLO securities was equal to the cumulative fair value of the Company’s capital interest in CLOs and totaled $83.2 million and $83.1 million, respectively.


	Three months ended March 31,
	2024		2023
Net income attributable to non-controlling interests related to consolidated VIEs	$	58,356	$	37,131

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 March 31, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	346,331	$	—	$	—	$	346,331
Investments (includes $3,361,519 of accrued carried interest)	5,410,366		—		(925,482)		4,484,884
Due from affiliates	981,917		—		(172,644)		809,273
Other assets	519,292		—		—		519,292
Right-of-use operating lease assets	237,019		—		—		237,019
Intangible assets, net	1,030,076		—		—		1,030,076
Goodwill	1,130,085		—		—		1,130,085
Assets of Consolidated Funds
Cash and cash equivalents	—		1,199,376		—		1,199,376
Investments held in trust account	—		529,887		—		529,887
Investments, at fair value	—		13,790,030		—		13,790,030
Due from affiliates	—		27,358		(11,434)		15,924
Receivable for securities sold	—		243,998		—		243,998
Other assets	—		77,095		—		77,095
Total assets	$	9,655,086	$	15,867,744	$	(1,109,560)	$	24,413,270
Liabilities
Accounts payable, accrued expenses and other liabilities	$	273,985	$	—	$	(11,434)	$	262,551
Accrued compensation	217,788		—		—		217,788
Due to affiliates	363,308		—		—		363,308
Performance related compensation payable	2,449,732		—		—		2,449,732
Debt obligations	3,046,182		—		—		3,046,182

Operating lease liabilities	308,336		—		—		308,336
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		189,556		—		189,556
Due to affiliates	—		185,371		(172,644)		12,727
Payable for securities purchased	—		548,032		—		548,032
CLO loan obligations, at fair value	—		12,020,005		(113,659)		11,906,346
Fund borrowings	—		78,241		—		78,241
Total liabilities	6,659,331		13,021,205		(297,737)		19,382,799
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		529,787		—		529,787
Redeemable interest in Ares Operating Group entities	23,612		—		—		23,612
Non-controlling interest in Consolidated Funds	—		2,316,752		(801,450)		1,515,302
Non-controlling interest in Ares Operating Group entities	1,198,132		—		(3,856)		1,194,276
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (191,057,860 shares issued and outstanding)	1,911		—		—		1,911
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 (115,120,213 shares issued and outstanding)	1,151		—		—		1,151
Additional paid-in-capital	2,393,954		—		(6,517)		2,387,437
Accumulated deficit	(612,560)		—		—		(612,560)
Accumulated other comprehensive loss, net of tax	(10,480)		—		—		(10,480)
Total stockholders’ equity	1,774,011		—		(6,517)		1,767,494
Total equity	2,972,143		2,316,752		(811,823)		4,477,072
Total liabilities, redeemable interest, non-controlling interests and equity	$	9,655,086	$	15,867,744	$	(1,109,560)	$	24,413,270


	As of December 31, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	348,274	$	—	$	—	$	348,274
Investments (includes $3,413,007 of accrued carried interest)	5,546,209		—		(921,277)		4,624,932
Due from affiliates	1,068,089		—		(171,343)		896,746
Other assets	429,979		—		—		429,979
Right-of-use operating lease assets	249,326		—		—		249,326
Intangible assets, net	1,058,495		—		—		1,058,495
Goodwill	1,123,976		—		—		1,123,976
Assets of Consolidated Funds
Cash and cash equivalents	—		1,149,511		—		1,149,511
Investments held in trust account	—		523,038		—		523,038
Investments, at fair value	—		14,078,549		—		14,078,549
Due from affiliates	—		25,794		(11,643)		14,151
Receivable for securities sold	—		146,851		—		146,851
Other assets	—		86,672		—		86,672
Total assets	$	9,824,348	$	16,010,415	$	(1,104,263)	$	24,730,500
Liabilities
Accounts payable, accrued expenses and other liabilities	$	245,526	$	—	$	(11,642)	$	233,884
Accrued compensation	287,259		—		—		287,259
Due to affiliates	240,254		—		—		240,254
Performance related compensation payable	2,514,610		—		—		2,514,610
Debt obligations	2,965,480		—		—		2,965,480
Operating lease liabilities	319,572		—		—		319,572
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		189,523		—		189,523
Due to affiliates	—		174,897		(171,343)		3,554
Payable for securities purchased	—		484,117		—		484,117
CLO loan obligations, at fair value	—		12,458,266		(112,609)		12,345,657
Fund borrowings	—		125,241		—		125,241
Total liabilities	6,572,701		13,432,044		(295,594)		19,709,151
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		522,938		—		522,938
Redeemable interest in Ares Operating Group entities	24,098		—		—		24,098
Non-controlling interest in Consolidated Funds	—		2,055,433		(796,988)		1,258,445
Non-controlling interest in Ares Operating Group entities	1,326,913		—		(4,444)		1,322,469
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (187,069,907 shares issued and outstanding)	1,871		—		—		1,871
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 (117,024,758 shares issued and outstanding)	1,170		—		—		1,170
Additional paid-in-capital	2,398,273		—		(7,237)		2,391,036
Accumulated deficit	(495,083)		—		—		(495,083)
Accumulated other comprehensive loss, net of tax	(5,630)		—		—		(5,630)
Total stockholders’ equity	1,900,636		—		(7,237)		1,893,399
Total equity	3,227,549		2,055,433		(808,669)		4,474,313
Total liabilities, redeemable interest, non-controlling interests and equity	$	9,824,348	$	16,010,415	$	(1,104,263)	$	24,730,500

Schedule of Results from Operations


	Three months ended March 31, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	700,145	$	—	$	(12,453)	$	687,692
Carried interest allocation	(26,550)		—		(5,928)		(32,478)
Incentive fees	8,664		—		3		8,667
Principal investment income (loss)	(2,665)		—		9,715		7,050
Administrative, transaction and other fees	36,545		—		(113)		36,432
Total revenues	716,139		—		(8,776)		707,363
Expenses
Compensation and benefits	412,951		—		—		412,951
Performance related compensation	(50,532)		—		—		(50,532)
General, administrative and other expense	171,361		—		(433)		170,928
Expenses of the Consolidated Funds	—		17,708		(12,562)		5,146
Total expenses	533,780		17,708		(12,995)		538,493
Other income (expense)
Net realized and unrealized gains on investments	12,357		—		(1,841)		10,516
Interest and dividend income	8,092		—		(2,710)		5,382
Interest expense	(37,824)		—		—		(37,824)
Other income, net	478		—		(208)		270
Net realized and unrealized gains on investments of the Consolidated Funds	—		32,352		2,072		34,424
Interest and other income of the Consolidated Funds	—		257,067		209		257,276
Interest expense of the Consolidated Funds	—		(209,442)		1,576		(207,866)
Total other income (expense), net	(16,897)		79,977		(902)		62,178
Income before taxes	165,462		62,269		3,317		231,048
Income tax expense (benefit)	28,363		(1,130)		—		27,233
Net income	137,099		63,399		3,317		203,815
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		63,399		3,317		66,716
Net income attributable to Ares Operating Group entities	137,099		—		—		137,099
Less: Net income attributable to redeemable interest in Ares Operating Group entities	73		—		—		73
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	63,999		—		—		63,999



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	73,027	$	—	$	—	$	73,027


	Three months ended March 31, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	612,117	$	—	$	(11,601)	$	600,516
Carried interest allocation	154,895		—		(3,407)		151,488
Incentive fees	9,061		—		(138)		8,923
Principal investment income	35,457		—		(12,699)		22,758
Administrative, transaction and other fees	34,520		—		(4,843)		29,677
Total revenues	846,050		—		(32,688)		813,362
Expenses
Compensation and benefits	360,781		—		—		360,781
Performance related compensation	111,658		—		—		111,658
General, administrative and other expense	148,688		—		(343)		148,345
Expenses of the Consolidated Funds	—		19,641		(11,789)		7,852
Total expenses	621,127		19,641		(12,132)		628,636
Other income (expense)
Net realized and unrealized gains on investments	7,852		—		(6,337)		1,515
Interest and dividend income	7,176		—		(3,337)		3,839
Interest expense	(24,986)		—		—		(24,986)
Other expense, net	(1,014)		—		91		(923)
Net realized and unrealized gains (losses) on investments of the Consolidated Funds	—		(2,069)		12,769		10,700
Interest and other income of the Consolidated Funds	—		223,029		(91)		222,938
Interest expense of the Consolidated Funds	—		(158,043)		1,356		(156,687)
Total other income (expense), net	(10,972)		62,917		4,451		56,396
Income before taxes	213,951		43,276		(16,105)		241,122
Income tax expense	33,328		478		—		33,806
Net income	180,623		42,798		(16,105)		207,316
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		42,798		(16,105)		26,693
Net income attributable to Ares Operating Group entities	180,623		—		—		180,623
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(1,824)		—		—		(1,824)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	88,408		—		—		88,408



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	94,039	$	—	$	—	$	94,039

Schedule of Cash Flows


	Three months ended March 31, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	137,099	$	63,399	$	3,317	$	203,815
Adjustments to reconcile net income to net cash provided by operating activities	224,720		—		(1,724)		222,996








Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		246,254		(2,072)		244,182




Cash flows due to changes in operating assets and liabilities	96,544		—		7,437		103,981





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(14,577)		(50,352)		(64,929)




Net cash provided by operating activities	458,363		295,076		(43,394)		710,045
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(26,071)		—		—		(26,071)
Acquisitions, net of cash acquired	(8,000)		—		—		(8,000)
Net cash used in investing activities	(34,071)		—		—		(34,071)
Cash flows from financing activities:

Proceeds from Credit Facility	290,000		—		—		290,000

Repayments of Credit Facility	(210,000)		—		—		(210,000)

Dividends and distributions	(320,046)		—		—		(320,046)

Stock option exercises	1,511		—		—		1,511
Taxes paid related to net share settlement of equity awards	(186,731)		—		—		(186,731)
Other financing activities	1,034		—		—		1,034
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		180,559		(11,886)		168,673
Distributions to non-controlling interests in Consolidated Funds	—		(32,323)		5,415		(26,908)

Borrowings under loan obligations by Consolidated Funds	—		36,947		—		36,947
Repayments under loan obligations by Consolidated Funds	—		(421,112)		—		(421,112)
Net cash used in financing activities	(424,232)		(235,929)		(6,471)		(666,632)
Effect of exchange rate changes	(2,003)		(9,282)		—		(11,285)
Net change in cash and cash equivalents	(1,943)		49,865		(49,865)		(1,943)
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	346,331	$	1,199,376	$	(1,199,376)	$	346,331
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	7,724	$	—	$	—	$	7,724


	Three months ended March 31, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	180,623	$	42,798	$	(16,105)	$	207,316
Adjustments to reconcile net income to net cash provided by operating activities	100,469		—		21,292		121,761







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		341,609		(12,769)		328,840





Cash flows due to changes in operating assets and liabilities	(132,777)		—		139,848		7,071





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		202,877		(160,293)		42,584




Net cash provided by operating activities	148,315		587,284		(28,027)		707,572
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(8,877)		—		—		(8,877)

Net cash used in investing activities	(8,877)		—		—		(8,877)
Cash flows from financing activities:

Proceeds from Credit Facility	245,000		—		—		245,000


Repayments of Credit Facility	(150,000)		—		—		(150,000)
Dividends and distributions	(251,632)		—		—		(251,632)


Stock option exercises	9,180		—		—		9,180
Taxes paid related to net share settlement of equity awards	(113,431)		—		—		(113,431)
Other financing activities	483		—		—		483
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		103,808		(10,223)		93,585
Distributions to non-controlling interests in Consolidated Funds	—		(28,890)		7,957		(20,933)
Redemptions of redeemable interests in Consolidated Funds	—		(538,985)		—		(538,985)
Borrowings under loan obligations by Consolidated Funds	—		2,914		—		2,914
Repayments under loan obligations by Consolidated Funds	—		(97,325)		—		(97,325)
Net cash used in financing activities	(260,400)		(558,478)		(2,266)		(821,144)
Effect of exchange rate changes	3,224		1,487		—		4,711
Net change in cash and cash equivalents	(117,738)		30,293		(30,293)		(117,738)
Cash and cash equivalents, beginning of period	389,987		724,641		(724,641)		389,987
Cash and cash equivalents, end of period	$	272,249	$	754,934	$	(754,934)	$	272,249
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	115,364	$	—	$	—	$	115,364
Issuance of common stock in connection with settlement of management incentive program	$	245,647	$	—	$	—	$	245,647

- 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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