EQUITY AND REDEEMABLE INTEREST

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

EQUITY AND REDEEMABLE INTEREST

12. EQUITY AND REDEEMABLE INTEREST

Common Stock

The Company’s common stock consists of Class A, Class B, Class C and non-voting common stock, each $0.01 par value per share. The non-voting common stock has the same economic rights as the Class A common stock. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting common stock. The Class B common stock and Class C common stock are non-economic and holders are not entitled to dividends from the Company or to receive any assets of the Company in the event of any dissolution, liquidation or winding up of the Company. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock.

In January 2024, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2025. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the six months ended June 30, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program.

On June 12, 2024, the Company entered into an underwriting agreement pursuant to which the Company agreed to issue and sell 2,650,000 shares of the Class A common stock (the “Offering”). The Offering closed on June 14, 2024 and resulted in net proceeds to the Company of approximately $354.4 million (after deducting underwriting discounts and offering expenses). Subsequent to June 30, 2024, the underwriters exercised the 30-day option to purchase additional shares of Class A common stock. See “Note 15. Subsequent Events” for further details.

The following table presents the changes in each class of common stock:

	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance as of December 31, 2023	187,069,907	3,489,911	1,000	117,024,758	307,585,576
Issuances of common stock(1)	2,650,000	—	—	63,179	2,713,179
Exchanges of common stock	3,764,150	—	—	(3,764,150)	—
Stock option exercises	79,524	—	—	—	79,524
Vesting of restricted stock awards, net of shares withheld for tax	2,134,403	—	—	—	2,134,403
Balance as of June 30, 2024	195,697,984	3,489,911	1,000	113,323,787	312,512,682

(1)    Issuances of Class C common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

The following table presents each partner’s Ares Operating Group Units (“AOG Units”) and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities:

							Daily Average Ownership
	As of June 30, 2024			As of December 31, 2023			Three months ended June 30,				Six months ended June 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest		2024		2023		2024		2023
Ares Management Corporation	199,187,895	63.74	%	190,559,818	61.95	%	63.21	%	60.37	%	62.77	%	60.25	%
Ares Owners Holdings, L.P.	113,323,787	36.26		117,024,758	38.05		36.79		39.63		37.23		39.75
Total	312,511,682	100.00	%	307,584,576	100.00	%

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in AOG entities:

	Total
Balance as of December 31, 2022	$	93,129
Changes in ownership interests and related tax benefits	(66,506)
Net loss	(1,824)
Currency translation adjustment, net of tax	(148)
Equity compensation	174
Distributions	(2,883)
Balance as of March 31, 2023	21,942
Net income	734
Currency translation adjustment, net of tax	(159)
Balance as of June 30, 2023	22,517
Net income	758
Currency translation adjustment, net of tax	(99)
Balance as of September 30, 2023	23,176
Net income	558
Currency translation adjustment, net of tax	364
Balance as of December 31, 2023	24,098
Net income	73
Currency translation adjustment, net of tax	(257)
Distributions	(302)
Balance as of March 31, 2024	23,612
Net loss	(387)
Currency translation adjustment, net of tax	(47)
Balance as of June 30, 2024	$	23,178

The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:

	Total
Balance as of December 31, 2022	$	1,013,282
Change in redemption value	10,504
Redemptions from Class A ordinary shares of Ares Acquisition Corporation (formerly NYSE: AAC) (“AAC I”)	(538,985)
Balance as of March 31, 2023	484,801
Gross proceeds from the initial public offering of Ares Acquisition Corporation II (NYSE: AACT) (“AAC II”)	500,000
Change in redemption value	15,948
Balance as of June 30, 2023	1,000,749
Change in redemption value	16,571
Redemptions from Class A ordinary shares of AAC I	(14,733)
Balance as of September 30, 2023	1,002,587
Change in redemption value	12,507
Redemptions from Class A ordinary shares of AAC I	(492,156)
Balance as of December 31, 2023	522,938
Change in redemption value	6,849
Balance as of March 31, 2024	529,787
Change in redemption value	6,959
Balance as of June 30, 2024	$	536,746

As of June 30, 2024 and December 31, 2023, 50,000,000 of AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition.