CONSOLIDATION (Tables)

6 Months Ended

Jun. 30, 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 June 30,		As of December 31,

	2024		2023
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)	$	397,841	$	503,376
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)	781,921		910,600
Assets of consolidated VIEs	15,207,028		15,484,962
Liabilities of consolidated VIEs	12,572,337		13,409,257

(1)As of June 30, 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 $95.0 million and $83.1 million, respectively.


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Net income attributable to non-controlling interests related to consolidated VIEs	$	100,969	$	63,461	$	159,325	$	100,592

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, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	284,445	$	—	$	—	$	284,445
Investments (includes $3,222,927 of accrued carried interest)	5,224,834		—		(809,406)		4,415,428
Due from affiliates	989,036		—		(172,501)		816,535
Other assets	579,509		—		—		579,509
Right-of-use operating lease assets	231,518		—		—		231,518
Intangible assets, net	1,001,126		—		—		1,001,126
Goodwill	1,130,327		—		—		1,130,327
Assets of Consolidated Funds
Cash and cash equivalents	—		1,241,041		—		1,241,041
Investments held in trust account	—		536,846		—		536,846
Investments, at fair value	—		13,678,134		—		13,678,134

Receivable for securities sold	—		182,945		—		182,945
Other assets	—		106,676		(11,973)		94,703
Total assets	$	9,440,795	$	15,745,642	$	(993,880)	$	24,192,557
Liabilities
Accounts payable, accrued expenses and other liabilities	$	286,116	$	—	$	(11,972)	$	274,144
Accrued compensation	296,784		—		—		296,784
Due to affiliates	349,222		—		—		349,222
Performance related compensation payable	2,341,094		—		—		2,341,094
Debt obligations	2,566,887		—		—		2,566,887

Operating lease liabilities	304,205		—		—		304,205
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		170,672		—		170,672
Due to affiliates	—		172,501		(172,501)		—
Payable for securities purchased	—		503,533		—		503,533
CLO loan obligations, at fair value	—		11,611,359		(119,598)		11,491,761
Fund borrowings	—		137,241		—		137,241
Total liabilities	6,144,308		12,595,306		(304,071)		18,435,543
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		536,746		—		536,746
Redeemable interest in Ares Operating Group entities	23,178		—		—		23,178
Non-controlling interest in Consolidated Funds	—		2,613,590		(707,669)		1,905,921
Non-controlling interest in Ares Operating Group entities	1,282,925		—		6,476		1,289,401
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (195,697,984 shares issued and outstanding)	1,957		—		—		1,957
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 (113,323,787 shares issued and outstanding)	1,133		—		—		1,133
Additional paid-in-capital	2,710,596		—		11,384		2,721,980
Accumulated deficit	(712,856)		—		—		(712,856)
Accumulated other comprehensive loss, net of tax	(10,481)		—		—		(10,481)
Total stockholders’ equity	1,990,384		—		11,384		2,001,768
Total equity	3,273,309		2,613,590		(689,809)		5,197,090
Total liabilities, redeemable interest, non-controlling interests and equity	$	9,440,795	$	15,745,642	$	(993,880)	$	24,192,557


	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

Receivable for securities sold	—		146,851		—		146,851
Other assets	—		112,466		(11,643)		100,823
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


	Six months ended June 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,433,828	$	—	$	(24,455)	$	1,409,373
Carried interest allocation	(66,190)		—		(17,455)		(83,645)
Incentive fees	56,398		—		3		56,401
Principal investment income (loss)	(2,062)		—		38,573		36,511
Administrative, transaction and other fees	77,686		—		(281)		77,405
Total revenues	1,499,660		—		(3,615)		1,496,045
Expenses
Compensation and benefits	832,809		—		—		832,809
Performance related compensation	(79,517)		—		—		(79,517)
General, administrative and other expense	340,793		—		(433)		340,360
Expenses of the Consolidated Funds	—		34,117		(24,732)		9,385
Total expenses	1,094,085		34,117		(25,165)		1,103,037
Other income (expense)
Net realized and unrealized gains on investments	25,356		—		(6,501)		18,855
Interest and dividend income	18,144		—		(5,745)		12,399
Interest expense	(75,324)		—		—		(75,324)
Other expense, net	(1,445)		—		777		(668)
Net realized and unrealized gains on investments of the Consolidated Funds	—		118,471		9,476		127,947
Interest and other income of the Consolidated Funds	—		497,965		(330)		497,635
Interest expense of the Consolidated Funds	—		(428,133)		2,654		(425,479)
Total other income (expense), net	(33,269)		188,303		331		155,365
Income before taxes	372,306		154,186		21,881		548,373
Income tax expense	64,445		3,862		—		68,307
Net income	307,861		150,324		21,881		480,066
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		150,324		21,881		172,205
Net income attributable to Ares Operating Group entities	307,861		—		—		307,861
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(314)		—		—		(314)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	140,210		—		—		140,210



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	167,965	$	—	$	—	$	167,965


	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

Schedule of Cash Flows


	Six months ended June 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	307,861	$	150,324	$	21,881	$	480,066
Adjustments to reconcile net income to net cash provided by operating activities	432,686		—		(129,326)		303,360








Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		332,840		(9,476)		323,364




Cash flows due to changes in operating assets and liabilities	139,106		—		18,283		157,389





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(32,091)		(89,871)		(121,962)




Net cash provided by operating activities	879,653		451,073		(188,509)		1,142,217
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(55,309)		—		—		(55,309)
Acquisitions	(8,000)		—		—		(8,000)
Net cash used in investing activities	(63,309)		—		—		(63,309)
Cash flows from financing activities:
Net proceeds from issuance of Class A common stock	354,395		—		—		354,395
Proceeds from Credit Facility	650,000		—		—		650,000

Repayments of Credit Facility	(1,050,000)		—		—		(1,050,000)

Dividends and distributions	(632,260)		—		—		(632,260)

Stock option exercises	1,511		—		—		1,511
Taxes paid related to net share settlement of equity awards	(203,076)		—		—		(203,076)
Other financing activities	1,303		—		—		1,303
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		434,961		76,649		511,610
Distributions to non-controlling interests in Consolidated Funds	—		(67,934)		20,330		(47,604)

Borrowings under loan obligations by Consolidated Funds	—		167,135		—		167,135
Repayments under loan obligations by Consolidated Funds	—		(878,545)		—		(878,545)
Net cash used in financing activities	(878,127)		(344,383)		96,979		(1,125,531)
Effect of exchange rate changes	(2,046)		(15,160)		—		(17,206)
Net change in cash and cash equivalents	(63,829)		91,530		(91,530)		(63,829)
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	284,445	$	1,241,041	$	(1,241,041)	$	284,445
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	7,724	$	—	$	—	$	7,724


	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 (used in) operating activities	(108,264)		—		258,037		149,773







Adjustments to reconcile net income to net cash provided by (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 non-controlling interests in Consolidated Funds:
Contributions from 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 common stock in connection with acquisition-related activities	$	116,101	$	—	$	—	$	116,101
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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