CONSOLIDATION (Tables)

9 Months Ended

Sep. 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 September 30,		As of December 31,

	2024		2023
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1)	$	384,552	$	503,376
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1)	784,102		910,600
Assets of consolidated VIEs	14,892,869		15,484,962
Liabilities of consolidated VIEs	12,180,936		13,409,257

(1)As of September 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 $96.1 million and $83.1 million, respectively.


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net income attributable to non-controlling interests related to consolidated VIEs	$	57,289	$	66,526	$	216,614	$	165,118

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 September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	350,138	$	—	$	—	$	350,138
Investments (includes $3,486,892 of accrued carried interest)	5,517,542		—		(825,022)		4,692,520
Due from affiliates	1,048,857		—		(178,078)		870,779
Other assets	641,120		—		—		641,120
Right-of-use operating lease assets	426,483		—		—		426,483
Intangible assets, net	969,976		—		—		969,976
Goodwill	1,133,074		—		—		1,133,074
Assets of Consolidated Funds
Cash and cash equivalents	—		1,315,914		—		1,315,914
Investments held in trust account	—		544,254		—		544,254
Investments, at fair value	—		13,310,098		—		13,310,098

Receivable for securities sold	—		176,475		—		176,475
Other assets	—		91,819		—		91,819
Total assets	$	10,087,190	$	15,438,560	$	(1,003,100)	$	24,522,650
Liabilities
Accounts payable, accrued expenses and other liabilities	$	329,181	$	—	$	(298)	$	328,883
Accrued compensation	401,035		—		—		401,035
Due to affiliates	415,608		—		433		416,041
Performance related compensation payable	2,518,898		—		—		2,518,898
Debt obligations	2,542,358		—		—		2,542,358

Operating lease liabilities	535,686		—		—		535,686
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		179,928		—		179,928
Due to affiliates	—		177,508		(177,508)		—
Payable for securities purchased	—		377,026		—		377,026
CLO loan obligations, at fair value	—		11,196,594		(126,333)		11,070,261
Fund borrowings	—		273,000		—		273,000
Total liabilities	6,742,766		12,204,056		(303,706)		18,643,116
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		544,154		—		544,154
Redeemable interest in Ares Operating Group entities	25,111		—		—		25,111
Non-controlling interest in Consolidated Funds	—		2,690,350		(741,404)		1,948,946
Non-controlling interest in Ares Operating Group entities	1,270,326		—		14,922		1,285,248
Stockholders’ Equity

Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (198,334,674 shares issued and outstanding)	1,983		—		—		1,983
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 (111,175,156 shares issued and outstanding)	1,112		—		—		1,112
Additional paid-in-capital	2,829,805		—		27,088		2,856,893
Accumulated deficit	(792,398)		—		—		(792,398)
Accumulated other comprehensive loss, net of tax	8,450		—		—		8,450
Total stockholders’ equity	2,048,987		—		27,088		2,076,075
Total equity	3,319,313		2,690,350		(699,394)		5,310,269
Total liabilities, redeemable interest, non-controlling interests and equity	$	10,087,190	$	15,438,560	$	(1,003,100)	$	24,522,650


	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


	Three months ended September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	765,257	$	—	$	(11,660)	$	753,597
Carried interest allocation	278,683		—		(1,032)		277,651
Incentive fees	48,638		—		—		48,638
Principal investment income	14,100		—		(6,064)		8,036
Administrative, transaction and other fees	41,945		—		(128)		41,817
Total revenues	1,148,623		—		(18,884)		1,129,739
Expenses
Compensation and benefits	435,876		—		—		435,876
Performance related compensation	219,697		—		—		219,697
General, administrative and other expense	196,586		—		433		197,019
Expenses of the Consolidated Funds	—		14,083		(11,788)		2,295
Total expenses	852,159		14,083		(11,355)		854,887
Other income (expense)
Net realized and unrealized gains (losses) on investments	3,034		—		(8,108)		(5,074)
Interest and dividend income	9,809		—		(2,256)		7,553
Interest expense	(29,733)		—		—		(29,733)
Other expense, net	(18,466)		—		(339)		(18,805)
Net realized and unrealized gains on investments of the Consolidated Funds	—		55,015		9,816		64,831
Interest and other income of the Consolidated Funds	—		234,351		330		234,681
Interest expense of the Consolidated Funds	—		(201,562)		363		(201,199)
Total other income (expense), net	(35,356)		87,804		(194)		52,254
Income before taxes	261,108		73,721		(7,723)		327,106
Income tax expense	44,696		1,757		—		46,453
Net income	216,412		71,964		(7,723)		280,653
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		71,964		(7,723)		64,241
Net income attributable to Ares Operating Group entities	216,412		—		—		216,412
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,319		—		—		1,319
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	96,633		—		—		96,633



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	118,460	$	—	$	—	$	118,460


	Three months ended September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	649,698	$	—	$	(12,181)	$	637,517
Carried interest allocation	(26,252)		—		(1,874)		(28,126)
Incentive fees	16,454		—		—		16,454
Principal investment income	29,980		—		(20,641)		9,339
Administrative, transaction and other fees	36,154		—		(83)		36,071
Total revenues	706,034		—		(34,779)		671,255
Expenses
Compensation and benefits	367,502		—		—		367,502
Performance related compensation	(25,448)		—		—		(25,448)
General, administrative and other expense	211,874		—		(32)		211,842
Expenses of the Consolidated Funds	—		19,329		(12,265)		7,064
Total expenses	553,928		19,329		(12,297)		560,960
Other income (expense)
Net realized and unrealized gains (losses) on investments	4,209		—		(5,979)		(1,770)
Interest and dividend income	6,574		—		(1,822)		4,752
Interest expense	(25,975)		—		—		(25,975)
Other income, net	5,529		—		213		5,742
Net realized and unrealized gains on investments of the Consolidated Funds	—		71,666		7,925		79,591
Interest and other income of the Consolidated Funds	—		255,813		(213)		255,600
Interest expense of the Consolidated Funds	—		(201,622)		259		(201,363)
Total other income (expense), net	(9,663)		125,857		383		116,577
Income before taxes	142,443		106,528		(22,099)		226,872
Income tax expense	25,758		4,140		—		29,898
Net income	116,685		102,388		(22,099)		196,974
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		102,388		(22,099)		80,289
Net income attributable to Ares Operating Group entities	116,685		—		—		116,685
Less: Net income attributable to redeemable interest in Ares Operating Group entities	758		—		—		758
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	54,104		—		—		54,104



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	61,823	$	—	$	—	$	61,823


	Nine months ended September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	2,199,085	$	—	$	(36,115)	$	2,162,970
Carried interest allocation	212,493		—		(18,487)		194,006
Incentive fees	105,036		—		3		105,039
Principal investment income	12,038		—		32,509		44,547
Administrative, transaction and other fees	119,631		—		(409)		119,222
Total revenues	2,648,283		—		(22,499)		2,625,784
Expenses
Compensation and benefits	1,268,685		—		—		1,268,685
Performance related compensation	140,180		—		—		140,180
General, administrative and other expense	537,379		—		—		537,379
Expenses of the Consolidated Funds	—		48,200		(36,520)		11,680
Total expenses	1,946,244		48,200		(36,520)		1,957,924
Other income (expense)
Net realized and unrealized gains on investments	28,390		—		(14,609)		13,781
Interest and dividend income	27,953		—		(8,001)		19,952
Interest expense	(105,057)		—		—		(105,057)
Other expense, net	(19,911)		—		438		(19,473)
Net realized and unrealized gains on investments of the Consolidated Funds	—		173,486		19,292		192,778
Interest and other income of the Consolidated Funds	—		732,316		—		732,316
Interest expense of the Consolidated Funds	—		(629,695)		3,017		(626,678)
Total other income (expense), net	(68,625)		276,107		137		207,619
Income before taxes	633,414		227,907		14,158		875,479
Income tax expense	109,141		5,619		—		114,760
Net income	524,273		222,288		14,158		760,719
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		222,288		14,158		236,446
Net income attributable to Ares Operating Group entities	524,273		—		—		524,273
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,005		—		—		1,005
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	236,843		—		—		236,843



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	286,425	$	—	$	—	$	286,425


	Nine months ended September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,889,091	$	—	$	(35,787)	$	1,853,304
Carried interest allocation	551,055		—		(9,227)		541,828
Incentive fees	33,465		—		(138)		33,327
Principal investment income	130,679		—		(91,694)		38,985
Administrative, transaction and other fees	117,520		—		(7,061)		110,459
Total revenues	2,721,810		—		(143,907)		2,577,903
Expenses
Compensation and benefits	1,095,833		—		—		1,095,833
Performance related compensation	401,990		—		—		401,990
General, administrative and other expense	501,746		—		(406)		501,340
Expenses of the Consolidated Funds	—		64,365		(36,194)		28,171
Total expenses	1,999,569		64,365		(36,600)		2,027,334
Other income (expense)
Net realized and unrealized gains on investments	7,506		—		(2,280)		5,226
Interest and dividend income	19,237		—		(7,956)		11,281
Interest expense	(76,800)		—		—		(76,800)
Other expense, net	(1,583)		—		515		(1,068)
Net realized and unrealized gains on investments of the Consolidated Funds	—		165,885		22,832		188,717
Interest and other income of the Consolidated Funds	—		713,507		(515)		712,992
Interest expense of the Consolidated Funds	—		(543,684)		2,730		(540,954)
Total other income (expense), net	(51,640)		335,708		15,326		299,394
Income before taxes	670,601		271,343		(91,981)		849,963
Income tax expense	108,719		4,699		—		113,418
Net income	561,882		266,644		(91,981)		736,545
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		266,644		(91,981)		174,663
Net income attributable to Ares Operating Group entities	561,882		—		—		561,882
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(332)		—		—		(332)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	261,838		—		—		261,838



Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	300,376	$	—	$	—	$	300,376

Schedule of Cash Flows


	Nine months ended September 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	524,273	$	222,288	$	14,158	$	760,719
Adjustments to reconcile net income to net cash provided by operating activities	543,839		—		(114,742)		429,097








Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		854,632		(19,292)		835,340




Cash flows due to changes in operating assets and liabilities	221,389		—		37,000		258,389





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(121,365)		(178,644)		(300,009)




Net cash provided by operating activities	1,289,501		955,555		(261,520)		1,983,536
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(82,203)		—		—		(82,203)
Acquisitions	(13,683)		—		—		(13,683)
Net cash used in investing activities	(95,886)		—		—		(95,886)
Cash flows from financing activities:
Net proceeds from issuance of Class A common stock	407,236		—		—		407,236
Proceeds from Credit Facility	970,000		—		—		970,000

Repayments of Credit Facility	(1,395,000)		—		—		(1,395,000)

Dividends and distributions	(969,360)		—		—		(969,360)

Stock option exercises	1,511		—		—		1,511
Taxes paid related to net share settlement of equity awards	(211,615)		—		—		(211,615)
Other financing activities	485		—		—		485
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		473,091		71,203		544,294
Distributions to non-controlling interests in Consolidated Funds	—		(100,416)		23,914		(76,502)

Borrowings under loan obligations by Consolidated Funds	—		323,540		—		323,540
Repayments under loan obligations by Consolidated Funds	—		(1,504,344)		—		(1,504,344)
Net cash used in financing activities	(1,196,743)		(808,129)		95,117		(1,909,755)
Effect of exchange rate changes	4,992		18,977		—		23,969
Net change in cash and cash equivalents	1,864		166,403		(166,403)		1,864
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	350,138	$	1,315,914	$	(1,315,914)	$	350,138
Supplemental disclosure of non-cash financing activities:
Issuance of common stock in connection with acquisition-related activities	$	7,724	$	—	$	—	$	7,724


	Nine months ended September 30, 2023
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	561,882	$	266,644	$	(91,981)	$	736,545
Adjustments to reconcile net income to net cash provided by (used in) operating activities	23,920		—		288,260		312,180







Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds	—		(926,076)		(22,832)		(948,908)





Cash flows due to changes in operating assets and liabilities	139,111		—		(3,451)		135,660





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		228,877		(137,563)		91,314




Net cash provided by (used in) operating activities	724,913		(430,555)		32,433		326,791
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(44,177)		—		—		(44,177)

Net cash used in investing activities	(44,177)		—		—		(44,177)
Cash flows from financing activities:

Proceeds from Credit Facility	735,000		—		—		735,000


Repayments of Credit Facility	(670,000)		—		—		(670,000)
Dividends and distributions	(760,085)		—		—		(760,085)


Stock option exercises	80,426		—		—		80,426
Taxes paid related to net share settlement of equity awards	(145,421)		—		—		(145,421)
Other financing activities	902		—		—		902
Allocable to non-controlling interests in Consolidated Funds:
Contributions from non-controlling interests in Consolidated Funds	—		944,485		(208,541)		735,944
Distributions to non-controlling interests in Consolidated Funds	—		(72,375)		15,430		(56,945)
Redemptions of redeemable interests in Consolidated Funds	—		(553,718)		—		(553,718)
Borrowings under loan obligations by Consolidated Funds	—		549,664		—		549,664
Repayments under loan obligations by Consolidated Funds	—		(257,370)		—		(257,370)
Net cash provided by (used in) financing activities	(759,178)		610,686		(193,111)		(341,603)
Effect of exchange rate changes	282		(19,453)		—		(19,171)
Net change in cash and cash equivalents	(78,160)		160,678		(160,678)		(78,160)
Cash and cash equivalents, beginning of period	389,987		724,641		(724,641)		389,987
Cash and cash equivalents, end of period	$	311,827	$	885,319	$	(885,319)	$	311,827
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.

+ References + Details