GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

3. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:


	Weighted Average Amortization Period (in years) as of December 31, 2024	As of December 31,

		2024		2023
Management contracts	4.0	$	590,675	$	604,242
Client relationships	7.7	210,720		200,920

Other	0.0	500		500
Finite-lived intangible assets		801,895		805,662
Foreign currency translation		(789)		1,126
Total finite-lived intangible assets		801,106		806,788
Less: accumulated amortization		(393,078)		(316,093)
Finite-lived intangible assets, net		408,028		490,695


Indefinite-lived management contracts		567,800		567,800
Intangible assets, net		$	975,828	$	1,058,495

On December 1, 2024, a subsidiary of the Company completed the acquisition of all the equity interests in Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”) (the “WSM Acquisition”). WSM is a real estate asset management platform focused primarily on the industrial real estate sector in Mexico. The results of WSM are presented within the Real Assets Group. The Company allocated $27.0 million and $9.8 million of the purchase price to the fair value of the acquired management contracts and client relationships, respectively. The acquired management contracts and client relationships had a weighted average amortization period from the date of acquisition of 6.7 years and 10.0 years, respectively.

During the year ended December 31, 2024, the Company recorded a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group. The primary indicator of impairment was the lower than expected future fee revenue generated from these funds. During the year ended December 31, 2023, the Company recorded a non-cash impairment charge of $78.7 million primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”). The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition. During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $181.6 million related to rebranding of its secondaries group as Ares Secondaries and discontinued the ongoing use of the Landmark trade name, and fair value of management contracts in connection with lower than expected fee paying assets under management.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $116.3 million, $126.0 million and $133.6 million for the years ended December 31, 2024, 2023 and 2022, respectively, and has been presented within general, administrative and other expenses within in the Consolidated Statements of Operations. During the year ended December 31, 2024, the Company removed $47.5 million of fully-amortized management contracts.

As of December 31, 2024, future annual amortization of finite-lived intangible assets for the years 2025 through 2029 and thereafter is estimated to be:


Year	Amortization
2025	$	107,317
2026	81,538
2027	70,153
2028	46,236
2029	39,859
Thereafter	62,925
Total	$	408,028

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:


	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Other		Total
Balance as of December 31, 2022	$	32,196	$	277,183	$	48,070	$	417,620	$	224,587	$	999,656
Acquisitions	—		22		124,392		—		—		124,414
Reallocation	224,587		—		—		—		(224,587)		—
Foreign currency translation	(104)		—		—		10		—		(94)
Balance as of December 31, 2023	256,679		277,205		172,462		417,630		—		1,123,976
Acquisitions	—		35,091		4,605		—		—		39,696
Reallocation	55,658		—		(55,658)		—		—		—
Foreign currency translation	(305)		(727)		(1)		(3)		—		(1,036)
Balance as of December 31, 2024	$	312,032	$	311,569	$	121,408	$	417,627	$	—	$	1,162,636

In connection with the WSM Acquisition, the Company allocated $28.4 million of the purchase price to goodwill.

In connection with the segment reorganization of the former special opportunities strategy as described in “Note 14. Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach in the first quarter of 2024.

In connection with the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) in the fourth quarter of 2023, the Company allocated $124.4 million of the purchase price to goodwill.

In connection with the SSG Buyout in the first quarter of 2023 as described in “Note 13. Equity and Redeemable Interest, the former Ares SSG reporting unit has been transferred in its entirety to the Credit Group and the total goodwill of $224.6 million has been reallocated accordingly.

There was no impairment of goodwill recorded during the years ended December 31, 2024 and 2023. The impact of foreign currency translation adjustments are reflected within the Consolidated Statements of Comprehensive Income.