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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
11. INCOME TAXES

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s consolidated financial statements.
The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for any years prior to 2021. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s consolidated financial statements.

The provision for income taxes attributable to the Company and the Consolidated Funds, consisted of the following:
 Year ended December 31,
Provision for Income Taxes202520242023
The Company
Current   
U.S. federal income tax expense$55,531 $63,292 $34,051 
State and local income tax expense15,456 14,326 13,316 
Foreign income tax expense44,869 24,841 24,029 
115,856 102,459 71,396 
Deferred
U.S. federal income tax expense87,010 50,182 85,610 
State and local income tax expense12,370 7,819 15,872 
Foreign income tax benefit(22,829)(2,917)(3,730)
76,551 55,084 97,752 
Total
U.S. federal income tax expense142,541 113,474 119,661 
State and local income tax expense27,826 22,145 29,188 
Foreign income tax expense22,040 21,924 20,299 
Income tax expense192,407 157,543 169,148 
Consolidated Funds
Current 
Foreign income tax expense (benefit)(434)(1,331)3,823 
(434)(1,331)3,823 
Deferred
U.S. federal income tax expense6,562 8,405 — 
6,562 8,405 — 
Total
U.S. federal income tax expense6,562 8,405 — 
Foreign income tax expense (benefit)(434)(1,331)3,823 
Income tax expense6,128 7,074 3,823 
Total Provision for Income Taxes
Total current income tax expense115,422 101,128 75,219 
Total deferred income tax expense83,113 63,489 97,752 
Income tax expense$198,535 $164,617 $172,971 
    
The disaggregation of income before taxes is effective with the adoption of ASU 2023-09 and consisted of the following:
 Year ended December 31, 2025
U.S.$1,102,366 
Foreign184,527 
Total$1,286,893 
The reconciliation of taxes from the statutory tax rate to the Company’s effective tax rate changed with the adoption of ASU 2023-09 and is presented below:
Year ended December 31, 2025
U.S. federal statutory rate$270,248 21.0 %
State and local taxes, net of federal benefit(1)
24,214 1.9 
Effect of cross-border tax laws:
United Kingdom15,601 1.2 
Japan15,187 1.2 
Singapore5,214 0.4 
Other jurisdictions6,673 0.5 
Foreign tax effects
United Kingdom:
Statutory tax rate differential3,046 0.2 
Other rate differential items(16,343)(1.3)
Japan:
Statutory tax rate differential2,800 0.2 
Other rate differential items(8,377)(0.7)
Singapore:
Statutory tax rate differential(4,698)(0.4)
Other rate differential items5,833 0.5 
Other foreign jurisdictions:
Statutory tax rate differential1,339 0.1 
Other rate differential items(4,223)(0.3)
Tax credits
Foreign tax credits(12,864)(1.0)
Research and development tax credits(699)(0.1)
Other business tax credits(1,702)(0.1)
Changes in valuation allowance(950)(0.1)
Nontaxable or nondeductible items
Nondeductible executive compensation expense 19,710 1.5 
Other, net 2,874 0.2 
Other adjustments
Income passed through to non-controlling interests(124,348)(9.6)
Effective tax rate$198,535 15.3 %
(1)State taxes in California and New York and local taxes New York City comprise the majority of the state and local taxes, net of federal benefit.
The reconciliation of the statutory tax rate to the Company’s effective tax rate for periods prior to the adoption of ASU 2023-09 is as follows:
 Year ended December 31,
 20242023
Income tax expense at federal statutory rate21.0%21.0%
Income passed through to non-controlling interests(9.3)(9.6)
State and local taxes, net of federal benefit1.41.7
Foreign taxes(0.7)(0.7)
Permanent items0.10.2
Disallowed executive compensation0.30.2
Other, net0.10.3
Valuation allowance—(0.1)
Total effective rate12.9%13.0%

The disaggregated presentation of income taxes paid that is effective with the adoption of ASU 2023-09 is presented below:
 Year ended December 31, 2025
Federal income tax$35,700 
State and local income tax26,777 
Foreign income tax28,856 
Total$91,333 
The following jurisdictions represent approximately 5% of total income taxes paid (net of refunds), or if less than 5%, represent the largest jurisdictions:
Year ended December 31, 2025
State and local income tax
New York$3,415 
New York City10,702 
California3,941 
Foreign income tax
United Kingdom$14,426 
Japan5,419 

Deferred Taxes
The income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows as of December 31, 2025 and 2024. Deferred tax assets, net of the Company are included within other assets within the Consolidated Statements of Financial Condition. Deferred tax liabilities, net of the Consolidated Funds are included within accounts payable, accrued expenses and other liabilities within the Consolidated Statements of Financial Condition.
 As of December 31,
Deferred Tax Assets and Liabilities of the Company20252024
Deferred tax assets  
Amortizable tax basis for AOG Unit exchanges$638,725 $451,343 
Net operating losses and capital loss carryforwards34,415 1,888 
Other, net30,708 9,793 
Total gross deferred tax assets703,848 463,024 
Valuation allowance(941)(941)
Total net deferred tax assets702,907 462,083 
Deferred tax liabilities 
Investment in partnerships(350,616)(220,189)
Total deferred tax liabilities(350,616)(220,189)
Deferred tax assets, net$352,291 $241,894 
 As of December 31,
Deferred Tax Assets and Liabilities of the Consolidated Funds20252024
Deferred tax assets  
Net operating losses$9,295 $7,932 
Total gross deferred tax assets9,295 7,932 
Valuation allowance(279)(1,229)
Total net deferred tax assets9,016 6,703 
Deferred tax liabilities
Investments in partnerships(23,984)(15,108)
Total deferred tax liabilities(23,984)(15,108)
Deferred tax liabilities, net$(14,968)$(8,405)

In assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred taxes are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located. Valuation allowances are provided to reduce the amounts of deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts.
As of December 31, 2025 and 2024, the Company had net operating loss (“NOLs”) carryforwards in the United States and foreign jurisdictions associated with its subsidiaries. As of December 31, 2025 and 2024, the Company had $99.0 million and $7.6 million, respectively, of NOL carryforwards and other tax attributes related to its foreign jurisdictions to reduce future income taxes. With limited exceptions, the deferred tax assets related to operating losses in foreign jurisdictions and certain capital loss carryforwards meet the more likely than not threshold and do not have a valuation allowance recorded for the net balance. As of December 31, 2025 and 2024, the valuation allowance for the Company’s deferred tax assets was $0.9 million, associated with NOLs in certain foreign jurisdictions.
As of December 31, 2025 and 2024, the Consolidated Funds had $42.7 million and $36.4 million, respectively, of NOL carryforwards and other tax attribute to reduce future income taxes for which a partial valuation allowance has been provided. As of December 31, 2025 and 2024, the valuation allowance for the deferred tax assets of the Consolidated Funds was $0.3 million and $1.2 million, respectively, associated with NOL carryforwards related to its Consolidated funds. The NOL carryforwards generally have no expiry.
As of, and for the years ended December 31, 2025, 2024 and 2023, the Company had no significant uncertain tax positions.