SEGMENT REPORTING

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

SEGMENT REPORTING

15. SEGMENT REPORTING

The Company operates through its distinct operating segments. The Company operating segments are summarized below:

Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit.

Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments.

Secondaries Group: The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.

Private Equity Group: The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.

Other: Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually are not yet material to the Company’s results. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; (ii) the

SPACs sponsored by the Company; (iii) a venture capital business with fund strategies that are focused on growth-stage companies and applied artificial intelligence, among others; and (iv) other initiatives, such as activities from the Company’s investments in certain structured financing vehicles.

The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including the Company’s wealth distribution platform, Ares Wealth Management Solutions (“AWMS”). AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which may reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance.

Segment Profit Measure: Realized income (“RI”), which includes fee related earnings (“FRE”) as a component, supplements and should be considered in addition to, and not in lieu of, the Consolidated Statements of Operations prepared in accordance with GAAP.

RI, a non-GAAP measure, is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations.

FRE, a non-GAAP measure that is a component of RI, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds. Consequently, all segment data excludes the assets, liabilities and operating results related to the Consolidated Funds and non-consolidated funds. Total assets by segments is not disclosed because such information is not used by the Company’s CODM in evaluating the segments.

Many of the Ares Funds managed by the Company have mandates that allow for investing across different geographic regions, including North America, South America, Europe, APAC and the Middle East. The primary geographic region in which the Company invests in is North America and the majority of its revenues are generated in North America.

The following tables present the financial results for the Company’s operating segments, as well as the OMG:

	Year ended December 31, 2025
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	2,529,312	$	678,355	$	276,292	$	139,172	$	59,791	$	3,682,922	$	—	$	3,682,922
Fee related performance revenues	210,356		35,665		55,288		—		—		301,309		—		301,309
Other fees	52,895		181,104		6,580		1,824		2,700		245,103		27,604		272,707
Compensation and benefits	(788,989)		(315,616)		(91,834)		(60,701)		(26,066)		(1,283,206)		(534,113)		(1,817,319)
General, administrative and other expenses	(178,863)		(114,848)		(37,920)		(21,975)		(9,021)		(362,627)		(301,692)		(664,319)
Fee related earnings	1,824,711		464,660		208,406		58,320		27,404		2,583,501		(808,201)		1,775,300
Performance income—realized	383,892		99,813		177		42,402		—		526,284		—		526,284
Performance related compensation—realized	(257,290)		(67,883)		(106)		(31,994)		—		(357,273)		—		(357,273)
Realized net performance income	126,602		31,930		71		10,408		—		169,011		—		169,011
Investment income (loss)—realized	14,321		31,356		1,645		(15,659)		8,425		40,088		1,355		41,443
Interest income	6,704		6,895		1,176		2,025		14,489		31,289		2,907		34,196
Interest expense	(20,041)		(92,787)		(7,998)		(15,555)		(34,898)		(171,279)		(363)		(171,642)
Realized net investment income (loss)	984		(54,536)		(5,177)		(29,189)		(11,984)		(99,902)		3,899		(96,003)
Realized income	$	1,952,297	$	442,054	$	203,300	$	39,539	$	15,420	$	2,652,610	$	(804,302)	$	1,848,308
	Year ended December 31, 2024
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	2,177,816	$	401,968	$	197,287	$	137,130	$	43,229	$	2,957,430	$	—	$	2,957,430
Fee related performance revenues	202,703		—		28,834		—		—		231,537		—		231,537
Other fees	41,819		27,263		222		1,695		523		71,522		20,357		91,879
Compensation and benefits	(692,309)		(160,357)		(66,290)		(56,830)		(21,482)		(997,268)		(421,268)		(1,418,536)
General, administrative and other expenses	(161,872)		(56,768)		(33,881)		(21,449)		(6,584)		(280,554)		(220,019)		(500,573)
Fee related earnings	1,568,157		212,106		126,172		60,546		15,686		1,982,667		(620,930)		1,361,737
Performance income—realized	326,202		60,317		361		43,299		—		430,179		—		430,179
Performance related compensation—realized	(207,794)		(37,283)		110		(36,334)		—		(281,301)		—		(281,301)
Realized net performance income	118,408		23,034		471		6,965		—		148,878		—		148,878
Investment income (loss)—realized	21,159		5,184		2,565		1,926		9,467		40,301		(650)		39,651
Interest income	11,671		7,649		972		1,970		35,810		58,072		1,723		59,795
Interest expense(1)	(31,285)		(29,763)		(29,144)		(18,906)		(33,142)		(142,240)		(701)		(142,941)
Realized net investment income (loss)	1,545		(16,930)		(25,607)		(15,010)		12,135		(43,867)		372		(43,495)
Realized income	$	1,688,110	$	218,210	$	101,036	$	52,501	$	27,821	$	2,087,678	$	(620,558)	$	1,467,120

(1)    Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments. Beginning in the first quarter of 2025, the Company changed its interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of its balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.

	Year ended December 31, 2023
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	1,853,326	$	389,437	$	174,942	$	126,721	$	27,087	$	2,571,513	$	—	$	2,571,513
Fee related performance revenues	167,333		334		12,782		—		—		180,449		—		180,449
Other fees	36,640		29,695		22		1,693		374		68,424		23,685		92,109
Compensation and benefits	(624,741)		(153,870)		(62,160)		(58,408)		(15,812)		(914,991)		(361,124)		(1,276,115)
General, administrative and other expenses	(115,546)		(46,789)		(21,199)		(16,949)		(3,119)		(203,602)		(200,613)		(404,215)
Fee related earnings	1,317,012		218,807		104,387		53,057		8,530		1,701,793		(538,052)		1,163,741
Performance income—realized	323,733		20,990		5,460		65,716		—		415,899		—		415,899
Performance related compensation—realized	(211,976)		(12,768)		(4,678)		(52,984)		—		(282,406)		—		(282,406)
Realized net performance income	111,757		8,222		782		12,732		—		133,493		—		133,493
Investment income (loss)—realized	36,490		3,392		4,523		(712)		2,962		46,655		(470)		46,185
Interest income	9,788		3,165		344		38		13,831		27,166		1,218		28,384
Interest expense(1)	(20,643)		(23,433)		(27,119)		(14,331)		(20,593)		(106,119)		(156)		(106,275)
Realized net investment income (loss)	25,635		(16,876)		(22,252)		(15,005)		(3,800)		(32,298)		592		(31,706)
Realized income	$	1,454,404	$	210,153	$	82,917	$	50,784	$	4,730	$	1,802,988	$	(537,460)	$	1,265,528

(1)    Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments. Beginning in the first quarter of 2025, the Company changed its interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of its balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income (loss):

	Year ended December 31,
	2025		2024		2023
Segment revenues
Management fees	$	3,682,922	$	2,957,430	$	2,571,513
Fee related performance revenues	301,309		231,537		180,449
Other fees	245,103		71,522		68,424
Performance income—realized	526,284		430,179		415,899
Total segment revenues	$	4,755,618	$	3,690,668	$	3,236,285
Segment expenses
Compensation and benefits	$	1,283,206	$	997,268	$	914,991
General, administrative and other expenses	362,627		280,554		203,602
Performance related compensation—realized	357,273		281,301		282,406
Total segment expenses	$	2,003,106	$	1,559,123	$	1,400,999
Segment realized net investment income (loss)
Investment income—realized	$	40,088	$	40,301	$	46,655
Interest income	31,289		58,072		27,166
Interest expense	(171,279)		(142,240)		(106,119)
Total segment realized net investment loss	$	(99,902)	$	(43,867)	$	(32,298)

The following table reconciles the Company’s consolidated revenues to segment revenue:

	Year ended December 31,
	2025		2024		2023
Total consolidated revenue	$	5,601,482	$	3,884,781	$	3,631,884
Performance income—unrealized	(762,534)		(109,533)		(305,370)
Management fees of Consolidated Funds eliminated in consolidation	44,772		46,597		48,201
Performance income of Consolidated Funds eliminated in consolidation	33,873		28,135		13,672
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	9,669		525		7,166
Administrative fees(1)	(93,613)		(70,363)		(63,144)
OMG revenue	(27,604)		(20,357)		(23,685)
Principal investment income, net of eliminations	(48,149)		(45,424)		(36,516)
Net revenue of non-controlling interests in consolidated subsidiaries	(2,278)		(23,693)		(35,923)
Total consolidation adjustments and reconciling items	(845,864)		(194,113)		(395,599)
Total segment revenue	$	4,755,618	$	3,690,668	$	3,236,285

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

The following table reconciles the Company’s consolidated expenses to segment expenses:

	Year ended December 31,
	2025		2024		2023
Total consolidated expenses	$	4,708,766	$	2,938,691	$	2,797,858
Performance related compensation-unrealized	(594,661)		(36,823)		(206,923)
Expenses of Consolidated Funds added in consolidation	(106,639)		(69,320)		(93,167)
Expenses of Consolidated Funds eliminated in consolidation	53,928		48,441		50,108
Administrative fees(1)	(93,613)		(70,363)		(62,773)
OMG expenses	(835,805)		(641,287)		(561,737)
Acquisition and merger-related expense	(65,363)		(57,360)		(12,000)
Equity compensation expense	(740,549)		(352,851)		(255,790)
Acquisition-related compensation expense(2)	(105,202)		(38,150)		(7,334)
Placement fee adjustment	3,891		(5,715)		5,819
Depreciation and amortization expense	(241,925)		(157,341)		(233,185)
Expense of non-controlling interests in consolidated subsidiaries	20,278		1,201		(19,877)
Total consolidation adjustments and reconciling items	(2,705,660)		(1,379,568)		(1,396,859)
Total segment expenses	$	2,003,106	$	1,559,123	$	1,400,999

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

(2)Represents bonus payments, a portion of earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Consolidated Statements of Operations. See “Note 9. Commitments and Contingencies” for a further description of the various contingent earnout arrangements.

The following table reconciles the Company’s consolidated other income to segment realized net investment loss:

	Year ended December 31,
	2025		2024		2023
Total consolidated other income	$	394,177	$	329,262	$	499,037
Investment income—unrealized	(467,995)		(5,613)		(178,481)
Interest and other investment loss—unrealized	27,299		—		—
Other income, net of Consolidated Funds added in consolidation	(526,448)		(379,090)		(492,848)
Total consolidated other expense (income), net of Consolidated Funds eliminated in consolidation	34,932		(12,835)		(16,485)
OMG other (income) expense	(11,119)		(4,413)		1,074
Principal investment income	138,608		38,367		155,632
Other (income) expense, net	303,200		(12,172)		976
Other loss (income) of non-controlling interests in consolidated subsidiaries	7,444		2,627		(1,203)
Total consolidation adjustments and reconciling items	(494,079)		(373,129)		(531,335)
Total segment realized net investment loss	$	(99,902)	$	(43,867)	$	(32,298)

The following table presents the reconciliation of income before taxes as reported in the Consolidated Statements of Operations to segment results of RI and FRE:

	Year ended December 31,
	2025		2024		2023
Income before taxes	$	1,286,893	$	1,275,352	$	1,333,063
Adjustments:
Depreciation and amortization expense	241,925		157,341		233,185
Equity compensation expense	740,549		352,851		255,419
Acquisition-related compensation expense(1)	105,202		38,150		7,334
Acquisition, merger and transaction-related expense	65,363		57,360		12,000
Placement fee adjustment	(3,891)		5,715		(5,819)
OMG expense, net	797,082		616,517		539,126
Other (income) expense, net	303,200		(12,172)		976
Income before taxes of non-controlling interests in consolidated subsidiaries	(15,112)		(22,267)		(17,249)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(260,032)		(302,846)		(278,119)
Total performance income—unrealized	(762,534)		(109,533)		(305,370)
Total performance related compensation—unrealized	594,661		36,823		206,923
Total net investment income—unrealized	(440,696)		(5,613)		(178,481)
Realized income	2,652,610		2,087,678		1,802,988
Total performance income—realized	(526,284)		(430,179)		(415,899)
Total performance related compensation—realized	357,273		281,301		282,406
Total net investment loss—realized	99,902		43,867		32,298
Fee related earnings	$	2,583,501	$	1,982,667	$	1,701,793

(1)Represents bonus payments, a portion of earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Consolidated Statements of Operations. See “Note 9. Commitments and Contingencies” for a further description of the various contingent earnout arrangements.