☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 80-0962035 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A common stock, par value $0.01 per share | ARES | New York Stock Exchange |
Large Accelerated Filer | x | Accelerated Filer | ☐ | Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | Emerging Growth Company | ☐ |
Page | ||||||||
As of | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 346,331 | $ | 348,274 | |||||||
Investments (includes accrued carried interest of $3,361,519 and $3,413,007 as of March 31, 2024 and December 31, 2023, respectively) | 4,484,884 | 4,624,932 | |||||||||
809,273 | 896,746 | ||||||||||
Other assets | 519,292 | 429,979 | |||||||||
Right-of-use operating lease assets | 237,019 | 249,326 | |||||||||
Intangible assets, net | 1,030,076 | 1,058,495 | |||||||||
Goodwill | 1,130,085 | 1,123,976 | |||||||||
Assets of Consolidated Funds: | |||||||||||
Cash and cash equivalents | 1,199,376 | 1,149,511 | |||||||||
Investments held in trust account | 529,887 | 523,038 | |||||||||
Investments, at fair value | 13,790,030 | 14,078,549 | |||||||||
15,924 | 14,151 | ||||||||||
Receivable for securities sold | 243,998 | 146,851 | |||||||||
Other assets | 77,095 | 86,672 | |||||||||
Total assets | $ | 24,413,270 | $ | 24,730,500 | |||||||
Liabilities | |||||||||||
$ | 262,551 | $ | 233,884 | ||||||||
Accrued compensation | 217,788 | 287,259 | |||||||||
363,308 | 240,254 | ||||||||||
Performance related compensation payable | 2,449,732 | 2,514,610 | |||||||||
Debt obligations | 3,046,182 | 2,965,480 | |||||||||
Operating lease liabilities | 308,336 | 319,572 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||
Accounts payable, accrued expenses and other liabilities | 189,556 | 189,523 | |||||||||
12,727 | 3,554 | ||||||||||
Payable for securities purchased | 548,032 | 484,117 | |||||||||
CLO loan obligations, at fair value | 11,906,346 | 12,345,657 | |||||||||
Fund borrowings | 78,241 | 125,241 | |||||||||
Total liabilities | 19,382,799 | 19,709,151 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable interest in Consolidated Funds | 529,787 | 522,938 | |||||||||
Redeemable interest in Ares Operating Group entities | 23,612 | 24,098 | |||||||||
Non-controlling interests in Consolidated Funds | 1,515,302 | 1,258,445 | |||||||||
Non-controlling interests in Ares Operating Group entities | 1,194,276 | 1,322,469 | |||||||||
Stockholders’ Equity | |||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (191,057,860 shares and 187,069,907 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) | 1,911 | 1,871 | |||||||||
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of March 31, 2024 and December 31, 2023) | 35 | 35 | |||||||||
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023) | — | — | |||||||||
Class C common stock, $0.01 par value, 499,999,000 shares authorized (115,120,213 shares and 117,024,758 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) | 1,151 | 1,170 | |||||||||
Additional paid-in-capital | 2,387,437 | 2,391,036 | |||||||||
Accumulated deficit | (612,560) | (495,083) | |||||||||
Accumulated other comprehensive loss, net of tax | (10,480) | (5,630) | |||||||||
Total stockholders’ equity | 1,767,494 | 1,893,399 | |||||||||
Total equity | 4,477,072 | 4,474,313 | |||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 24,413,270 | $ | 24,730,500 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | |||||||||||
Management fees | $ | 687,692 | $ | 600,516 | |||||||
Carried interest allocation | (32,478) | 151,488 | |||||||||
Incentive fees | 8,667 | 8,923 | |||||||||
Principal investment income | 7,050 | 22,758 | |||||||||
Administrative, transaction and other fees | 36,432 | 29,677 | |||||||||
Total revenues | 707,363 | 813,362 | |||||||||
Expenses | |||||||||||
Compensation and benefits | 412,951 | 360,781 | |||||||||
Performance related compensation | (50,532) | 111,658 | |||||||||
General, administrative and other expenses | 170,928 | 148,345 | |||||||||
Expenses of Consolidated Funds | 5,146 | 7,852 | |||||||||
Total expenses | 538,493 | 628,636 | |||||||||
Other income (expense) | |||||||||||
Net realized and unrealized gains on investments | 10,516 | 1,515 | |||||||||
Interest and dividend income | 5,382 | 3,839 | |||||||||
Interest expense | (37,824) | (24,986) | |||||||||
Other income (expense), net | 270 | (923) | |||||||||
Net realized and unrealized gains on investments of Consolidated Funds | 34,424 | 10,700 | |||||||||
Interest and other income of Consolidated Funds | 257,276 | 222,938 | |||||||||
Interest expense of Consolidated Funds | (207,866) | (156,687) | |||||||||
Total other income, net | 62,178 | 56,396 | |||||||||
Income before taxes | 231,048 | 241,122 | |||||||||
Income tax expense | 27,233 | 33,806 | |||||||||
Net income | 203,815 | 207,316 | |||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 66,716 | 26,693 | |||||||||
Net income attributable to Ares Operating Group entities | 137,099 | 180,623 | |||||||||
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities | 73 | (1,824) | |||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 63,999 | 88,408 | |||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | 94,039 | |||||||
Net income per share of Class A and non-voting common stock: | |||||||||||
Basic | $ | 0.33 | $ | 0.49 | |||||||
Diluted | $ | 0.33 | $ | 0.49 | |||||||
Weighted-average shares of Class A and non-voting common stock: | |||||||||||
Basic | 192,622,609 | 178,976,022 | |||||||||
Diluted | 192,622,609 | 178,976,022 |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net income | $ | 203,815 | $ | 207,316 | ||||||||||
Foreign currency translation adjustments, net of tax | (11,647) | 6,639 | ||||||||||||
Total comprehensive income | 192,168 | 213,955 | ||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 63,108 | 29,083 | ||||||||||||
Less: Comprehensive loss attributable to redeemable interest in Ares Operating Group entities | (184) | (1,972) | ||||||||||||
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities | 61,067 | 90,164 | ||||||||||||
Comprehensive income attributable to Ares Management Corporation | $ | 68,177 | $ | 96,680 |
Class A Common Stock | Non-voting Common Stock | Class C Common Stock | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-Controlling Interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | 1,871 | $ | 35 | $ | 1,170 | $ | 2,391,036 | $ | (495,083) | $ | (5,630) | $ | 1,322,469 | $ | 1,258,445 | $ | 4,474,313 | ||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | 39 | — | (20) | (62,709) | — | — | (103,599) | 51,984 | (114,305) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | — | 1 | — | — | — | 7,723 | — | 7,724 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 1,034 | 168,673 | 169,707 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions | — | — | — | — | (190,504) | — | (129,240) | (26,908) | (346,652) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 73,027 | — | 63,999 | 66,716 | 203,742 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | (4,850) | (2,932) | (3,608) | (11,390) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 57,600 | — | — | 34,822 | — | 92,422 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | 1 | — | — | 1,510 | — | — | — | — | 1,511 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | 1,911 | $ | 35 | $ | 1,151 | $ | 2,387,437 | $ | (612,560) | $ | (10,480) | $ | 1,194,276 | $ | 1,515,302 | $ | 4,477,072 | ||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Non-voting Common Stock | Class C Common Stock | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-Controlling Interest in Ares Operating Group Entities | Non-Controlling Interest in Consolidated Funds | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | 1,739 | $ | 35 | $ | 1,172 | $ | 1,970,754 | $ | (369,475) | $ | (14,986) | $ | 1,135,023 | $ | 1,074,356 | $ | 3,798,618 | ||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | 19 | — | 34 | (36,777) | — | — | 87,541 | (4,689) | 46,128 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 14 | — | — | 115,350 | — | — | — | — | 115,364 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 1,172 | 93,585 | 94,757 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions | — | — | — | — | (145,386) | — | (103,363) | (20,933) | (269,682) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 94,039 | — | 88,408 | 26,693 | 209,140 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | 2,641 | 1,756 | 2,390 | 6,787 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 41,541 | — | — | 27,537 | — | 69,078 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | 5 | — | — | 9,175 | — | — | — | — | 9,180 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 1,777 | 35 | 1,206 | 2,100,043 | (420,822) | (12,345) | 1,238,074 | 1,171,402 | 4,079,370 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | 10 | — | (9) | (151) | — | — | (4,086) | (322,729) | (326,965) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | — | — | 737 | — | — | — | — | 737 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 1,071 | 78,632 | 79,703 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions | — | — | — | — | (149,218) | — | (109,651) | (14,992) | (273,861) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 144,514 | — | 119,326 | 67,681 | 331,521 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | 2,658 | 1,751 | (8,685) | (4,276) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 37,609 | — | — | 24,672 | — | 62,281 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | 25 | — | — | 43,935 | — | — | — | — | 43,960 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 1,812 | 35 | 1,197 | 2,182,173 | (425,526) | (9,687) | 1,271,157 | 971,309 | 3,992,470 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | 17 | — | (16) | 15,435 | — | — | (14,757) | (7,210) | (6,531) | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 148 | 41,378 | 41,526 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions | — | — | — | — | (151,648) | — | (97,936) | (21,020) | (270,604) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 61,823 | — | 54,104 | 80,289 | 196,216 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | (7,578) | (4,994) | (11,313) | (23,885) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 37,856 | — | — | 24,120 | — | 61,976 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | 15 | — | — | 27,271 | — | — | — | — | 27,286 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | 1,844 | 35 | 1,181 | 2,262,735 | (515,351) | (17,265) | 1,231,842 | 1,053,433 | 4,018,454 | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in ownership interests and related tax benefits | 13 | — | (11) | (39,262) | — | — | 25,258 | 20,847 | 6,845 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | 12 | — | — | 123,432 | — | — | — | — | 123,444 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 1,496 | 106,590 | 108,086 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions | — | — | — | — | (153,682) | — | (116,899) | (44,183) | (314,764) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 173,950 | — | 149,406 | 99,633 | 422,989 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | 11,635 | 7,510 | 22,125 | 41,270 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | — | 38,600 | — | — | 23,856 | — | 62,456 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises | 2 | — | — | 5,531 | — | — | — | — | 5,533 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | 1,871 | $ | 35 | $ | 1,170 | $ | 2,391,036 | $ | (495,083) | $ | (5,630) | $ | 1,322,469 | $ | 1,258,445 | $ | 4,474,313 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 203,815 | $ | 207,316 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | 222,996 | 121,761 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds | 244,182 | 328,840 | |||||||||
Cash flows due to changes in operating assets and liabilities | 103,981 | 7,071 | |||||||||
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds | (64,929) | 42,584 | |||||||||
Net cash provided by operating activities | 710,045 | 707,572 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (26,071) | (8,877) | |||||||||
Acquisitions, net of cash acquired | (8,000) | — | |||||||||
Net cash used in investing activities | (34,071) | (8,877) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from Credit Facility | 290,000 | 245,000 | |||||||||
Repayments of Credit Facility | (210,000) | (150,000) | |||||||||
Dividends and distributions | (320,046) | (251,632) | |||||||||
Stock option exercises | 1,511 | 9,180 | |||||||||
Taxes paid related to net share settlement of equity awards | (186,731) | (113,431) | |||||||||
Other financing activities | 1,034 | 483 | |||||||||
Allocable to redeemable and non-controlling interests in Consolidated Funds: | |||||||||||
Contributions from redeemable and non-controlling interests in Consolidated Funds | 168,673 | 93,585 | |||||||||
Distributions to non-controlling interests in Consolidated Funds | (26,908) | (20,933) | |||||||||
Redemptions of redeemable interests in Consolidated Funds | — | (538,985) | |||||||||
Borrowings under loan obligations by Consolidated Funds | 36,947 | 2,914 | |||||||||
Repayments under loan obligations by Consolidated Funds | (421,112) | (97,325) | |||||||||
Net cash used in financing activities | (666,632) | (821,144) | |||||||||
Effect of exchange rate changes | (11,285) | 4,711 | |||||||||
Net change in cash and cash equivalents | (1,943) | (117,738) | |||||||||
Cash and cash equivalents, beginning of period | 348,274 | 389,987 | |||||||||
Cash and cash equivalents, end of period | $ | 346,331 | $ | 272,249 | |||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||
Issuance of common stock in connection with acquisition-related activities | $ | 7,724 | $ | 115,364 | |||||||
Issuance of common stock in connection with settlement of management incentive program | $ | — | $ | 245,647 | |||||||
Weighted Average Amortization Period (in years) as of March 31, 2024 | As of March 31, | As of December 31, | |||||||||||||||
2024 | 2023 | ||||||||||||||||
Management contracts | 4.2 | $ | 580,635 | $ | 604,242 | ||||||||||||
Client relationships | 8.3 | 200,920 | 200,920 | ||||||||||||||
Other | 0.6 | 500 | 500 | ||||||||||||||
Finite-lived intangible assets | 782,055 | 805,662 | |||||||||||||||
Foreign currency translation | (202) | 1,126 | |||||||||||||||
Total finite-lived intangible assets | 781,853 | 806,788 | |||||||||||||||
Less: accumulated amortization | (319,577) | (316,093) | |||||||||||||||
Finite-lived intangible assets, net | 462,276 | 490,695 | |||||||||||||||
Indefinite-lived management contracts | 567,800 | 567,800 | |||||||||||||||
Intangible assets, net | $ | 1,030,076 | $ | 1,058,495 |
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Total | |||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | 256,679 | $ | 277,205 | $ | 172,462 | $ | 417,630 | $ | 1,123,976 | |||||||||||||||||||
Acquisitions | — | 6,710 | 644 | — | 7,354 | ||||||||||||||||||||||||
Reallocation | 55,658 | — | (55,658) | — | — | ||||||||||||||||||||||||
Foreign currency translation | (1,242) | — | — | (3) | (1,245) | ||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | 311,095 | $ | 283,915 | $ | 117,448 | $ | 417,627 | $ | 1,130,085 |
As of | Percentage of total investments as of | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||
Equity method - carried interest | $ | 3,361,519 | $ | 3,413,007 | 75.0% | 73.8% | |||||||||||||||||
Equity method private investment partnership interests - principal | 545,153 | 535,292 | 12.1 | 11.6 | |||||||||||||||||||
Equity method private investment partnership interests and other (held at fair value) | 420,033 | 418,778 | 9.4 | 9.0 | |||||||||||||||||||
Equity method private investment partnership interests and other | 43,498 | 44,989 | 1.0 | 1.0 | |||||||||||||||||||
Total equity method investments | 4,370,203 | 4,412,066 | 97.5 | 95.4 | |||||||||||||||||||
Collateralized loan obligations | 20,010 | 20,799 | 0.4 | 0.4 | |||||||||||||||||||
Fixed income securities | 1,578 | 105,495 | — | 2.3 | |||||||||||||||||||
Collateralized loan obligations and fixed income securities, at fair value | 21,588 | 126,294 | 0.4 | 2.7 | |||||||||||||||||||
Common stock, at fair value | 93,093 | 86,572 | 2.1 | 1.9 | |||||||||||||||||||
Total investments | $ | 4,484,884 | $ | 4,624,932 | |||||||||||||||||||
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Total other income, net related to equity method investments | $ | 10,127 | $ | 23,914 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Equity method private investment partnership interests and other (held at fair value) | $ | 2,479 | $ | 3,099 | |||||||
Fair Value as of | Percentage of total investments as of | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Loans and securitization vehicles | $ | 10,147,424 | $ | 10,616,458 | 70.9% | 72.7% | |||||||||||||||||
Money market funds and U.S. treasury securities | 529,887 | 523,038 | 3.7 | 3.6 | |||||||||||||||||||
Bonds | 513,801 | 578,949 | 3.6 | 4.0 | |||||||||||||||||||
Total fixed income investments | 11,191,112 | 11,718,445 | 78.2 | 80.3 | |||||||||||||||||||
Partnership interests | 1,721,331 | 1,642,489 | 12.0 | 11.2 | |||||||||||||||||||
Equity securities | 1,407,474 | 1,240,653 | 9.8 | 8.5 | |||||||||||||||||||
Total investments, at fair value | $ | 14,319,917 | $ | 14,601,587 |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Common stock and other equity securities | $ | — | $ | 93,093 | $ | 416,874 | $ | — | $ | 509,967 | ||||||||||||||||||||||
Collateralized loan obligations and fixed income securities | — | — | 21,588 | — | 21,588 | |||||||||||||||||||||||||||
Partnership interests | — | — | — | 3,159 | 3,159 | |||||||||||||||||||||||||||
Total investments, at fair value | — | 93,093 | 438,462 | 3,159 | 534,714 | |||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | — | 1,623 | — | — | 1,623 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | — | $ | 94,716 | $ | 438,462 | $ | 3,159 | $ | 536,337 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | $ | — | $ | (1,365) | $ | — | $ | — | $ | (1,365) | ||||||||||||||||||||||
Total liabilities, at fair value | $ | — | $ | (1,365) | $ | — | $ | — | $ | (1,365) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Fixed income investments: | ||||||||||||||||||||||||||||||||
Loans and securitization vehicles | $ | — | $ | 9,508,106 | $ | 639,318 | $ | — | $ | 10,147,424 | ||||||||||||||||||||||
Money market funds and U.S. treasury securities | 529,887 | — | — | — | 529,887 | |||||||||||||||||||||||||||
Bonds | — | 513,801 | — | — | 513,801 | |||||||||||||||||||||||||||
Total fixed income investments | 529,887 | 10,021,907 | 639,318 | — | 11,191,112 | |||||||||||||||||||||||||||
Partnership interests | — | — | — | 1,721,331 | 1,721,331 | |||||||||||||||||||||||||||
Equity securities | 38,620 | 2,390 | 1,366,464 | — | 1,407,474 | |||||||||||||||||||||||||||
Total investments, at fair value | 568,507 | 10,024,297 | 2,005,782 | 1,721,331 | 14,319,917 | |||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | — | 5,590 | — | — | 5,590 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 568,507 | $ | 10,029,887 | $ | 2,005,782 | $ | 1,721,331 | $ | 14,325,507 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Loan obligations of CLOs | $ | — | $ | (11,906,346) | $ | — | $ | — | $ | (11,906,346) | ||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | (5,541) | — | — | (5,541) | |||||||||||||||||||||||||||
Asset swaps | — | — | (1,574) | — | (1,574) | |||||||||||||||||||||||||||
— | (5,541) | (1,574) | — | (7,115) | ||||||||||||||||||||||||||||
Total liabilities, at fair value | $ | — | $ | (11,911,887) | $ | (1,574) | $ | — | $ | (11,913,461) |
Financial Instruments of the Company | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Common stock and other equity securities | $ | — | $ | 86,572 | $ | 412,491 | $ | — | $ | 499,063 | ||||||||||||||||||||||
Collateralized loan obligations and fixed income securities | — | — | 126,294 | — | 126,294 | |||||||||||||||||||||||||||
Partnership interests | — | — | — | 6,287 | 6,287 | |||||||||||||||||||||||||||
Total investments, at fair value | — | 86,572 | 538,785 | 6,287 | 631,644 | |||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | — | 1,129 | — | — | 1,129 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | — | $ | 87,701 | $ | 538,785 | $ | 6,287 | $ | 632,773 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | $ | — | $ | (2,645) | $ | — | $ | — | $ | (2,645) | ||||||||||||||||||||||
Total liabilities, at fair value | $ | — | $ | (2,645) | $ | — | $ | — | $ | (2,645) |
Financial Instruments of the Consolidated Funds | Level I | Level II | Level III | Investments Measured at NAV | Total | |||||||||||||||||||||||||||
Assets, at fair value | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Fixed income investments: | ||||||||||||||||||||||||||||||||
Loans and securitization vehicles | $ | — | $ | 9,879,915 | $ | 736,543 | $ | — | $ | 10,616,458 | ||||||||||||||||||||||
Bonds | — | 575,379 | 3,570 | — | 578,949 | |||||||||||||||||||||||||||
Money market funds and U.S. treasury securities | 523,038 | — | — | — | 523,038 | |||||||||||||||||||||||||||
Total fixed income investments | 523,038 | 10,455,294 | 740,113 | — | 11,718,445 | |||||||||||||||||||||||||||
Partnership interests | — | — | — | 1,642,489 | 1,642,489 | |||||||||||||||||||||||||||
Equity securities | 47,503 | 2,750 | 1,190,400 | — | 1,240,653 | |||||||||||||||||||||||||||
Total investments, at fair value | 570,541 | 10,458,044 | 1,930,513 | 1,642,489 | 14,601,587 | |||||||||||||||||||||||||||
Derivatives-foreign currency forward contracts | — | 9,126 | — | — | 9,126 | |||||||||||||||||||||||||||
Total assets, at fair value | $ | 570,541 | $ | 10,467,170 | $ | 1,930,513 | $ | 1,642,489 | $ | 14,610,713 | ||||||||||||||||||||||
Liabilities, at fair value | ||||||||||||||||||||||||||||||||
Loan obligations of CLOs | $ | — | $ | (12,345,657) | $ | — | $ | — | $ | (12,345,657) | ||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | (9,491) | — | — | (9,491) | |||||||||||||||||||||||||||
Asset swaps | — | — | (1,291) | — | (1,291) | |||||||||||||||||||||||||||
— | (9,491) | (1,291) | — | (10,782) | ||||||||||||||||||||||||||||
Total liabilities, at fair value | $ | — | $ | (12,355,148) | $ | (1,291) | $ | — | $ | (12,356,439) |
Level III Assets of the Company | Equity Securities | Fixed Income | Total | |||||||||||||||||
Balance as of December 31, 2023 | $ | 412,491 | $ | 126,294 | $ | 538,785 | ||||||||||||||
Purchases(1) | 30 | 2,266 | 2,296 | |||||||||||||||||
Sales/settlements(2) | (782) | (108,360) | (109,142) | |||||||||||||||||
Realized and unrealized appreciation, net | 5,135 | 1,388 | 6,523 | |||||||||||||||||
Balance as of March 31, 2024 | $ | 416,874 | $ | 21,588 | $ | 438,462 | ||||||||||||||
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date | $ | 5,135 | $ | 1,388 | $ | 6,523 |
Level III Net Assets of Consolidated Funds | Equity Securities | Fixed Income | Derivatives, Net | Total | ||||||||||||||||||||||
Balance as of December 31, 2023 | $ | 1,190,400 | $ | 740,113 | $ | (1,291) | $ | 1,929,222 | ||||||||||||||||||
Transfer in | — | 91,729 | — | 91,729 | ||||||||||||||||||||||
Transfer out | — | (172,358) | — | (172,358) | ||||||||||||||||||||||
Purchases(1) | 154,475 | 263,706 | 46 | 418,227 | ||||||||||||||||||||||
Sales/settlements(2) | — | (285,911) | — | (285,911) | ||||||||||||||||||||||
21,589 | 2,039 | (329) | 23,299 | |||||||||||||||||||||||
Balance as of March 31, 2024 | $ | 1,366,464 | $ | 639,318 | $ | (1,574) | $ | 2,004,208 | ||||||||||||||||||
$ | 22,225 | $ | 1,420 | $ | (380) | $ | 23,265 |
Level III Assets of the Company | Equity Securities | Fixed Income | Total | |||||||||||||||||
Balance as of December 31, 2022 | $ | 121,785 | $ | 76,934 | $ | 198,719 | ||||||||||||||
Purchases(1) | 52 | 1,194 | 1,246 | |||||||||||||||||
Sales/settlements(2) | 45 | (1,536) | (1,491) | |||||||||||||||||
Realized and unrealized appreciation (depreciation), net | 3,191 | (1,423) | 1,768 | |||||||||||||||||
Balance as of March 31, 2023 | $ | 125,073 | $ | 75,169 | $ | 200,242 | ||||||||||||||
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ | 2,978 | $ | (1,211) | $ | 1,767 |
Level III Net Assets of Consolidated Funds | Equity Securities | Fixed Income | Partnership Interests | Derivatives, Net | Total | |||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | 730,880 | $ | 869,668 | $ | 368,655 | $ | (3,556) | $ | 1,965,647 | ||||||||||||||||||||||
Transfer in | — | 284,198 | — | — | 284,198 | |||||||||||||||||||||||||||
Transfer out | — | (447,536) | — | — | (447,536) | |||||||||||||||||||||||||||
Purchases(1) | 180,372 | 188,232 | 49,000 | — | 417,604 | |||||||||||||||||||||||||||
Sales/settlements(2) | (122) | (173,502) | (48,889) | — | (222,513) | |||||||||||||||||||||||||||
21,505 | 11,744 | 5,283 | 1,858 | 40,390 | ||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | 932,635 | $ | 732,804 | $ | 374,049 | $ | (1,698) | $ | 2,037,790 | ||||||||||||||||||||||
$ | 21,436 | $ | (20,602) | $ | 5,283 | $ | 1,848 | $ | 7,965 |
Level III Measurements of the Company | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 160,318 | Discounted cash flow | Discount rate | 18.5% - 30.0% | 25.0% | |||||||||||||||||||||||||||
117,952 | Market approach | Multiple of book value | 1.3x - 1.4x | 1.3x | ||||||||||||||||||||||||||||
100,000 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
6,179 | Market approach | Enterprise value / Earnings multiple | 15.4x | 15.4x | ||||||||||||||||||||||||||||
32,425 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||||||||||
20,010 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
1,578 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Total assets | $ | 438,462 | ||||||||||||||||||||||||||||||
Level III Measurements of the Consolidated Funds | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 774,504 | Discounted cash flow | Discount rate | 10.0% - 16.0% | 13.0% | |||||||||||||||||||||||||||
587,252 | Market approach | Multiple of book value | 1.0x - 1.7x | 1.3x | ||||||||||||||||||||||||||||
3,704 | Market approach | EBITDA multiple(2) | 5.4x - 35.3x | 9.8x | ||||||||||||||||||||||||||||
871 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
133 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||||||||||
500,420 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
128,212 | Market approach | Yield | 8.8% - 17.1% | 11.8% | ||||||||||||||||||||||||||||
6,410 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
3,876 | Discounted cash flow | Discount rate | 12.3% - 12.7% | 12.7% | ||||||||||||||||||||||||||||
400 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Total assets | $ | 2,005,782 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | (1,574) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (1,574) |
Level III Measurements of the Company | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 154,460 | Discounted cash flow | Discount rate | 20.0% - 30.0% | 25.0% | |||||||||||||||||||||||||||
118,846 | Market approach | Multiple of book value | 1.3x - 1.6x | 1.5x | ||||||||||||||||||||||||||||
100,000 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
6,447 | Market approach | Enterprise value / Earnings multiple | 15.4x | 15.4x | ||||||||||||||||||||||||||||
32,738 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||||||||||
83,000 | Transaction price(1) | N/A | N/A | N/A | ||||||||||||||||||||||||||||
20,799 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
22,495 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Total assets | $ | 538,785 | ||||||||||||||||||||||||||||||
Level III Measurements of the Consolidated Funds | Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range | Weighted Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
$ | 648,581 | Discounted cash flow | Discount rate | 10.0% - 16.0% | 13.0% | |||||||||||||||||||||||||||
537,733 | Market approach | Multiple of book value | 1.0x - 1.7x | 1.3x | ||||||||||||||||||||||||||||
3,909 | Market approach | EBITDA multiple(2) | 4.5x - 32.4x | 8.9x | ||||||||||||||||||||||||||||
177 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||||||||||
548,264 | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||||
188,322 | Market approach | Yield | 8.3% - 24.1% | 12.2% | ||||||||||||||||||||||||||||
2,974 | Market approach | EBITDA multiple(2) | 4.5x - 32.4x | 9.0x | ||||||||||||||||||||||||||||
104 | Discounted cash flow | Discount rate | 12.3% | 12.3% | ||||||||||||||||||||||||||||
449 | Other | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Total assets | $ | 1,930,513 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | (1,291) | Broker quotes and/or 3rd party pricing services | N/A | N/A | N/A | ||||||||||||||||||||||||||
Total liabilities | $ | (1,291) |
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||
Investments (held at fair value) | $ | 1,721,331 | $ | 1,642,489 | ||||||||||
Unfunded commitments | 1,079,881 | 738,621 |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Interest Rate | Carrying Value | Interest Rate | |||||||||||||||||||||||||||||||||||
Credit Facility(1) | Revolving | 3/31/2029 | N/A | $ | 975,000 | 6.38% | $ | 895,000 | 6.37% | ||||||||||||||||||||||||||||||||
2024 Senior Notes(2) | 10/8/2014 | 10/8/2024 | $ | 250,000 | 249,612 | 4.21 | 249,427 | 4.21 | |||||||||||||||||||||||||||||||||
2028 Senior Notes(3) | 11/10/2023 | 11/10/2028 | 500,000 | 495,121 | 6.42 | 494,863 | 6.42 | ||||||||||||||||||||||||||||||||||
2030 Senior Notes(4) | 6/15/2020 | 6/15/2030 | 400,000 | 397,162 | 3.28 | 397,050 | 3.28 | ||||||||||||||||||||||||||||||||||
2052 Senior Notes(5) | 1/21/2022 | 2/1/2052 | 500,000 | 484,299 | 3.77 | 484,199 | 3.77 | ||||||||||||||||||||||||||||||||||
2051 Subordinated Notes(6) | 6/30/2021 | 6/30/2051 | 450,000 | 444,988 | 4.13 | 444,941 | 4.13 | ||||||||||||||||||||||||||||||||||
Total debt obligations | $ | 3,046,182 | $ | 2,965,480 |
Credit Facility | Senior Notes | Subordinated Notes | |||||||||||||||
Unamortized debt issuance costs as of December 31, 2023 | $ | 4,213 | $ | 11,784 | $ | 5,059 | |||||||||||
Debt issuance costs incurred | 1,784 | — | — | ||||||||||||||
Amortization of debt issuance costs | (329) | (410) | (46) | ||||||||||||||
Unamortized debt issuance costs as of March 31, 2024 | $ | 5,668 | $ | 11,374 | $ | 5,013 |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Fair Value of Loan Obligations | Weighted Average Interest Rate | Weighted Average Remaining Maturity (in years) | Fair Value of Loan Obligations | Weighted Average Interest Rate | Weighted Average Remaining Maturity (in years) | ||||||||||||||||||||||||||||||
Senior secured notes | $ | 11,162,856 | 6.66% | 8.0 | $ | 11,606,289 | 6.64% | 8.2 | |||||||||||||||||||||||||||
Subordinated notes(1) | 743,490 | N/A | 6.6 | 739,368 | N/A | 6.9 | |||||||||||||||||||||||||||||
Total loan obligations of Consolidated CLOs | $ | 11,906,346 | $ | 12,345,657 |
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||
Maturity Date | Total Capacity | Outstanding Loan(1) | Effective Rate | Outstanding Loan(1) | Effective Rate | |||||||||||||||||||||||||||||||||
Credit Facilities: | ||||||||||||||||||||||||||||||||||||||
7/1/2024 | $ | 18,000 | $ | 15,241 | 6.88% | $ | 15,241 | 6.88% | ||||||||||||||||||||||||||||||
7/23/2024 | 125,000 | 63,000 | 8.29 | 110,000 | 8.29 | |||||||||||||||||||||||||||||||||
9/24/2026 | 150,000 | — | N/A | — | N/A | |||||||||||||||||||||||||||||||||
9/12/2027 | 54,000 | — | N/A | — | N/A | |||||||||||||||||||||||||||||||||
Total borrowings of Consolidated Funds | $ | 78,241 | $ | 125,241 |
Maturity of operating lease liabilities | As of March 31, 2024 | |||||||
2024 | $ | 36,831 | ||||||
2025 | 51,927 | |||||||
2026 | 48,234 | |||||||
2027 | 37,498 | |||||||
2028 | 27,364 | |||||||
Thereafter | 179,735 | |||||||
Total future payments | 381,589 | |||||||
Less: interest | 73,253 | |||||||
Total operating lease liabilities | $ | 308,336 |
Three months ended March 31, | ||||||||||||||
Classification within general, administrative and other expenses | 2024 | 2023 | ||||||||||||
Operating lease expense | $ | 15,210 | $ | 11,888 |
Three months ended March 31, | ||||||||||||||
Supplemental information on the measurement of operating lease liabilities | 2024 | 2023 | ||||||||||||
Operating cash flows for operating leases | $ | 12,765 | $ | 10,911 | ||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 705 | 12,047 |
As of March 31, | As of December 31, | |||||||||||||
Lease term and discount rate | 2024 | 2023 | ||||||||||||
Weighted-average remaining lease terms (in years) | 8.4 | 8.4 | ||||||||||||
Weighted-average discount rate | 4.4% | 4.3% | ||||||||||||
As of March 31, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Due from affiliates: | |||||||||||
Management fees receivable from non-consolidated funds | $ | 589,231 | $ | 560,629 | |||||||
Incentive fee receivable from non-consolidated funds | 17,454 | 159,098 | |||||||||
Payments made on behalf of and amounts due from non-consolidated funds and employees | 202,588 | 177,019 | |||||||||
Due from affiliates—Company | $ | 809,273 | $ | 896,746 | |||||||
Amounts due from non-consolidated funds | $ | 15,924 | $ | 14,151 | |||||||
Due from affiliates—Consolidated Funds | $ | 15,924 | $ | 14,151 | |||||||
Due to affiliates: | |||||||||||
Management fee received in advance and rebates payable to non-consolidated funds | $ | 11,006 | $ | 9,585 | |||||||
Tax receivable agreement liability | 236,135 | 191,299 | |||||||||
Undistributed carried interest and incentive fees | 110,672 | 33,374 | |||||||||
Payments made by non-consolidated funds on behalf of and payable by the Company | 5,495 | 5,996 | |||||||||
Due to affiliates—Company | $ | 363,308 | $ | 240,254 | |||||||
Amounts due to portfolio companies and non-consolidated funds | $ | 12,727 | $ | 3,554 | |||||||
Due to affiliates—Consolidated Funds | $ | 12,727 | $ | 3,554 |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Income tax expense | $ | 27,233 | $ | 33,806 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic earnings per share of Class A and non-voting common stock: | |||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | 94,039 | |||||||
Dividends declared and paid on Class A and non-voting common stock | (180,929) | (138,420) | |||||||||
Distributions on unvested restricted units | (7,272) | (5,314) | |||||||||
Dividends in excess of earnings available to Class A and non-voting common stockholders | $ | (115,174) | $ | (49,695) | |||||||
Basic weighted-average shares of Class A and non-voting common stock | 192,622,609 | 178,976,022 | |||||||||
Dividends in excess of earnings per share of Class A and non-voting common stock | $ | (0.60) | $ | (0.28) | |||||||
Dividend declared and paid per Class A and non-voting common stock | 0.93 | 0.77 | |||||||||
Basic earnings per share of Class A and non-voting common stock | $ | 0.33 | $ | 0.49 | |||||||
Diluted earnings per share of Class A and non-voting common stock: | |||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | 94,039 | |||||||
Distributions on unvested restricted units | (7,272) | (5,314) | |||||||||
Net income available to Class A and non-voting common stockholders | $ | 65,755 | $ | 88,725 | |||||||
Effect of dilutive shares: | |||||||||||
Restricted units | — | — | |||||||||
Options | — | — | |||||||||
Diluted weighted-average shares of Class A and non-voting common stock | 192,622,609 | 178,976,022 | |||||||||
Diluted earnings per share of Class A and non-voting common stock | $ | 0.33 | $ | 0.49 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Restricted units | $ | 92,422 | $ | 69,252 | |||||||
Record Date | Dividends Per Share | Dividend Equivalents Paid | ||||||||||||
March 15, 2024 | $ | 0.93 | $ | 16,294 | ||||||||||
Restricted Units | Weighted Average Grant Date Fair Value Per Unit | ||||||||||
Balance as of December 31, 2023 | 17,359,829 | $ | 59.20 | ||||||||
Granted | 4,581,087 | 121.09 | |||||||||
Vested | (3,492,988) | 51.99 | |||||||||
Forfeited | (309,590) | 85.96 | |||||||||
Balance as of March 31, 2024 | 18,138,338 | $ | 75.77 |
Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance as of December 31, 2023 | 79,524 | $ | 19.00 | 0.3 | $ | 7,946 | |||||||||||||||||
Exercised | (79,524) | 19.00 | — | — | |||||||||||||||||||
Balance as of March 31, 2024 | — | $ | — | 0.0 | $ | — | |||||||||||||||||
Exercisable as of March 31, 2024 | — | $ | — | 0.0 | $ | — |
Class A Common Stock | Non-Voting Common Stock | Class B Common Stock | Class C Common Stock | Total | |||||||||||||||||||||||||
Balance as of December 31, 2023 | 187,069,907 | 3,489,911 | 1,000 | 117,024,758 | 307,585,576 | ||||||||||||||||||||||||
Issuance of common stock(1) | — | — | — | 63,179 | 63,179 | ||||||||||||||||||||||||
Exchanges of common stock | 1,967,724 | — | — | (1,967,724) | — | ||||||||||||||||||||||||
Stock option exercises | 79,524 | — | — | — | 79,524 | ||||||||||||||||||||||||
Vesting of restricted stock awards, net of shares withheld for tax | 1,940,705 | — | — | — | 1,940,705 | ||||||||||||||||||||||||
Balance as of March 31, 2024 | 191,057,860 | 3,489,911 | 1,000 | 115,120,213 | 309,668,984 |
Daily Average Ownership | ||||||||||||||||||||||||||||||||||||||
As of March 31, 2024 | As of December 31, 2023 | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||
AOG Units | Direct Ownership Interest | AOG Units | Direct Ownership Interest | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Ares Management Corporation | 194,547,771 | 62.82 | % | 190,559,818 | 61.95 | % | 62.32 | % | 60.14 | % | ||||||||||||||||||||||||||||
Ares Owners Holdings, L.P. | 115,120,213 | 37.18 | 117,024,758 | 38.05 | 37.68 | 39.86 | ||||||||||||||||||||||||||||||||
Total | 309,667,984 | 100.00 | % | 307,584,576 | 100.00 | % |
Total | |||||
Balance as of December 31, 2022 | $ | 93,129 | |||
Changes in ownership interests and related tax benefits | (66,506) | ||||
Net loss | (1,824) | ||||
Currency translation adjustment, net of tax | (148) | ||||
Equity compensation | 174 | ||||
Distributions | (2,883) | ||||
Balance as of March 31, 2023 | 21,942 | ||||
Net income | 734 | ||||
Currency translation adjustment, net of tax | (159) | ||||
Balance as of June 30, 2023 | 22,517 | ||||
Net income | 758 | ||||
Currency translation adjustment, net of tax | (99) | ||||
Balance as of September 30, 2023 | 23,176 | ||||
Net income | 558 | ||||
Currency translation adjustment, net of tax | 364 | ||||
Balance as of December 31, 2023 | 24,098 | ||||
Net income | 73 | ||||
Currency translation adjustment, net of tax | (257) | ||||
Distributions | (302) | ||||
Balance as of March 31, 2024 | $ | 23,612 | |||
Total | |||||
Balance as of December 31, 2022 | $ | 1,013,282 | |||
Change in redemption value | 10,504 | ||||
Redemptions from Class A ordinary shares of Ares Acquisition Corporation (formerly NYSE: AAC) (“AAC I”) | (538,985) | ||||
Balance as of March 31, 2023 | 484,801 | ||||
Gross proceeds from the initial public offering of Ares Acquisition Corporation II (NYSE: AACT) (“AAC II”) | 500,000 | ||||
Change in redemption value | 15,948 | ||||
Balance as of June 30, 2023 | 1,000,749 | ||||
Change in redemption value | 16,571 | ||||
Redemptions from Class A ordinary shares of AAC I | (14,733) | ||||
Balance as of September 30, 2023 | 1,002,587 | ||||
Change in redemption value | 12,507 | ||||
Redemptions from Class A ordinary shares of AAC I | (492,156) | ||||
Balance as of December 31, 2023 | 522,938 | ||||
Change in redemption value | 6,849 | ||||
Balance as of March 31, 2024 | $ | 529,787 | |||
Three months ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other | Total Segments | OMG | Total | ||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 510,966 | $ | 93,814 | $ | 34,933 | $ | 44,421 | $ | 9,231 | $ | 693,365 | $ | — | $ | 693,365 | |||||||||||||||||||||||||||||||
Fee related performance revenues | 755 | — | — | 2,962 | — | 3,717 | — | 3,717 | |||||||||||||||||||||||||||||||||||||||
Other fees | 9,911 | 5,075 | 439 | 4 | 114 | 15,543 | 4,333 | 19,876 | |||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (134,849) | (37,918) | (14,785) | (12,714) | (5,592) | (205,858) | (94,157) | (300,015) | |||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (34,366) | (14,453) | (5,216) | (9,068) | (1,690) | (64,793) | (50,480) | (115,273) | |||||||||||||||||||||||||||||||||||||||
Fee related earnings | 352,417 | 46,518 | 15,371 | 25,605 | 2,063 | 441,974 | (140,304) | 301,670 | |||||||||||||||||||||||||||||||||||||||
Performance income—realized | 16,766 | 3,677 | 2,738 | — | — | 23,181 | — | 23,181 | |||||||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (8,734) | (2,228) | (2,194) | — | — | (13,156) | — | (13,156) | |||||||||||||||||||||||||||||||||||||||
Realized net performance income | 8,032 | 1,449 | 544 | — | — | 10,025 | — | 10,025 | |||||||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | (398) | (457) | 120 | — | — | (735) | — | (735) | |||||||||||||||||||||||||||||||||||||||
Interest and other investment income—realized | 4,930 | 3,835 | 184 | 210 | 6,409 | 15,568 | 452 | 16,020 | |||||||||||||||||||||||||||||||||||||||
Interest expense | (9,013) | (5,949) | (5,889) | (2,698) | (14,235) | (37,784) | (40) | (37,824) | |||||||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | (4,481) | (2,571) | (5,585) | (2,488) | (7,826) | (22,951) | 412 | (22,539) | |||||||||||||||||||||||||||||||||||||||
Realized income | $ | 355,968 | $ | 45,396 | $ | 10,330 | $ | 23,117 | $ | (5,763) | $ | 429,048 | $ | (139,892) | $ | 289,156 | |||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other | Total Segments | OMG | Total | ||||||||||||||||||||||||||||||||||||||||
Management fees | $ | 430,467 | $ | 97,470 | $ | 29,840 | $ | 39,863 | $ | 4,979 | $ | 602,619 | $ | — | $ | 602,619 | |||||||||||||||||||||||||||||||
Fee related performance revenues | 600 | — | — | 3,271 | — | 3,871 | — | 3,871 | |||||||||||||||||||||||||||||||||||||||
Other fees | 9,149 | 6,462 | 394 | — | 50 | 16,055 | 4,640 | 20,695 | |||||||||||||||||||||||||||||||||||||||
Compensation and benefits | (121,900) | (37,986) | (16,626) | (13,412) | (3,140) | (193,064) | (84,967) | (278,031) | |||||||||||||||||||||||||||||||||||||||
General, administrative and other expenses | (26,676) | (12,284) | (4,485) | (4,292) | (608) | (48,345) | (46,172) | (94,517) | |||||||||||||||||||||||||||||||||||||||
Fee related earnings | 291,640 | 53,662 | 9,123 | 25,430 | 1,281 | 381,136 | (126,499) | 254,637 | |||||||||||||||||||||||||||||||||||||||
Performance income—realized | 7,410 | 6,086 | 17,640 | — | — | 31,136 | — | 31,136 | |||||||||||||||||||||||||||||||||||||||
Performance related compensation—realized | (5,881) | (3,758) | (14,220) | — | — | (23,859) | — | (23,859) | |||||||||||||||||||||||||||||||||||||||
Realized net performance income | 1,529 | 2,328 | 3,420 | — | — | 7,277 | — | 7,277 | |||||||||||||||||||||||||||||||||||||||
Investment income (loss)—realized | 506 | (1,772) | 879 | — | 170 | (217) | — | (217) | |||||||||||||||||||||||||||||||||||||||
Interest and other investment income (expense)—realized | 8,113 | 1,821 | 166 | 1,225 | 6,348 | 17,673 | (92) | 17,581 | |||||||||||||||||||||||||||||||||||||||
Interest expense | (8,630) | (3,896) | (4,805) | (2,305) | (5,324) | (24,960) | (26) | (24,986) | |||||||||||||||||||||||||||||||||||||||
Realized net investment income (loss) | (11) | (3,847) | (3,760) | (1,080) | 1,194 | (7,504) | (118) | (7,622) | |||||||||||||||||||||||||||||||||||||||
Realized income | $ | 293,158 | $ | 52,143 | $ | 8,783 | $ | 24,350 | $ | 2,475 | $ | 380,909 | $ | (126,617) | $ | 254,292 | |||||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Segment revenues | |||||||||||
Management fees | $ | 693,365 | $ | 602,619 | |||||||
Fee related performance revenues | 3,717 | 3,871 | |||||||||
Other fees | 15,543 | 16,055 | |||||||||
Performance income—realized | 23,181 | 31,136 | |||||||||
Total segment revenues | $ | 735,806 | $ | 653,681 | |||||||
Segment expenses | |||||||||||
Compensation and benefits | $ | 205,858 | $ | 193,064 | |||||||
General, administrative and other expenses | 64,793 | 48,345 | |||||||||
Performance related compensation—realized | 13,156 | 23,859 | |||||||||
Total segment expenses | $ | 283,807 | $ | 265,268 | |||||||
Segment realized net investment expense | |||||||||||
Investment loss—realized | $ | (735) | $ | (217) | |||||||
Interest and other investment income —realized | 15,568 | 17,673 | |||||||||
Interest expense | (37,784) | (24,960) | |||||||||
Total segment realized net investment expense | $ | (22,951) | $ | (7,504) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total consolidated revenue | $ | 707,363 | $ | 813,362 | |||||||
Performance (income) loss—unrealized | 45,476 | (127,713) | |||||||||
Management fees of Consolidated Funds eliminated in consolidation | 12,453 | 11,601 | |||||||||
Performance income of Consolidated Funds eliminated in consolidation | 5,925 | 3,545 | |||||||||
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation | 113 | 4,843 | |||||||||
Administrative fees(1) | (16,407) | (13,650) | |||||||||
OMG revenue | (4,333) | (4,640) | |||||||||
Principal investment income, net of eliminations | (7,050) | (22,758) | |||||||||
Net revenue of non-controlling interests in consolidated subsidiaries | (7,734) | (10,909) | |||||||||
Total consolidation adjustments and reconciling items | 28,443 | (159,681) | |||||||||
Total segment revenue | $ | 735,806 | $ | 653,681 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total consolidated expenses | $ | 538,493 | $ | 628,636 | |||||||
Performance related compensation-unrealized | 64,514 | (85,150) | |||||||||
Expenses of Consolidated Funds added in consolidation | (17,708) | (19,641) | |||||||||
Expenses of Consolidated Funds eliminated in consolidation | 12,995 | 12,132 | |||||||||
Administrative fees(1) | (16,407) | (13,277) | |||||||||
OMG expenses | (144,637) | (131,139) | |||||||||
Acquisition and merger-related expense | (10,578) | (4,955) | |||||||||
Equity compensation expense | (92,422) | (69,077) | |||||||||
Acquisition-related compensation expense(2) | (5,504) | (642) | |||||||||
Placement fee adjustment | (5,540) | 3,232 | |||||||||
Depreciation and amortization expense | (36,644) | (45,659) | |||||||||
Expense of non-controlling interests in consolidated subsidiaries | (2,755) | (9,192) | |||||||||
Total consolidation adjustments and reconciling items | (254,686) | (363,368) | |||||||||
Total segment expenses | $ | 283,807 | $ | 265,268 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total consolidated other income | $ | 62,178 | $ | 56,396 | |||||||
Investment income—unrealized | (3,685) | (28,985) | |||||||||
Interest and other investment (income) loss—unrealized | (602) | 208 | |||||||||
Other income, net from Consolidated Funds added in consolidation | (79,977) | (62,917) | |||||||||
Other expense, net from Consolidated Funds eliminated in consolidation | 902 | (4,451) | |||||||||
OMG other (income) expense | (549) | 651 | |||||||||
Principal investment income (loss) | (2,666) | 35,457 | |||||||||
Other expense, net | 131 | 91 | |||||||||
Other (income) loss of non-controlling interests in consolidated subsidiaries | 1,317 | (3,954) | |||||||||
Total consolidation adjustments and reconciling items | (85,129) | (63,900) | |||||||||
Total segment realized net investment expense | $ | (22,951) | $ | (7,504) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Income before taxes | $ | 231,048 | $ | 241,122 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization expense | 36,644 | 45,659 | |||||||||
Equity compensation expense | 92,421 | 68,704 | |||||||||
Acquisition-related compensation expense(1) | 5,504 | 642 | |||||||||
Acquisition and merger-related expense | 10,578 | 4,955 | |||||||||
Placement fee adjustment | 5,540 | (3,232) | |||||||||
OMG expense, net | 139,755 | 127,150 | |||||||||
Other expense, net | 131 | 91 | |||||||||
Income before taxes of non-controlling interests in consolidated subsidiaries | (3,662) | (5,671) | |||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (65,586) | (27,171) | |||||||||
Total performance (income) loss—unrealized | 45,476 | (127,713) | |||||||||
Total performance related compensation—unrealized | (64,514) | 85,150 | |||||||||
Total investment income—unrealized | (4,287) | (28,777) | |||||||||
Realized income | 429,048 | 380,909 | |||||||||
Total performance income—realized | (23,181) | (31,136) | |||||||||
Total performance related compensation—realized | 13,156 | 23,859 | |||||||||
Total investment loss—realized | 22,951 | 7,504 | |||||||||
Fee related earnings | $ | 441,974 | $ | 381,136 |
As of March 31, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs(1) | $ | 399,885 | $ | 503,376 | |||||||
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs(1) | 908,198 | 910,600 | |||||||||
Assets of consolidated VIEs | 15,335,745 | 15,484,962 | |||||||||
Liabilities of consolidated VIEs | 13,058,395 | 13,409,257 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income attributable to non-controlling interests related to consolidated VIEs | $ | 58,356 | $ | 37,131 |
As of March 31, 2024 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 346,331 | $ | — | $ | — | $ | 346,331 | |||||||||||||||
Investments (includes $3,361,519 of accrued carried interest) | 5,410,366 | — | (925,482) | 4,484,884 | |||||||||||||||||||
981,917 | — | (172,644) | 809,273 | ||||||||||||||||||||
Other assets | 519,292 | — | — | 519,292 | |||||||||||||||||||
Right-of-use operating lease assets | 237,019 | — | — | 237,019 | |||||||||||||||||||
Intangible assets, net | 1,030,076 | — | — | 1,030,076 | |||||||||||||||||||
Goodwill | 1,130,085 | — | — | 1,130,085 | |||||||||||||||||||
Assets of Consolidated Funds | |||||||||||||||||||||||
Cash and cash equivalents | — | 1,199,376 | — | 1,199,376 | |||||||||||||||||||
Investments held in trust account | — | 529,887 | — | 529,887 | |||||||||||||||||||
Investments, at fair value | — | 13,790,030 | — | 13,790,030 | |||||||||||||||||||
— | 27,358 | (11,434) | 15,924 | ||||||||||||||||||||
Receivable for securities sold | — | 243,998 | — | 243,998 | |||||||||||||||||||
Other assets | — | 77,095 | — | 77,095 | |||||||||||||||||||
Total assets | $ | 9,655,086 | $ | 15,867,744 | $ | (1,109,560) | $ | 24,413,270 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 273,985 | $ | — | $ | (11,434) | $ | 262,551 | |||||||||||||||
Accrued compensation | 217,788 | — | — | 217,788 | |||||||||||||||||||
363,308 | — | — | 363,308 | ||||||||||||||||||||
Performance related compensation payable | 2,449,732 | — | — | 2,449,732 | |||||||||||||||||||
Debt obligations | 3,046,182 | — | — | 3,046,182 | |||||||||||||||||||
Operating lease liabilities | 308,336 | — | — | 308,336 | |||||||||||||||||||
Liabilities of Consolidated Funds | |||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | — | 189,556 | — | 189,556 | |||||||||||||||||||
— | 185,371 | (172,644) | 12,727 | ||||||||||||||||||||
Payable for securities purchased | — | 548,032 | — | 548,032 | |||||||||||||||||||
CLO loan obligations, at fair value | — | 12,020,005 | (113,659) | 11,906,346 | |||||||||||||||||||
Fund borrowings | — | 78,241 | — | 78,241 | |||||||||||||||||||
Total liabilities | 6,659,331 | 13,021,205 | (297,737) | 19,382,799 | |||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
Redeemable interest in Consolidated Funds | — | 529,787 | — | 529,787 | |||||||||||||||||||
Redeemable interest in Ares Operating Group entities | 23,612 | — | — | 23,612 | |||||||||||||||||||
Non-controlling interest in Consolidated Funds | — | 2,316,752 | (801,450) | 1,515,302 | |||||||||||||||||||
Non-controlling interest in Ares Operating Group entities | 1,198,132 | — | (3,856) | 1,194,276 | |||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (191,057,860 shares issued and outstanding) | 1,911 | — | — | 1,911 | |||||||||||||||||||
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 (115,120,213 shares issued and outstanding) | 1,151 | — | — | 1,151 | |||||||||||||||||||
Additional paid-in-capital | 2,393,954 | — | (6,517) | 2,387,437 | |||||||||||||||||||
Accumulated deficit | (612,560) | — | — | (612,560) | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | (10,480) | — | — | (10,480) | |||||||||||||||||||
Total stockholders’ equity | 1,774,011 | — | (6,517) | 1,767,494 | |||||||||||||||||||
Total equity | 2,972,143 | 2,316,752 | (811,823) | 4,477,072 | |||||||||||||||||||
Total liabilities, redeemable interest, non-controlling interests and equity | $ | 9,655,086 | $ | 15,867,744 | $ | (1,109,560) | $ | 24,413,270 |
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 | |||||||||||||||||||
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 | |||||||||||||||||||
— | 25,794 | (11,643) | 14,151 | ||||||||||||||||||||
Receivable for securities sold | — | 146,851 | — | 146,851 | |||||||||||||||||||
Other assets | — | 86,672 | — | 86,672 | |||||||||||||||||||
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 | |||||||||||||||||||
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 | |||||||||||||||||||
— | 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 |
Three months ended March 31, 2024 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 700,145 | $ | — | $ | (12,453) | $ | 687,692 | |||||||||||||||
Carried interest allocation | (26,550) | — | (5,928) | (32,478) | |||||||||||||||||||
Incentive fees | 8,664 | — | 3 | 8,667 | |||||||||||||||||||
Principal investment income (loss) | (2,665) | — | 9,715 | 7,050 | |||||||||||||||||||
Administrative, transaction and other fees | 36,545 | — | (113) | 36,432 | |||||||||||||||||||
Total revenues | 716,139 | — | (8,776) | 707,363 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 412,951 | — | — | 412,951 | |||||||||||||||||||
Performance related compensation | (50,532) | — | — | (50,532) | |||||||||||||||||||
General, administrative and other expense | 171,361 | — | (433) | 170,928 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 17,708 | (12,562) | 5,146 | |||||||||||||||||||
Total expenses | 533,780 | 17,708 | (12,995) | 538,493 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized gains on investments | 12,357 | — | (1,841) | 10,516 | |||||||||||||||||||
Interest and dividend income | 8,092 | — | (2,710) | 5,382 | |||||||||||||||||||
Interest expense | (37,824) | — | — | (37,824) | |||||||||||||||||||
Other income, net | 478 | — | (208) | 270 | |||||||||||||||||||
Net realized and unrealized gains on investments of the Consolidated Funds | — | 32,352 | 2,072 | 34,424 | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 257,067 | 209 | 257,276 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (209,442) | 1,576 | (207,866) | |||||||||||||||||||
Total other income (expense), net | (16,897) | 79,977 | (902) | 62,178 | |||||||||||||||||||
Income before taxes | 165,462 | 62,269 | 3,317 | 231,048 | |||||||||||||||||||
Income tax expense (benefit) | 28,363 | (1,130) | — | 27,233 | |||||||||||||||||||
Net income | 137,099 | 63,399 | 3,317 | 203,815 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 63,399 | 3,317 | 66,716 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 137,099 | — | — | 137,099 | |||||||||||||||||||
Less: Net income attributable to redeemable interest in Ares Operating Group entities | 73 | — | — | 73 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 63,999 | — | — | 63,999 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | — | $ | — | $ | 73,027 |
Three months ended March 31, 2023 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 612,117 | $ | — | $ | (11,601) | $ | 600,516 | |||||||||||||||
Carried interest allocation | 154,895 | — | (3,407) | 151,488 | |||||||||||||||||||
Incentive fees | 9,061 | — | (138) | 8,923 | |||||||||||||||||||
Principal investment income | 35,457 | — | (12,699) | 22,758 | |||||||||||||||||||
Administrative, transaction and other fees | 34,520 | — | (4,843) | 29,677 | |||||||||||||||||||
Total revenues | 846,050 | — | (32,688) | 813,362 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | 360,781 | — | — | 360,781 | |||||||||||||||||||
Performance related compensation | 111,658 | — | — | 111,658 | |||||||||||||||||||
General, administrative and other expense | 148,688 | — | (343) | 148,345 | |||||||||||||||||||
Expenses of the Consolidated Funds | — | 19,641 | (11,789) | 7,852 | |||||||||||||||||||
Total expenses | 621,127 | 19,641 | (12,132) | 628,636 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized gains on investments | 7,852 | — | (6,337) | 1,515 | |||||||||||||||||||
Interest and dividend income | 7,176 | — | (3,337) | 3,839 | |||||||||||||||||||
Interest expense | (24,986) | — | — | (24,986) | |||||||||||||||||||
Other expense, net | (1,014) | — | 91 | (923) | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments of the Consolidated Funds | — | (2,069) | 12,769 | 10,700 | |||||||||||||||||||
Interest and other income of the Consolidated Funds | — | 223,029 | (91) | 222,938 | |||||||||||||||||||
Interest expense of the Consolidated Funds | — | (158,043) | 1,356 | (156,687) | |||||||||||||||||||
Total other income (expense), net | (10,972) | 62,917 | 4,451 | 56,396 | |||||||||||||||||||
Income before taxes | 213,951 | 43,276 | (16,105) | 241,122 | |||||||||||||||||||
Income tax expense | 33,328 | 478 | — | 33,806 | |||||||||||||||||||
Net income | 180,623 | 42,798 | (16,105) | 207,316 | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | — | 42,798 | (16,105) | 26,693 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 180,623 | — | — | 180,623 | |||||||||||||||||||
Less: Net loss attributable to redeemable interest in Ares Operating Group entities | (1,824) | — | — | (1,824) | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 88,408 | — | — | 88,408 | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 94,039 | $ | — | $ | — | $ | 94,039 |
Three months ended March 31, 2024 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 137,099 | $ | 63,399 | $ | 3,317 | $ | 203,815 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | 224,720 | — | (1,724) | 222,996 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds | — | 246,254 | (2,072) | 244,182 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities | 96,544 | — | 7,437 | 103,981 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds | — | (14,577) | (50,352) | (64,929) | |||||||||||||||||||
Net cash provided by operating activities | 458,363 | 295,076 | (43,394) | 710,045 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (26,071) | — | — | (26,071) | |||||||||||||||||||
Acquisitions, net of cash acquired | (8,000) | — | — | (8,000) | |||||||||||||||||||
Net cash used in investing activities | (34,071) | — | — | (34,071) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from Credit Facility | 290,000 | — | — | 290,000 | |||||||||||||||||||
Repayments of Credit Facility | (210,000) | — | — | (210,000) | |||||||||||||||||||
Dividends and distributions | (320,046) | — | — | (320,046) | |||||||||||||||||||
Stock option exercises | 1,511 | — | — | 1,511 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (186,731) | — | — | (186,731) | |||||||||||||||||||
Other financing activities | 1,034 | — | — | 1,034 | |||||||||||||||||||
Allocable to redeemable and non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from redeemable and non-controlling interests in Consolidated Funds | — | 180,559 | (11,886) | 168,673 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (32,323) | 5,415 | (26,908) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 36,947 | — | 36,947 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (421,112) | — | (421,112) | |||||||||||||||||||
Net cash used in financing activities | (424,232) | (235,929) | (6,471) | (666,632) | |||||||||||||||||||
Effect of exchange rate changes | (2,003) | (9,282) | — | (11,285) | |||||||||||||||||||
Net change in cash and cash equivalents | (1,943) | 49,865 | (49,865) | (1,943) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 348,274 | 1,149,511 | (1,149,511) | 348,274 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 346,331 | $ | 1,199,376 | $ | (1,199,376) | $ | 346,331 | |||||||||||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||||||||||||||
Issuance of common stock in connection with acquisition-related activities | $ | 7,724 | $ | — | $ | — | $ | 7,724 | |||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||
Consolidated Company Entities | Consolidated Funds | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 180,623 | $ | 42,798 | $ | (16,105) | $ | 207,316 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | 100,469 | — | 21,292 | 121,761 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds | — | 341,609 | (12,769) | 328,840 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities | (132,777) | — | 139,848 | 7,071 | |||||||||||||||||||
Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds | — | 202,877 | (160,293) | 42,584 | |||||||||||||||||||
Net cash provided by operating activities | 148,315 | 587,284 | (28,027) | 707,572 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | (8,877) | — | — | (8,877) | |||||||||||||||||||
Net cash used in investing activities | (8,877) | — | — | (8,877) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from Credit Facility | 245,000 | — | — | 245,000 | |||||||||||||||||||
Repayments of Credit Facility | (150,000) | — | — | (150,000) | |||||||||||||||||||
Dividends and distributions | (251,632) | — | — | (251,632) | |||||||||||||||||||
Stock option exercises | 9,180 | — | — | 9,180 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (113,431) | — | — | (113,431) | |||||||||||||||||||
Other financing activities | 483 | — | — | 483 | |||||||||||||||||||
Allocable to non-controlling interests in Consolidated Funds: | |||||||||||||||||||||||
Contributions from non-controlling interests in Consolidated Funds | — | 103,808 | (10,223) | 93,585 | |||||||||||||||||||
Distributions to non-controlling interests in Consolidated Funds | — | (28,890) | 7,957 | (20,933) | |||||||||||||||||||
Redemptions of redeemable interests in Consolidated Funds | — | (538,985) | — | (538,985) | |||||||||||||||||||
Borrowings under loan obligations by Consolidated Funds | — | 2,914 | — | 2,914 | |||||||||||||||||||
Repayments under loan obligations by Consolidated Funds | — | (97,325) | — | (97,325) | |||||||||||||||||||
Net cash used in financing activities | (260,400) | (558,478) | (2,266) | (821,144) | |||||||||||||||||||
Effect of exchange rate changes | 3,224 | 1,487 | — | 4,711 | |||||||||||||||||||
Net change in cash and cash equivalents | (117,738) | 30,293 | (30,293) | (117,738) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 389,987 | 724,641 | (724,641) | 389,987 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 272,249 | $ | 754,934 | $ | (754,934) | $ | 272,249 | |||||||||||||||
Supplemental disclosure of non-cash financing activities: | |||||||||||||||||||||||
Issuance of common stock in connection with acquisition-related activities | $ | 115,364 | $ | — | $ | — | $ | 115,364 | |||||||||||||||
Issuance of common stock in connection with settlement of management incentive program | $ | 245,647 | $ | — | $ | — | $ | 245,647 | |||||||||||||||
Returns (%) | ||||||||||||||||||||
Type of Index | Name of Index | Region | Three months ended March 31, 2024 | |||||||||||||||||
High yield bonds | ICE BAML High Yield Master II Index | U.S. | 1.5 | |||||||||||||||||
High yield bonds | ICE BAML European Currency High Yield Index | Europe | 1.7 | |||||||||||||||||
Leveraged loans | Credit Suisse Leveraged Loan Index (“CSLLI”) | U.S. | 2.5 | |||||||||||||||||
Leveraged loans | Credit Suisse Western European Leveraged Loan Index | Europe | 2.0 | |||||||||||||||||
Equities | S&P 500 Index | U.S. | 10.6 | |||||||||||||||||
Equities | MSCI All Country World Ex-U.S. Index | Non-U.S. | 4.7 | |||||||||||||||||
Real estate equities | FTSE NAREIT All Equity REITs Index | U.S. | (2.3) | |||||||||||||||||
Real estate equities | FTSE EPRA/NAREIT Developed Europe Index | Europe | (3.5) |
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other Businesses | Total AUM | |||||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 299,350 | $ | 65,413 | $ | 24,551 | $ | 24,760 | $ | 4,772 | $ | 418,846 | ||||||||||||||||||||||||||
Acquisitions | — | — | — | — | 71 | 71 | ||||||||||||||||||||||||||||||||
Net new par/equity commitments | 7,735 | 408 | 315 | 969 | 1,515 | 10,942 | ||||||||||||||||||||||||||||||||
Net new debt commitments | 6,112 | — | — | — | — | 6,112 | ||||||||||||||||||||||||||||||||
Capital reductions | (1,485) | (128) | (2) | — | — | (1,615) | ||||||||||||||||||||||||||||||||
Distributions | (3,563) | (846) | (36) | (164) | (135) | (4,744) | ||||||||||||||||||||||||||||||||
Redemptions | (2,517) | (434) | (2) | — | — | (2,953) | ||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 715 | — | (47) | — | (668) | — | ||||||||||||||||||||||||||||||||
Change in fund value | 2,292 | (309) | (303) | 76 | (76) | 1,680 | ||||||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 308,639 | $ | 64,104 | $ | 24,476 | $ | 25,641 | $ | 5,479 | $ | 428,339 | ||||||||||||||||||||||||||
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other Businesses | Total AUM | |||||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 239,299 | $ | 66,061 | $ | 21,029 | $ | 21,961 | $ | 3,647 | $ | 351,997 | ||||||||||||||||||||||||||
Net new par/equity commitments | 9,040 | 765 | 50 | 1,246 | 3,481 | 14,582 | ||||||||||||||||||||||||||||||||
Net new debt commitments | 1,423 | — | — | — | — | 1,423 | ||||||||||||||||||||||||||||||||
Capital reductions | (2,081) | (403) | (3) | — | — | (2,487) | ||||||||||||||||||||||||||||||||
Distributions | (1,588) | (1,663) | (266) | (424) | (1,920) | (5,861) | ||||||||||||||||||||||||||||||||
Redemptions | (1,376) | (538) | — | — | (539) | (2,453) | ||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 816 | — | — | — | (816) | — | ||||||||||||||||||||||||||||||||
Change in fund value | 3,601 | (108) | (154) | 111 | (356) | 3,094 | ||||||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 249,134 | $ | 64,114 | $ | 20,656 | $ | 22,894 | $ | 3,497 | $ | 360,295 | ||||||||||||||||||||||||||
AUM: $428.3 | AUM: $360.3 |
FPAUM | Non-fee paying(1) | AUM not yet paying fees |
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other Businesses | Total | |||||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 185,280 | $ | 41,338 | $ | 13,124 | $ | 19,040 | $ | 3,575 | $ | 262,357 | ||||||||||||||||||||||||||
Acquisitions | — | — | — | — | 55 | 55 | ||||||||||||||||||||||||||||||||
Commitments | 3,778 | 296 | — | 900 | 1,321 | 6,295 | ||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 7,221 | 862 | — | 61 | — | 8,144 | ||||||||||||||||||||||||||||||||
Capital reductions | (2,764) | (12) | — | — | — | (2,776) | ||||||||||||||||||||||||||||||||
Distributions | (3,662) | (306) | — | (99) | (135) | (4,202) | ||||||||||||||||||||||||||||||||
Redemptions | (2,149) | (434) | (2) | — | — | (2,585) | ||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 886 | — | — | — | (886) | — | ||||||||||||||||||||||||||||||||
Change in fund value | 543 | (404) | (19) | (2) | 68 | 186 | ||||||||||||||||||||||||||||||||
Change in fee basis | 693 | (504) | (538) | (9) | — | (358) | ||||||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 189,826 | $ | 40,836 | $ | 12,565 | $ | 19,891 | $ | 3,998 | $ | 267,116 | ||||||||||||||||||||||||||
Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Other Businesses | Total | |||||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 158,441 | $ | 41,607 | $ | 11,281 | $ | 17,668 | $ | 2,064 | $ | 231,061 | ||||||||||||||||||||||||||
Commitments | 1,081 | 596 | — | 107 | 2,372 | 4,156 | ||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 4,984 | 221 | — | 110 | — | 5,315 | ||||||||||||||||||||||||||||||||
Capital reductions | (1,533) | (279) | — | — | — | (1,812) | ||||||||||||||||||||||||||||||||
Distributions | (2,536) | (632) | — | (197) | (645) | (4,010) | ||||||||||||||||||||||||||||||||
Redemptions | (1,377) | (538) | — | — | — | (1,915) | ||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 816 | — | — | — | (816) | — | ||||||||||||||||||||||||||||||||
Change in fund value | 1,342 | (47) | — | 108 | (240) | 1,163 | ||||||||||||||||||||||||||||||||
Change in fee basis | — | — | — | (49) | — | (49) | ||||||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 161,218 | $ | 40,928 | $ | 11,281 | $ | 17,747 | $ | 2,735 | $ | 233,909 | ||||||||||||||||||||||||||
FPAUM: $267.1 | FPAUM: $233.9 |
Invested capital/other(1) | Market value(2) | Collateral balances (at par) | Capital commitments |
Perpetual Capital - Publicly-Traded Vehicles | Perpetual Capital - Non-Traded Vehicles | Perpetual Capital - Managed Accounts | Perpetual Capital - Private Commingled Vehicles | Long-Dated Funds(1) | Other |
Credit | Real Assets | Private Equity | Secondaries | Other Businesses |
Credit | Real Assets | Private Equity | Secondaries | Other Businesses |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Total revenues | $ | 707,363 | $ | 813,362 | $ | (105,999) | (13)% | ||||||||||||||||
Total expenses | (538,493) | (628,636) | 90,143 | 14 | |||||||||||||||||||
Total other income, net | 62,178 | 56,396 | 5,782 | 10 | |||||||||||||||||||
Less: Income tax expense | 27,233 | 33,806 | 6,573 | 19 | |||||||||||||||||||
Net income | 203,815 | 207,316 | (3,501) | (2) | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 66,716 | 26,693 | 40,023 | 150 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 137,099 | 180,623 | (43,524) | (24) | |||||||||||||||||||
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities | 73 | (1,824) | 1,897 | NM | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 63,999 | 88,408 | (24,409) | (28) | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | 94,039 | (21,012) | (22) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 687,692 | $ | 600,516 | $ | 87,176 | 15% | ||||||||||||||||
Carried interest allocation | (32,478) | 151,488 | (183,966) | NM | |||||||||||||||||||
Incentive fees | 8,667 | 8,923 | (256) | (3) | |||||||||||||||||||
Principal investment income | 7,050 | 22,758 | (15,708) | (69) | |||||||||||||||||||
Administrative, transaction and other fees | 36,432 | 29,677 | 6,755 | 23 | |||||||||||||||||||
Total revenues | $ | 707,363 | $ | 813,362 | (105,999) | (13) |
Three months ended March 31, 2024 | Primary Drivers | Three months ended March 31, 2023 | Primary Drivers | |||||||||||
Credit funds | $ | 219.6 | Primarily from four direct lending funds, one alternative credit fund and three opportunistic credit funds with $35.8 billion of IGAUM generating returns in excess of their hurdle rates. Our direct lending funds have benefited from rising interest rates on predominately floating-rate loans. Ares Private Credit Solutions II, L.P. (“PCS II”), Ares Capital Europe V, L.P. (“ACE V”) and our sixth European direct lending fund generated carried interest allocation of $71.3 million, $39.7 million and $7.7 million, respectively, driven by net investment income on an increasing invested capital base. Ares Capital Europe IV, L.P. (“ACE IV”) generated carried interest allocation of $15.7 million driven by net investment income during the period. Within our alternative credit funds, Ares Pathfinder Fund, L.P. (“Pathfinder I”) generated carried interest allocation of $7.7 million driven by market appreciation of certain investments and net investment income during the period. In addition, within our opportunistic credit funds, Ares Special Opportunities Fund II, L.P. (“ASOF II”) generated carried interest allocation of $30.4 million, driven by improving operating performance of portfolio companies that operate in the retail and healthcare industries. Ares Special Situations Fund IV, L.P. (“SSF IV”) and Ares Special Opportunities Fund, L.P. (“ASOF I”) generated carried interest allocation of $29.8 million and $12.4 million, respectively, primarily due to market appreciation of their investments in Savers Value Village (“SVV”) driven by its higher stock price. | $ | 195.1 | Primarily from two opportunistic credit funds, four direct lending funds and one alternative credit fund with $29.1 billion of IGAUM generating returns in excess of their hurdle rates. Appreciation across several portfolio company investments within opportunistic credit was primarily driven by improving operating performance metrics in companies that operate in the services and retail industries. SSF IV and ASOF I generated carried interest allocation of $53.1 million and $25.3 million, respectively. In addition, within our direct lending and alternative credit funds, ACE V generated carried interest allocation of $44.8 million driven by net investment income on an increasing invested capital base. ACE IV, PCS I, Ares Capital Europe III, L.P. (“ACE III”) and Pathfinder I generated carried interest allocation of $24.0 million, $14.6 million, $9.3 million and $3.4 million, respectively, primarily driven by net investment income during the period. Our direct lending and alternative credit funds have benefited from rising interest rates on predominately floating-rate loans. | ||||||||
Real assets funds | (6.9) | Reversal of unrealized carried interest of $10.8 million from two European real estate equity funds, $4.4 million from Ares European Real Estate Fund IV, L.P. (“EF IV”) and $3.0 million from Ares Real Estate Opportunity Fund III, L.P. (“AREOF III”), driven by lower valuations of certain office, hotel, retail and industrial properties. In addition, the reversal of unrealized carried interest of $1.6 million from Ares Climate Infrastructure Partners, L.P. (“ACIP”) was driven by lower valuations of certain investments. The reversal was partially offset by carried interest allocation of $12.8 million from Ares Infrastructure Debt Fund V, L.P. (“IDF V”), driven by net investment income during the period. | (12.8) | Reversal of unrealized carried interest of $16.5 million from three European real estate equity funds and $5.6 million from three U.S. real estate equity funds primarily driven by lower valuations of certain properties. In addition, reversal of unrealized carried interest of $7.8 million from Ares Energy Investors Fund V, L.P. (“EIF V”) was due to lower valuations of certain investments. Increased operating income and appreciation of certain properties generated carried interest allocation of $7.5 million from two U.S. real estate equity funds and $1.1 million from AREOF III. IDF V generated carried interest allocation of $6.4 million driven by net investment income during the period and ACIP generated carried interest allocation of $4.6 million driven by appreciation of certain investments. | ||||||||||
Private equity funds | (236.4) | Reversal of unrealized carried interest allocation of $244.3 million from Ares Corporate Opportunities Fund V, L.P. (“ACOF V”) was driven by lower operating performance metrics of certain portfolio companies that primarily operate in the healthcare and energy industries. The reversal was partially offset by carried interest allocation generated from Ares Corporate Opportunities Fund VI, L.P. (“ACOF VI”) of $28.0 million, driven by appreciation across its investments in several portfolio companies that primarily operate in the services and retail industries and had positive operating performance during the period. | (30.2) | Reversal of unrealized carried interest allocation of $36.5 million from ACOF V was driven by lower operating performance metrics of certain portfolio companies that primarily operate in the healthcare industry. The reversal was partially offset by carried interest allocation of $10.1 million from ACOF VI, driven by appreciation across its investments in several portfolio companies that primarily operate in the services and retail industries. | ||||||||||
Secondaries funds | (8.8) | Depreciation across several investments in Landmark Equity Partners XVI, L.P. (“LEP XVI”) and Landmark Equity Partners XVII, L.P. (“LEP XVII”), led to the reversal of unrealized carried interest of $4.5 million and $3.0 million, respectively. | (0.6) | Reversal of unrealized carried interest from LEP XVI driven by depreciation across several investments. | ||||||||||
Carried interest allocation | $ | (32.5) | $ | 151.5 |
Three months ended March 31, 2024 | Primary Drivers | Three months ended March 31, 2023 | Primary Drivers | |||||||||||
Credit funds | $ | 2.0 | Incentive fee generated from a U.S. direct lending fund following its liquidation and incentive fee adjustment from various U.S. and European direct lending funds following the measurement period. | $ | 1.1 | Incentive fee adjustments from two U.S. direct lending funds and one European direct lending fund following the measurement period. | ||||||||
Real assets funds | 3.7 | Incentive fees generated from an open-ended industrial real estate fund. | 4.5 | Incentive fees generated from an open-ended industrial real estate fund. | ||||||||||
Secondaries funds | 3.0 | Incentive fees generated from APMF. | 3.3 | Incentive fees generated from APMF. | ||||||||||
Incentive fees | $ | 8.7 | $ | 8.9 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | $ | 412,951 | $ | 360,781 | $ | (52,170) | (14)% | ||||||||||||||||
Performance related compensation | (50,532) | 111,658 | 162,190 | NM | |||||||||||||||||||
General, administrative and other expenses | 170,928 | 148,345 | (22,583) | (15) | |||||||||||||||||||
Expenses of Consolidated Funds | 5,146 | 7,852 | 2,706 | 34 | |||||||||||||||||||
Total expenses | $ | 538,493 | $ | 628,636 | (90,143) | (14) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Net realized and unrealized gains on investments | $ | 10,516 | $ | 1,515 | $ | 9,001 | NM | ||||||||||||||||
Interest and dividend income | 5,382 | 3,839 | 1,543 | 40 | |||||||||||||||||||
Interest expense | (37,824) | (24,986) | (12,838) | (51) | |||||||||||||||||||
Other income (expense), net | 270 | (923) | 1,193 | NM | |||||||||||||||||||
Net realized and unrealized gains on investments of Consolidated Funds | 34,424 | 10,700 | 23,724 | 222 | |||||||||||||||||||
Interest and other income of Consolidated Funds | 257,276 | 222,938 | 34,338 | 15 | |||||||||||||||||||
Interest expense of Consolidated Funds | (207,866) | (156,687) | (51,179) | (33) | |||||||||||||||||||
Total other income, net | $ | 62,178 | $ | 56,396 | 5,782 | 10 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Income before taxes | $ | 231,048 | $ | 241,122 | $ | (10,074) | (4)% | ||||||||||||||||
Less: Income tax expense | 27,233 | 33,806 | 6,573 | 19 | |||||||||||||||||||
Net income | $ | 203,815 | $ | 207,316 | (3,501) | (2) |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
AMC common stockholders | 62.32 | % | 60.14 | % | ||||||||||
Non-controlling AOG unitholders | 37.68 | 39.86 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Net income | $ | 203,815 | $ | 207,316 | $ | (3,501) | (2)% | ||||||||||||||||
Less: Net income attributable to non-controlling interests in Consolidated Funds | 66,716 | 26,693 | 40,023 | 150 | |||||||||||||||||||
Net income attributable to Ares Operating Group entities | 137,099 | 180,623 | (43,524) | (24) | |||||||||||||||||||
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities | 73 | (1,824) | 1,897 | NM | |||||||||||||||||||
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 63,999 | 88,408 | (24,409) | (28) | |||||||||||||||||||
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | $ | 73,027 | $ | 94,039 | (21,012) | (22) |
Three months ended March 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||
Expenses of the Consolidated Funds | $ | (5,146) | $ | (7,852) | $ | 2,706 | 34% | |||||||||||||||||||
Net realized and unrealized gains on investments of Consolidated Funds | 34,424 | 10,700 | 23,724 | 222 | ||||||||||||||||||||||
Interest and other income of Consolidated Funds | 257,276 | 222,938 | 34,338 | 15 | ||||||||||||||||||||||
Interest expense of Consolidated Funds | (207,866) | (156,687) | (51,179) | (33) | ||||||||||||||||||||||
Income before taxes | 78,688 | 69,099 | 9,589 | 14 | ||||||||||||||||||||||
Less: Income tax expense (benefit) of Consolidated Funds | (1,130) | 478 | 1,608 | NM | ||||||||||||||||||||||
Net income | 79,818 | 68,621 | 11,197 | 16 | ||||||||||||||||||||||
Less: Revenues attributable to Ares Management Corporation eliminated upon consolidation | 8,776 | 32,688 | (23,912) | (73) | ||||||||||||||||||||||
Other income, net attributable to Ares Management Corporation eliminated upon consolidation | (4,759) | (9,583) | (4,824) | (50) | ||||||||||||||||||||||
General, administrative and other expense attributable to Ares Management Corporation eliminated upon consolidation | 433 | 343 | (90) | (26) | ||||||||||||||||||||||
Net income attributable to non-controlling interests in Consolidated Funds | $ | 66,716 | $ | 26,693 | 40,023 | 150 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings: | |||||||||||||||||||||||
Credit Group | $ | 352,417 | $ | 291,640 | $ | 60,777 | 21% | ||||||||||||||||
Real Assets Group | 46,518 | 53,662 | (7,144) | (13) | |||||||||||||||||||
Private Equity Group | 15,371 | 9,123 | 6,248 | 68 | |||||||||||||||||||
Secondaries Group | 25,605 | 25,430 | 175 | 1 | |||||||||||||||||||
Other | 2,063 | 1,281 | 782 | 61 | |||||||||||||||||||
Operations Management Group | (140,304) | (126,499) | (13,805) | (11) | |||||||||||||||||||
Fee Related Earnings | $ | 301,670 | $ | 254,637 | 47,033 | 18 | |||||||||||||||||
Realized Income: | |||||||||||||||||||||||
Credit Group | $ | 355,968 | $ | 293,158 | $ | 62,810 | 21% | ||||||||||||||||
Real Assets Group | 45,396 | 52,143 | (6,747) | (13) | |||||||||||||||||||
Private Equity Group | 10,330 | 8,783 | 1,547 | 18 | |||||||||||||||||||
Secondaries Group | 23,117 | 24,350 | (1,233) | (5) | |||||||||||||||||||
Other | (5,763) | 2,475 | (8,238) | NM | |||||||||||||||||||
Operations Management Group | (139,892) | (126,617) | (13,275) | (10) | |||||||||||||||||||
Realized Income | $ | 289,156 | $ | 254,292 | 34,864 | 14 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Income before taxes | $ | 231,048 | $ | 241,122 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization expense | 36,644 | 45,659 | |||||||||
Equity compensation expense | 92,421 | 68,704 | |||||||||
Acquisition-related compensation expense(1) | 5,504 | 642 | |||||||||
Acquisition and merger-related expense | 10,578 | 4,955 | |||||||||
Placement fee adjustment | 5,540 | (3,232) | |||||||||
Other expense, net | 131 | 91 | |||||||||
Income before taxes of non-controlling interests in consolidated subsidiaries | (3,662) | (5,671) | |||||||||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (65,586) | (27,171) | |||||||||
Total performance (income) loss—unrealized | 45,476 | (127,713) | |||||||||
Total performance related compensation—unrealized | (64,514) | 85,150 | |||||||||
Total net investment income—unrealized | (4,424) | (28,244) | |||||||||
Realized Income | 289,156 | 254,292 | |||||||||
Total performance income—realized | (23,181) | (31,136) | |||||||||
Total performance related compensation—realized | 13,156 | 23,859 | |||||||||
Total investment loss—realized | 22,539 | 7,622 | |||||||||
Fee Related Earnings | $ | 301,670 | $ | 254,637 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Management fees | $ | 510,966 | $ | 430,467 | $ | 80,499 | 19% | ||||||||||||||||
Fee related performance revenues | 755 | 600 | 155 | 26 | |||||||||||||||||||
Other fees | 9,911 | 9,149 | 762 | 8 | |||||||||||||||||||
Compensation and benefits | (134,849) | (121,900) | (12,949) | (11) | |||||||||||||||||||
General, administrative and other expenses | (34,366) | (26,676) | (7,690) | (29) | |||||||||||||||||||
Fee Related Earnings | $ | 352,417 | $ | 291,640 | 60,777 | 21 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings | $ | 352,417 | $ | 291,640 | $ | 60,777 | 21% | ||||||||||||||||
Performance income—realized | 16,766 | 7,410 | 9,356 | 126 | |||||||||||||||||||
Performance related compensation—realized | (8,734) | (5,881) | (2,853) | (49) | |||||||||||||||||||
Realized net performance income | 8,032 | 1,529 | 6,503 | NM | |||||||||||||||||||
Investment income (loss)—realized | (398) | 506 | (904) | NM | |||||||||||||||||||
Interest and other investment income—realized | 4,930 | 8,113 | (3,183) | (39) | |||||||||||||||||||
Interest expense | (9,013) | (8,630) | (383) | (4) | |||||||||||||||||||
Realized net investment loss | (4,481) | (11) | (4,470) | NM | |||||||||||||||||||
Realized Income | $ | 355,968 | $ | 293,158 | 62,810 | 21 |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | ||||||||||||||||||||||||||||||
Pathfinder I | $ | 162,875 | $ | 138,444 | $ | 24,431 | $ | 155,136 | $ | 131,866 | $ | 23,270 | |||||||||||||||||||||||
ASOF I | 369,420 | 258,891 | 110,529 | 357,016 | 250,198 | 106,818 | |||||||||||||||||||||||||||||
ASOF II | 111,339 | 77,937 | 33,402 | 80,926 | 56,648 | 24,278 | |||||||||||||||||||||||||||||
PCS I | 126,161 | 74,549 | 51,612 | 123,979 | 73,258 | 50,721 | |||||||||||||||||||||||||||||
PCS II | 110,672 | 65,346 | 45,326 | 38,128 | 22,573 | 15,555 | |||||||||||||||||||||||||||||
ACE IV | 165,299 | 107,327 | 57,972 | 149,584 | 97,123 | 52,461 | |||||||||||||||||||||||||||||
ACE V | 271,905 | 171,187 | 100,718 | 232,201 | 146,219 | 85,982 | |||||||||||||||||||||||||||||
Other credit funds | 438,334 | 283,083 | 155,251 | 414,318 | 263,581 | 150,737 | |||||||||||||||||||||||||||||
Total Credit Group | $ | 1,756,005 | $ | 1,176,764 | $ | 579,241 | $ | 1,551,288 | $ | 1,041,466 | $ | 509,822 |
As of December 31, 2023 | Activity during the period | As of March 31, 2024 | ||||||||||||||||||||||||||||||||||||
Waterfall Type | Accrued Performance Income | Change in Unrealized | Realized | Other Adjustments | Accrued Performance Income | |||||||||||||||||||||||||||||||||
Accrued Carried Interest | ||||||||||||||||||||||||||||||||||||||
Pathfinder I | European | $ | 155,136 | $ | 7,739 | $ | — | $ | — | $ | 162,875 | |||||||||||||||||||||||||||
ASOF I | European | 357,016 | 12,404 | — | — | — | 369,420 | |||||||||||||||||||||||||||||||
ASOF II | European | 80,926 | 30,413 | — | — | 111,339 | ||||||||||||||||||||||||||||||||
PCS I | European | 123,979 | 8,094 | (5,943) | 31 | 126,161 | ||||||||||||||||||||||||||||||||
PCS II | European | 38,128 | 71,289 | — | 1,255 | 110,672 | ||||||||||||||||||||||||||||||||
ACE IV | European | 149,584 | 15,715 | — | — | 165,299 | ||||||||||||||||||||||||||||||||
ACE V | European | 232,201 | 39,704 | — | — | 271,905 | ||||||||||||||||||||||||||||||||
Other credit funds | European | 389,887 | 33,131 | (6,627) | (2,243) | 414,148 | ||||||||||||||||||||||||||||||||
Other credit funds | American | 24,431 | 1,095 | (2,913) | 1,573 | 24,186 | ||||||||||||||||||||||||||||||||
Total accrued carried interest | 1,551,288 | 219,584 | (15,483) | 616 | 1,756,005 | |||||||||||||||||||||||||||||||||
Other credit funds | Incentive | — | 1,283 | (1,283) | — | — | ||||||||||||||||||||||||||||||||
Total Credit Group | $ | 1,551,288 | $ | 220,867 | $ | (16,766) | $ | 616 | $ | 1,756,005 |
Liquid Credit | Alternative Credit | Opportunistic Credit | U.S. Direct Lending | European Direct Lending | APAC Credit | Other(1) | Total Credit Group | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 47,299 | $ | 33,886 | $ | 14,554 | $ | 123,073 | $ | 68,264 | $ | 11,920 | $ | 354 | $ | 299,350 | |||||||||||||||||||||||||||||||||||||
Net new par/equity commitments | 695 | 1,828 | — | 2,462 | 2,692 | — | 58 | 7,735 | |||||||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 994 | — | — | 4,836 | 662 | (380) | — | 6,112 | |||||||||||||||||||||||||||||||||||||||||||||
Capital reductions | (1,134) | — | — | (553) | 51 | 151 | — | (1,485) | |||||||||||||||||||||||||||||||||||||||||||||
Distributions | (45) | (438) | (289) | (1,487) | (1,199) | (105) | — | (3,563) | |||||||||||||||||||||||||||||||||||||||||||||
Redemptions | (1,695) | — | — | (720) | (102) | — | — | (2,517) | |||||||||||||||||||||||||||||||||||||||||||||
Net allocations among investment strategies | — | 668 | — | — | 150 | — | (103) | 715 | |||||||||||||||||||||||||||||||||||||||||||||
Change in fund value | 133 | 537 | 291 | 1,570 | (317) | 77 | 1 | 2,292 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 46,247 | $ | 36,481 | $ | 14,556 | $ | 129,181 | $ | 70,201 | $ | 11,663 | $ | 310 | $ | 308,639 | |||||||||||||||||||||||||||||||||||||
Liquid Credit | Alternative Credit | Opportunistic Credit | U.S. Direct Lending | European Direct Lending | APAC Credit | Other(1) | Total Credit Group | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 43,864 | $ | 21,363 | $ | 13,720 | $ | 98,327 | $ | 50,642 | $ | 11,383 | $ | — | $ | 239,299 | |||||||||||||||||||||||||||||||||||||
Net new par/equity commitments | 401 | 2,289 | — | 1,776 | 4,324 | — | 250 | 9,040 | |||||||||||||||||||||||||||||||||||||||||||||
Net new debt commitments | 466 | — | — | 740 | 217 | — | — | 1,423 | |||||||||||||||||||||||||||||||||||||||||||||
Capital reductions | (62) | — | — | (838) | (1,181) | — | — | (2,081) | |||||||||||||||||||||||||||||||||||||||||||||
Distributions | (143) | (248) | (61) | (704) | (397) | (35) | — | (1,588) | |||||||||||||||||||||||||||||||||||||||||||||
Redemptions | (545) | (739) | — | (92) | — | — | — | (1,376) | |||||||||||||||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 4 | 812 | — | — | — | — | — | 816 | |||||||||||||||||||||||||||||||||||||||||||||
Change in fund value | 511 | 340 | 332 | 1,003 | 1,429 | (14) | — | 3,601 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 44,496 | $ | 23,817 | $ | 13,991 | $ | 100,212 | $ | 55,034 | $ | 11,334 | $ | 250 | $ | 249,134 | |||||||||||||||||||||||||||||||||||||
(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated in a subsequent period as commitments to an investment strategy. |
AUM: $308.6 | AUM: $249.1 |
FPAUM | AUM not yet paying fees | Non-fee paying(1) |
Liquid Credit | Alternative Credit | Opportunistic Credit | U.S. Direct Lending | European Direct Lending | APAC Credit | Total Credit Group | ||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 46,140 | $ | 23,218 | $ | 8,490 | $ | 67,596 | $ | 34,246 | $ | 5,590 | $ | 185,280 | ||||||||||||||||||||||||||||||
Commitments | 1,223 | — | — | 2,549 | 6 | — | 3,778 | |||||||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | — | 1,233 | 340 | 3,474 | 1,875 | 299 | 7,221 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (967) | — | — | (1,324) | (455) | (18) | (2,764) | |||||||||||||||||||||||||||||||||||||
Distributions | (46) | (373) | (246) | (2,423) | (250) | (324) | (3,662) | |||||||||||||||||||||||||||||||||||||
Redemptions | (1,695) | — | — | (88) | (366) | — | (2,149) | |||||||||||||||||||||||||||||||||||||
Net allocations among investment strategies | — | 886 | — | — | — | — | 886 | |||||||||||||||||||||||||||||||||||||
Change in fund value | 367 | 22 | — | 603 | (478) | 29 | 543 | |||||||||||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 45,022 | $ | 24,986 | $ | 8,584 | $ | 70,387 | $ | 35,271 | $ | 5,576 | $ | 189,826 | ||||||||||||||||||||||||||||||
Liquid Credit | Alternative Credit | Opportunistic Credit | U.S. Direct Lending | European Direct Lending | APAC Credit | Total Credit Group | ||||||||||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 42,191 | $ | 15,904 | $ | 7,166 | $ | 57,568 | $ | 29,561 | $ | 6,051 | $ | 158,441 | ||||||||||||||||||||||||||||||
Commitments | 415 | 25 | — | 641 | — | — | 1,081 | |||||||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 254 | 987 | 703 | 1,415 | 1,359 | 266 | 4,984 | |||||||||||||||||||||||||||||||||||||
Capital reductions | (62) | — | — | (1,279) | (3) | (189) | (1,533) | |||||||||||||||||||||||||||||||||||||
Distributions | (105) | (879) | (400) | (738) | (40) | (374) | (2,536) | |||||||||||||||||||||||||||||||||||||
Redemptions | (544) | (656) | — | (92) | (85) | — | (1,377) | |||||||||||||||||||||||||||||||||||||
Net allocations among investment strategies | 4 | 812 | — | — | — | — | 816 | |||||||||||||||||||||||||||||||||||||
Change in fund value | 479 | 68 | — | 384 | 414 | (3) | 1,342 | |||||||||||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 42,632 | $ | 16,261 | $ | 7,469 | $ | 57,899 | $ | 31,206 | $ | 5,751 | $ | 161,218 | ||||||||||||||||||||||||||||||
FPAUM: $189.8 | FPAUM: $161.2 |
Invested capital | Market value(1) | Collateral balances (at par) | Capital commitments |
Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Harvesting Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL I Unlevered | 2018 | $ | 4,684 | $ | 922 | $ | 872 | $ | 380 | $ | 688 | $ | 1,068 | 1.3x | 1.2x | 9.2 | 7.1 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL I Levered | 2,045 | 2,022 | 1,211 | 1,514 | 2,725 | 1.5x | 1.3x | 15.4 | 11.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Unlevered(7) | 2018 | 9,996 | 2,851 | 2,265 | 934 | 1,914 | 2,848 | 1.3x | 1.2x | 8.2 | 5.8 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE IV Levered(7) | 4,819 | 3,838 | 2,184 | 3,052 | 5,236 | 1.5x | 1.3x | 11.1 | 8.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASOF I | 2019 | 5,337 | 3,518 | 3,134 | 1,967 | 3,193 | 5,160 | 1.9x | 1.6x | 24.9 | 19.4 | Opportunistic Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pathfinder I | 2020 | 4,255 | 3,683 | 3,177 | 277 | 3,560 | 3,837 | 1.3x | 1.2x | 16.6 | 11.8 | Alternative Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PCS II | 2020 | 5,702 | 5,114 | 3,522 | 448 | 3,693 | 4,141 | 1.2x | 1.1x | 11.7 | 7.8 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE V Unlevered(8) | 2020 | 16,901 | 7,026 | 5,095 | 810 | 5,172 | 5,982 | 1.2x | 1.2x | 11.5 | 8.5 | European Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACE V Levered(8) | 6,376 | 4,618 | 1,077 | 4,720 | 5,797 | 1.3x | 1.2x | 17.1 | 12.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASOF II | 2021 | 7,746 | 7,128 | 4,062 | 10 | 4,580 | 4,590 | 1.2x | 1.1x | 15.4 | 10.4 | Opportunistic Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL II Unlevered | 2021 | 15,936 | 1,989 | 1,320 | 163 | 1,342 | 1,505 | 1.2x | 1.1x | 12.5 | 9.8 | U.S. Direct Lending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SDL II Levered | 6,047 | 3,896 | 758 | 3,995 | 4,753 | 1.3x | 1.2x | 20.4 | 15.5 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Management fees | $ | 93,814 | $ | 97,470 | $ | (3,656) | (4)% | ||||||||||||||||
Other fees | 5,075 | 6,462 | (1,387) | (21) | |||||||||||||||||||
Compensation and benefits | (37,918) | (37,986) | 68 | 0 | |||||||||||||||||||
General, administrative and other expenses | (14,453) | (12,284) | (2,169) | (18) | |||||||||||||||||||
Fee Related Earnings | $ | 46,518 | $ | 53,662 | (7,144) | (13) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings | $ | 46,518 | $ | 53,662 | $ | (7,144) | (13)% | ||||||||||||||||
Performance income—realized | 3,677 | 6,086 | (2,409) | (40) | |||||||||||||||||||
Performance related compensation—realized | (2,228) | (3,758) | 1,530 | 41 | |||||||||||||||||||
Realized net performance income | 1,449 | 2,328 | (879) | (38) | |||||||||||||||||||
Investment loss—realized | (457) | (1,772) | 1,315 | 74 | |||||||||||||||||||
Interest and other investment income—realized | 3,835 | 1,821 | 2,014 | 111 | |||||||||||||||||||
Interest expense | (5,949) | (3,896) | (2,053) | (53) | |||||||||||||||||||
Realized net investment loss | (2,571) | (3,847) | 1,276 | 33 | |||||||||||||||||||
Realized Income | $ | 45,396 | $ | 52,143 | (6,747) | (13) |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | ||||||||||||||||||||||||||||||
US VIII | $ | 31,441 | $ | 20,165 | $ | 11,276 | $ | 32,199 | $ | 20,651 | $ | 11,548 | |||||||||||||||||||||||
US Real Estate Fund IX, L.P. (“US IX”) | 92,573 | 57,396 | 35,177 | 89,958 | 55,774 | 34,184 | |||||||||||||||||||||||||||||
AREOF III | 32,696 | 19,618 | 13,078 | 35,715 | 21,429 | 14,286 | |||||||||||||||||||||||||||||
EF IV | 44,790 | 26,874 | 17,916 | 49,150 | 29,490 | 19,660 | |||||||||||||||||||||||||||||
EIF V | 95,380 | 71,301 | 24,079 | 93,598 | 69,969 | 23,629 | |||||||||||||||||||||||||||||
IDF V | 67,478 | 40,497 | 26,981 | 56,065 | 33,677 | 22,388 | |||||||||||||||||||||||||||||
Other real assets funds | 124,182 | 82,160 | 42,022 | 140,167 | 92,468 | 47,699 | |||||||||||||||||||||||||||||
Total Real Assets Group | $ | 488,540 | $ | 318,011 | $ | 170,529 | $ | 496,852 | $ | 323,458 | $ | 173,394 |
As of December 31, 2023 | Activity during the period | As of March 31, 2024 | ||||||||||||||||||||||||||||||||||||
Waterfall Type | Accrued Performance Income | Change in Unrealized | Realized | Other Adjustments | Accrued Performance Income | |||||||||||||||||||||||||||||||||
Accrued Carried Interest | ||||||||||||||||||||||||||||||||||||||
US VIII | European | $ | 32,199 | $ | (758) | $ | — | $ | — | $ | 31,441 | |||||||||||||||||||||||||||
US IX | European | 89,958 | 2,615 | — | — | 92,573 | ||||||||||||||||||||||||||||||||
AREOF III | European | 35,715 | (3,019) | — | — | 32,696 | ||||||||||||||||||||||||||||||||
EF IV | American | 49,150 | (4,360) | — | — | 44,790 | ||||||||||||||||||||||||||||||||
EIF V | European | 93,598 | 1,782 | — | — | 95,380 | ||||||||||||||||||||||||||||||||
IDF V | European | 56,065 | 12,783 | — | (1,370) | 67,478 | ||||||||||||||||||||||||||||||||
Other real assets funds | European | 112,477 | (3,825) | — | (13) | 108,639 | ||||||||||||||||||||||||||||||||
Other real assets funds | American | 27,690 | (12,134) | (13) | — | 15,543 | ||||||||||||||||||||||||||||||||
Total accrued carried interest | 496,852 | (6,916) | (13) | (1,383) | 488,540 | |||||||||||||||||||||||||||||||||
Other real assets funds | Incentive | — | 3,664 | (3,664) | — | — | ||||||||||||||||||||||||||||||||
Total Real Assets Group | $ | 496,852 | $ | (3,252) | $ | (3,677) | $ | (1,383) | $ | 488,540 |
U.S. Real Estate Equity | European Real Estate Equity | Real Estate Debt | Infrastructure Opportunities | Infrastructure Debt | Total Real Assets Group | ||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 29,177 | $ | 9,386 | $ | 11,152 | $ | 6,248 | $ | 9,450 | $ | 65,413 | |||||||||||||||||||||||
Net new par/equity commitments | 297 | — | 12 | — | 99 | 408 | |||||||||||||||||||||||||||||
Capital reductions | — | — | (128) | — | — | (128) | |||||||||||||||||||||||||||||
Distributions | (177) | (16) | (80) | (3) | (570) | (846) | |||||||||||||||||||||||||||||
Redemptions | (364) | — | (70) | — | — | (434) | |||||||||||||||||||||||||||||
Change in fund value | (264) | (156) | (16) | 54 | 73 | (309) | |||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 28,669 | $ | 9,214 | $ | 10,870 | $ | 6,299 | $ | 9,052 | $ | 64,104 | |||||||||||||||||||||||
U.S. Real Estate Equity | European Real Estate Equity | Real Estate Debt | Infrastructure Opportunities | Infrastructure Debt | Total Real Assets Group | ||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 31,460 | $ | 8,561 | $ | 11,161 | $ | 5,194 | $ | 9,685 | $ | 66,061 | |||||||||||||||||||||||
Net new par/equity commitments | 588 | 15 | 162 | — | — | 765 | |||||||||||||||||||||||||||||
Capital reductions | (245) | — | (158) | — | — | (403) | |||||||||||||||||||||||||||||
Distributions | (1,508) | (14) | (62) | (17) | (62) | (1,663) | |||||||||||||||||||||||||||||
Redemptions | (256) | — | (282) | — | — | (538) | |||||||||||||||||||||||||||||
Change in fund value | (201) | (29) | 5 | (2) | 119 | (108) | |||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 29,838 | $ | 8,533 | $ | 10,826 | $ | 5,175 | $ | 9,742 | $ | 64,114 |
AUM: $64.1 | AUM: $64.1 |
FPAUM | Non-fee paying(1) | AUM not yet paying fees |
U.S. Real Estate Equity | European Real Estate Equity | Real Estate Debt | Infrastructure Opportunities | Infrastructure Debt | Total Real Assets Group | |||||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 20,844 | $ | 6,189 | $ | 3,277 | $ | 5,148 | $ | 5,880 | $ | 41,338 | ||||||||||||||||||||||||||
Commitments | 296 | — | — | — | — | 296 | ||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 246 | 119 | 102 | 39 | 356 | 862 | ||||||||||||||||||||||||||||||||
Capital reductions | — | (12) | — | — | — | (12) | ||||||||||||||||||||||||||||||||
Distributions | (141) | (31) | (57) | (69) | (8) | (306) | ||||||||||||||||||||||||||||||||
Redemptions | (364) | — | (70) | — | — | (434) | ||||||||||||||||||||||||||||||||
Change in fund value | (290) | (125) | 13 | 58 | (60) | (404) | ||||||||||||||||||||||||||||||||
Change in fee basis | (504) | — | — | — | — | (504) | ||||||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 20,087 | $ | 6,140 | $ | 3,265 | $ | 5,176 | $ | 6,168 | $ | 40,836 | ||||||||||||||||||||||||||
U.S. Real Estate Equity | European Real Estate Equity | Real Estate Debt | Infrastructure Opportunities | Infrastructure Debt | Total Real Assets Group | |||||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 21,788 | $ | 5,634 | $ | 3,691 | $ | 4,524 | $ | 5,970 | $ | 41,607 | ||||||||||||||||||||||||||
Commitments | 581 | 15 | — | — | — | 596 | ||||||||||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 19 | 18 | 39 | 46 | 99 | 221 | ||||||||||||||||||||||||||||||||
Capital reductions | (245) | — | (34) | — | — | (279) | ||||||||||||||||||||||||||||||||
Distributions | (396) | (55) | (63) | — | (118) | (632) | ||||||||||||||||||||||||||||||||
Redemptions | (256) | — | (282) | — | — | (538) | ||||||||||||||||||||||||||||||||
Change in fund value | (191) | 73 | 14 | — | 57 | (47) | ||||||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 21,300 | $ | 5,685 | $ | 3,365 | $ | 4,570 | $ | 6,008 | $ | 40,928 |
FPAUM: $40.8 | FPAUM: $40.9 |
Market value(1) | Invested capital/other(2) | Capital commitments |
Returns(%) | ||||||||||||||||||||||||||||||||||||||||||||
Year of Inception | AUM | Year-To-Date | Since Inception(1) | Primary Investment Strategy | ||||||||||||||||||||||||||||||||||||||||
Fund | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||||||||
Ares Real Estate Income Trust, Inc. (“AREIT”)(2) | 2012 | $ | 5,289 | N/A | (2.8) | N/A | 6.3 | U.S. Real Estate Equity | ||||||||||||||||||||||||||||||||||||
AIREIT(3) | 2017 | 7,499 | N/A | (4.0) | N/A | 8.8 | U.S. Real Estate Equity | |||||||||||||||||||||||||||||||||||||
Open-ended industrial real estate fund(4) | 2017 | 4,666 | (1.9) | (1.9) | 18.7 | 15.2 | U.S. Real Estate Equity |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Management fees | $ | 34,933 | $ | 29,840 | $ | 5,093 | 17% | ||||||||||||||||
Other fees | 439 | 394 | 45 | 11 | |||||||||||||||||||
Compensation and benefits | (14,785) | (16,626) | 1,841 | 11 | |||||||||||||||||||
General, administrative and other expenses | (5,216) | (4,485) | (731) | (16) | |||||||||||||||||||
Fee Related Earnings | $ | 15,371 | $ | 9,123 | 6,248 | 68 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings | $ | 15,371 | $ | 9,123 | $ | 6,248 | 68% | ||||||||||||||||
Performance income—realized | 2,738 | 17,640 | (14,902) | (84) | |||||||||||||||||||
Performance related compensation—realized | (2,194) | (14,220) | 12,026 | 85 | |||||||||||||||||||
Realized net performance income | 544 | 3,420 | (2,876) | (84) | |||||||||||||||||||
Investment income—realized | 120 | 879 | (759) | (86) | |||||||||||||||||||
Interest and other investment income—realized | 184 | 166 | 18 | 11 | |||||||||||||||||||
Interest expense | (5,889) | (4,805) | (1,084) | (23) | |||||||||||||||||||
Realized net investment loss | (5,585) | (3,760) | (1,825) | (49) | |||||||||||||||||||
Realized Income | $ | 10,330 | $ | 8,783 | 1,547 | 18 |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | ||||||||||||||||||||||||||||||
ACOF IV | $ | 164,181 | $ | 131,474 | $ | 32,707 | $ | 181,317 | $ | 145,197 | $ | 36,120 | |||||||||||||||||||||||
ACOF V | 230,560 | 184,887 | 45,673 | 474,878 | 380,807 | 94,071 | |||||||||||||||||||||||||||||
ACOF VI | 365,119 | 311,490 | 53,629 | 337,142 | 289,118 | 48,024 | |||||||||||||||||||||||||||||
Other funds | 49,505 | 36,552 | 12,953 | 55,178 | 42,295 | 12,883 | |||||||||||||||||||||||||||||
Total Private Equity Group | $ | 809,365 | $ | 664,403 | $ | 144,962 | $ | 1,048,515 | $ | 857,417 | $ | 191,098 |
As of December 31, 2023 | Activity during the period | As of March 31, 2024 | ||||||||||||||||||||||||||||||
Waterfall Type | Accrued Carried Interest | Change in Unrealized | Realized | Accrued Carried Interest | ||||||||||||||||||||||||||||
ACOF IV | American | $ | 181,317 | $ | (14,398) | $ | (2,738) | $ | 164,181 | |||||||||||||||||||||||
ACOF V | American | 474,878 | (244,318) | — | 230,560 | |||||||||||||||||||||||||||
ACOF VI | American | 337,142 | 27,977 | — | 365,119 | |||||||||||||||||||||||||||
Other funds | European | 46,078 | (2,409) | — | 43,669 | |||||||||||||||||||||||||||
Other funds | American | 9,100 | (3,264) | — | 5,836 | |||||||||||||||||||||||||||
Total Private Equity Group | $ | 1,048,515 | $ | (236,412) | $ | (2,738) | $ | 809,365 |
Corporate Private Equity | APAC Private Equity | Other(1) | Total Private Equity Group | |||||||||||||||||||||||
Balance at 12/31/2023 | $ | 20,998 | $ | 3,414 | $ | 139 | $ | 24,551 | ||||||||||||||||||
Net new par/equity commitments | 254 | 3 | 58 | 315 | ||||||||||||||||||||||
Capital reductions | (2) | — | — | (2) | ||||||||||||||||||||||
Distributions | (25) | (11) | — | (36) | ||||||||||||||||||||||
Redemptions | — | (2) | — | (2) | ||||||||||||||||||||||
Net allocations among investment strategies | 150 | — | (197) | (47) | ||||||||||||||||||||||
Change in fund value | (145) | (158) | — | (303) | ||||||||||||||||||||||
Balance at 3/31/2024 | $ | 21,230 | $ | 3,246 | $ | — | $ | 24,476 | ||||||||||||||||||
Corporate Private Equity | APAC Private Equity | Other | Total Private Equity Group | |||||||||||||||||||||||
Balance at 12/31/2022 | $ | 20,939 | $ | 90 | $ | — | $ | 21,029 | ||||||||||||||||||
Net new par/equity commitments | 50 | — | — | 50 | ||||||||||||||||||||||
Capital reductions | (3) | — | — | (3) | ||||||||||||||||||||||
Distributions | (266) | — | — | (266) | ||||||||||||||||||||||
Change in fund value | (155) | 1 | — | (154) | ||||||||||||||||||||||
Balance at 3/31/2023 | $ | 20,565 | $ | 91 | $ | — | $ | 20,656 | ||||||||||||||||||
(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated in a subsequent period as commitments to an investment strategy. |
AUM: $24.5 | AUM: $20.6 |
FPAUM | Non-fee paying(1) | AUM not yet paying fees |
Corporate Private Equity | APAC Private Equity | Total Private Equity Group | ||||||||||||||||||
Balance at 12/31/2023 | $ | 11,459 | $ | 1,665 | $ | 13,124 | ||||||||||||||
Redemptions | — | (2) | (2) | |||||||||||||||||
Change in fund value | (19) | — | (19) | |||||||||||||||||
Change in fee basis | (536) | (2) | (538) | |||||||||||||||||
Balance at 3/31/2024 | $ | 10,904 | $ | 1,661 | $ | 12,565 | ||||||||||||||
Corporate Private Equity | APAC Private Equity | Total Private Equity Group | ||||||||||||||||||
Balance at 12/31/2022 | $ | 11,277 | $ | 4 | $ | 11,281 | ||||||||||||||
Balance at 3/31/2023 | $ | 11,277 | $ | 4 | $ | 11,281 |
FPAUM: $12.6 | FPAUM: $11.3 |
Invested capital | Capital commitments |
Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Harvesting Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF V | 2017 | $ | 8,597 | $ | 7,850 | $ | 7,611 | $ | 3,515 | $ | 8,087 | $ | 11,602 | 1.5x | 1.4x | 10.7 | 8.1 | Corporate Private Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Deploying Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACOF VI | 2020 | 7,575 | 5,743 | 5,129 | 746 | 6,745 | 7,491 | 1.4x | 1.3x | 23.6 | 16.7 | Corporate Private Equity |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Management fees | $ | 44,421 | $ | 39,863 | $ | 4,558 | 11% | ||||||||||||||||
Fee related performance revenues | 2,962 | 3,271 | (309) | (9) | |||||||||||||||||||
Other fees | 4 | — | 4 | NM | |||||||||||||||||||
Compensation and benefits | (12,714) | (13,412) | 698 | 5 | |||||||||||||||||||
General, administrative and other expenses | (9,068) | (4,292) | (4,776) | (111) | |||||||||||||||||||
Fee Related Earnings | $ | 25,605 | $ | 25,430 | 175 | 1 |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings | $ | 25,605 | $ | 25,430 | $ | 175 | 1% | ||||||||||||||||
Interest and other investment income—realized | 210 | 1,225 | (1,015) | (83) | |||||||||||||||||||
Interest expense | (2,698) | (2,305) | (393) | (17) | |||||||||||||||||||
Realized net investment loss | (2,488) | (1,080) | (1,408) | (130) | |||||||||||||||||||
Realized Income | $ | 23,117 | $ | 24,350 | (1,233) | (5) |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | Accrued Performance Income | Accrued Performance Compensation | Accrued Net Performance Income | ||||||||||||||||||||||||||||||
LEP XVI | $ | 124,175 | $ | 106,272 | $ | 17,903 | $ | 128,650 | $ | 110,053 | $ | 18,597 | |||||||||||||||||||||||
Landmark Real Estate Fund VIII, L.P. (“LREF VIII”) | 95,812 | 83,415 | 12,397 | 97,366 | 84,256 | 13,110 | |||||||||||||||||||||||||||||
Other secondaries funds | 53,940 | 46,435 | 7,505 | 57,339 | 48,897 | 8,442 | |||||||||||||||||||||||||||||
Total Secondaries Group | $ | 273,927 | $ | 236,122 | $ | 37,805 | $ | 283,355 | $ | 243,206 | $ | 40,149 |
As of December 31, 2023 | Activity during the period | As of March 31, 2024 | ||||||||||||||||||||||||||||||
Waterfall Type | Accrued Carried Interest | Change in Unrealized | Realized | Accrued Carried Interest | ||||||||||||||||||||||||||||
Accrued Carried Interest | ||||||||||||||||||||||||||||||||
LEP XVI | European | $ | 128,650 | $ | (4,475) | $ | — | $ | 124,175 | |||||||||||||||||||||||
LREF VIII | European | 97,366 | (1,554) | — | 95,812 | |||||||||||||||||||||||||||
Other secondaries funds | European | 57,339 | (3,399) | — | 53,940 | |||||||||||||||||||||||||||
Total Secondaries Group | $ | 283,355 | $ | (9,428) | $ | — | $ | 273,927 | ||||||||||||||||||||||||
Private Equity Secondaries | Real Estate Secondaries | Infrastructure Secondaries | Credit Secondaries | Other | Total Secondaries Group | ||||||||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 13,174 | $ | 7,826 | $ | 2,380 | $ | 1,380 | $ | — | $ | 24,760 | |||||||||||||||||||||||
Net new par/equity commitments | 536 | 150 | 215 | 68 | — | 969 | |||||||||||||||||||||||||||||
Distributions | (140) | (23) | — | (1) | — | (164) | |||||||||||||||||||||||||||||
Change in fund value | 10 | 22 | 29 | 15 | — | 76 | |||||||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 13,580 | $ | 7,975 | $ | 2,624 | $ | 1,462 | $ | — | $ | 25,641 | |||||||||||||||||||||||
Private Equity Secondaries | Real Estate Secondaries | Infrastructure Secondaries | Credit Secondaries | Other(1) | Total Secondaries Group | ||||||||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 12,769 | $ | 7,552 | $ | 1,640 | $ | — | $ | — | $ | 21,961 | |||||||||||||||||||||||
Net new par/equity commitments | 21 | 237 | — | 938 | 50 | 1,246 | |||||||||||||||||||||||||||||
Distributions | (258) | (96) | (70) | — | — | (424) | |||||||||||||||||||||||||||||
Change in fund value | 138 | (26) | (1) | — | — | 111 | |||||||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 12,670 | $ | 7,667 | $ | 1,569 | $ | 938 | $ | 50 | $ | 22,894 | |||||||||||||||||||||||
(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated in a subsequent period as commitments to an investment strategy. |
AUM: $25.6 | AUM: $23.0 |
FPAUM | AUM not yet paying fees | Non-fee paying(1) |
Private Equity Secondaries | Real Estate Secondaries | Infrastructure Secondaries | Credit Secondaries | Total Secondaries Group | |||||||||||||||||||||||||
Balance at 12/31/2023 | $ | 11,204 | $ | 5,978 | $ | 1,763 | $ | 95 | $ | 19,040 | |||||||||||||||||||
Commitments | 536 | 150 | 214 | — | 900 | ||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | — | 60 | 1 | — | 61 | ||||||||||||||||||||||||
Distributions | (65) | (16) | — | (18) | (99) | ||||||||||||||||||||||||
Change in fund value | (35) | 39 | (6) | — | (2) | ||||||||||||||||||||||||
Change in fee basis | 1 | (8) | — | (2) | (9) | ||||||||||||||||||||||||
Balance at 3/31/2024 | $ | 11,641 | $ | 6,203 | $ | 1,972 | $ | 75 | $ | 19,891 | |||||||||||||||||||
Private Equity Secondaries | Real Estate Secondaries | Infrastructure Secondaries | Credit Secondaries | Total Secondaries Group | |||||||||||||||||||||||||
Balance at 12/31/2022 | $ | 11,062 | $ | 5,313 | $ | 1,293 | $ | — | $ | 17,668 | |||||||||||||||||||
Commitments | 21 | 86 | — | — | 107 | ||||||||||||||||||||||||
Deployment/subscriptions/increase in leverage | 71 | 32 | 7 | — | 110 | ||||||||||||||||||||||||
Distributions | (43) | (96) | (58) | — | (197) | ||||||||||||||||||||||||
Change in fund value | (78) | 152 | 34 | — | 108 | ||||||||||||||||||||||||
Change in fee basis | (35) | (14) | — | — | (49) | ||||||||||||||||||||||||
Balance at 3/31/2023 | $ | 10,998 | $ | 5,473 | $ | 1,276 | $ | — | $ | 17,747 |
FPAUM: $19.9 | FPAUM: $17.8 |
Market value(1) | Capital commitments | Invested capital/other |
Year of Inception | AUM | Original Capital Commitments | Capital Invested to Date | Realized Value(1) | Unrealized Value(2) | Total Value | MoIC | IRR(%) | Primary Investment Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | Gross(3) | Net(4) | Gross(5) | Net(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Harvesting Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEP XVI(7) | 2016 | $ | 4,691 | $ | 4,896 | $ | 3,806 | $ | 1,990 | $ | 3,116 | $ | 5,106 | 1.5x | 1.3x | 24.3 | 16.1 | Private Equity Secondaries |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Other fees | $ | 4,333 | $ | 4,640 | $ | (307) | (7)% | ||||||||||||||||
Compensation and benefits | (94,157) | (84,967) | (9,190) | (11) | |||||||||||||||||||
General, administrative and other expenses | (50,480) | (46,172) | (4,308) | (9) | |||||||||||||||||||
Fee Related Earnings | $ | (140,304) | $ | (126,499) | (13,805) | (11) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Fee Related Earnings | $ | (140,304) | $ | (126,499) | $ | (13,805) | (11)% | ||||||||||||||||
Interest and other investment income (loss)—realized | 452 | (92) | 544 | NM | |||||||||||||||||||
Interest expense | (40) | (26) | (14) | (54) | |||||||||||||||||||
Realized net investment income (loss) | 412 | (118) | 530 | NM | |||||||||||||||||||
Realized Income | $ | (139,892) | $ | (126,617) | (13,275) | (10) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 458,363 | $ | 148,315 | |||||||
Net cash provided by the Consolidated Funds’ operating activities, net of eliminations | 251,682 | 559,257 | |||||||||
Net cash provided by operating activities | 710,045 | 707,572 | |||||||||
Net cash used in the Company’s investing activities | (34,071) | (8,877) | |||||||||
Net cash used in the Company’s financing activities | (424,232) | (260,400) | |||||||||
Net cash used in the Consolidated Funds’ financing activities, net of eliminations | (242,400) | (560,744) | |||||||||
Net cash used in financing activities | (666,632) | (821,144) | |||||||||
Effect of exchange rate changes | (11,285) | 4,711 | |||||||||
Net change in cash and cash equivalents | $ | (1,943) | $ | (117,738) |
Three months ended March 31, | Favorable (Unfavorable) | ||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Core operating activities | $ | 335,306 | $ | 227,264 | $ | 108,042 | 48% | ||||||||||||||||
Net realized performance income | 50,733 | (86,835) | 137,568 | (158) | |||||||||||||||||||
Net cash provided by investment related activities | 72,324 | 7,886 | 64,438 | NM | |||||||||||||||||||
Net cash provided by operating activities | $ | 458,363 | $ | 148,315 | 310,048 | 209 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Purchase of furniture, equipment and leasehold improvements, net of disposals | $ | (26,071) | $ | (8,877) | |||||||
Acquisitions, net of cash acquired | (8,000) | — | |||||||||
Net cash used in investing activities | $ | (34,071) | $ | (8,877) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net borrowings of Credit Facility | $ | 80,000 | $ | 95,000 | |||||||
Class A and non-voting common stock dividends | (190,504) | (145,386) | |||||||||
AOG unitholder distributions | (129,542) | (106,246) | |||||||||
Stock option exercises | 1,511 | 9,180 | |||||||||
Taxes paid related to net share settlement of equity awards | (186,731) | (113,431) | |||||||||
Other financing activities | 1,034 | 483 | |||||||||
Net cash used in the Company’s financing activities | $ | (424,232) | $ | (260,400) |
Name and Title | Plan Date | Maximum Shares That May Be Sold Under the Plan | Plan Expiration Date | |||||||||||||||||
R. Kipp deVeer, Director and Head of Credit Group | February 28, 2024 | 41,676 | February 28, 2025 | |||||||||||||||||
Bennett Rosenthal, Director, Co-Founder and Chairman of Private Equity Group | March 1, 2024 | 250,000 | January 31, 2025 | |||||||||||||||||
David Kaplan, Director and Co-Founder | March 1, 2024 | 250,000 | January 31, 2025 | |||||||||||||||||
Exhibit No. | Description | |||||||
Second Amended and Restated Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-36429) filed with the SEC on May 6, 2021). | ||||||||
Bylaws of Ares Management Incorporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on November 15, 2018). | ||||||||
Form of Annual Incentive Fee Award letter (incorporated by reference to Exhibit 10.26 to the Registrant's Annual Report on Form 10-K (File No. 001-36429) filed with the SEC on February 27, 2024). | ||||||||
Form of Annual Incentive Fee Restricted Unit Agreement under the 2023 Equity Incentive Plan (incorporated by reference to Exhibit 10.47 to the Registrant's Annual Report on Form 10-K (File No. 001-36429) filed with the SEC on February 27, 2024). | ||||||||
Amendment No. 12, dated as of March 28, 2024, to the Sixth Amended and Restated Senior Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36429) filed with the SEC on April 3, 2024). | ||||||||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). | ||||||||
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
ARES MANAGEMENT CORPORATION | |||||||||||
Dated: May 9, 2024 | By: | /s/ Michael J Arougheti | |||||||||
Name: | Michael J Arougheti | ||||||||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | ||||||||||
Dated: May 9, 2024 | By: | /s/ Jarrod Phillips | |||||||||
Name: | Jarrod Phillips | ||||||||||
Title: | Chief Financial Officer (Principal Financial & Accounting Officer) | ||||||||||
/s/ Michael J Arougheti | |||||
Name: | Michael J Arougheti | ||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) |
/s/ Jarrod Phillips | |||||
Name: | Jarrod Phillips | ||||
Title: | Chief Financial Officer (Principal Financial & Accounting Officer) |
/s/ Michael J Arougheti | |||||
Name: | Michael J Arougheti | ||||
Title: | Co-Founder, Chief Executive Officer & President (Principal Executive Officer) | ||||
/s/ Jarrod Phillips | |||||
Name: | Jarrod Phillips | ||||
Title: | Chief Financial Officer (Principal Financial & Accounting Officer) |