CONSOLIDATION (Tables)

6 Months Ended

Jun. 30, 2025

Condensed Financial Information Disclosure [Abstract]

The Company’s interests in consolidated and non-consolidated VIEs, as presented within the Condensed Consolidated Statements of Financial Condition, its respective maximum exposure to loss relating to non-consolidated VIEs, and its net income attributable to non-controlling interests related to consolidated VIEs, as presented within the Condensed Consolidated Statements of Operations, are as follows:


	As of June 30,		As of December 31,

	2025		2024
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs	$	533,673	$	386,927
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs	941,526		791,133
Assets of consolidated VIEs	12,826,334		13,698,611
Liabilities of consolidated VIEs	9,540,223		10,879,735


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net income attributable to non-controlling interests related to consolidated VIEs	$	2,298	$	100,969	$	55,274	$	159,325

Schedule of Consolidating Effects of the Consolidated Funds on the Company's Financial Condition

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company’s financial condition, results from operations and cash flows:


	As of June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	509,656	$	—	$	—	$	509,656
Investments (includes $3,703,243 of accrued carried interest)	6,148,984		—		(1,026,308)		5,122,676
Due from affiliates	1,155,371		—		(20,855)		1,134,516
Other assets	914,061		—		—		914,061
Right-of-use operating lease assets	540,463		—		—		540,463
Intangible assets, net	2,220,065		—		—		2,220,065
Goodwill	3,436,192		—		—		3,436,192
Assets of Consolidated Funds
Cash and cash equivalents	—		1,022,249		—		1,022,249
Investments held in trust account	—		558,150		—		558,150
Investments, at fair value	—		11,557,348		—		11,557,348

Receivable for securities sold	—		191,431		—		191,431
Other assets	—		58,134		—		58,134
Total assets	$	14,924,792	$	13,387,312	$	(1,047,163)	$	27,264,941
Liabilities
Accounts payable, accrued expenses and other liabilities	$	876,020	$	—	$	(266)	$	875,754
Accrued compensation	438,196		—		—		438,196
Due to affiliates	587,400		—		—		587,400
Performance related compensation payable	2,669,386		—		—		2,669,386
Debt obligations	3,675,154		—		—		3,675,154

Operating lease liabilities	686,745		—		—		686,745
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		139,882		(202)		139,680
Due to affiliates	—		20,108		(20,108)		—
Payable for securities purchased	—		244,012		—		244,012
CLO loan obligations, at fair value	—		8,494,788		(52,563)		8,442,225
Fund borrowings	—		667,006		—		667,006
Total liabilities	8,932,901		9,565,796		(73,139)		18,425,558
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		558,050		—		558,050
Redeemable interest in Ares Operating Group entities	24,135		—		—		24,135
Non-controlling interest in Consolidated Funds	—		3,263,466		(935,901)		2,327,565
Non-controlling interest in Ares Operating Group entities	1,580,323		—		(12,521)		1,567,802
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,459,918		—		—		1,459,918
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (215,880,982 shares issued and outstanding)	2,159		—		—		2,159
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 (107,282,369 shares issued and outstanding)	1,073		—		—		1,073
Additional paid-in-capital	4,113,663		—		(25,602)		4,088,061
Accumulated deficit	(1,221,611)		—		—		(1,221,611)
Accumulated other comprehensive loss, net of tax	32,196		—		—		32,196
Total stockholders’ equity	4,387,433		—		(25,602)		4,361,831
Total equity	5,967,756		3,263,466		(974,024)		8,257,198
Total liabilities, redeemable interest, non-controlling interests and equity	$	14,924,792	$	13,387,312	$	(1,047,163)	$	27,264,941


	As of December 31, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	1,507,976	$	—	$	—	$	1,507,976
Investments (includes $3,495,115 of accrued carried interest)	5,485,012		—		(840,237)		4,644,775
Due from affiliates	1,236,450		—		(179,842)		1,056,608
Other assets	774,654		—		—		774,654
Right-of-use operating lease assets	511,319		—		—		511,319
Intangible assets, net	975,828		—		—		975,828
Goodwill	1,162,636		—		—		1,162,636
Assets of Consolidated Funds
Cash and cash equivalents	—		1,227,489		—		1,227,489
Investments held in trust account	—		550,800		—		550,800
Investments, at fair value	—		12,187,044		—		12,187,044

Receivable for securities sold	—		202,782		—		202,782
Other assets	—		82,397		—		82,397
Total assets	$	11,653,875	$	14,250,512	$	(1,020,079)	$	24,884,308
Liabilities
Accounts payable, accrued expenses and other liabilities	$	364,152	$	—	$	(280)	$	363,872
Accrued compensation	280,894		—		—		280,894
Due to affiliates	500,480		—		—		500,480
Performance related compensation payable	2,537,203		—		—		2,537,203
Debt obligations	2,558,914		—		—		2,558,914
Operating lease liabilities	641,864		—		—		641,864
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		323,566		(466)		323,100
Due to affiliates	—		178,409		(178,409)		—
Payable for securities purchased	—		332,406		—		332,406
CLO loan obligations, at fair value	—		9,793,645		(121,456)		9,672,189
Fund borrowings	—		275,000		—		275,000
Total liabilities	6,883,507		10,903,026		(300,611)		17,485,922
Commitments and contingencies
Redeemable interest in Consolidated Funds	—		550,700		—		550,700
Redeemable interest in Ares Operating Group entities	23,496		—		—		23,496
Non-controlling interest in Consolidated Funds	—		2,796,786		(771,120)		2,025,666
Non-controlling interest in Ares Operating Group entities	1,236,767		—		18,111		1,254,878
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,458,771		—		—		1,458,771
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (199,872,571 shares issued and outstanding)	1,999		—		—		1,999
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, 1000 shares authorized ($1,000 shares issued and outstanding)	—		—		—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (109,806,689 shares issued and outstanding)	1,098		—		—		1,098
Additional paid-in-capital	2,903,253		—		33,541		2,936,794
Accumulated deficit	(837,294)		—		—		(837,294)
Accumulated other comprehensive loss, net of tax	(17,757)		—		—		(17,757)
Total stockholders’ equity	3,510,105		—		33,541		3,543,646
Total equity	4,746,872		2,796,786		(719,468)		6,824,190
Total liabilities, redeemable interest, non-controlling interests and equity	$	11,653,875	$	14,250,512	$	(1,020,079)	$	24,884,308

Schedule of Results from Operations


	Six months ended June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,736,457	$	—	$	(18,848)	$	1,717,609
Carried interest allocation	495,861		—		(11,952)		483,909
Incentive fees	55,399		—		(272)		55,127
Principal investment income	118,216		—		(85,255)		32,961
Administrative, transaction and other fees	156,006		—		(6,679)		149,327
Total revenues	2,561,939		—		(123,006)		2,438,933
Expenses
Compensation and benefits	1,300,834		—		—		1,300,834
Performance related compensation	357,339		—		—		357,339
General, administrative and other expense	460,070		—		—		460,070
Expenses of the Consolidated Funds	—		59,462		(25,799)		33,663
Total expenses	2,118,243		59,462		(25,799)		2,151,906
Other income (expense)
Net realized and unrealized gains on investments	33,182		—		(20,206)		12,976
Interest and dividend income	26,016		—		(588)		25,428
Interest expense	(79,962)		—		—		(79,962)
Other expense, net	(57,643)		—		408		(57,235)
Net realized and unrealized gains on investments of the Consolidated Funds	—		214,009		2,149		216,158
Interest and other income of the Consolidated Funds	—		321,962		—		321,962
Interest expense of the Consolidated Funds	—		(303,844)		5,466		(298,378)
Total other income (expense), net	(78,407)		232,127		(12,771)		140,949
Income before taxes	365,289		172,665		(109,978)		427,976
Income tax expense	75,784		2,711		—		78,495
Net income	289,505		169,954		(109,978)		349,481
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		169,954		(109,978)		59,976
Net income attributable to Ares Operating Group entities	289,505		—		—		289,505
Less: Net income attributable to redeemable interest in Ares Operating Group entities	42		—		—		42
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	105,231		—		—		105,231
Net income attributable to Ares Management Corporation	184,232		—		—		184,232
Less: Series B mandatory convertible preferred stock dividends declared	50,625		—		—		50,625
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	133,607	$	—	$	—	$	133,607


	Six months ended June 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,433,828	$	—	$	(24,455)	$	1,409,373
Carried interest allocation	(66,190)		—		(17,455)		(83,645)
Incentive fees	56,398		—		3		56,401
Principal investment income (loss)	(2,062)		—		38,573		36,511
Administrative, transaction and other fees	77,686		—		(281)		77,405
Total revenues	1,499,660		—		(3,615)		1,496,045
Expenses
Compensation and benefits	832,809		—		—		832,809
Performance related compensation	(79,517)		—		—		(79,517)
General, administrative and other expense	340,793		—		(433)		340,360
Expenses of the Consolidated Funds	—		34,117		(24,732)		9,385
Total expenses	1,094,085		34,117		(25,165)		1,103,037
Other income (expense)
Net realized and unrealized gains on investments	25,356		—		(6,501)		18,855
Interest and dividend income	18,144		—		(5,745)		12,399
Interest expense	(75,324)		—		—		(75,324)
Other expense, net	(1,445)		—		777		(668)
Net realized and unrealized gains on investments of the Consolidated Funds	—		118,471		9,476		127,947
Interest and other income of the Consolidated Funds	—		497,965		(330)		497,635
Interest expense of the Consolidated Funds	—		(428,133)		2,654		(425,479)
Total other income (expense), net	(33,269)		188,303		331		155,365
Income before taxes	372,306		154,186		21,881		548,373
Income tax expense	64,445		3,862		—		68,307
Net income	307,861		150,324		21,881		480,066
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		150,324		21,881		172,205
Net income attributable to Ares Operating Group entities	307,861		—		—		307,861
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(314)		—		—		(314)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	140,210		—		—		140,210


Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	167,965	$	—	$	—	$	167,965

Schedule of Cash Flows


	Six months ended June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	289,505	$	169,954	$	(109,978)	$	349,481
Adjustments to reconcile net income to net cash provided by operating activities	548,460				(86,146)		462,314







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		1,175,691		(12,289)		1,163,402




Cash flows due to changes in operating assets and liabilities	326,562		—		(136,882)		189,680





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(189,822)		434,849		245,027




Net cash provided by operating activities	1,164,527		1,155,823		89,554		2,409,904
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(44,893)		—		—		(44,893)
Acquisitions, net of cash acquired	(1,722,715)		—		—		(1,722,715)
Net cash used in investing activities	(1,767,608)		—		—		(1,767,608)
Cash flows from financing activities:


Proceeds from Credit Facility	1,525,000		—		—		1,525,000

Repayments of Credit Facility	(410,000)		—		—		(410,000)


Dividends and distributions	(873,259)		—		—		(873,259)



Taxes paid related to net share settlement of equity awards	(416,609)		—		—		(416,609)
Other financing activities	1,790		—		—		1,790
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		167,832		(7,685)		160,147
Distributions to non-controlling interests in Consolidated Funds	—		(443,128)		123,372		(319,756)
Redemptions of redeemable interests in Consolidated Funds	—		(7,143)		—		(7,143)
Borrowings under loan obligations by Consolidated Funds	—		312,491		—		312,491
Repayments under loan obligations by Consolidated Funds	—		(1,717,589)		—		(1,717,589)
Net cash used in financing activities	(173,078)		(1,687,537)		115,687		(1,744,928)
Effect of exchange rate changes	27,962		76,350		—		104,312
Net change in cash and cash equivalents	(748,197)		(455,364)		205,241		(998,320)
Cash and cash equivalents, beginning of period	1,507,976		1,227,489		(1,227,489)		1,507,976
Cash and cash equivalents, end of period	$	759,779	$	772,125	$	(1,022,248)	$	509,656
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	1,657,881	$	—	$	—	$	1,657,881


	Six months ended June 30, 2024
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities:
Net income	$	307,861	$	150,324	$	21,881	$	480,066
Adjustments to reconcile net income to net cash provided by operating activities	432,686		—		(129,326)		303,360







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		332,840		(9,476)		323,364





Cash flows due to changes in operating assets and liabilities	139,106		—		18,283		157,389





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(32,091)		(89,871)		(121,962)




Net cash provided by operating activities	879,653		451,073		(188,509)		1,142,217
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements, net of disposals	(55,309)		—		—		(55,309)
Acquisitions, net of cash acquired	(8,000)		—		—		(8,000)
Net cash used in investing activities	(63,309)		—		—		(63,309)
Cash flows from financing activities:
Net proceeds from issuance of Class A common stock	354,395		—		—		354,395
Proceeds from Credit Facility	650,000		—		—		650,000


Repayments of Credit Facility	(1,050,000)		—		—		(1,050,000)

Dividends and distributions	(632,260)		—		—		(632,260)




Stock option exercises	1,511		—		—		1,511
Taxes paid related to net share settlement of equity awards	(203,076)		—		—		(203,076)
Other financing activities	1,303		—		—		1,303
Allocable to non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		434,961		76,649		511,610
Distributions to non-controlling interests in Consolidated Funds	—		(67,934)		20,330		(47,604)

Borrowings under loan obligations by Consolidated Funds	—		167,135		—		167,135
Repayments under loan obligations by Consolidated Funds	—		(878,545)		—		(878,545)
Net cash used in financing activities	(878,127)		(344,383)		96,979		(1,125,531)
Effect of exchange rate changes	(2,046)		(15,160)		—		(17,206)
Net change in cash and cash equivalents	(63,829)		91,530		(91,530)		(63,829)
Cash and cash equivalents, beginning of period	348,274		1,149,511		(1,149,511)		348,274
Cash and cash equivalents, end of period	$	284,445	$	1,241,041	$	(1,241,041)	$	284,445
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	7,724	$	—	$	—	$	7,724

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Ares Management Corp 10-Q