Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36429 | |
Entity Registrant Name | ARES MANAGEMENT CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0962035 | |
Entity Address, Address Line One | 2000 Avenue of the Stars | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90067 | |
City Area Code | 310 | |
Local Phone Number | 201-4100 | |
Title of 12(b) Security | Class A common stock, par value $0.01 per share | |
Trading Symbol | ARES | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001176948 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 191,203,721 | |
Non-voting Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,489,911 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,000 | |
Class C Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 115,120,213 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Intangible assets, net | $ 462,276 | $ 490,695 |
Goodwill | 1,130,085 | 1,123,976 |
Total assets | 24,413,270 | 24,730,500 |
Liabilities | ||
Operating lease liabilities | 308,336 | |
Total liabilities | 19,382,799 | 19,709,151 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
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 |
Class A Common Stock | ||
Stockholders’ Equity | ||
Common stock | 1,911 | 1,871 |
Non-voting Common Stock | ||
Stockholders’ Equity | ||
Common stock | 35 | 35 |
Class B Common Stock | ||
Stockholders’ Equity | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Stockholders’ Equity | ||
Common stock | 1,151 | 1,170 |
Consolidated Entity, Excluding VIE, Including Parent | ||
Liabilities | ||
Total liabilities | 19,382,799 | 19,709,151 |
Ares Management L.P | ||
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 |
Due from affiliates | 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 |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 262,551 | 233,884 |
Accrued compensation | 217,788 | 287,259 |
Due to affiliates | 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 |
Redeemable interest | 23,612 | 24,098 |
Non-controlling interests in Ares Operating Group entities | 1,194,276 | 1,322,469 |
Stockholders’ Equity | ||
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 |
Ares Management L.P | Class A Common Stock | ||
Stockholders’ Equity | ||
Common stock | 1,911 | 1,871 |
Ares Management L.P | Non-voting Common Stock | ||
Stockholders’ Equity | ||
Common stock | 35 | 35 |
Ares Management L.P | Class B Common Stock | ||
Stockholders’ Equity | ||
Common stock | 0 | 0 |
Ares Management L.P | Class C Common Stock | ||
Stockholders’ Equity | ||
Common stock | 1,151 | 1,170 |
Consolidated Entity, Excluding VIE | ||
Assets | ||
Cash and cash equivalents | 1,199,376 | 1,149,511 |
Due from affiliates | 15,924 | 14,151 |
Other assets | 77,095 | 86,672 |
Investments held in trust account | 529,887 | 523,038 |
Investments, at fair value | 13,790,030 | 14,078,549 |
Receivable for securities sold | 243,998 | 146,851 |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 189,556 | 189,523 |
Due to affiliates | 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 |
Redeemable interest | 529,787 | 522,938 |
Non-controlling interests in Ares Operating Group entities | $ 1,515,302 | $ 1,258,445 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Common stock, shares outstanding (in shares) | 309,668,984 | 307,585,576 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 191,057,860 | 187,069,907 |
Common stock, shares outstanding (in shares) | 191,057,860 | 187,069,907 |
Non-voting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 3,489,911 | 3,489,911 |
Common stock, shares outstanding (in shares) | 3,489,911 | 3,489,911 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 499,999,000 | 499,999,000 |
Common stock, shares issued (in shares) | 115,120,213 | 117,024,758 |
Common stock, shares outstanding (in shares) | 115,120,213 | 117,024,758 |
Ares Management L.P | ||
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Accounts Payable, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity |
Ares Management L.P | Carried interest | ||
Equity method investments: | $ 3,361,519 | $ 3,413,007 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
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) | ||
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 (loss) | 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 |
Weighted-average shares of Class A and non-voting common stock: | ||
Diluted (in shares) | 192,622,609 | 178,976,022 |
Class A Common Stock and Non-Voting Common Stock | ||
Other income (expense) | ||
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 (in dollars per share) | $ 0.33 | $ 0.49 |
Diluted (in dollars per share) | $ 0.33 | $ 0.49 |
Weighted-average shares of Class A and non-voting common stock: | ||
Basic (in shares) | 192,622,609 | 178,976,022 |
Diluted (in shares) | 192,622,609 | 178,976,022 |
Ares Operating Group | ||
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 income (loss) | 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 |
Consolidated Funds | ||
Expenses | ||
Expenses of Consolidated Funds | 5,146 | 7,852 |
Other income (expense) | ||
Net realized and unrealized gains on investments | 34,424 | 10,700 |
Interest expense | (207,866) | (156,687) |
Interest and other income of Consolidated Funds | 257,276 | 222,938 |
Less: Net income attributable to non-controlling interests in Consolidated Funds | 66,716 | 26,693 |
Management fees | ||
Revenues | ||
Total revenues | 687,692 | 600,516 |
Carried interest allocation | ||
Revenues | ||
Total revenues | (32,478) | 151,488 |
Incentive fees | ||
Revenues | ||
Total revenues | 8,667 | 8,923 |
Principal investment income | ||
Revenues | ||
Total revenues | 7,050 | 22,758 |
Administrative, transaction and other fees | ||
Revenues | ||
Total revenues | $ 36,432 | $ 29,677 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 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 |
Consolidated Funds | ||
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds | 63,108 | 29,083 |
Ares Operating Group | ||
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 |
Ares Management Corporation | Ares Management L.P | ||
Comprehensive income attributable to Ares Management Corporation | $ 68,177 | $ 96,680 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-Controlling interest Ares Operating Group | Non-Controlling interest Consolidated Funds | Class A Common Stock Common Stock | Non-voting Common Stock Common Stock | Class C Common Stock Common Stock |
Beginning balance at Dec. 31, 2022 | $ 3,798,618 | $ 1,970,754 | $ (369,475) | $ (14,986) | $ 1,135,023 | $ 1,074,356 | $ 1,739 | $ 35 | $ 1,172 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Changes in ownership interests and related tax benefits | 46,128 | (36,777) | 87,541 | (4,689) | 19 | 34 | |||
Issuances of common stock | 115,364 | 115,350 | 14 | ||||||
Capital contributions | 94,757 | 1,172 | 93,585 | ||||||
Dividends/distributions | (269,682) | (145,386) | (103,363) | (20,933) | |||||
Net income | 209,140 | 94,039 | 88,408 | 26,693 | |||||
Currency translation adjustment, net of tax | 6,787 | 2,641 | 1,756 | 2,390 | |||||
Equity compensation | 69,078 | 41,541 | 27,537 | ||||||
Stock option exercises | 9,180 | 9,175 | 5 | ||||||
Ending balance at Mar. 31, 2023 | 4,079,370 | 2,100,043 | (420,822) | (12,345) | 1,238,074 | 1,171,402 | 1,777 | 35 | 1,206 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Changes in ownership interests and related tax benefits | (326,965) | (151) | (4,086) | (322,729) | 10 | (9) | |||
Issuances of common stock | 737 | 737 | |||||||
Capital contributions | 79,703 | 1,071 | 78,632 | ||||||
Dividends/distributions | (273,861) | (149,218) | (109,651) | (14,992) | |||||
Net income | 331,521 | 144,514 | 119,326 | 67,681 | |||||
Currency translation adjustment, net of tax | (4,276) | 2,658 | 1,751 | (8,685) | |||||
Equity compensation | 62,281 | 37,609 | 24,672 | ||||||
Stock option exercises | 43,960 | 43,935 | 25 | ||||||
Ending balance at Jun. 30, 2023 | 3,992,470 | 2,182,173 | (425,526) | (9,687) | 1,271,157 | 971,309 | 1,812 | 35 | 1,197 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Changes in ownership interests and related tax benefits | (6,531) | 15,435 | (14,757) | (7,210) | 17 | (16) | |||
Capital contributions | 41,526 | 148 | 41,378 | ||||||
Dividends/distributions | (270,604) | (151,648) | (97,936) | (21,020) | |||||
Net income | 196,216 | 61,823 | 54,104 | 80,289 | |||||
Currency translation adjustment, net of tax | (23,885) | (7,578) | (4,994) | (11,313) | |||||
Equity compensation | 61,976 | 37,856 | 24,120 | ||||||
Stock option exercises | 27,286 | 27,271 | 15 | ||||||
Ending balance at Sep. 30, 2023 | 4,018,454 | 2,262,735 | (515,351) | (17,265) | 1,231,842 | 1,053,433 | 1,844 | 35 | 1,181 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Changes in ownership interests and related tax benefits | 6,845 | (39,262) | 25,258 | 20,847 | 13 | (11) | |||
Issuances of common stock | 123,444 | 123,432 | 12 | ||||||
Capital contributions | 108,086 | 1,496 | 106,590 | ||||||
Dividends/distributions | (314,764) | (153,682) | (116,899) | (44,183) | |||||
Net income | 422,989 | 173,950 | 149,406 | 99,633 | |||||
Currency translation adjustment, net of tax | 41,270 | 11,635 | 7,510 | 22,125 | |||||
Equity compensation | 62,456 | 38,600 | 23,856 | ||||||
Stock option exercises | 5,533 | 5,531 | 2 | ||||||
Ending balance at Dec. 31, 2023 | 4,474,313 | 2,391,036 | (495,083) | (5,630) | 1,322,469 | 1,258,445 | 1,871 | 35 | 1,170 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Changes in ownership interests and related tax benefits | (114,305) | (62,709) | (103,599) | 51,984 | 39 | (20) | |||
Issuances of common stock | 7,724 | 7,723 | 1 | ||||||
Capital contributions | 169,707 | 1,034 | 168,673 | ||||||
Dividends/distributions | (346,652) | (190,504) | (129,240) | (26,908) | |||||
Net income | 203,742 | 73,027 | 63,999 | 66,716 | |||||
Currency translation adjustment, net of tax | (11,390) | (4,850) | (2,932) | (3,608) | |||||
Equity compensation | 92,422 | 57,600 | 34,822 | ||||||
Stock option exercises | 1,511 | 1,510 | 1 | ||||||
Ending balance at Mar. 31, 2024 | $ 4,477,072 | $ 2,387,437 | $ (612,560) | $ (10,480) | $ 1,194,276 | $ 1,515,302 | $ 1,911 | $ 35 | $ 1,151 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 203,815 | $ 207,316 |
Net cash provided by operating activities | 710,045 | 707,572 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (34,071) | (8,877) |
Allocable to redeemable and non-controlling interests in Consolidated Funds: | ||
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 | |
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 | 0 | 245,647 |
Consolidated Funds | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | 244,182 | 328,840 |
Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds | (64,929) | 42,584 |
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 | 0 | (538,985) |
Borrowings under loan obligations by Consolidated Funds | 36,947 | 2,914 |
Repayments under loan obligations by Consolidated Funds | (421,112) | (97,325) |
Ares Management L.P | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | 222,996 | 121,761 |
Cash flows due to changes in operating assets and liabilities | 103,981 | 7,071 |
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) | 0 |
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: | ||
Cash and cash equivalents, beginning of period | 348,274 | 389,987 |
Cash and cash equivalents, end of period | $ 346,331 | $ 272,249 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | 1. ORGANIZATION Ares Management Corporation (the “Company”), a Delaware corporation, together with its subsidiaries, is a leading global alternative investment manager operating integrated groups across Credit, Real Assets, Private Equity and Secondaries . Information about segments should be read together with “Note 13. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various funds and managed accounts within each investment group (the “Ares Funds”). These subsidiaries provide investment advisory services to the Ares Funds in exchange for management fees. The accompanying unaudited financial statements include the condensed consolidated results of the Company and its subsidiaries. The Company is a holding company that operates and controls all of the businesses and affairs of and conducts all of its material business activities through Ares Holdings L.P. (“Ares Holdings”). Ares Holdings represents all the activities of the “Ares Operating Group” or “AOG” and may be referred to interchangeably. The Company, indirectly through its wholly owned subsidiary, Ares Holdco LLC, is the general partner of the Ares Operating Group entity. The Company manages or controls certain entities that have been consolidated in the accompanying financial statements as described in “Note 2. Summary of Significant Accounting Policies.” These entities include Ares funds, co-investment vehicles, collateralized loan obligations or funds (collectively “CLOs”) and special purpose acquisition companies (“SPACs”) (collectively, the “Consolidated Funds”). Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows within the accompanying unaudited condensed consolidated financial statements. However, the Consolidated Funds results included herein have no direct effect on the net income attributable to Ares Management Corporation or to its Stockholders’ Equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. Instead, economic ownership interests of the investors in the Consolidated Funds are reflected as redeemable and non-controlling interests in Consolidated Funds. Further, cash flows allocable to redeemable and non-controlling interest in Consolidated Funds are specifically identifiable within the Condensed Consolidated Statements of Cash Flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments so that the unaudited condensed consolidated financial statements are presented fairly and that estimates made in preparing its unaudited condensed consolidated financial statements are reasonable and prudent, and that all such adjustments are of a normal recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts and activities of the Ares Operating Group entities (“AOG entities”), their consolidated subsidiaries and certain Consolidated Funds. All intercompany balances and transactions have been eliminated upon consolidation. The Company has reclassified certain prior period amounts to conform to the current year presentation. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its unaudited condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the Company’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for the Company’s fiscal year ending December 31, 2024 and for the Company’s interim periods beginning with the quarter ended March 31, 2025. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. ASU 2023-09 requires disclosure of disaggregated income taxes paid in both U.S. and foreign jurisdictions, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s fiscal year ending December 31, 2025. Early adoption is permitted and the amendments in this update should be applied on a prospective basis, though retrospective adoption is permitted. The Company is currently evaluating the impact of this guidance. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS Intangible Assets, Net The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets: Weighted Average Amortization Period (in years) as of 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 During the three months ended March 31, 2023, the Company rebranded and discontinued the use of the SSG trade name acquired through the acquisition of SSG Capital Holdings Limited and its operating subsidiaries (“SSG”) in 2020. As a result, the Company recorded a non-cash impairment charge equal to the SSG trade name’s carrying value of $7.8 million to accelerate the amortization expense for the three months ended March 31, 2023. Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $29.2 million and $33.6 million for the three months ended March 31, 2024 and 2023, respectively, and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2024, the Company removed $24.9 million of fully-amortized intangible assets. Goodwill The following table summarizes the carrying value of the Company’s goodwill: 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 In connection with the segment reorganization of the former special opportunities strategy as described in “Note 13. Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach. There was no impairment of goodwill recorded during the three months ended March 31, 2024 and 2023. The impact of foreign currency translation is reflected within other comprehensive income within the Condensed Consolidated Statements of Comprehensive Income. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments in and Advances to Affiliates [Abstract] | |
INVESTMENTS | 4. INVESTMENTS The following table summarizes the Company’s investments: 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 Equity Method Investments The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the three months ended March 31, 2024 and 2023, no individual equity method investment held by the Company met the significance criteria. The following table presents the Company’s other income, net from its equity method investments, which were included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Condensed Consolidated Statements of Operations: Three months ended March 31, 2024 2023 Total other income, net related to equity method investments $ 10,127 $ 23,914 With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets. The following table summarizes the changes in fair value of the Company’s equity method investments held at fair value, which are included within net realized and unrealized gains on investments within the Condensed Consolidated Statements of Operations: Three months ended March 31, 2024 2023 Equity method private investment partnership interests and other (held at fair value) $ 2,479 $ 3,099 Investments of the Consolidated Funds The following table summarizes investments held in the Consolidated Funds: 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 As of March 31, 2024 and December 31, 2023, no |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 5. FAIR VALUE Fair Value of Financial Instruments Held by the Company and Consolidated Funds The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of March 31, 2024: 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) Total derivative liabilities, at fair value — (5,541) (1,574) — (7,115) Total liabilities, at fair value $ — $ (11,911,887) $ (1,574) $ — $ (11,913,461) The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2023: 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) Total derivative liabilities, at fair value — (9,491) (1,291) — (10,782) Total liabilities, at fair value $ — $ (12,355,148) $ (1,291) $ — $ (12,356,439) The following tables set forth a summary of changes in the fair value of the Level III measurements: 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) Realized and unrealized appreciation (depreciation), net 21,589 2,039 (329) 23,299 Balance as of March 31, 2024 $ 1,366,464 $ 639,318 $ (1,574) $ 2,004,208 Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date $ 22,225 $ 1,420 $ (380) $ 23,265 (1) Purchases include paid-in-kind interest and securities received in connection with restructurings. (2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings. The following tables set forth a summary of changes in the fair value of the Level III measurements: 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) Realized and unrealized appreciation, net 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 Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date $ 21,436 $ (20,602) $ 5,283 $ 1,848 $ 7,965 (1) Purchases include paid-in-kind interest and securities received in connection with restructurings. (2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings. Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs either from independent pricing services or multiple brokers. Transfers into Level III were generally attributable to certain investments that experienced a less significant level of market activity during the period and thus were only able to obtain one or fewer quotes from a broker or independent pricing service. The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of March 31, 2024: 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) (1) Transaction price consists of securities purchased or restructured. The Company determined that there was no change to the valuation based on the underlying assumptions used at the closing of such transactions. (2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization. The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of December 31, 2023: 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) (1) Transaction price consists of securities purchased or restructured. The Company determined that there has been no change to the valuation based on the underlying assumptions used at the closing of such transactions. (2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization. The Consolidated Funds have limited partnership interests in private equity funds managed by the Company that are valued using net asset value (“NAV”) per share. The terms and conditions of these funds do not allow for redemptions without certain events or approvals that are outside the Company’s control. The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share: 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 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT The following table summarizes the Company’s and its subsidiaries’ debt obligations: 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 (1) On March 28, 2024, the Company amended the Credit Facility to, among other things, increase the revolver commitments from $1.325 billion to $1.400 billion, with an accordion feature of $600.0 million, and extend the maturity date from March 2027 to March 2029. Ares Holdings is the borrower under the Credit Facility. The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain environmental, social and governance (“ESG”)-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2024, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero. Due to the achievement of the ESG-related targets in the second quarter of 2023, the Company’s base rate and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through June 2024. (2) The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 Senior Notes. (3) The 2028 Senior Notes were issued in November 2023 by the Company, at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the 2028 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2028 Senior Notes. (4) The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Senior Notes. (5) The 2052 Senior Notes were issued in January 2022 by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the 2052 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2052 Senior Notes. (6) The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. Beginning June 30, 2026, the interest rate will reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the 2051 Subordinated Notes prior to maturity or defer interest payments up to five As of March 31, 2024, the Company and its subsidiaries were in compliance with all covenants under the debt obligations. The Company typically incurs and pays debt issuance costs when entering into a new debt obligation or when amending an existing debt agreement. Debt issuance costs related to the 2024, 2028, 2030 and 2052 Senior Notes (the “Senior Notes”) and 2051 Subordinated Notes are recorded as a reduction of the corresponding debt obligation, and debt issuance costs related to the Credit Facility are included within other assets within the Condensed Consolidated Statements of Financial Condition. All debt issuance costs are amortized over the remaining term of the related obligation into interest expense within the Condensed Consolidated Statements of Operations. The following table presents the activity of the Company’s debt issuance costs: 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 Loan Obligations of the Consolidated CLOs Loan obligations of the Consolidated Funds that are CLOs (“Consolidated CLOs”) represent amounts due to holders of debt securities issued by the Consolidated CLOs. The Company measures the loan obligations of the Consolidated CLOs using the fair value of the financial assets of its Consolidated CLOs. The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs: As of March 31, 2024 As of December 31, 2023 Fair Value of Weighted Weighted Fair Value of Weighted Weighted 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 (1) The notes do not have contractual interest rates; instead, holders of the notes receive distributions from the excess cash flows generated by each Consolidated CLO. Loan obligations of the Consolidated CLOs are collateralized by the assets held by the Consolidated CLOs, consisting of cash and cash equivalents, corporate loans, corporate bonds and other securities. The assets of one Consolidated CLO may not be used to satisfy the liabilities of another Consolidated CLO. Loan obligations of the Consolidated CLOs include floating rate notes, deferrable floating rate notes, revolving lines of credit and subordinated notes. Amounts borrowed under the notes are repaid based on available cash flows subject to priority of payments under each Consolidated CLO’s governing documents. Based on the terms of these facilities, the creditors of the facilities have no recourse to the Company. Credit Facilities of the Consolidated Funds Certain Consolidated Funds maintain credit facilities to fund investments between capital drawdowns. These facilities generally are collateralized by the unfunded capital commitments of the Consolidated Funds’ limited partners, bear an annual commitment fee based on unfunded commitments and contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments and portfolio asset dispositions. The creditors of these facilities have no recourse to the Company and only have recourse to a subsidiary of the Company to the extent the debt is guaranteed by such subsidiary. As of March 31, 2024 and December 31, 2023, the Consolidated Funds were in compliance with all covenants under such credit facilities. The Consolidated Funds had the following revolving bank credit facilities outstanding: 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 (1) The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Indemnification Arrangements Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Condensed Consolidated Statements of Financial Condition. As of March 31, 2024, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Commitments As of March 31, 2024 and December 31, 2023, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $986.3 million and $1,030.6 million, respectively. Guarantees The Company has entered into agreements with financial institutions to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund. As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure to losses from guarantees was $16.4 million and $122.3 million, respectively. Contingent Liabilities The Company acquired the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) during the fourth quarter of 2023. In connection with the Crescent Point Acquisition, the Company established a management incentive program (the “Crescent Point MIP”) with certain professionals. The Crescent Point MIP represents a contingent liability not to exceed $75.0 million and is based on the achievement of revenue targets from the fundraising of a future private equity fund during the measurement period. The Company expects to settle the liability with a combination of 33% cash and 67% equity awards. Expense associated with the cash and equity components are recognized ratably over the measurement period, which represents the service period and will end on the final fundraising date for the fund. The Crescent Point MIP is remeasured each period with incremental changes in fair value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following the measurement period end date, the cash component will be paid and the equity component will be settled with shares of the Company’s Class A common stock and granted at fair value. As of March 31, 2024 and December 31, 2023, the contingent liability was $75.0 million. As of March 31, 2024 and December 31, 2023, the Company has recorded $10.0 million and $5.0 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $5.0 million for the three months ended March 31, 2024 is presented within compensation and benefits within the Condensed Consolidated Statements of Operations. In connection with the acquisition of AMP Capital’s infrastructure debt platform (the “Infrastructure Debt Acquisition”) during the first quarter of 2022, the Company established a management incentive program (the “Infrastructure Debt MIP”) with certain professionals. The Infrastructure Debt MIP represents a contingent liability not to exceed $48.5 million and is based on the achievement of revenue targets from the fundraising of certain infrastructure debt funds during the measurement periods. The Company expects to settle each portion of the liability with a combination of 15% cash and 85% equity awards. Expense associated with the cash components are recognized ratably over the respective measurement periods, which will end on the final fundraising date for each of the infrastructure debt funds included in the Infrastructure Debt MIP agreement. Expense associated with the equity component is recognized ratably over the service periods, which will continue for four years beyond each of the measurement period end dates. The Infrastructure Debt MIP is remeasured each period with incremental changes in value included within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following each of the measurement period end dates, the cash component will be paid and restricted units for the portion of the Infrastructure Debt MIP award earned will be granted at fair value. The unpaid liability at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital and any difference between the Infrastructure Debt MIP award earned at the respective measurement period end date and the previously recorded compensation expense will be recognized over the remaining four year service period as equity-based compensation expense. The revenue target was achieved for one of the infrastructure debt funds during the fourth quarter of 2022 and the associated liability for this portion of the award was settled during the first quarter of 2023. As of March 31, 2024, the maximum contingent liability associated with the remaining Infrastructure Debt MIP was $15.0 million. As of March 31, 2024 and December 31, 2023, the contingent liability was $13.6 million. As of March 31, 2024 and December 31, 2023, the Company has recorded $4.9 million and $4.4 million, respectively, within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense associated with the remaining Infrastructure Debt MIP of $0.5 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations. Carried Interest Carried interest is affected by changes in the fair values of the underlying investments in the funds that are advised by the Company. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, public equity market volatility, industry trading multiples and interest rates. Generally, if at the termination of a fund (and increasingly at interim points in the life of a fund), the fund has not achieved investment returns that (in most cases) exceed the preferred return threshold or (in all cases) the general partner receives net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement, the Company will be obligated to repay carried interest that was received by the Company in excess of the amounts to which the Company is entitled. This contingent obligation is normally reduced by income taxes paid by the Company related to its carried interest. Senior professionals of the Company who have received carried interest distributions are responsible for funding their proportionate share of any contingent repayment obligations. However, the governing agreements of certain of the Company’s funds provide that if a current or former professional does not fund his or her respective share for such fund, then the Company may have to fund additional amounts beyond what was received in carried interest, although the Company will generally retain the right to pursue any remedies under such governing agreements against those carried interest recipients who fail to fund their obligations. Additionally, at the end of the life of the funds there could be a payment due to a fund by the Company if the Company has recognized more carried interest than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of the fund. As of March 31, 2024 and December 31, 2023, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $77.7 million and $78.5 million, respectively, of which approximately $53.9 million and $54.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest. Management believes the possibility of all of the investments becoming worthless is remote. As of March 31, 2024 and December 31, 2023, if the funds were liquidated at their fair values, there would be no contingent repayment obligation or liability. Litigation From time to time, the Company is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows. Leases The Company leases primarily consists of operating leases for office space and certain office equipment. The Company’s leases have remaining lease terms of one 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% |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS Substantially all of the Company’s revenue is earned from its affiliates. The related accounts receivable are included within due from affiliates within the Condensed Consolidated Statements of Financial Condition, except that accrued carried interest, which is predominantly due from affiliated funds, is presented separately within investments within the Condensed Consolidated Statements of Financial Condition. The Company has investment management agreements with the Ares Funds that it manages. In accordance with these agreements, these Ares Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Ares Funds. The Company is reimbursed for expenses incurred in providing administrative services to certain related parties, including publicly-traded and non-traded vehicles. In addition, certain private funds pay administrative fees based on invested capital. The Company is also party to agreements with certain funds which pay fees to the Company to provide various property-related services, such as acquisition, development and property management as well as fees for the sale and distribution of fund shares in non-traded vehicles. Employees and other related parties may be permitted to participate in co-investment vehicles that generally invest in Ares Funds alongside fund investors. Participation is limited by law to individuals who qualify under applicable securities laws. These co-investment vehicles generally do not require these individuals to pay management fees, carried interest or incentive fees. Carried interest and incentive fees from the funds can be distributed to professionals or their related entities on a current basis, subject, in the case of carried interest programs, to repayment by the subsidiary of the Company that acts as general partner of the relevant fund in the event that certain specified return thresholds are not ultimately achieved. The professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several, and not joint, and are limited to distributions received by the relevant recipient. The Company considers its professionals and non-consolidated funds to be affiliates. Amounts due from and to affiliates were composed of the following: 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 Due from and Due to Ares Funds and Portfolio Companies In the normal course of business, the Company pays certain expenses on behalf of Consolidated Funds and non-consolidated funds for which it is reimbursed. Conversely, Consolidated Funds and non-consolidated funds may pay certain expenses that are reimbursed by the Company. Certain expenses initially paid by the Company, primarily professional services, travel and other costs associated with particular portfolio company holdings, are subject to reimbursement by the portfolio companies. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The Company’s income tax provision includes corporate income taxes and other entity level income taxes, as well as income taxes incurred by certain affiliated funds that are consolidated in these financial statements. The following table presents the income tax expense for the period: Three months ended March 31, 2024 2023 Income tax expense $ 27,233 $ 33,806 The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment vehicles that are consolidated in the Company’s unaudited condensed consolidated financial statements. For the three months ended March 31, 2024 and 2023, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate. The income tax effects of temporary differences give rise to significant portions of deferred tax assets and liabilities, which are presented on a net basis. As of March 31, 2024 and December 31, 2023, the Company recorded a net deferred tax asset of $87.2 million and $21.5 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is generally no longer subject to corporate income tax audits by taxing authorities for any years prior to 2020. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE The Company has Class A and non-voting common stock outstanding. The non-voting common stock has the same economic rights as the Class A common stock; therefore, earnings per share is presented on a combined basis. Income of the Company has been allocated on a proportionate basis to the two common stock classes. Basic earnings per share of Class A and non-voting common stock is computed by using the two-class method. Diluted earnings per share of Class A and non-voting common stock is computed using the more dilutive method of either the two-class method or the treasury stock method. For the three months ended March 31, 2024 and 2023, the two-class method was the more dilutive method. The following table presents the computation of basic and diluted earnings per common share: 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 |
EQUITY COMPENSATION
EQUITY COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY COMPENSATION | 11. EQUITY COMPENSATION Equity Incentive Plan Equity-based compensation is granted under the Company’s 2023 Equity Incentive Plan (the “Equity Incentive Plan”). The total number of shares available to be issued under the Equity Incentive Plan resets based on a formula defined in the Equity Incentive Plan and may increase on January 1 of each year. On January 1, 2024, the total number of shares available for issuance under the Equity Incentive Plan reset to 69,122,318 shares and as of March 31, 2024, 63,123,821 shares remained available for issuance. Generally, unvested restricted units are forfeited upon termination of employment in accordance with the Equity Incentive Plan. The Company recognizes forfeitures as a reversal of previously recognized compensation expense in the period the forfeiture occurs. Equity-based compensation expense, net of forfeitures, recorded by the Company for restricted units is presented in the following table: Three months ended March 31, 2024 2023 Restricted units $ 92,422 $ 69,252 Restricted Units Each restricted unit represents an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The restricted units generally vest and are settled in shares of Class A common stock at a rate of either: (i) one-third per year, beginning on the third anniversary of the grant date; (ii) one-quarter per year, beginning on the second anniversary of the grant date or the holder’s employment commencement date; or (iii) one-third per year, beginning on the first anniversary of the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions). Compensation expense associated with restricted units is recognized on a straight-line basis over the requisite service period of the award. Restricted units are delivered net of the holder’s payroll related taxes upon vesting. For the three months ended March 31, 2024, 3.5 million restricted units vested and 1.9 million shares of Class A common stock were delivered to the holders. For the three months ended March 31, 2023, 3.3 million restricted units vested and 1.9 million shares of Class A common stock were delivered to the holders. The holders of restricted units, other than awards that have not yet been issued as described in the subsequent sections, generally have the right to receive as current compensation an amount in cash equal to: (i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by; and (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”). When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense within the Condensed Consolidated Statements of Operations. The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the three months ended March 31, 2024: Record Date Dividends Dividend Equivalents Paid March 15, 2024 $ 0.93 $ 16,294 During the first quarter of 2024, the Company approved the future grant of restricted units to certain senior executives in each of 2025 and 2026, subject to the holder’s continued employment and acceleration in certain instances. These restricted awards vest before July 1, 2029, at a rate of either: (i) one-quarter per year, beginning on the first anniversary of the grant date; or (ii) one-third per year, beginning on the first anniversary of the grant date. Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period. The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date. The following table presents unvested restricted units’ activity: Restricted Units Weighted Average 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 The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $1,087.5 million as of March 31, 2024 and is expected to be recognized over the remaining weighted average period of 3.9 years. Options Upon exercise, each option entitles the holders to purchase from the Company one share of Class A common stock at the stated exercise price. A summary of options activity during the three months ended March 31, 2024 is presented below: Options Weighted Average Exercise Price Weighted Average Remaining Life 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 $ — |
EQUITY AND REDEEMABLE INTEREST
EQUITY AND REDEEMABLE INTEREST | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
EQUITY AND REDEEMABLE INTEREST | 12. EQUITY AND REDEEMABLE INTEREST Common Stock The Company’s common stock consists of Class A, Class B, Class C and non-voting common stock, each $0.01 par value per share. The non-voting common stock has the same economic rights as the Class A common stock. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting common stock. The Class B common stock and Class C common stock are non-economic and holders are not entitled to dividends from the Company or to receive any assets of the Company in the event of any dissolution, liquidation or winding up of the Company. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock. In January 2024, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2025. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the three months ended March 31, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program. The following table presents the changes in each class of common stock: 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 (1) Issuances of Class C common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities. The following table presents each partner’s Ares Operating Group Units (“AOG Units”) and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities: 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 % Redeemable Interest The following table summarizes the activities associated with the redeemable interest in AOG entities: 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 The following table summarizes the activities associated with the redeemable interest in Consolidated Funds: 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 As of March 31, 2024 and December 31, 2023, 50,000,000 of AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 13. SEGMENT REPORTING The Company operates through its distinct operating segments. On January 1, 2024, the Company changed its segment composition. The special opportunities strategy, historically part of the Private Equity Group, is now referred to as opportunistic credit and is presented within the Credit Group. The Company has modified historical results to conform with its current presentation. The Company operating segments are summarized below: Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit. Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments. Private Equity Group : The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity. Secondaries Group : The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. Other : Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually do not meet reporting thresholds. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; and (ii) the SPACs sponsored by the Company, among others. The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management and distribution. The OMG includes Ares Wealth Management Solutions, LLC (“AWMS”) that facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance. Segment Profit Measures: These measures supplement and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP. Fee related earnings (“FRE”) is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income from Ares Funds and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments. Realized income (“RI”) is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations. Management makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds. Consequently, all segment data excludes the assets, liabilities and operating results related to the Consolidated Funds and non-consolidated funds. Total assets by segments is not disclosed because such information is not used by the Company’s chief operating decision maker in evaluating the segments. The following tables present the financial results for the Company’s operating segments, as well as the OMG: 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 The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income: 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) The following table reconciles the Company’s consolidated revenues to segment revenue: 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 (1) Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting. The following table reconciles the Company’s consolidated expenses to segment expenses: 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 (1) Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting. (2) Represents contingent obligations (“earnouts”) resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. The following table reconciles the Company’s consolidated other income to segment realized net investment income: 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) The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE: 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 (1) Represents earnouts resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. |
CONSOLIDATION
CONSOLIDATION | 3 Months Ended |
Mar. 31, 2024 | |
Condensed Financial Information Disclosure [Abstract] | |
CONSOLIDATION | 14. CONSOLIDATION Investments in Consolidated Variable Interest Entities The Company consolidates entities in which the Company has a variable interest and as the general partner or investment manager, has both the power to direct the most significant activities and a potentially significant economic interest. Investments in the consolidated variable interest entities (“VIEs”) are reported at fair value and represent the Company’s maximum exposure to loss. Investments in Non-Consolidated Variable Interest Entities The Company holds interests in certain VIEs that are not consolidated as the Company is not the primary beneficiary. The Company’s interest in such entities generally is in the form of direct equity interests, fixed fee arrangements or both. The maximum exposure to loss represents the potential loss of assets by the Company relating to its direct investments in these non-consolidated entities. Investments in the non-consolidated VIEs are carried at fair value. 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 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 (1) As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure of loss for CLO securities was equal to the cumulative fair value of the Company’s capital interest in CLOs and totaled $83.2 million and $83.1 million, respectively. Three months ended March 31, 2024 2023 Net income attributable to non-controlling interests related to consolidated VIEs $ 58,356 $ 37,131 Consolidating Schedules 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 March 31, 2024 Consolidated Consolidated 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 Due from affiliates 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 Due from affiliates — 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 Due to affiliates 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 Due to affiliates — 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 Consolidated 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 Due from affiliates 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 Due from affiliates — 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 Due to affiliates 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 Due to affiliates — 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 Consolidated 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 Consolidated 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 Consolidated 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 Consolidated 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS The Company evaluated all events or transactions that occurred after March 31, 2024 through the date the unaudited condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure: In May 2024, the Company’s board of directors declared a quarterly dividend of $0.93 per share of Class A and non-voting common stock payable on June 28, 2024 to common stockholders of record at the close of business on June 14, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended March 31, 2024, certain executive officers and directors of the Company or a vehicle controlled by them (each, a “Plan Participant”) entered into Rule 10b5-1 trading plan (a “Rule 10b5-1 Trading Plan”) to sell shares of the Company’s Class A common stock, in each case, subject to any applicable volume limitations. The table below provides certain information regarding each Plan Participant’s Rule 10b5-1 Trading Plan. 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 |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
R. Kipp deVeer [Member] | |
Trading Arrangements, by Individual | |
Name | R. Kipp deVeer |
Title | Director and Head of Credit Group |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 28, 2024 |
Arrangement Duration | 366 days |
Aggregate Available | 41,676 |
Bennett Rosenthal [Member] | |
Trading Arrangements, by Individual | |
Name | Bennett Rosenthal |
Title | Director, Co-Founder and Chairman of Private Equity Group |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Arrangement Duration | 336 days |
Aggregate Available | 250,000 |
David Kaplan [Member] | |
Trading Arrangements, by Individual | |
Name | David Kaplan |
Title | Director and Co-Founder |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Arrangement Duration | 336 days |
Aggregate Available | 250,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments so that the unaudited condensed consolidated financial statements are presented fairly and that estimates made in preparing its unaudited condensed consolidated financial statements are reasonable and prudent, and that all such adjustments are of a normal recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts and activities of the Ares Operating Group entities (“AOG entities”), their consolidated subsidiaries and certain Consolidated Funds. All intercompany balances and transactions have been eliminated upon consolidation. |
Reclassifications | The Company has reclassified certain prior period amounts to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its unaudited condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the Company’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for the Company’s fiscal year ending December 31, 2024 and for the Company’s interim periods beginning with the quarter ended March 31, 2025. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. ASU 2023-09 requires disclosure of disaggregated income taxes paid in both U.S. and foreign jurisdictions, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s fiscal year ending December 31, 2025. Early adoption is permitted and the amendments in this update should be applied on a prospective basis, though retrospective adoption is permitted. The Company is currently evaluating the impact of this guidance. |
Segment Reporting | The Company operates through its distinct operating segments. On January 1, 2024, the Company changed its segment composition. The special opportunities strategy, historically part of the Private Equity Group, is now referred to as opportunistic credit and is presented within the Credit Group. The Company has modified historical results to conform with its current presentation. The Company operating segments are summarized below: Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit. Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments. Private Equity Group : The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity. Secondaries Group : The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. Other : Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually do not meet reporting thresholds. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; and (ii) the SPACs sponsored by the Company, among others. The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management and distribution. The OMG includes Ares Wealth Management Solutions, LLC (“AWMS”) that facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance. Segment Profit Measures: These measures supplement and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP. Fee related earnings (“FRE”) is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income from Ares Funds and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments. Realized income (“RI”) is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value for the Company's Intangible Assets | The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets: Weighted Average Amortization Period (in years) as of 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 |
Schedule of Goodwill Rollforward | The following table summarizes the carrying value of the Company’s goodwill: 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 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments in and Advances to Affiliates [Abstract] | |
Schedule of Investments Held | The following table summarizes the Company’s investments: 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 The following table summarizes investments held in the Consolidated Funds: 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 |
Schedule of Equity Method Investments | The following table presents the Company’s other income, net from its equity method investments, which were included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Condensed Consolidated Statements of Operations: Three months ended March 31, 2024 2023 Total other income, net related to equity method investments $ 10,127 $ 23,914 The following table summarizes the changes in fair value of the Company’s equity method investments held at fair value, which are included within net realized and unrealized gains on investments within the Condensed Consolidated Statements of Operations: 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 (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Valuation of Investments and Other Financial Instruments by Fair Value Hierarchy Levels | The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of March 31, 2024: 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) Total derivative liabilities, at fair value — (5,541) (1,574) — (7,115) Total liabilities, at fair value $ — $ (11,911,887) $ (1,574) $ — $ (11,913,461) The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2023: 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) Total derivative liabilities, at fair value — (9,491) (1,291) — (10,782) Total liabilities, at fair value $ — $ (12,355,148) $ (1,291) $ — $ (12,356,439) |
Schedule of Changes in the Fair Value of the Level III Investments, Liabilities | The following tables set forth a summary of changes in the fair value of the Level III measurements: 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) Realized and unrealized appreciation (depreciation), net 21,589 2,039 (329) 23,299 Balance as of March 31, 2024 $ 1,366,464 $ 639,318 $ (1,574) $ 2,004,208 Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date $ 22,225 $ 1,420 $ (380) $ 23,265 (1) Purchases include paid-in-kind interest and securities received in connection with restructurings. (2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings. The following tables set forth a summary of changes in the fair value of the Level III measurements: 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) Realized and unrealized appreciation, net 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 Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date $ 21,436 $ (20,602) $ 5,283 $ 1,848 $ 7,965 (1) Purchases include paid-in-kind interest and securities received in connection with restructurings. (2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings. |
Schedule of Quantitative Inputs and Assumptions used for Level III Inputs | The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of March 31, 2024: 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) (1) Transaction price consists of securities purchased or restructured. The Company determined that there was no change to the valuation based on the underlying assumptions used at the closing of such transactions. (2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization. The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of December 31, 2023: 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) (1) Transaction price consists of securities purchased or restructured. The Company determined that there has been no change to the valuation based on the underlying assumptions used at the closing of such transactions. (2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization. |
Schedule of Investments and Unfunded Commitments Valued Using NAV per Share | The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share: 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 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings Outstanding | The following table summarizes the Company’s and its subsidiaries’ debt obligations: 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 (1) On March 28, 2024, the Company amended the Credit Facility to, among other things, increase the revolver commitments from $1.325 billion to $1.400 billion, with an accordion feature of $600.0 million, and extend the maturity date from March 2027 to March 2029. Ares Holdings is the borrower under the Credit Facility. The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain environmental, social and governance (“ESG”)-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2024, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero. Due to the achievement of the ESG-related targets in the second quarter of 2023, the Company’s base rate and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through June 2024. (2) The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 Senior Notes. (3) The 2028 Senior Notes were issued in November 2023 by the Company, at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the 2028 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2028 Senior Notes. (4) The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Senior Notes. (5) The 2052 Senior Notes were issued in January 2022 by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the 2052 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2052 Senior Notes. (6) The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. Beginning June 30, 2026, the interest rate will reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the 2051 Subordinated Notes prior to maturity or defer interest payments up to five The following table presents the activity of the Company’s debt issuance costs: 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 The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs: As of March 31, 2024 As of December 31, 2023 Fair Value of Weighted Weighted Fair Value of Weighted Weighted 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 (1) The notes do not have contractual interest rates; instead, holders of the notes receive distributions from the excess cash flows generated by each Consolidated CLO. The Consolidated Funds had the following revolving bank credit facilities outstanding: 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 (1) The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Supplemental Quantitative Disclosures | The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases: 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% |
Schedule of Operating Lease Maturities | The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases: 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 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Due from and to Affiliates | The Company considers its professionals and non-consolidated funds to be affiliates. Amounts due from and to affiliates were composed of the following: 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 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the income tax expense for the period: Three months ended March 31, 2024 2023 Income tax expense $ 27,233 $ 33,806 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of the Computation of Basic and Diluted Earnings per Common Unit | The following table presents the computation of basic and diluted earnings per common share: 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 |
EQUITY COMPENSATION (Tables)
EQUITY COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity-based Compensation Expense, Net of Forfeitures | Equity-based compensation expense, net of forfeitures, recorded by the Company for restricted units is presented in the following table: Three months ended March 31, 2024 2023 Restricted units $ 92,422 $ 69,252 |
Schedule of Dividends Declared and Paid | The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the three months ended March 31, 2024: Record Date Dividends Dividend Equivalents Paid March 15, 2024 $ 0.93 $ 16,294 |
Schedule of Unvested Restricted Units Activity | The following table presents unvested restricted units’ activity: Restricted Units Weighted Average 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 |
Schedule of Unvested Options Activity | A summary of options activity during the three months ended March 31, 2024 is presented below: Options Weighted Average Exercise Price Weighted Average Remaining Life 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 $ — |
EQUITY AND REDEEMABLE INTEREST
EQUITY AND REDEEMABLE INTEREST (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | The following table presents the changes in each class of common stock: 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 (1) Issuances of Class C common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities. |
Schedule of Ownership Interests | The following table presents each partner’s Ares Operating Group Units (“AOG Units”) and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities: 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 % |
Schedule of Redeemable Interests | The following table summarizes the activities associated with the redeemable interest in AOG entities: 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 The following table summarizes the activities associated with the redeemable interest in Consolidated Funds: 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 As of March 31, 2024 and December 31, 2023, 50,000,000 of AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Results for Company's Operating Segments and OMG | The following tables present the financial results for the Company’s operating segments, as well as the OMG: 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 |
Schedule of Segment Revenue, Expenses and Realized Net Investment Income | The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income: 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) |
Schedule of Segment Revenues Components | The following table reconciles the Company’s consolidated revenues to segment revenue: 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 (1) Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting. |
Schedule of Segment Expenses Components | The following table reconciles the Company’s consolidated expenses to segment expenses: 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 (1) Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting. (2) Represents contingent obligations (“earnouts”) resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. |
Schedule of Segment Other Income (Expense) Components | The following table reconciles the Company’s consolidated other income to segment realized net investment income: 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) |
Schedule of Reconciliation of Segment Results to the Company's Income before Taxes and Total Assets | The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE: 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 (1) Represents earnouts resulting from the Infrastructure Debt Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. |
CONSOLIDATION (Tables)
CONSOLIDATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Interest in VIEs | 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 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 (1) As of March 31, 2024 and December 31, 2023, the Company’s maximum exposure of loss for CLO securities was equal to the cumulative fair value of the Company’s capital interest in CLOs and totaled $83.2 million and $83.1 million, respectively. Three months ended March 31, 2024 2023 Net income attributable to non-controlling interests related to consolidated VIEs $ 58,356 $ 37,131 |
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 March 31, 2024 Consolidated Consolidated 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 Due from affiliates 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 Due from affiliates — 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 Due to affiliates 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 Due to affiliates — 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 Consolidated 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 Due from affiliates 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 Due from affiliates — 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 Due to affiliates 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 Due to affiliates — 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 |
Schedule of Results from Operations | Three months ended March 31, 2024 Consolidated Consolidated 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 Consolidated 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 |
Schedule of Cash Flows | Three months ended March 31, 2024 Consolidated Consolidated 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 Consolidated 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 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-lived intangible assets, net | ||
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, Total | 462,276 | 490,695 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible assets, net | 1,030,076 | 1,058,495 |
Management contracts | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived management contracts | $ 567,800 | 567,800 |
Management contracts | ||
Finite-lived intangible assets, net | ||
Weighted average amortization period | 4 years 2 months 12 days | |
Finite-lived intangible assets | $ 580,635 | 604,242 |
Client relationships | ||
Finite-lived intangible assets, net | ||
Weighted average amortization period | 8 years 3 months 18 days | |
Finite-lived intangible assets | $ 200,920 | 200,920 |
Other | ||
Finite-lived intangible assets, net | ||
Weighted average amortization period | 7 months 6 days | |
Finite-lived intangible assets | $ 500 | $ 500 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Depreciation and amortization expense | $ 29,200,000 | $ 33,600,000 |
Fully amortized intangibles, amount removed during the period | 24,900,000 | |
Reallocation | 0 | |
Goodwill impairment | 0 | 0 |
From Private Equity Group To Credit Group | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Reallocation | $ 55,700,000 | |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Non-cash impairment charges | $ 7,800,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,123,976 |
Acquisitions | 7,354 |
Reallocation | 0 |
Foreign currency translation | (1,245) |
Goodwill, ending balance | 1,130,085 |
Credit Group | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 256,679 |
Acquisitions | 0 |
Reallocation | 55,658 |
Foreign currency translation | (1,242) |
Goodwill, ending balance | 311,095 |
Real Assets Group | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 277,205 |
Acquisitions | 6,710 |
Reallocation | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | 283,915 |
Private Equity Group | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 172,462 |
Acquisitions | 644 |
Reallocation | (55,658) |
Foreign currency translation | 0 |
Goodwill, ending balance | 117,448 |
Secondaries Group | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 417,630 |
Acquisitions | 0 |
Reallocation | 0 |
Foreign currency translation | (3) |
Goodwill, ending balance | $ 417,627 |
INVESTMENTS - Schedule of Inves
INVESTMENTS - Schedule of Investments (Details) - Ares Management L.P - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Equity method private investment partnership interests and other | $ 3,159 | $ 6,287 |
Fixed income securities | 534,714 | 631,644 |
Common stock, at fair value | 509,967 | 499,063 |
Total investments | 4,484,884 | 4,624,932 |
Partnership Interests | ||
Investments | ||
Equity method investments: | $ 4,370,203 | $ 4,412,066 |
Percentage of total investments as of | 97.50% | 95.40% |
Collateralized loan obligations and fixed income securities | ||
Investments | ||
Collateralized loan obligations | $ 21,588 | $ 126,294 |
Percentage of total investments as of | 0.40% | 2.70% |
Collateralized loan obligations | ||
Investments | ||
Collateralized loan obligations | $ 20,010 | $ 20,799 |
Percentage of total investments as of | 0.40% | 0.40% |
Fixed income securities | ||
Investments | ||
Fixed income securities | $ 1,578 | $ 105,495 |
Percentage of total investments as of | 0% | 2.30% |
Common stock, at fair value | ||
Investments | ||
Common stock, at fair value | $ 93,093 | $ 86,572 |
Percentage of total investments as of | 2.10% | 1.90% |
Equity method - carried interest | ||
Investments | ||
Equity method investments: | $ 3,361,519 | $ 3,413,007 |
Percentage of total investments as of | 75% | 73.80% |
Partnership Interests | ||
Investments | ||
Equity method investments: | $ 545,153 | $ 535,292 |
Percentage of total investments as of | 12.10% | 11.60% |
Equity method private investment partnership interests and other (held at fair value) | ||
Investments | ||
Equity method investments: | $ 420,033 | $ 418,778 |
Percentage of total investments as of | 9.40% | 9% |
Equity method private investment partnership interests and other | ||
Investments | ||
Equity method private investment partnership interests and other | $ 43,498 | $ 44,989 |
Percentage of total investments as of | 1% | 1% |
INVESTMENTS - Schedule of Equit
INVESTMENTS - Schedule of Equity Method Investments Net Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | ||
Total other income, net related to equity method investments | $ 10,127 | $ 23,914 |
INVESTMENTS - Schedule of Equ_2
INVESTMENTS - Schedule of Equity Method Investment Held at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity method private investment partnership interests and other (held at fair value) | $ 2,479 | $ 3,099 |
INVESTMENTS - Schedule of Inv_2
INVESTMENTS - Schedule of Investments of the Consolidated Funds (Details) - Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Total investments, at fair value | $ 14,319,917 | $ 14,601,587 |
Fixed income investments: | ||
Investments | ||
Total investments, at fair value | $ 11,191,112 | $ 11,718,445 |
Percentage of total investments | 78.20% | 80.30% |
Fixed income investments: | Loans and securitization vehicles | ||
Investments | ||
Total investments, at fair value | $ 10,147,424 | $ 10,616,458 |
Percentage of total investments | 70.90% | 72.70% |
Fixed income investments: | Money market funds and U.S. treasury securities | ||
Investments | ||
Total investments, at fair value | $ 529,887 | $ 523,038 |
Percentage of total investments | 3.70% | 3.60% |
Fixed income investments: | Bonds | ||
Investments | ||
Total investments, at fair value | $ 513,801 | $ 578,949 |
Percentage of total investments | 3.60% | 4% |
Partnership interests | ||
Investments | ||
Total investments, at fair value | $ 1,721,331 | $ 1,642,489 |
Percentage of total investments | 12% | 11.20% |
Equity securities | ||
Investments | ||
Total investments, at fair value | $ 1,407,474 | $ 1,240,653 |
Percentage of total investments | 9.80% | 8.50% |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Funds | ||
Summary of Investment Holdings [Line Items] | ||
Percent of total assets threshold | 5% | 5% |
FAIR VALUE - Schedule of Assets
FAIR VALUE - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Funds | ||
Assets, at fair value | ||
Common stock and other equity securities | $ 1,407,474 | $ 1,240,653 |
Collateralized loan obligations and fixed income securities | 11,191,112 | 11,718,445 |
Partnership interests | 1,721,331 | 1,642,489 |
Total investments, at fair value | 14,319,917 | 14,601,587 |
Total assets, at fair value | 14,325,507 | 14,610,713 |
Liabilities, at fair value | ||
Loan obligations of CLOs | (11,906,346) | (12,345,657) |
Derivative liabilities | (7,115) | (10,782) |
Total liabilities, at fair value | $ (11,913,461) | $ (12,356,439) |
Derivative liability, statement of financial position | Liabilities | Liabilities |
Consolidated Funds | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | $ 5,590 | $ 9,126 |
Liabilities, at fair value | ||
Derivative liabilities | (5,541) | (9,491) |
Consolidated Funds | Asset swaps | ||
Liabilities, at fair value | ||
Derivative liabilities | (1,574) | (1,291) |
Consolidated Funds | Loans and securitization vehicles | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 10,147,424 | 10,616,458 |
Consolidated Funds | Money market funds and U.S. treasury securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 529,887 | 523,038 |
Consolidated Funds | Bonds | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 513,801 | 578,949 |
Level I | Consolidated Funds | ||
Assets, at fair value | ||
Common stock and other equity securities | 38,620 | 47,503 |
Collateralized loan obligations and fixed income securities | 529,887 | 523,038 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 568,507 | 570,541 |
Total assets, at fair value | 568,507 | 570,541 |
Liabilities, at fair value | ||
Loan obligations of CLOs | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total liabilities, at fair value | 0 | 0 |
Level I | Consolidated Funds | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Level I | Consolidated Funds | Asset swaps | ||
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Level I | Consolidated Funds | Loans and securitization vehicles | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Level I | Consolidated Funds | Money market funds and U.S. treasury securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 529,887 | 523,038 |
Level I | Consolidated Funds | Bonds | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Level II | Consolidated Funds | ||
Assets, at fair value | ||
Common stock and other equity securities | 2,390 | 2,750 |
Collateralized loan obligations and fixed income securities | 10,021,907 | 10,455,294 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 10,024,297 | 10,458,044 |
Total assets, at fair value | 10,029,887 | 10,467,170 |
Liabilities, at fair value | ||
Loan obligations of CLOs | (11,906,346) | (12,345,657) |
Derivative liabilities | (5,541) | (9,491) |
Total liabilities, at fair value | (11,911,887) | (12,355,148) |
Level II | Consolidated Funds | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 5,590 | 9,126 |
Liabilities, at fair value | ||
Derivative liabilities | (5,541) | (9,491) |
Level II | Consolidated Funds | Asset swaps | ||
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Level II | Consolidated Funds | Loans and securitization vehicles | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 9,508,106 | 9,879,915 |
Level II | Consolidated Funds | Money market funds and U.S. treasury securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Level II | Consolidated Funds | Bonds | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 513,801 | 575,379 |
Level III | Consolidated Funds | ||
Assets, at fair value | ||
Common stock and other equity securities | 1,366,464 | 1,190,400 |
Collateralized loan obligations and fixed income securities | 639,318 | 740,113 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 2,005,782 | 1,930,513 |
Total assets, at fair value | 2,005,782 | 1,930,513 |
Liabilities, at fair value | ||
Loan obligations of CLOs | 0 | 0 |
Derivative liabilities | (1,574) | (1,291) |
Total liabilities, at fair value | (1,574) | (1,291) |
Level III | Consolidated Funds | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Level III | Consolidated Funds | Asset swaps | ||
Liabilities, at fair value | ||
Derivative liabilities | (1,574) | (1,291) |
Level III | Consolidated Funds | Loans and securitization vehicles | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 639,318 | 736,543 |
Level III | Consolidated Funds | Money market funds and U.S. treasury securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Level III | Consolidated Funds | Bonds | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 3,570 |
Investments Measured at NAV | Consolidated Funds | ||
Assets, at fair value | ||
Common stock and other equity securities | 0 | 0 |
Collateralized loan obligations and fixed income securities | 0 | 0 |
Partnership interests | 1,721,331 | 1,642,489 |
Total investments, at fair value | 1,721,331 | 1,642,489 |
Total assets, at fair value | 1,721,331 | 1,642,489 |
Liabilities, at fair value | ||
Loan obligations of CLOs | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total liabilities, at fair value | 0 | 0 |
Investments Measured at NAV | Consolidated Funds | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Investments Measured at NAV | Consolidated Funds | Asset swaps | ||
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Investments Measured at NAV | Consolidated Funds | Loans and securitization vehicles | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Investments Measured at NAV | Consolidated Funds | Money market funds and U.S. treasury securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Investments Measured at NAV | Consolidated Funds | Bonds | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Ares Management L.P | ||
Assets, at fair value | ||
Common stock and other equity securities | 509,967 | 499,063 |
Partnership interests | 3,159 | 6,287 |
Total investments, at fair value | 534,714 | 631,644 |
Total assets, at fair value | 536,337 | 632,773 |
Liabilities, at fair value | ||
Total liabilities, at fair value | (1,365) | (2,645) |
Ares Management L.P | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 1,623 | 1,129 |
Liabilities, at fair value | ||
Derivative liabilities | (1,365) | (2,645) |
Ares Management L.P | Collateralized loan obligations and fixed income securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 21,588 | 126,294 |
Ares Management L.P | Level I | ||
Assets, at fair value | ||
Common stock and other equity securities | 0 | 0 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 0 | 0 |
Total assets, at fair value | 0 | 0 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 0 | 0 |
Ares Management L.P | Level I | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Ares Management L.P | Level I | Collateralized loan obligations and fixed income securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Ares Management L.P | Level II | ||
Assets, at fair value | ||
Common stock and other equity securities | 93,093 | 86,572 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 93,093 | 86,572 |
Total assets, at fair value | 94,716 | 87,701 |
Liabilities, at fair value | ||
Total liabilities, at fair value | (1,365) | (2,645) |
Ares Management L.P | Level II | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 1,623 | 1,129 |
Liabilities, at fair value | ||
Derivative liabilities | (1,365) | (2,645) |
Ares Management L.P | Level II | Collateralized loan obligations and fixed income securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 0 | 0 |
Ares Management L.P | Level III | ||
Assets, at fair value | ||
Common stock and other equity securities | 416,874 | 412,491 |
Partnership interests | 0 | 0 |
Total investments, at fair value | 438,462 | 538,785 |
Total assets, at fair value | 438,462 | 538,785 |
Liabilities, at fair value | ||
Loan obligations of CLOs | (438,462) | |
Total liabilities, at fair value | 0 | 0 |
Ares Management L.P | Level III | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Ares Management L.P | Level III | Collateralized loan obligations and fixed income securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | 21,588 | 126,294 |
Ares Management L.P | Investments Measured at NAV | ||
Assets, at fair value | ||
Common stock and other equity securities | 0 | 0 |
Partnership interests | 3,159 | 6,287 |
Total investments, at fair value | 3,159 | 6,287 |
Total assets, at fair value | 3,159 | 6,287 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 0 | 0 |
Ares Management L.P | Investments Measured at NAV | Derivatives-foreign currency forward contracts | ||
Assets, at fair value | ||
Derivatives-foreign currency forward contracts | 0 | 0 |
Liabilities, at fair value | ||
Derivative liabilities | 0 | 0 |
Ares Management L.P | Investments Measured at NAV | Collateralized loan obligations and fixed income securities | ||
Assets, at fair value | ||
Collateralized loan obligations and fixed income securities | $ 0 | $ 0 |
FAIR VALUE - Schedule of Change
FAIR VALUE - Schedule of Changes in Fair Value of Level III Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Funds | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | $ 1,929,222 | $ 1,965,647 |
Transfer in | 91,729 | 284,198 |
Transfer out | (172,358) | (447,536) |
Purchases | 418,227 | 417,604 |
Sales/settlements | (285,911) | (222,513) |
Realized and unrealized appreciation (depreciation), net | 23,299 | 40,390 |
Balance, end of period | 2,004,208 | 2,037,790 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ 23,265 | $ 7,965 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net realized and unrealized gains (losses) from investments | Net realized and unrealized gains (losses) from investments |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Net realized and unrealized gains (losses) from investments | Net realized and unrealized gains (losses) from investments |
Consolidated Funds | Equity securities | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | $ 1,190,400 | $ 730,880 |
Transfer in | 0 | 0 |
Transfer out | 0 | 0 |
Purchases | 154,475 | 180,372 |
Sales/settlements | 0 | (122) |
Realized and unrealized appreciation (depreciation), net | 21,589 | 21,505 |
Balance, end of period | 1,366,464 | 932,635 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | 22,225 | 21,436 |
Consolidated Funds | Fixed Income | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | 740,113 | 869,668 |
Transfer in | 91,729 | 284,198 |
Transfer out | (172,358) | (447,536) |
Purchases | 263,706 | 188,232 |
Sales/settlements | (285,911) | (173,502) |
Realized and unrealized appreciation (depreciation), net | 2,039 | 11,744 |
Balance, end of period | 639,318 | 732,804 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | 1,420 | (20,602) |
Consolidated Funds | Partnership Interests | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | 368,655 | |
Transfer in | 0 | |
Transfer out | 0 | |
Purchases | 49,000 | |
Sales/settlements | (48,889) | |
Realized and unrealized appreciation (depreciation), net | 5,283 | |
Balance, end of period | 374,049 | |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | 5,283 | |
Consolidated Funds | Derivatives, Net | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | (1,291) | (3,556) |
Transfer in | 0 | 0 |
Transfer out | 0 | 0 |
Purchases | 46 | 0 |
Sales/settlements | 0 | 0 |
Realized and unrealized appreciation (depreciation), net | (329) | 1,858 |
Balance, end of period | (1,574) | (1,698) |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | (380) | 1,848 |
Ares Management L.P | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | 538,785 | 198,719 |
Purchases | 2,296 | 1,246 |
Sales/settlements | (109,142) | (1,491) |
Realized and unrealized appreciation (depreciation), net | 6,523 | 1,768 |
Balance, end of period | 438,462 | 200,242 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | 6,523 | 1,767 |
Ares Management L.P | Equity securities | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | 412,491 | 121,785 |
Purchases | 30 | 52 |
Sales/settlements | (782) | 45 |
Realized and unrealized appreciation (depreciation), net | 5,135 | 3,191 |
Balance, end of period | 416,874 | 125,073 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | 5,135 | 2,978 |
Ares Management L.P | Fixed Income | ||
Level III Net Assets of Consolidated Funds | ||
Balance, beginning of period | 126,294 | 76,934 |
Purchases | 2,266 | 1,194 |
Sales/settlements | (108,360) | (1,536) |
Realized and unrealized appreciation (depreciation), net | 1,388 | (1,423) |
Balance, end of period | 21,588 | 75,169 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date | $ 1,388 | $ (1,211) |
FAIR VALUE - Schedule of Quanti
FAIR VALUE - Schedule of Quantitative Inputs and Assumptions used for Level III Inputs (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Level III | Discounted cash flow | ||
Assets | ||
Equity securities | $ 154,460 | |
Level III | Discounted cash flow | Discount rate | Minimum | ||
Significant Unobservable Input(s) | ||
Equity securities | 20 | |
Level III | Discounted cash flow | Discount rate | Maximum | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.300 | |
Level III | Discounted cash flow | Discount rate | Weighted Average | ||
Significant Unobservable Input(s) | ||
Equity securities | 25 | |
Consolidated Funds | ||
Assets | ||
Equity securities | $ 1,407,474 | $ 1,240,653 |
Partnership interests | 1,721,331 | 1,642,489 |
Collateralized loan obligations | 11,906,346 | 12,345,657 |
Fixed income investments | 11,191,112 | 11,718,445 |
Total assets, at fair value | 14,325,507 | 14,610,713 |
Liabilities | ||
Derivative instruments | (7,115) | (10,782) |
Total liabilities, at fair value | (11,913,461) | (12,356,439) |
Consolidated Funds | Level III | ||
Assets | ||
Equity securities | 1,366,464 | 1,190,400 |
Partnership interests | 0 | 0 |
Collateralized loan obligations | 0 | 0 |
Fixed income investments | 639,318 | 740,113 |
Total assets, at fair value | 2,005,782 | 1,930,513 |
Liabilities | ||
Derivative instruments | (1,574) | (1,291) |
Total liabilities, at fair value | (1,574) | (1,291) |
Consolidated Funds | Level III | Discounted cash flow | ||
Assets | ||
Equity securities | 774,504 | 648,581 |
Fixed income investments | $ 3,876 | $ 104 |
Consolidated Funds | Level III | Discounted cash flow | Discount rate | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.123 | |
Consolidated Funds | Level III | Discounted cash flow | Discount rate | Minimum | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.100 | 0.100 |
Fixed income investments | 0.123 | |
Consolidated Funds | Level III | Discounted cash flow | Discount rate | Maximum | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.160 | 0.160 |
Fixed income investments | 0.127 | |
Consolidated Funds | Level III | Discounted cash flow | Discount rate | Weighted Average | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.130 | 13 |
Fixed income investments | 0.127 | 0.123 |
Consolidated Funds | Level III | Market approach | Equity Securities One | ||
Assets | ||
Equity securities | $ 587,252 | $ 537,733 |
Consolidated Funds | Level III | Market approach | Equity Securities Two | ||
Assets | ||
Equity securities | 3,704 | 3,909 |
Consolidated Funds | Level III | Market approach | Fixed Income Investments One | ||
Assets | ||
Fixed income investments | $ 128,212 | 188,322 |
Consolidated Funds | Level III | Market approach | Fixed Income Investments Two | ||
Assets | ||
Fixed income investments | $ 2,974 | |
Consolidated Funds | Level III | Market approach | Multiple of book value | Minimum | Equity Securities One | ||
Significant Unobservable Input(s) | ||
Equity securities | 1 | 1 |
Consolidated Funds | Level III | Market approach | Multiple of book value | Maximum | Equity Securities One | ||
Significant Unobservable Input(s) | ||
Equity securities | 1.7 | 1.7 |
Consolidated Funds | Level III | Market approach | Multiple of book value | Weighted Average | Equity Securities One | ||
Significant Unobservable Input(s) | ||
Equity securities | 1.3 | 1.3 |
Consolidated Funds | Level III | Market approach | Yield | Minimum | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.088 | |
Consolidated Funds | Level III | Market approach | Yield | Minimum | Fixed Income Investments One | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.083 | |
Consolidated Funds | Level III | Market approach | Yield | Maximum | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.171 | |
Consolidated Funds | Level III | Market approach | Yield | Maximum | Fixed Income Investments One | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.241 | |
Consolidated Funds | Level III | Market approach | Yield | Weighted Average | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.118 | |
Consolidated Funds | Level III | Market approach | Yield | Weighted Average | Fixed Income Investments One | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 0.122 | |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Minimum | Equity Securities Two | ||
Significant Unobservable Input(s) | ||
Equity securities | 5.4 | 4.5 |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Minimum | Fixed Income Investments Two | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 4.5 | |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Maximum | Equity Securities Two | ||
Significant Unobservable Input(s) | ||
Equity securities | 35.3 | 32.4 |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Maximum | Fixed Income Investments Two | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 32.4 | |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Weighted Average | Equity Securities Two | ||
Significant Unobservable Input(s) | ||
Equity securities | 9.8 | 8.9 |
Consolidated Funds | Level III | Market approach | EBITDA multiple | Weighted Average | Fixed Income Investments Two | ||
Significant Unobservable Input(s) | ||
Fixed income investments | 9 | |
Consolidated Funds | Level III | Transaction Price | ||
Assets | ||
Equity securities | $ 871 | |
Fixed income investments | 6,410 | |
Consolidated Funds | Level III | Broker quotes and/or 3rd party pricing services | ||
Assets | ||
Fixed income investments | 500,420 | $ 548,264 |
Liabilities | ||
Derivative instruments | (1,574) | (1,291) |
Consolidated Funds | Level III | Other | ||
Assets | ||
Equity securities | 133 | 177 |
Fixed income investments | 449 | |
Consolidated Funds | Level III | Other | Fixed Income Investments Two | ||
Assets | ||
Fixed income investments | 400 | |
Ares Management L.P | ||
Assets | ||
Equity securities | 509,967 | 499,063 |
Partnership interests | 3,159 | 6,287 |
Total assets, at fair value | 536,337 | 632,773 |
Liabilities | ||
Total liabilities, at fair value | (1,365) | (2,645) |
Ares Management L.P | Level III | ||
Assets | ||
Equity securities | 416,874 | 412,491 |
Partnership interests | 0 | 0 |
Collateralized loan obligations | 438,462 | |
Total assets, at fair value | 438,462 | 538,785 |
Liabilities | ||
Total liabilities, at fair value | 0 | 0 |
Ares Management L.P | Level III | Discounted cash flow | ||
Assets | ||
Equity securities | $ 160,318 | |
Ares Management L.P | Level III | Discounted cash flow | Discount rate | Minimum | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.185 | |
Ares Management L.P | Level III | Discounted cash flow | Discount rate | Maximum | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.300 | |
Ares Management L.P | Level III | Discounted cash flow | Discount rate | Weighted Average | ||
Significant Unobservable Input(s) | ||
Equity securities | 0.250 | |
Ares Management L.P | Level III | Market approach | Equity Securities One | ||
Assets | ||
Equity securities | $ 117,952 | 118,846 |
Ares Management L.P | Level III | Market approach | Equity Securities Two | ||
Assets | ||
Equity securities | $ 6,179 | $ 6,447 |
Ares Management L.P | Level III | Market approach | Multiple of book value | Minimum | ||
Significant Unobservable Input(s) | ||
Equity securities | 1.3 | 1.3 |
Ares Management L.P | Level III | Market approach | Multiple of book value | Maximum | ||
Significant Unobservable Input(s) | ||
Equity securities | 1.4 | 1.6 |
Ares Management L.P | Level III | Market approach | Multiple of book value | Weighted Average | ||
Significant Unobservable Input(s) | ||
Equity securities | 1.3 | 1.5 |
Ares Management L.P | Level III | Market approach | Enterprise value / Earnings multiple | Equity Securities Two | ||
Significant Unobservable Input(s) | ||
Equity securities | 15.4 | 15.4 |
Ares Management L.P | Level III | Market approach | Enterprise value / Earnings multiple | Weighted Average | Equity Securities Two | ||
Significant Unobservable Input(s) | ||
Equity securities | 15.4 | 15.4 |
Ares Management L.P | Level III | Transaction Price | ||
Assets | ||
Equity securities | $ 100,000 | $ 100,000 |
Fixed income investments | 83,000 | |
Ares Management L.P | Level III | Broker quotes and/or 3rd party pricing services | ||
Assets | ||
Fixed income investments | 20,010 | 20,799 |
Ares Management L.P | Level III | Other | ||
Assets | ||
Equity securities | 32,425 | 32,738 |
Collateralized loan obligations | $ 22,495 | |
Fixed income investments | $ 1,578 |
FAIR VALUE - Schedule of Invest
FAIR VALUE - Schedule of Investments Using NAV per Share (Details) - Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
FAIR VALUE | ||
Investments (held at fair value) | $ 1,721,331 | $ 1,642,489 |
Investments Measured at NAV | ||
FAIR VALUE | ||
Investments (held at fair value) | 1,721,331 | 1,642,489 |
Investments Measured at NAV | Non-core investments | ||
FAIR VALUE | ||
Investments (held at fair value) | 1,721,331 | 1,642,489 |
Unfunded commitments | $ 1,079,881 | $ 738,621 |
DEBT - Schedule of Debt Obligat
DEBT - Schedule of Debt Obligations (Details) - Ares Management L.P - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2023 | Jan. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 31, 2014 | Mar. 31, 2024 | Jun. 30, 2024 | Mar. 28, 2024 | Mar. 27, 2024 | Dec. 31, 2023 | |
DEBT | ||||||||||
Carrying Value | $ 3,046,182 | $ 2,965,480 | ||||||||
Credit Facility | ||||||||||
DEBT | ||||||||||
Carrying Value | $ 975,000 | $ 895,000 | ||||||||
Interest Rate | 6.38% | 6.37% | ||||||||
Unused commitment fees | 0.10% | |||||||||
Credit Facility | Revolving Credit Facility [Member] | ||||||||||
DEBT | ||||||||||
Maximum borrowing capacity | $ 1,400,000 | |||||||||
Credit Facility | Line of Credit | Revolving Credit Facility [Member] | ||||||||||
DEBT | ||||||||||
Maximum borrowing capacity | $ 600,000 | $ 1,325,000 | ||||||||
Credit Facility | Minimum | ||||||||||
DEBT | ||||||||||
Interest rate | 0% | |||||||||
Credit Facility | Forecast | ||||||||||
DEBT | ||||||||||
Interest rate spread | 0.05% | |||||||||
Unused commitment fees | 0.01% | |||||||||
Credit Facility | SOFR | ||||||||||
DEBT | ||||||||||
Interest rate spread | 1% | |||||||||
Senior Notes 2024 | ||||||||||
DEBT | ||||||||||
Original Borrowing Amount | $ 250,000 | |||||||||
Carrying Value | $ 249,612 | $ 249,427 | ||||||||
Interest Rate | 4.21% | 4.21% | ||||||||
Debt issuance rate | 98.27% | |||||||||
Senior Notes 2028 | ||||||||||
DEBT | ||||||||||
Original Borrowing Amount | $ 500,000 | |||||||||
Carrying Value | $ 495,121 | $ 494,863 | ||||||||
Interest Rate | 6.42% | 6.42% | ||||||||
Debt issuance rate | 99.80% | |||||||||
Senior Notes 2030 | ||||||||||
DEBT | ||||||||||
Original Borrowing Amount | $ 400,000 | |||||||||
Carrying Value | $ 397,162 | $ 397,050 | ||||||||
Interest Rate | 3.28% | 3.28% | ||||||||
Debt issuance rate | 99.77% | |||||||||
Senior Notes 2052 | ||||||||||
DEBT | ||||||||||
Original Borrowing Amount | $ 500,000 | |||||||||
Carrying Value | $ 484,299 | $ 484,199 | ||||||||
Interest Rate | 3.77% | 3.77% | ||||||||
Debt issuance rate | 97.78% | |||||||||
Subordinated Notes 2051 | ||||||||||
DEBT | ||||||||||
Original Borrowing Amount | $ 450,000 | |||||||||
Carrying Value | $ 444,988 | $ 444,941 | ||||||||
Interest Rate | 4.13% | 4.13% | ||||||||
Interest rate | 4.125% | |||||||||
Debt term | 5 years | |||||||||
Subordinated Notes 2051 | US Treasury | ||||||||||
DEBT | ||||||||||
Interest rate | 3.237% |
DEBT - Schedule of Debt Issuanc
DEBT - Schedule of Debt Issuance Costs (Details) - Ares Management L.P $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Credit Facility | |
Debt Issuance Costs | |
Unamortized debt issuance costs, beginning balance | $ 4,213 |
Debt issuance costs incurred | 1,784 |
Amortization of debt issuance costs | (329) |
Unamortized debt issuance costs, ending balance | 5,668 |
Senior Notes | |
Debt Issuance Costs | |
Unamortized debt issuance costs, beginning balance | 11,784 |
Debt issuance costs incurred | 0 |
Amortization of debt issuance costs | (410) |
Unamortized debt issuance costs, ending balance | 11,374 |
Subordinated Notes | |
Debt Issuance Costs | |
Unamortized debt issuance costs, beginning balance | 5,059 |
Debt issuance costs incurred | 0 |
Amortization of debt issuance costs | (46) |
Unamortized debt issuance costs, ending balance | $ 5,013 |
DEBT - Schedule of Loan Obligat
DEBT - Schedule of Loan Obligations of the Consolidated CLOs (Details) - Consolidated Funds - Loan obligations of Consolidated CLOs - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
DEBT | ||
Fair Value of Loan Obligations | $ 11,906,346 | $ 12,345,657 |
Senior secured notes | ||
DEBT | ||
Fair Value of Loan Obligations | $ 11,162,856 | $ 11,606,289 |
Weighted Average Interest Rate | 6.66% | 6.64% |
Weighted Average Remaining Maturity (in years) | 8 years | 8 years 2 months 12 days |
Subordinated notes | ||
DEBT | ||
Fair Value of Loan Obligations | $ 743,490 | $ 739,368 |
Weighted Average Remaining Maturity (in years) | 6 years 7 months 6 days | 6 years 10 months 24 days |
DEBT - Schedule of Credit Facil
DEBT - Schedule of Credit Facilities of the Consolidated Funds (Details) - Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
DEBT | ||
Total borrowings of Consolidated Funds | $ 78,241 | $ 125,241 |
Credit Facility Maturing 7/1/2024 | ||
DEBT | ||
Total Capacity | 18,000 | |
Outstanding loan | $ 15,241 | $ 15,241 |
Effective Rate | 6.88% | 6.88% |
Credit Facility Maturing 7/23/2024 | ||
DEBT | ||
Total Capacity | $ 125,000 | |
Outstanding loan | $ 63,000 | $ 110,000 |
Effective Rate | 8.29% | 8.29% |
Credit Facility Maturing 9/24/2026 | ||
DEBT | ||
Total Capacity | $ 150,000 | |
Outstanding loan | 0 | $ 0 |
Credit Facility Maturing 9/12/2027 | ||
DEBT | ||
Total Capacity | 54,000 | |
Outstanding loan | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 infrastructureDebtFund | Dec. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |||||
Unfunded capital commitments | $ 986,300,000 | $ 1,030,600,000 | |||
Maximum exposure from guarantees | 16,400,000 | 122,300,000 | |||
Carried interest, contingent repayment obligations | $ 0 | 0 | |||
Minimum | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Lease terms | 1 year | ||||
Maximum | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Lease terms | 12 years | ||||
Performance income | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Performance income subject to potential clawback provision | $ 77,700,000 | 78,500,000 | |||
Performance income subject to potential claw back provision that are reimbursable by professionals | 53,900,000 | 54,500,000 | |||
Crescent Point Capital | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Commitment, maximum amount | $ 75,000,000 | ||||
Business combination, percentage | 33% | ||||
Business combination equity awards percentage | 67% | ||||
Contingent liability | $ 75,000,000 | 75,000,000 | |||
Management incentive program, amount accrued | 10,000,000 | 5,000,000 | |||
Compensation expense | 5,000,000 | ||||
Infrastructure Debt Acquisition | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Commitment, maximum amount | $ 15,000,000 | $ 48,500,000 | |||
Business combination, percentage | 15% | ||||
Business combination equity awards percentage | 85% | ||||
Contingent liability | $ 13,600,000 | 13,600,000 | |||
Management incentive program, amount accrued | 4,900,000 | $ 4,400,000 | |||
Compensation expense | $ 500,000 | $ 600,000 | |||
Recognition period | 4 years | ||||
Infrastructure Debt Acquisition | Revenue Target | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Number of infrastructure debt funds revenue targets achieved | infrastructureDebtFund | 1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
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 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Schedule of Classification of Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease expense | $ 15,210 | $ 11,888 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Schedule of Supplemental information on the measurement of operating lease liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental information on the measurement of operating lease liabilities | ||
Operating cash flows for operating leases | $ 12,765 | $ 10,911 |
Leased assets obtained in exchange for new operating lease liabilities | $ 705 | $ 12,047 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted-average remaining lease terms (in years) | 8 years 4 months 24 days | 8 years 4 months 24 days |
Weighted-average discount rate | 4.40% | 4.30% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Funds | Affiliated entity | ||
Due from affiliates: | ||
Due from affiliates | $ 15,924 | $ 14,151 |
Due to affiliates: | ||
Due to affiliates | 12,727 | 3,554 |
Consolidated Funds | Affiliated entity | Amounts due from non-consolidated funds | ||
Due from affiliates: | ||
Due from affiliates | 15,924 | 14,151 |
Consolidated Funds | Affiliated entity | Amounts due to portfolio companies and non-consolidated funds | ||
Due to affiliates: | ||
Due to affiliates | 12,727 | 3,554 |
Ares Management L.P | ||
Due from affiliates: | ||
Due from affiliates | 809,273 | 896,746 |
Due to affiliates: | ||
Due to affiliates | 363,308 | 240,254 |
Ares Management L.P | Affiliated entity | ||
Due from affiliates: | ||
Due from affiliates | 809,273 | 896,746 |
Due to affiliates: | ||
Due to affiliates | 363,308 | 240,254 |
Ares Management L.P | Affiliated entity | Management fees receivable from non-consolidated funds | ||
Due from affiliates: | ||
Due from affiliates | 589,231 | 560,629 |
Ares Management L.P | Affiliated entity | Incentive fee receivable from non-consolidated funds | ||
Due from affiliates: | ||
Due from affiliates | 17,454 | 159,098 |
Ares Management L.P | Affiliated entity | Payments made on behalf of and amounts due from non-consolidated funds and employees | ||
Due from affiliates: | ||
Due from affiliates | 202,588 | 177,019 |
Ares Management L.P | Affiliated entity | Management fee received in advance and rebates payable to non-consolidated funds | ||
Due to affiliates: | ||
Due to affiliates | 11,006 | 9,585 |
Ares Management L.P | Affiliated entity | Tax receivable agreement liability | ||
Due to affiliates: | ||
Due to affiliates | 236,135 | 191,299 |
Ares Management L.P | Affiliated entity | Undistributed carried interest and incentive fees | ||
Due to affiliates: | ||
Due to affiliates | 110,672 | 33,374 |
Ares Management L.P | Affiliated entity | Payments made by non-consolidated funds on behalf of and payable by the Company | ||
Due to affiliates: | ||
Due to affiliates | $ 5,495 | $ 5,996 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 27,233 | $ 33,806 | |
Deferred tax asset | $ 87,200 | $ 21,500 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 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 |
Distributions on unvested restricted units | $ (7,272) | (5,314) |
Dividend declared and paid per Class A and non-voting common stock (in dollars per share) | $ 0.93 | |
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 |
Diluted weighted-average shares of Class A and non-voting common stock (in shares) | 192,622,609 | 178,976,022 |
Restricted units | ||
Diluted earnings per share of Class A and non-voting common stock: | ||
Effect of dilutive shares (in shares) | 0 | 0 |
Options | ||
Diluted earnings per share of Class A and non-voting common stock: | ||
Effect of dilutive shares (in shares) | 0 | 0 |
Class A Common Stock and Non-Voting Common Stock | ||
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) |
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 (in shares) | 192,622,609 | 178,976,022 |
Undistributed basic earnings (dividends in excess of earnings) per share of Class A and non-voting common stock (in dollars per share) | $ (0.60) | $ (0.28) |
Dividend declared and paid per Class A and non-voting common stock (in dollars per share) | 0.93 | 0.77 |
Basic earnings per share of Class A and non-voting common stock (in dollars per share) | $ 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 |
Diluted weighted-average shares of Class A and non-voting common stock (in shares) | 192,622,609 | 178,976,022 |
Diluted earnings per share of Class A and non-voting common stock (in dollars per share) | $ 0.33 | $ 0.49 |
EQUITY COMPENSATION - Equity In
EQUITY COMPENSATION - Equity Incentive Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 01, 2024 | |
Restricted units | |||
Equity compensation | |||
Equity-based compensation expense | $ 92,422 | $ 69,252 | |
Ares Management L.P | |||
Equity compensation | |||
Total number of shares available for grant under the equity incentive plan (in shares) | 63,123,821 | 69,122,318 |
EQUITY COMPENSATION - Restricte
EQUITY COMPENSATION - Restricted Units (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Class A Common Stock | ||
Equity compensation | ||
Shares delivered in period (in shares) | 1.9 | 1.9 |
Restricted units | ||
Equity compensation | ||
Shares delivered in period (in shares) | 3.5 | 3.3 |
Restricted units | Tranche I | ||
Equity compensation | ||
Annual award vesting percentage | 33.33% | |
Restricted units | Tranche II | ||
Equity compensation | ||
Annual award vesting percentage | 33.33% | |
Restricted units | Tranche III | ||
Equity compensation | ||
Annual award vesting percentage | 33.33% |
EQUITY COMPENSATION - Schedule
EQUITY COMPENSATION - Schedule of Dividends Declared and Paid (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Dividends per share (in dollars per shares) | $ 0.93 |
Dividend declared per class A common stock (in dollars per share) | $ 0.93 |
Dividend Equivalents Paid | $ | $ 16,294 |
EQUITY COMPENSATION - Schedul_2
EQUITY COMPENSATION - Schedule of Unvested Restricted Units Activity (Details) - Restricted units $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Restricted Units | |
Balance at the beginning of the period (in shares) | shares | 17,359,829 |
Granted (in shares) | shares | 4,581,087 |
Vested (in shares) | shares | (3,492,988) |
Forfeited (in shares) | shares | (309,590) |
Balance at the end of the period (in shares) | shares | 18,138,338 |
Weighted Average Grant Date Fair Value Per Unit | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 59.20 |
Granted (in dollars per share) | $ / shares | 121.09 |
Vested (in dollars per share) | $ / shares | 51.99 |
Forfeited (in dollars per share) | $ / shares | 85.96 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 75.77 |
Unrecognized compensation expenses | $ | $ 1,087.5 |
Weighted average period of compensation expense expected to be recognized | 3 years 10 months 24 days |
EQUITY COMPENSATION - Schedul_3
EQUITY COMPENSATION - Schedule of Unvested Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Options | ||
Exercised (in shares) | (79,524) | |
Aggregate Intrinsic Value | ||
Net cash proceeds from exercises of stock options | $ 1,500 | |
Options | ||
Equity compensation | ||
Shares purchased (in shares) | 1 | |
Options | ||
Balance at the beginning of the period (in shares) | 79,524 | |
Exercised (in shares) | (79,524) | |
Balance at the end of the period (in shares) | 0 | 79,524 |
Options, Exercisable at the end of the period (in shares) | 0 | |
Weighted Average Exercise Price | ||
Balance at the beginning of the period (in dollars per shares) | $ 19 | |
Exercised (in dollars per shares) | 19 | |
Balance at the end of the period (in dollars per shares) | 0 | $ 19 |
Weighted average exercise price, Exercisable at the end of the period (in dollars per shares) | $ 0 | |
Weighted Average Remaining Life (in years) | ||
Weighted average remaining life | 0 years | 3 months 18 days |
Exercisable at the end of the period | 0 years | |
Aggregate Intrinsic Value | ||
Outstanding intrinsic value | $ 0 | $ 7,946 |
Exercisable | 0 | |
Tax benefits of exercises | $ 1,400 |
EQUITY AND REDEEMABLE INTERES_2
EQUITY AND REDEEMABLE INTEREST - Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2024 | Dec. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance (in shares) | 307,585,576 | |||
Issuance of AOG Units (in shares) | 63,179 | |||
Exchanges of AOG units (in shares) | 0 | |||
Stock option exercises, net of shares withheld for tax (in shares) | 79,524 | |||
Vesting of restricted stock awards, net of shares withheld for tax (in shares) | 1,940,705 | |||
Ending balance (in shares) | 309,668,984 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Authorized amount | $ 150 | |||
Repurchase of stock (in shares) | 0 | 0 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance (in shares) | 187,069,907 | |||
Issuance of AOG Units (in shares) | 0 | |||
Exchanges of AOG units (in shares) | 1,967,724 | |||
Stock option exercises, net of shares withheld for tax (in shares) | 79,524 | |||
Vesting of restricted stock awards, net of shares withheld for tax (in shares) | 1,940,705 | |||
Ending balance (in shares) | 191,057,860 | |||
Non-voting Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | 0.01 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance (in shares) | 3,489,911 | |||
Issuance of AOG Units (in shares) | 0 | |||
Exchanges of AOG units (in shares) | 0 | |||
Stock option exercises, net of shares withheld for tax (in shares) | 0 | |||
Vesting of restricted stock awards, net of shares withheld for tax (in shares) | 0 | |||
Ending balance (in shares) | 3,489,911 | |||
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | 0.01 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance (in shares) | 1,000 | |||
Issuance of AOG Units (in shares) | 0 | |||
Exchanges of AOG units (in shares) | 0 | |||
Stock option exercises, net of shares withheld for tax (in shares) | 0 | |||
Vesting of restricted stock awards, net of shares withheld for tax (in shares) | 0 | |||
Ending balance (in shares) | 1,000 | |||
Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance (in shares) | 117,024,758 | |||
Issuance of AOG Units (in shares) | 63,179 | |||
Exchanges of AOG units (in shares) | (1,967,724) | |||
Stock option exercises, net of shares withheld for tax (in shares) | 0 | |||
Vesting of restricted stock awards, net of shares withheld for tax (in shares) | 0 | |||
Ending balance (in shares) | 115,120,213 |
EQUITY AND REDEEMABLE INTERES_3
EQUITY AND REDEEMABLE INTEREST - Common Stock Offering (Details) - shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Class of Stock [Line Items] | |||
AOG units (in shares) | 309,667,984 | 307,584,576 | |
Ares Operating Group | |||
Class of Stock [Line Items] | |||
Direct Ownership Interest | 100% | 100% | |
Ares Owners Holdings, L.P. | |||
Class of Stock [Line Items] | |||
AOG units (in shares) | 115,120,213 | 117,024,758 | |
Ares Owners Holdings, L.P. | Ares Operating Group | |||
Class of Stock [Line Items] | |||
Direct Ownership Interest | 37.18% | 38.05% | |
Daily Average Ownership | 37.68% | 39.86% | |
Ares Operating Group | |||
Class of Stock [Line Items] | |||
AOG units (in shares) | 194,547,771 | 190,559,818 | |
Ares Operating Group | Ares Operating Group | |||
Class of Stock [Line Items] | |||
Direct Ownership Interest | 62.82% | 61.95% | |
Daily Average Ownership | 62.32% | 60.14% |
EQUITY AND REDEEMABLE INTERES_4
EQUITY AND REDEEMABLE INTEREST - Redeemable Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Ares Operating Group | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Beginning balance | $ 24,098 | $ 23,176 | $ 22,517 | $ 21,942 | $ 93,129 |
Changes in ownership interests and related tax benefits | (66,506) | ||||
Net income (loss) | 73 | 558 | 758 | 734 | (1,824) |
Currency translation adjustment, net of tax | (257) | 364 | (99) | (159) | (148) |
Equity compensation | 174 | ||||
Distributions | (302) | (2,883) | |||
Ending balance | 23,612 | 24,098 | 23,176 | 22,517 | 21,942 |
Consolidated Funds | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Beginning balance | 522,938 | 1,002,587 | 1,000,749 | 484,801 | 1,013,282 |
Change in redemption value | 6,849 | 12,507 | 16,571 | 15,948 | 10,504 |
Redemptions from Class A ordinary shares of AAC I | (492,156) | (14,733) | (538,985) | ||
Gross proceeds from the initial public offering of AAC II | 500,000 | ||||
Ending balance | $ 529,787 | $ 522,938 | $ 1,002,587 | $ 1,000,749 | $ 484,801 |
Ares Acquisition Corporation II | Class A Common Stock | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Temporary equity, shares outstanding (in shares) | 50,000,000 | 50,000,000 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Financial Results for Company's Operating Segments and OMG (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment reporting | ||
Total revenues | $ 707,363 | $ 813,362 |
Compensation and benefits | (412,951) | (360,781) |
General, administrative and other expenses | (170,928) | (148,345) |
Total | ||
Segment reporting | ||
Compensation and benefits | (300,015) | (278,031) |
General, administrative and other expenses | (115,273) | (94,517) |
Fee related earnings | 301,670 | 254,637 |
Performance income—realized | 23,181 | 31,136 |
Performance related compensation—realized | (13,156) | (23,859) |
Realized net performance income | 10,025 | 7,277 |
Investment income (loss)—realized | (735) | (217) |
Interest and other investment income (expense)—realized | 16,020 | 17,581 |
Interest expense | (37,824) | (24,986) |
Realized net investment income (loss) | (22,539) | (7,622) |
Realized income | 289,156 | 254,292 |
Operating segment | ||
Segment reporting | ||
Fee related earnings | (441,974) | (381,136) |
Performance income—realized | 23,181 | 31,136 |
Performance related compensation—realized | (13,156) | (23,859) |
Realized income | (429,048) | (380,909) |
OMG | ||
Segment reporting | ||
Total revenues | (4,333) | (4,640) |
Compensation and benefits | (94,157) | (84,967) |
General, administrative and other expenses | (50,480) | (46,172) |
Fee related earnings | (140,304) | (126,499) |
Performance income—realized | 0 | 0 |
Performance related compensation—realized | 0 | 0 |
Realized net performance income | 0 | 0 |
Investment income (loss)—realized | 0 | 0 |
Interest and other investment income (expense)—realized | 452 | (92) |
Interest expense | (40) | (26) |
Realized net investment income (loss) | 412 | (118) |
Realized income | (139,892) | (126,617) |
Ares Management L.P | ||
Segment reporting | ||
Total revenues | 707,363 | 813,362 |
Ares Management L.P | Operating segment | ||
Segment reporting | ||
Compensation and benefits | (205,858) | (193,064) |
General, administrative and other expenses | (64,793) | (48,345) |
Fee related earnings | 441,974 | 381,136 |
Performance income—realized | 23,181 | 31,136 |
Performance related compensation—realized | (13,156) | (23,859) |
Realized net performance income | 10,025 | 7,277 |
Investment income (loss)—realized | (735) | (217) |
Interest and other investment income (expense)—realized | 15,568 | 17,673 |
Interest expense | (37,784) | (24,960) |
Realized net investment income (loss) | (22,951) | (7,504) |
Realized income | 429,048 | 380,909 |
Ares Management L.P | Operating segment | Credit Group | ||
Segment reporting | ||
Compensation and benefits | (134,849) | (121,900) |
General, administrative and other expenses | (34,366) | (26,676) |
Fee related earnings | 352,417 | 291,640 |
Performance income—realized | 16,766 | 7,410 |
Performance related compensation—realized | (8,734) | (5,881) |
Realized net performance income | 8,032 | 1,529 |
Investment income (loss)—realized | (398) | 506 |
Interest and other investment income (expense)—realized | 4,930 | 8,113 |
Interest expense | (9,013) | (8,630) |
Realized net investment income (loss) | (4,481) | (11) |
Realized income | 355,968 | 293,158 |
Ares Management L.P | Operating segment | Real Assets Group | ||
Segment reporting | ||
Compensation and benefits | (37,918) | (37,986) |
General, administrative and other expenses | (14,453) | (12,284) |
Fee related earnings | 46,518 | 53,662 |
Performance income—realized | 3,677 | 6,086 |
Performance related compensation—realized | (2,228) | (3,758) |
Realized net performance income | 1,449 | 2,328 |
Investment income (loss)—realized | (457) | (1,772) |
Interest and other investment income (expense)—realized | 3,835 | 1,821 |
Interest expense | (5,949) | (3,896) |
Realized net investment income (loss) | (2,571) | (3,847) |
Realized income | 45,396 | 52,143 |
Ares Management L.P | Operating segment | Private Equity Group | ||
Segment reporting | ||
Compensation and benefits | (14,785) | (16,626) |
General, administrative and other expenses | (5,216) | (4,485) |
Fee related earnings | 15,371 | 9,123 |
Performance income—realized | 2,738 | 17,640 |
Performance related compensation—realized | (2,194) | (14,220) |
Realized net performance income | 544 | 3,420 |
Investment income (loss)—realized | 120 | 879 |
Interest and other investment income (expense)—realized | 184 | 166 |
Interest expense | (5,889) | (4,805) |
Realized net investment income (loss) | (5,585) | (3,760) |
Realized income | 10,330 | 8,783 |
Ares Management L.P | Operating segment | Secondaries Group | ||
Segment reporting | ||
Compensation and benefits | (12,714) | (13,412) |
General, administrative and other expenses | (9,068) | (4,292) |
Fee related earnings | 25,605 | 25,430 |
Performance income—realized | 0 | 0 |
Performance related compensation—realized | 0 | 0 |
Realized net performance income | 0 | 0 |
Investment income (loss)—realized | 0 | 0 |
Interest and other investment income (expense)—realized | 210 | 1,225 |
Interest expense | (2,698) | (2,305) |
Realized net investment income (loss) | (2,488) | (1,080) |
Realized income | 23,117 | 24,350 |
Ares Management L.P | Operating segment | Other | ||
Segment reporting | ||
Compensation and benefits | (5,592) | (3,140) |
General, administrative and other expenses | (1,690) | (608) |
Fee related earnings | 2,063 | 1,281 |
Performance income—realized | 0 | 0 |
Performance related compensation—realized | 0 | 0 |
Realized net performance income | 0 | 0 |
Investment income (loss)—realized | 0 | 170 |
Interest and other investment income (expense)—realized | 6,409 | 6,348 |
Interest expense | (14,235) | (5,324) |
Realized net investment income (loss) | (7,826) | 1,194 |
Realized income | (5,763) | 2,475 |
Management fees | ||
Segment reporting | ||
Total revenues | 687,692 | 600,516 |
Management fees | Total | ||
Segment reporting | ||
Total revenues | 693,365 | 602,619 |
Management fees | OMG | ||
Segment reporting | ||
Total revenues | 0 | 0 |
Management fees | Ares Management L.P | Operating segment | ||
Segment reporting | ||
Total revenues | 693,365 | 602,619 |
Management fees | Ares Management L.P | Operating segment | Credit Group | ||
Segment reporting | ||
Total revenues | 510,966 | 430,467 |
Management fees | Ares Management L.P | Operating segment | Real Assets Group | ||
Segment reporting | ||
Total revenues | 93,814 | 97,470 |
Management fees | Ares Management L.P | Operating segment | Private Equity Group | ||
Segment reporting | ||
Total revenues | 34,933 | 29,840 |
Management fees | Ares Management L.P | Operating segment | Secondaries Group | ||
Segment reporting | ||
Total revenues | 44,421 | 39,863 |
Management fees | Ares Management L.P | Operating segment | Other | ||
Segment reporting | ||
Total revenues | 9,231 | 4,979 |
Fee related performance revenues | Total | ||
Segment reporting | ||
Total revenues | 3,717 | 3,871 |
Fee related performance revenues | OMG | ||
Segment reporting | ||
Total revenues | 0 | 0 |
Fee related performance revenues | Ares Management L.P | Operating segment | ||
Segment reporting | ||
Total revenues | 3,717 | 3,871 |
Fee related performance revenues | Ares Management L.P | Operating segment | Credit Group | ||
Segment reporting | ||
Total revenues | 755 | 600 |
Fee related performance revenues | Ares Management L.P | Operating segment | Real Assets Group | ||
Segment reporting | ||
Total revenues | 0 | 0 |
Fee related performance revenues | Ares Management L.P | Operating segment | Private Equity Group | ||
Segment reporting | ||
Total revenues | 0 | 0 |
Fee related performance revenues | Ares Management L.P | Operating segment | Secondaries Group | ||
Segment reporting | ||
Total revenues | 2,962 | 3,271 |
Fee related performance revenues | Ares Management L.P | Operating segment | Other | ||
Segment reporting | ||
Total revenues | 0 | 0 |
Other fees | Total | ||
Segment reporting | ||
Total revenues | 19,876 | 20,695 |
Other fees | OMG | ||
Segment reporting | ||
Total revenues | 4,333 | 4,640 |
Other fees | Ares Management L.P | Operating segment | ||
Segment reporting | ||
Total revenues | 15,543 | 16,055 |
Other fees | Ares Management L.P | Operating segment | Credit Group | ||
Segment reporting | ||
Total revenues | 9,911 | 9,149 |
Other fees | Ares Management L.P | Operating segment | Real Assets Group | ||
Segment reporting | ||
Total revenues | 5,075 | 6,462 |
Other fees | Ares Management L.P | Operating segment | Private Equity Group | ||
Segment reporting | ||
Total revenues | 439 | 394 |
Other fees | Ares Management L.P | Operating segment | Secondaries Group | ||
Segment reporting | ||
Total revenues | 4 | 0 |
Other fees | Ares Management L.P | Operating segment | Other | ||
Segment reporting | ||
Total revenues | $ 114 | $ 50 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Segment Revenue Expenses and Realized Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment revenues | ||
Total revenues | $ 707,363 | $ 813,362 |
Total segment revenues | 735,806 | 653,681 |
Segment expenses | ||
Compensation and benefits | 412,951 | 360,781 |
General, administrative and other expenses | 170,928 | 148,345 |
Total expenses | 538,493 | 628,636 |
Segment realized net investment expense | ||
Total other income, net | 62,178 | 56,396 |
Management fees | ||
Segment revenues | ||
Total revenues | 687,692 | 600,516 |
Operating segment | ||
Segment revenues | ||
Performance income—realized | 23,181 | 31,136 |
Segment expenses | ||
Performance related compensation—realized | 13,156 | 23,859 |
Ares Management L.P | ||
Segment revenues | ||
Total revenues | 707,363 | 813,362 |
Ares Management L.P | Operating segment | ||
Segment revenues | ||
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 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 other income, net | (22,951) | (7,504) |
Ares Management L.P | Operating segment | Management fees | ||
Segment revenues | ||
Total revenues | 693,365 | 602,619 |
Ares Management L.P | Operating segment | Fee related performance revenues | ||
Segment revenues | ||
Total revenues | 3,717 | 3,871 |
Ares Management L.P | Operating segment | Other fees | ||
Segment revenues | ||
Total revenues | $ 15,543 | $ 16,055 |
SEGMENT REPORTING - Schedule _3
SEGMENT REPORTING - Schedule of Segment Revenue Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue adjustment | ||
Total revenues | $ 707,363 | $ 813,362 |
Total segment revenue | 735,806 | 653,681 |
Ares Management L.P | ||
Revenue adjustment | ||
Total revenues | 707,363 | 813,362 |
Operating segment | Ares Management L.P | ||
Revenue adjustment | ||
Performance (income) loss—unrealized | 45,476 | (127,713) |
Total segment revenue | 735,806 | 653,681 |
Reconciling items | ||
Revenue adjustment | ||
Total segment revenue | 28,443 | (159,681) |
Principal investment income, net of eliminations | 2,666 | (35,457) |
Reconciling items | Non-Controlling interest | Subsidiaries | ||
Revenue adjustment | ||
Total segment revenue | (7,734) | (10,909) |
OMG | ||
Revenue adjustment | ||
Total revenues | (4,333) | (4,640) |
Management fees | ||
Revenue adjustment | ||
Total revenues | 687,692 | 600,516 |
Management fees | Operating segment | Ares Management L.P | ||
Revenue adjustment | ||
Total revenues | 693,365 | 602,619 |
Management fees | OMG | ||
Revenue adjustment | ||
Total revenues | 0 | 0 |
Management fees | Consolidated Funds | Eliminations | ||
Revenue adjustment | ||
Total segment revenue | 12,453 | 11,601 |
Carried interest | ||
Revenue adjustment | ||
Total revenues | (32,478) | 151,488 |
Carried interest | Consolidated Funds | Eliminations | ||
Revenue adjustment | ||
Total revenues | 5,925 | 3,545 |
Administrative, transaction and other fees | ||
Revenue adjustment | ||
Total revenues | 36,432 | 29,677 |
Administrative, transaction and other fees | Reconciling items | ||
Revenue adjustment | ||
Total revenues | (16,407) | (13,650) |
Administrative, transaction and other fees | Consolidated Funds | Reconciling items | ||
Revenue adjustment | ||
Total revenues | 113 | 4,843 |
Principal investment income | ||
Revenue adjustment | ||
Total revenues | 7,050 | 22,758 |
Principal investment income | Reconciling items | ||
Revenue adjustment | ||
Principal investment income, net of eliminations | $ (7,050) | $ (22,758) |
SEGMENT REPORTING - Schedule _4
SEGMENT REPORTING - Schedule of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | $ 538,493 | $ 628,636 |
Depreciation and amortization expense | 29,200 | 33,600 |
Operating segment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Acquisition and merger-related expense | (10,578) | (4,955) |
Equity-based compensation expense | 92,421 | 68,704 |
Acquisition-related compensation expense | (5,504) | (642) |
Placement fee adjustment | 5,540 | (3,232) |
Depreciation and amortization expense | 36,644 | 45,659 |
Operating segment | Ares Management L.P | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | 283,807 | 265,268 |
Performance related compensation-unrealized | 64,514 | (85,150) |
Operating segment | Consolidated Funds | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | 538,493 | 628,636 |
Reconciling items | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | 254,686 | 363,368 |
Administrative fees | (16,407) | (13,277) |
Acquisition and merger-related expense | (10,578) | (4,955) |
Equity-based compensation expense | 92,422 | 69,077 |
Acquisition-related compensation expense | (5,504) | (642) |
Placement fee adjustment | (5,540) | 3,232 |
Depreciation and amortization expense | (36,644) | (45,659) |
Reconciling items | Subsidiaries | Non-Controlling interest | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | 2,755 | 9,192 |
Reconciling items | Consolidated Funds | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Expenses of Consolidated Funds added in consolidation | (17,708) | (19,641) |
Expenses of Consolidated Funds eliminated in consolidation | 12,995 | 12,132 |
OMG | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total segment expenses | $ 144,637 | $ 131,139 |
SEGMENT REPORTING - Schedule _5
SEGMENT REPORTING - Schedule of Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | $ 62,178 | $ 56,396 |
Total segment realized net investment expense | (22,951) | (7,504) |
Operating segment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Investment income—unrealized | (4,287) | (28,777) |
Other expense, net | (131) | (91) |
Operating segment | Ares Management L.P | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | (22,951) | (7,504) |
Investment income—unrealized | (3,685) | (28,985) |
Interest and other investment (income) loss—unrealized | (602) | 208 |
Operating segment | Consolidated Funds | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | 62,178 | 56,396 |
Reconciling items | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | (85,129) | (63,900) |
Principal investment income (loss) | (2,666) | 35,457 |
Other expense, net | 131 | 91 |
Reconciling items | Subsidiaries | Non-Controlling interest | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | 1,317 | (3,954) |
Reconciling items | Consolidated Funds | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Other income, net from Consolidated Funds added in consolidation | (79,977) | (62,917) |
Eliminations | Consolidated Funds | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Other expense, net from Consolidated Funds eliminated in consolidation | 902 | (4,451) |
OMG | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Total consolidated other income | $ 549 | $ (651) |
SEGMENT REPORTING - Schedule _6
SEGMENT REPORTING - Schedule of Reconciliation of Income Before Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Adjustments: | ||
Depreciation and amortization expense | $ 29,200 | $ 33,600 |
Consolidated Funds | ||
Adjustments: | ||
Total investment loss—realized | (257,276) | (222,938) |
Operating segment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
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 | 5,504 | 642 |
Acquisition and merger-related expense | 10,578 | 4,955 |
Placement fee adjustment | 5,540 | (3,232) |
Other expense, net | 131 | 91 |
Total performance (income) loss—unrealized | 45,476 | (127,713) |
Total performance related compensation—unrealized | (64,514) | 85,150 |
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 |
Operating segment | Consolidated Funds | ||
Adjustments: | ||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (65,586) | (27,171) |
Operating segment | Subsidiaries | ||
Adjustments: | ||
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (3,662) | (5,671) |
OMG | ||
Adjustments: | ||
OMG expense, net | 139,755 | 127,150 |
Realized income | 139,892 | 126,617 |
Total performance income—realized | 0 | 0 |
Total performance related compensation—realized | 0 | 0 |
Fee related earnings | $ 140,304 | $ 126,499 |
CONSOLIDATION - Variable Intere
CONSOLIDATION - Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||
Assets of consolidated VIEs | $ 24,413,270 | $ 24,730,500 | |
Liabilities of consolidated VIEs | 19,382,799 | 19,709,151 | |
Collateralized loan obligations | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss attributable to the company's investment in VIEs | 83,200 | 83,100 | |
Non-Consolidated Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss attributable to the company's investment in VIEs | 399,885 | 503,376 | |
Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss attributable to the company's investment in VIEs | 908,198 | 910,600 | |
Consolidated VIEs | Consolidated Funds | |||
Variable Interest Entity [Line Items] | |||
Assets of consolidated VIEs | 15,335,745 | 15,484,962 | |
Liabilities of consolidated VIEs | 13,058,395 | $ 13,409,257 | |
Net income attributable to non-controlling interests related to consolidated VIEs | $ 58,356 | $ 37,131 |
CONSOLIDATION - Balance Sheet (
CONSOLIDATION - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||||||
Intangible assets, net | $ 462,276 | $ 490,695 | ||||
Goodwill | 1,130,085 | 1,123,976 | ||||
Total assets | 24,413,270 | 24,730,500 | ||||
Liabilities | ||||||
Operating lease liabilities | 308,336 | |||||
Total liabilities | 19,382,799 | 19,709,151 | ||||
Commitments and contingencies | ||||||
Stockholders’ Equity | ||||||
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 | $ 4,018,454 | $ 3,992,470 | $ 4,079,370 | $ 3,798,618 |
Total liabilities, redeemable interest, non-controlling interests and equity | $ 24,413,270 | $ 24,730,500 | ||||
Common stock, shares outstanding (in shares) | 309,668,984 | 307,585,576 | ||||
Class A Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | $ 1,911 | $ 1,871 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 | ||||
Common stock, shares issued (in shares) | 191,057,860 | 187,069,907 | ||||
Common stock, shares outstanding (in shares) | 191,057,860 | 187,069,907 | ||||
Non-voting Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | $ 35 | $ 35 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||
Common stock, shares issued (in shares) | 3,489,911 | 3,489,911 | ||||
Common stock, shares outstanding (in shares) | 3,489,911 | 3,489,911 | ||||
Class B Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | $ 0 | $ 0 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 1,000 | 1,000 | ||||
Common stock, shares issued (in shares) | 1,000 | 1,000 | ||||
Common stock, shares outstanding (in shares) | 1,000 | 1,000 | ||||
Class C Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | $ 1,151 | $ 1,170 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | 499,999,000 | 499,999,000 | ||||
Common stock, shares issued (in shares) | 115,120,213 | 117,024,758 | ||||
Common stock, shares outstanding (in shares) | 115,120,213 | 117,024,758 | ||||
Eliminations | ||||||
Assets | ||||||
Total assets | $ (1,109,560) | $ (1,104,263) | ||||
Liabilities | ||||||
Total liabilities | (297,737) | (295,594) | ||||
Commitments and contingencies | ||||||
Stockholders’ Equity | ||||||
Total equity | (811,823) | (808,669) | ||||
Total liabilities, redeemable interest, non-controlling interests and equity | (1,109,560) | (1,104,263) | ||||
Ares Management L.P | ||||||
Assets | ||||||
Cash and cash equivalents | 346,331 | 348,274 | ||||
Investments (includes $3,361,519 of accrued carried interest) | $ 4,484,884 | $ 4,624,932 | ||||
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity | ||||
Due from affiliates | $ 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 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | 262,551 | 233,884 | ||||
Accrued compensation | $ 217,788 | $ 287,259 | ||||
Accounts Payable, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity | ||||
Due to affiliates | $ 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 | ||||
Redeemable interest | 23,612 | 24,098 | ||||
Non-controlling interests in Ares Operating Group entities | 1,194,276 | 1,322,469 | ||||
Stockholders’ Equity | ||||||
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 | ||||
Ares Management L.P | Carried interest | ||||||
Stockholders’ Equity | ||||||
Equity method investments: | 3,361,519 | 3,413,007 | ||||
Ares Management L.P | Class A Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 1,911 | 1,871 | ||||
Ares Management L.P | Non-voting Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 35 | 35 | ||||
Ares Management L.P | Class B Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 0 | 0 | ||||
Ares Management L.P | Class C Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 1,151 | 1,170 | ||||
Ares Management L.P | Reportable legal entity | ||||||
Assets | ||||||
Cash and cash equivalents | 346,331 | 348,274 | ||||
Investments (includes $3,361,519 of accrued carried interest) | 5,410,366 | 5,546,209 | ||||
Due from affiliates | 981,917 | 1,068,089 | ||||
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 | ||||
Total assets | 9,655,086 | 9,824,348 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | 273,985 | 245,526 | ||||
Accrued compensation | 217,788 | 287,259 | ||||
Due to affiliates | 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 | ||||
Total liabilities | 6,659,331 | 6,572,701 | ||||
Commitments and contingencies | ||||||
Redeemable interest | 23,612 | 24,098 | ||||
Non-controlling interests in Ares Operating Group entities | 1,198,132 | 1,326,913 | ||||
Stockholders’ Equity | ||||||
Additional paid-in-capital | 2,393,954 | 2,398,273 | ||||
Accumulated deficit | (612,560) | (495,083) | ||||
Accumulated other comprehensive loss, net of tax | (10,480) | (5,630) | ||||
Total stockholders’ equity | 1,774,011 | 1,900,636 | ||||
Total equity | 2,972,143 | 3,227,549 | ||||
Total liabilities, redeemable interest, non-controlling interests and equity | 9,655,086 | 9,824,348 | ||||
Ares Management L.P | Reportable legal entity | Class A Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 1,911 | 1,871 | ||||
Ares Management L.P | Reportable legal entity | Non-voting Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 35 | 35 | ||||
Ares Management L.P | Reportable legal entity | Class B Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 0 | |||||
Ares Management L.P | Reportable legal entity | Class C Common Stock | ||||||
Stockholders’ Equity | ||||||
Common stock | 1,151 | 1,170 | ||||
Ares Management L.P | Eliminations | ||||||
Assets | ||||||
Investments (includes $3,361,519 of accrued carried interest) | (925,482) | (921,277) | ||||
Due from affiliates | (172,644) | (171,343) | ||||
Other assets | 0 | 0 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | (11,434) | (11,642) | ||||
Non-controlling interests in Ares Operating Group entities | (3,856) | (4,444) | ||||
Stockholders’ Equity | ||||||
Additional paid-in-capital | (6,517) | (7,237) | ||||
Total stockholders’ equity | (6,517) | (7,237) | ||||
Consolidated Entity, Excluding VIE | ||||||
Assets | ||||||
Cash and cash equivalents | $ 1,199,376 | $ 1,149,511 | ||||
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity | ||||
Due from affiliates | $ 15,924 | $ 14,151 | ||||
Other assets | 77,095 | 86,672 | ||||
Investments held in trust account | 529,887 | 523,038 | ||||
Investments, at fair value | 13,790,030 | 14,078,549 | ||||
Receivable for securities sold | 243,998 | 146,851 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | $ 189,556 | $ 189,523 | ||||
Accounts Payable, Related Party, Type [Extensible Enumeration] | Affiliated entity | Affiliated entity | ||||
Due to affiliates | $ 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 | ||||
Redeemable interest | 529,787 | 522,938 | ||||
Non-controlling interests in Ares Operating Group entities | 1,515,302 | 1,258,445 | ||||
Consolidated Entity, Excluding VIE | Reportable legal entity | ||||||
Assets | ||||||
Cash and cash equivalents | 1,199,376 | 1,149,511 | ||||
Due from affiliates | 27,358 | 25,794 | ||||
Other assets | 77,095 | 86,672 | ||||
Investments held in trust account | 529,887 | 523,038 | ||||
Investments, at fair value | 13,790,030 | 14,078,549 | ||||
Receivable for securities sold | 243,998 | 146,851 | ||||
Total assets | 15,867,744 | 16,010,415 | ||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | 189,556 | 189,523 | ||||
Due to affiliates | 185,371 | 174,897 | ||||
Payable for securities purchased | 548,032 | 484,117 | ||||
CLO loan obligations, at fair value | 12,020,005 | 12,458,266 | ||||
Fund borrowings | 78,241 | 125,241 | ||||
Total liabilities | 13,021,205 | 13,432,044 | ||||
Commitments and contingencies | ||||||
Redeemable interest | 529,787 | 522,938 | ||||
Non-controlling interests in Ares Operating Group entities | 2,316,752 | 2,055,433 | ||||
Stockholders’ Equity | ||||||
Total equity | 2,316,752 | 2,055,433 | ||||
Total liabilities, redeemable interest, non-controlling interests and equity | 15,867,744 | 16,010,415 | ||||
Consolidated Entity, Excluding VIE | Eliminations | ||||||
Assets | ||||||
Due from affiliates | (11,434) | (11,643) | ||||
Investments, at fair value | 0 | |||||
Liabilities | ||||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||||
Due to affiliates | (172,644) | (171,343) | ||||
CLO loan obligations, at fair value | (113,659) | (112,609) | ||||
Non-controlling interests in Ares Operating Group entities | $ (801,450) | (796,988) | ||||
Consolidated Entity, Excluding VIE | Eliminations | ||||||
Assets | ||||||
Investments, at fair value | $ 0 |
CONSOLIDATION - Income Statemen
CONSOLIDATION - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
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) | ||
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 (loss) | 137,099 | 180,623 |
Less: Net income (loss) attributable to redeemable interest | 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 |
Eliminations | ||
Revenues | ||
Total revenues | (8,776) | (32,688) |
Expenses | ||
General, administrative and other expenses | (433) | (343) |
Expenses of Consolidated Funds | (12,562) | (11,789) |
Total expenses | (12,995) | (12,132) |
Other income (expense) | ||
Total other income, net | (902) | 4,451 |
Income before taxes | 3,317 | (16,105) |
Net income | 3,317 | (16,105) |
Less: Net income attributable to non-controlling interests in Consolidated Funds | 3,317 | (16,105) |
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders | 0 | |
Ares Operating Group | ||
Other income (expense) | ||
Net realized and unrealized gains (losses) from 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 income (loss) | 137,099 | 180,623 |
Less: Net income (loss) attributable to redeemable interest | 73 | (1,824) |
Less: Net income attributable to non-controlling interests in Ares Operating Group entities | 63,999 | 88,408 |
Ares Operating Group | Eliminations | ||
Other income (expense) | ||
Net realized and unrealized gains (losses) from investments | (1,841) | (6,337) |
Interest and dividend income | (2,710) | (3,337) |
Other income (expense), net | (208) | 91 |
Consolidated Funds | ||
Expenses | ||
Expenses of Consolidated Funds | 5,146 | 7,852 |
Other income (expense) | ||
Net realized and unrealized gains (losses) from investments | 34,424 | 10,700 |
Interest expense | (207,866) | (156,687) |
Interest and other income of Consolidated Funds | 257,276 | 222,938 |
Less: Net income attributable to non-controlling interests in Consolidated Funds | 66,716 | 26,693 |
Consolidated Funds | Eliminations | ||
Other income (expense) | ||
Net realized and unrealized gains (losses) from investments | 2,072 | 12,769 |
Interest expense | 1,576 | 1,356 |
Interest and other income of Consolidated Funds | 209 | (91) |
Consolidated Company Entities | ||
Revenues | ||
Total revenues | 707,363 | 813,362 |
Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | 716,139 | 846,050 |
Expenses | ||
Compensation and benefits | 412,951 | 360,781 |
Performance related compensation | (50,532) | 111,658 |
General, administrative and other expenses | 171,361 | 148,688 |
Total expenses | 533,780 | 621,127 |
Other income (expense) | ||
Total other income, net | (16,897) | (10,972) |
Income before taxes | 165,462 | 213,951 |
Income tax expense | 28,363 | 33,328 |
Net income | 137,099 | 180,623 |
Net income (loss) | 137,099 | 180,623 |
Less: Net income (loss) attributable to redeemable interest | 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 |
Consolidated Company Entities | Ares Operating Group | Reportable legal entity | ||
Other income (expense) | ||
Net realized and unrealized gains (losses) from investments | 12,357 | 7,852 |
Interest and dividend income | 8,092 | 7,176 |
Interest expense | (37,824) | (24,986) |
Other income (expense), net | 478 | (1,014) |
Consolidated Entity, Excluding VIE | Reportable legal entity | ||
Revenues | ||
Total revenues | 0 | 0 |
Expenses | ||
Expenses of Consolidated Funds | 17,708 | 19,641 |
Total expenses | 17,708 | 19,641 |
Other income (expense) | ||
Total other income, net | 79,977 | 62,917 |
Income before taxes | 62,269 | 43,276 |
Income tax expense | (1,130) | 478 |
Net income | 63,399 | 42,798 |
Less: Net income attributable to non-controlling interests in Consolidated Funds | 63,399 | 42,798 |
Consolidated Entity, Excluding VIE | Consolidated Funds | Reportable legal entity | ||
Other income (expense) | ||
Net realized and unrealized gains (losses) from investments | 32,352 | (2,069) |
Interest expense | (209,442) | (158,043) |
Interest and other income of Consolidated Funds | 257,067 | 223,029 |
Management fees | ||
Revenues | ||
Total revenues | 687,692 | 600,516 |
Management fees | Eliminations | ||
Revenues | ||
Total revenues | (12,453) | (11,601) |
Management fees | Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | 700,145 | 612,117 |
Carried interest allocation | ||
Revenues | ||
Total revenues | (32,478) | 151,488 |
Carried interest allocation | Eliminations | ||
Revenues | ||
Total revenues | (5,928) | (3,407) |
Carried interest allocation | Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | (26,550) | 154,895 |
Incentive fees | ||
Revenues | ||
Total revenues | 8,667 | 8,923 |
Incentive fees | Eliminations | ||
Revenues | ||
Total revenues | 3 | (138) |
Incentive fees | Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | 8,664 | 9,061 |
Principal investment income (loss) | ||
Revenues | ||
Total revenues | 7,050 | 22,758 |
Principal investment income (loss) | Eliminations | ||
Revenues | ||
Total revenues | 9,715 | (12,699) |
Principal investment income (loss) | Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | (2,665) | 35,457 |
Administrative, transaction and other fees | ||
Revenues | ||
Total revenues | 36,432 | 29,677 |
Administrative, transaction and other fees | Eliminations | ||
Revenues | ||
Total revenues | (113) | (4,843) |
Administrative, transaction and other fees | Consolidated Company Entities | Reportable legal entity | ||
Revenues | ||
Total revenues | $ 36,545 | $ 34,520 |
CONSOLIDATION - Cash Flow State
CONSOLIDATION - Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 203,815 | $ 207,316 |
Net cash provided by operating activities | 710,045 | 707,572 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (34,071) | (8,877) |
Allocable to non-controlling interests in Consolidated Funds: | ||
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 | |
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 | 0 | 245,647 |
Reportable legal entity | ||
Supplemental disclosure of non-cash financing activities: | ||
Issuance of common stock in connection with acquisition-related activities | 7,724 | |
Eliminations | ||
Cash flows from operating activities: | ||
Net income | 3,317 | (16,105) |
Net cash provided by operating activities | (43,394) | (28,027) |
Allocable to non-controlling interests in Consolidated Funds: | ||
Net cash used in financing activities | (6,471) | (2,266) |
Effect of exchange rate changes | 0 | |
Net change in cash and cash equivalents | (49,865) | (30,293) |
Cash and cash equivalents, beginning of period | (1,149,511) | (724,641) |
Cash and cash equivalents, end of period | (1,199,376) | (754,934) |
Consolidated Funds | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | 244,182 | 328,840 |
Change in cash and cash equivalents held at Consolidated Funds | (64,929) | 42,584 |
Allocable to 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 | 0 | (538,985) |
Borrowings under loan obligations by Consolidated Funds | 36,947 | 2,914 |
Repayments under loan obligations by Consolidated Funds | (421,112) | (97,325) |
Consolidated Funds | Reportable legal entity | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | 246,254 | 341,609 |
Change in cash and cash equivalents held at Consolidated Funds | (14,577) | 202,877 |
Net cash provided by operating activities | 295,076 | 587,284 |
Allocable to non-controlling interests in Consolidated Funds: | ||
Contributions from redeemable and non-controlling interests in Consolidated Funds | 180,559 | 103,808 |
Distributions to non-controlling interests in Consolidated Funds | (32,323) | (28,890) |
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 | (235,929) | (558,478) |
Effect of exchange rate changes | (9,282) | 1,487 |
Net change in cash and cash equivalents | 49,865 | 30,293 |
Cash and cash equivalents, beginning of period | 1,149,511 | 724,641 |
Cash and cash equivalents, end of period | 1,199,376 | 754,934 |
Consolidated Funds | Eliminations | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | (2,072) | (12,769) |
Change in cash and cash equivalents held at Consolidated Funds | (50,352) | (160,293) |
Allocable to non-controlling interests in Consolidated Funds: | ||
Contributions from redeemable and non-controlling interests in Consolidated Funds | (11,886) | (10,223) |
Distributions to non-controlling interests in Consolidated Funds | 5,415 | 7,957 |
Ares Management L.P | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | 222,996 | 121,761 |
Cash flows due to changes in operating assets and liabilities | 103,981 | 7,071 |
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) | 0 |
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 non-controlling interests in Consolidated Funds: | ||
Cash and cash equivalents, beginning of period | 348,274 | 389,987 |
Cash and cash equivalents, end of period | 346,331 | 272,249 |
Ares Management L.P | Reportable legal entity | ||
Cash flows from operating activities: | ||
Net income | 137,099 | 180,623 |
Adjustments to reconcile net income to net cash provided by operating activities | 224,720 | 100,469 |
Cash flows due to changes in operating assets and liabilities | 96,544 | (132,777) |
Net cash provided by operating activities | 458,363 | 148,315 |
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 non-controlling interests in Consolidated Funds: | ||
Net cash used in financing activities | (424,232) | (260,400) |
Effect of exchange rate changes | (2,003) | 3,224 |
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 | 115,364 | |
Ares Management L.P | Eliminations | ||
Cash flows from operating activities: | ||
Adjustments to reconcile net income to net cash provided by operating activities | (1,724) | 21,292 |
Cash flows due to changes in operating assets and liabilities | $ 7,437 | 139,848 |
Ares Management L.P | Ares Operating Group | Reportable legal entity | ||
Supplemental disclosure of non-cash financing activities: | ||
Issuance of common stock in connection with settlement of management incentive program | $ 245,647 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 1 Months Ended | 3 Months Ended |
May 31, 2024 | Mar. 31, 2024 | |
Subsequent events | ||
Dividend declared per class A common stock (in dollars per share) | $ 0.93 | |
Class A Common Stock | Subsequent event | ||
Subsequent events | ||
Dividend declared per class A common stock (in dollars per share) | $ 0.93 | |
Non-voting Common Stock | Subsequent event | ||
Subsequent events | ||
Dividend declared per class A common stock (in dollars per share) | $ 0.93 |