Ares is a leading global alternative investment manager with $484.4 billion of assets under management and over 3,200 employees in over 35 o ffices in more than 15 countries .
−Removed: We offer our investors a range of investment strategies and seek to deliver attractive performance to an investor base that includes over 2,300 direct institutional relationships and a significant retail investor base across our publicly-traded funds, sub-advised accounts and non-traded vehicles.
+Added: We offer our investors a range of investment strategies and seek to deliver attractive performance to an investor base that includes approximately 2,700 direct institutional relationships and a significant retail investor base across our publicly-traded funds, sub-advised accounts and perpetual wealth vehicles.
Since our inception in 1997, we have adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns through market cycles.
−Removed: Ares believes each of its distinct but complementary investment groups in Credit, Private Equity, Real Assets and Secondaries is a market leader based on assets under management and investment performance.
−Removed: We believe we create value for our stakeholders not only through our investment performance, but also by expanding our product offering, enhancing our distribution channels, increasing our global presence, investing in our non-investment functions, securing strategic partnerships and completing strategic acquisitions and portfolio purchases.
+Added: Ares believes each of its distinct but complementary investment groups in Credit, Real Assets, Private Equity and Secondaries is a market leader based on assets under management and investment performance.
+Added: We believe we create value for our stakeholders not only through our investment performance, but also by expanding our product offerings, enhancing our distribution channels, increasing our global presence, investing in our non-investment functions, securing strategic partnerships and completing strategic acquisitions and portfolio purchases.
Our AUM has grown to $484.4 billion as of December 31, 2024 from $82.0 billion a decade earlier.
−Removed: A s shown in the chart below, over the past five and 10 years, our assets under management have achieved a compound annual growth rate (“CAGR”) of 26% and 19%, respectively ($ in billions):
+Added: A s shown in the chart below, over the past five and ten years, our assets under management have achieved a compound annual growth rate (“CAGR”) of 27% and 19%, respectively ($ in billions):
We have an established track record of delivering strong risk-adjusted returns through market cycles.
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We believe the exchange of information enhances our ability to analyze investments, deploy capital and improve the performance of our funds and portfolio companies.
−Removed: We have established deep and sophisticated independent research capabilities in over 55 industries and insights from active investments in over 1,800 companies, over 1,400 alternative credit investments, over 505 properties, over 65 infrastructure assets and over 900 limited partnership interests.
+Added: We have established deep and sophisticated independent research capabilities in over 55 industries and insights from investments in over 1,900 companies, over 1,750 alternative credit investments, over 555 properties, over 60 infrastructure assets and over 885 limited partnership interests.
Our investment process leverages the power of the Ares platform and an extensive network of professionals across our investment areas to identify and source attractive risk adjusted return opportunities while emphasizing capital preservation.
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Our experienced team takes a value-oriented approach which, among other factors, considers industry and market analysis, technical analysis, fundamental credit analysis and in-house research to identify investments that offer attractive value in comparison to the perceived credit risk profile.
−Removed: We use our longstanding relationships, considerable scale, research, industry knowledge, structuring expertise and often our self-origination capabilities to invest actively across capital structures with a focus on selecting the best risk-adjusted returns for our investors, while also seeking to provide our borrowers a valued capital solution.
−Removed: Each investment decision involves an intensive due diligence process that is generally focused on evaluating the target company and its current and future prospects, its management team and industry, its ability to withstand adverse conditions and its capital structure, sponsorship and structural protection, among others.
−Removed: Credit now includes the APAC credit platform.
−Removed: In connection with a merger agreement, we rebranded Ares SSG Capital Holdings Limited and its operating subsidiaries (“SSG” and subsequently rebranded as “Ares SSG”) as Ares Asia and the Ares SSG credit business as Asia credit, which was subsequently rebranded as APAC credit.
−Removed: APAC credit makes credit and special situations investments through its local originating presence across Asia-Pacific (“APAC”) on behalf of its institutional client base.
−Removed: • Private Equity :
−Removed: Our private equity professionals have demonstrated the ability to deploy capital across various market environments at attractive rates of return through control and non-control transactions.
−Removed: At the center of our investment process is a systematic approach that emphasizes rigorous due diligence at company and market levels in addition to assessing attractive relative value.
−Removed: We seek to be a private equity partner of choice and believe our partnership
−Removed: mentality well-positions our investments for long-term success, whereby management teams gain access to our expertise and extensive internal and external networks from diligence to exit.
−Removed: In addition to focusing on generating strong returns for our investors, we are simultaneously focused on driving positive change by helping to promote diversity, inclusivity and social responsibility in the companies in which we invest, which we believe benefits the businesses as a whole in addition to its employees, communities and stakeholders.
−Removed: In addition, we completed the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital on October 2, 2023 (the “Crescent Point Acquisition”), a leading Asia-focused private equity firm.
−Removed: The acquired business is presented within the Private Equity Group as APAC private equity.
+Added: We use our longstanding relationships, considerable scale, research, industry knowledge, structuring expertise and often our direct-origination capabilities to invest actively across capital structures with a focus on selecting the best risk-adjusted returns for our investors, while also seeking to provide our borrowers a valued capital solution.
+Added: Each investment decision involves an intensive due diligence process that is generally focused on evaluating the target company or portfolio, as applicable, and its current and future prospects, its management team and industry, its ability to withstand adverse conditions and its capital structure, sponsorship and structural protection, among others.
+Added: On January 1, 2024, we changed our segment composition.
+Added: 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.
• Real Assets :
With our experienced team, along with our expansive network of relationships, our Real Assets Group manages equity and debt strategies across real estate and infrastructure investments.
−Removed: Across our real estate equity and debt investment strategies, our team differentiates itself through its cycle-tested leadership, demonstrated performance across market cycles, access to real-time property market and corporate trends, and proven ability to create value through a disciplined investment process.
−Removed: Our real estate activities are managed by dedicated equity and debt teams in the U.S.
−Removed: and Europe, along with our vertically-integrated operating platform.
−Removed: These individuals collaborate frequently within and across strategies to enhance sourcing, exchange information to inform underwriting and leverage relationships to drive pricing power.
+Added: Across our real estate equity and debt investment strategies, our team differentiates itself through its cycle-tested leadership, demonstrated performance across market cycles, access to real-time property market and corporate trends, and proven ability to create value
+Added: through a disciplined investment process.
+Added: Our real estate activities are managed by equity and debt teams in North America and Europe, along with our vertically-integrated operating platform.
+Added: These professionals collaborate frequently within and across strategies to enhance sourcing, exchange information to inform underwriting and leverage relationships to drive pricing power.
Our real estate equity and debt teams have the flexibility to invest across the risk-return spectrum through core/core-plus, value-add and opportunistic investment strategies.
−Removed: The infrastructure strategy focuses on debt and equity in essential infrastructure assets and companies with stable cash flow profiles through long-term contracts and high barriers to entry, and may demonstrate a lower correlation to public markets and potential for inflation projection.
−Removed: Across our infrastructure opportunities and debt investment strategies, we have a long-tenured global team utilizing deep local sourcing capabilities and extensive sector experience to originate and manage diverse, high-quality investments in private infrastructure assets across the globe.
+Added: On December 1, 2024, Ares completed the acquisition of Walton Street Capital Mexico S.
+Added: and certain of its affiliates (“WSM”) (the “WSM Acquisition”), a real estate asset management platform focused primarily on the industrial real estate sector in Mexico.
+Added: The activities of WSM are presented within the Real Assets Group within our North American real estate equity strategy, which we renamed from U.S.
+Added: real estate equity following the WSM Acquisition.
+Added: The strategy name change did not result in any change to the historical composition of our segments.
+Added: The infrastructure strategy invests through both debt and equity in infrastructure assets and companies that provide essential services with stable cash flows and high barriers to entry.
+Added: These investments typically demonstrate a lower correlation to public markets and may have inflation protections.
+Added: Across our infrastructure opportunities and debt investment strategies, we have a long-tenured global team utilizing deep local sourcing capabilities and extensive sector experience to originate and manage a portfolio of diverse, high-quality investments across the globe.
We have dedicated direct infrastructure opportunities and debt teams that collaborate to share market insights, support underwriting and enhance origination.
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Leveraging the established long-standing relationships, the strategy seeks to generate exclusive deal flow and high-quality investment opportunities.
+Added: • Private Equity :
+Added: Our private equity investment professionals have deep domain expertise and a demonstrated ability to deploy capital across market environments, which allows them to be disciplined in their assessment of the best relative value opportunities and pursuit of attractive returns.
+Added: We seek to be a private equity partner of choice to management teams and believe our partnership mentality and growth-oriented mindset helps well-position our portfolio companies for long-term success, whereby management teams gain access to our value creation expertise and extensive internal and external networks from diligence to exit.
+Added: We believe our team’s continuity, significant industry and regional experience, accumulated knowledge of investing across market cycles and transaction types, along with our culture of collaboration, have been critical to our success.
• Secondaries:
Our team invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.
−Removed: Our secondary funds acquire interests across a range of partnership vehicles, including funds, multi-asset portfolios and single asset joint ventures.
+Added: Our secondary funds acquire interests across a range of partnership vehicles, including funds, multi-asset portfolios, single asset joint ventures, as well as build structured solutions to provide primary and secondary investors with flexible investment and exit options.
These strategies involve the acquisition of interests from investors in existing funds as well as recapitalizing and restructuring the funds, including transactions that can address pending fund maturity, strategy change or the need for additional equity capital.
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(i) Ares Insurance Solutions (“AIS”);
−Removed: and (ii) activities from our company sponsored special purpose vehicles that are formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
−Removed: We also recognize the importance of considering environmental, social and governance (“ESG”) factors in our investment process and have adopted a Responsible Investment Program for the conduct of our business.
+Added: (ii) activities from our company sponsored SPAC that is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination;
+Added: and (iii) a venture capital business with fund strategies that are focused on applied artificial intelligence, among others.
+Added: We also recognize the importance of what we consider material environmental, social and governance (“ESG”) factors in our investment process to help enable us to generate attractive risk-adjusted returns and have adopted a Responsible Investment Program for this purpose.
We work collaboratively with our various underwriting, asset management, legal and compliance teams to appropriately integrate relevant ESG considerations into our investment process.
−Removed: In addition, as part of our growth strategy, we may from time to time engage in discussions with counterparties with respect to various potential strategic transactions, including investments in, and acquisitions of, other companies or assets.
−Removed: We may incur significant expenses for the evaluation, due diligence investigation and negotiation of potential strategic transactions.
+Added: In addition, as part of our growth strategy, we from time to time engage in discussions with counterparties with respect to various potential strategic transactions, including investments in, and acquisitions of, other companies or assets.
+Added: We incur significant expenses for the evaluation, due diligence investigation and negotiation of potential strategic transactions.
Breadth, Depth and Tenure of our Senior Management
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We believe that our strong performance, consistent growth and high talent retention through economic cycles is due largely to the effective application of this principle across our broad organization of over 3,200 employees.
−Removed: The management of our operating businesses is currently overseen by our Executive Management Committee which meets frequently to discuss strategy and operational matters, and includes as representatives our Holdco Members and other senior leadership from our investment groups and business operations team.
+Added: The management of our operating businesses is currently overseen by our board of directors and managed by our
+Added: senior leadership.
+Added: We have an Operating Committee comprised of leadership from our investment and business operations groups that meets regularly to discuss strategy and operational matters.
We also have a Partners Committee comprised of senior leadership from across the firm that meets periodically to discuss our business, including investment and operating performance, fundraising, market conditions, strategic initiatives and other firm matters.
−Removed: Each of our investment
−Removed: groups is led by its own deep leadership team of highly accomplished investment professionals, who average approximately 25 years of investment experience in managing, advising, underwriting and restructuring companies.
+Added: Each of our investment groups is led by its own deep leadership team of highly accomplished investment professionals, who average approximately 25 years of investment experience in managing, advising, underwriting and restructuring companies.
While primarily focused on managing strategies within their own investment group, these senior professionals are integrated within our platform through economic, cultural and structural measures.
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Creating a welcoming and inclusive work environment with opportunities for growth and development is essential to attracting and retaining a high-performance team, which in turn is necessary to drive differentiated outcomes.
−Removed: We believe that our unique culture, which centers upon values of collaboration, responsibility, entrepreneurialism, self-awareness and trustworthiness makes Ares a preferred place for top talent at all levels to build a long-term career within the alternative asset management industry.
+Added: We believe that our unique culture, which centers upon values of collaboration, responsibility, entrepreneurialism, self-awareness and trustworthiness makes Ares a preferred place for top talent at all levels to build a long-term career within the alternative investment management industry.
To foster this culture, we invest heavily in our human capital efforts, including:
Talent Management:
−Removed: As of December 31, 2023, we had over 2,850 full-time employees, comprised of approximately 1,000 professionals in our investment groups and over 1,850 operations management professionals, located in over 35 offices in more than 15 countries.
+Added: As of December 31, 2024, we had over 3,200 employees, comprised of over 1,100 professionals in our investment groups and over 2,100 operations management professionals, located in over 35 offices in more than 15 countries.
We provide a comprehensive set of programs, policies and benefits to enable team members to thrive, grow and contribute to their highest potential.
• Governance and Policies:
−Removed: Ares is committed to providing a work environment in which all individuals are treated with respect and dignity.
−Removed: While our culture is the foundation of our work environment, our equal opportunity employment, diversity, anti-harassment and anti-discrimination policies reinforce a professional atmosphere.
+Added: Ares is committed to providing a work environment in which all individuals act with integrity, and are treated with respect and dignity.
+Added: Our equal opportunity employment, compliance, anti-harassment and anti-discrimination policies reinforce our culture.
• Recruiting and Onboarding:
−Removed: We pursue several strategic paths to hire top talent, including campus and lateral recruiting efforts, and focus on diversity.
−Removed: We prioritize making all new team members feel welcome and seek to set them up for success through onboarding training, ongoing touchpoints, and connecting them with our employee resource groups (“ERGs”), which are grassroots, employee-led, executive-sponsored groups and open to all team members.
+Added: We pursue several strategic paths to hire top talent, including campus and lateral recruiting efforts.
+Added: We prioritize making all new team members feel welcome and set them up for success through comprehensive onboarding training, ongoing touchpoints, and connections with our employee resource groups (“ERGs”), which are grassroots, employee-led, executive-sponsored groups and open to all team members.
+Added: We seek feedback throughout the year to improve our recruiting and onboarding processes.
• Internship Training Program:
Ares offers a formal internship program for students between their junior and senior years of college with the possibility of conversion to a full-time position in our analyst program upon graduation.
−Removed: Available roles span our investment and operations management teams.
+Added: Available roles span our investment and non-investment teams.
• Mentoring, Training and Employee Engagement:
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• Education Sponsorship Program:
−Removed: Employees are encouraged to participate in degree programs, business-related seminars, workshops, ad-hoc academic courses, continued education seminars to maintain job-related licenses and other outside training courses to facilitate professional development, the cost of which is reimbursed to the employee by Ares.
+Added: Employees are encouraged to participate in degree programs, business-related seminars, workshops, ad-hoc academic courses, continued education seminars to maintain job-related licenses and other outside training courses to facilitate professional development.
• Internal Training and Development Programs:
−Removed: We continue to foster an environment that cultivates company and employee growth through educational programs focused on professional development, mandated training and other learning opportunities that are offered in person or online.
−Removed: Our team is focused on the training and development of our employees and has invested in a learning management system to facilitate this initiative.
+Added: We continue to foster an environment that cultivates company and employee growth through educational programs focused on professional development, mandatory training and other learning opportunities that are offered in person or online.
+Added: Our team is focused on the training and development of our employees and has invested in management development training for our leaders.
• Performance Management:
We take a continuous feedback approach to performance management, encouraging leaders and team members to participate in goal setting and ongoing feedback discussions throughout the year.
−Removed: Our formal, firm-wide annual review process includes a self-assessment, a 360-degree feedback component, calibration and round table discussions, and year-end evaluations provided by managers to employees.
−Removed: In addition to the annual review, we also conduct mid-year performance reviews that are less formal and serve to evaluate progress against goals and as an opportunity to discuss specific career development objectives that were identified in the annual assessment.
+Added: Our formal, firm-wide annual review process includes a self-assessment, a 360-degree feedback component, and round table discussions.
+Added: Year-end evaluations are provided to employees by managers and include ratings to provide transparent feedback.
+Added: In addition to the annual review, we also conduct mid-year performance reviews that are less formal and serve to evaluate progress against goals and as an opportunity to discuss specific career development
+Added: objectives that were identified in the annual assessment.
Training is provided for each phase of our performance assessment process.
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Environmental, Social and Governance:
−Removed: We believe that ESG is integral to driving long-term success for our business.
−Removed: We pursue a strategy that is designed to address ESG issues most relevant to our business, starting with a corporate sustainability program focused on our corporate operations and then scaling through a responsible investment program that focuses on our investment platform.
−Removed: • In order to continuously improve our ESG integration processes, we have defined three tiers of roles and responsibilities for oversight and implementation:
+Added: We believe that targeted ESG efforts are a part of our objective of delivering attractive investment returns to our investors.
+Added: We pursue a strategy that is designed to mitigate risks and create value by seeking to address business-relevant ESG issues.
+Added: Our strategy starts with a corporate sustainability program focused on our corporate operations and then scales through our Responsible Investment Program that focuses on our investment platform.
+Added: • Governance :
+Added: We have defined three tiers of roles and responsibilities for our ESG integration process:
(i) oversight responsibility;
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and (iii) driving implementation.
−Removed: The Oversight Responsibility tier is led by our Global Head of ESG and consists of our most-senior managers and decision-making bodies, including our Executive Management Committee and board of directors.
−Removed: Next, our ESG team is responsible for Defining Implementation steps and processes in partnership with ESG champions embedded within each business line to adapt the Ares firm-wide approach to strategy-specific implementation steps.
−Removed: We focus on Driving Implementation through all levels of investment professionals and management to promote the integration and scalability of our approach.
−Removed: • Where appropriate, we aim to engage with industry organizations to help shape emerging areas of ESG practice.
−Removed: For example, Ares is the Chair of the UN Principles for Responsible Investing (“UNPRI”) Private Debt Advisory Committee, which aims to define and promote best practices for ESG integration within the direct lending market.
−Removed: Ares is also a public supporter of the Financial Stability Board Taskforce on Climate-related Financial Disclosures (“TCFD”).
+Added: The oversight responsibility tier is led by our Global Head of ESG and consists of our most-senior professionals and decision-making bodies, including our board of directors.
+Added: Next, our dedicated ESG team is responsible for defining implementation steps and processes in partnership with respective investment teams and ESG champions embedded within each business line to adapt Ares’ approach to strategy-specific implementation steps.
+Added: Finally, we focus on driving implementation utilizing strategy-specific processes.
+Added: Investment professionals, including our portfolio management teams, seek to execute ESG-related tasks for select investments and scalability of our approach.
+Added: • Responsible Investment Program:
+Added: Our Responsible Investment Program describes our ESG integration and management processes.
+Added: We believe our approach to integrating and managing what we consider to be material ESG considerations in the investment process can help manage risk, shape the long-term growth and performance of our investments and enable value creation opportunities.
+Added: We aim to engage portfolio companies and assets to address business-relevant risks and opportunities and act responsibly towards stakeholders in line with our fiduciary duties.
+Added: • Reports and Disclosures:
+Added: Our annual Sustainability Report communicates Ares’ corporate and strategy-specific progress and select highlights of our sustainability efforts.
+Added: Additionally, where appropriate, we aim to engage with industry organizations to help shape emerging areas of ESG practice.
+Added: Our Sustainability Disclosures supplement our annual Sustainability Report and are aligned with applicable Sustainability Accounting Standards Board (“SASB”) Standards and also considers the Global Reporting Initiative (“GRI”) Standards.
+Added: We also publish our annual Climate Action Report aligned with the Taskforce on Climate-related Financial Disclosures (“TCFD”) recommendations.
We believe the TCFD recommendations provide a useful framework to increase transparency on climate-related risks and opportunities within financial markets.
−Removed: In addition, we engage with the ESG Data Convergence Initiative, Partnership for Carbon Accounting Financials and Initiative Climat International to improve consistency and transparency in our ESG and climate disclosures.
−Removed: • As part of our efforts to manage the risks and opportunities associated with the energy transition, we seek to engage our portfolio companies on greenhouse gas emissions measurement and support them in their emissions reduction strategies.
−Removed: We are committed to measuring and reporting on our greenhouse gas emissions.
−Removed: We aim to minimize our own corporate footprint through initiatives to reduce operational emissions and by addressing residual, harder-to-abate emissions with tools such as renewable energy certificates and the purchase of carbon credits we believe to be high-quality.
Diversity, Equity and Inclusion:
−Removed: We invest heavily in diversity, equity and inclusion (“DEI”) as a strategic pillar that integrates with all talent processes and global business practices.
−Removed: Our human resources function, our global DEI Council and team led by our Chief Diversity, Equity, and Inclusion Officer and business leaders across the Ares platform work in partnership to implement a strategic framework to attract, engage, develop and advance diverse talent within an inclusive and welcoming environment, as well as to support DEI best practices across our investment portfolios and through our broader involvement in our communities.
+Added: We consider diversity, equity and inclusion (“DEI”) in connection with various talent processes and global business practices.
+Added: Our human resources function, our global DEI Council, our DEI team and business leaders across the Ares platform work in partnership to implement a strategic framework to attract, engage and develop diverse talent within a welcoming environment, as well as to support DEI efforts in select investments and through our broader involvement in our communities.
• People and Culture:
−Removed: As part of our ongoing effort to foster an inclusive culture built on apprenticeship, we support the growth and advancement of talent through various mentorship and professional development programs.
−Removed: In line with our continued commitment to seek to provide an environment where all team members experience a genuine sense of belonging, we hold educational trainings and employee engagement events, often in partnership with our eight ERGs that help to drive our DEI strategy and enhance the employee experience for underrepresented groups, allies and diverse talent more broadly.
−Removed: To create more transparency, we also aim to conduct periodic reviews with business leadership to assess our people, progress, metrics and strategies to enable the long-term success of diverse talent at Ares.
+Added: As part of our ongoing effort to foster a culture built on apprenticeship, we support the growth and advancement of talent through various mentorship and professional development programs.
+Added: In line with our continued commitment to support an environment where all team members experience a genuine sense of belonging, we hold educational trainings and employee engagement events, often in partnership with our 14 employee communities that help to support our DEI strategy and recognize the different cultures, backgrounds and experiences of our employees.
+Added: To create more transparency, we also aim to conduct periodic reviews with business leadership to assess our people and strategies to enable the long-term success of talent at Ares.
In addition, as part of our commitment to equitable pay for all employees, we monitor and assess total compensation to help ensure we have alignment with role responsibilities and contributions.
• Business Processes and Investment Platform:
−Removed: We seek to embed DEI best practices into our business and investment diligence processes as both a reflection of our values and to drive innovation and returns.
−Removed: We have identified DEI champions within each investment group to develop bespoke strategies focused on representation, DEI governance, equitable access, and employee engagement and equity ownership, which we intend to integrate into our business plans each year.
−Removed: In addition, we are focused on supporting vendor and supplier diversity in our procurement practices.
−Removed: In 2022, we also introduced sustainability-linked pricing to our Credit Facility, tying a portion of our borrowing costs
−Removed: to certain ESG and DEI-related targets.
−Removed: Due to the achievement of the ESG-related targets in 2023, our base rate and unused commitment fee on our Credit Facility have been reduced from July 2023 through June 2024.
−Removed: We also partner with select Ares private equity portfolio companies to understand the current state of their DEI efforts, as well as to share best practices and establish mutually agreed strategies for driving DEI improvements in parallel with our internal efforts.
+Added: We seek to embed DEI best practices into our business and investment diligence processes in an effort to drive innovation and returns.
+Added: We have identified DEI champions within each investment group to help develop strategies for their asset class and integrate DEI considerations into the investment lifecycle, as appropriate.
+Added: We also partner with select Ares private equity portfolio companies to understand their DEI efforts.
• Communities:
−Removed: We partner with organizations to foster diversity within our communities and promote corporate citizenship through charity and volunteerism, much of which targets historically underrepresented and economically disadvantaged populations.
−Removed: We also participate in DEI-focused industry groups in an effort to identify and advance best practices more broadly within alternative asset management.
−Removed: In partnership with our ERGs, we donated to various community organizations that support diverse communities.
+Added: We partner with organizations to foster diversity within our communities and promote corporate citizenship through charity and volunteerism.
+Added: In partnership with our ERGs, we donated to various community organizations.
Health and Wellness :
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• Ares Charitable Foundation (the “Ares Foundation”):
−Removed: A 501(c)(3) qualifying organization sponsored by the firm, the Ares Foundation envisions a world in which people benefit from equitable access to knowledge, resources and opportunities so that they can achieve their full potential.
−Removed: Launched in 2021, the Ares Foundation’s mission is to help accelerate equality of economic opportunity by supporting nonprofit organizations and initiatives that provide career preparation and reskilling, encourage entrepreneurship and deepen individuals’ understanding of personal finance.
−Removed: We fund and work alongside high-quality nonprofit organizations to devise inspired solutions to critical societal issues.
−Removed: Our employee-directed grants support initiatives that, for example, help low-income women in Singapore transition out of poverty, examine barriers to young people’s workforce entry in the U.K.
−Removed: and catalyze intergenerational entrepreneurship in the U.S.
−Removed: Our signature initiatives seek to address pervasive challenges through large-scale funding commitments that reflect our desire to improve the lives of current and future generations.
−Removed: Our commitments include Climate-Resilient Employees for a Sustainable Tomorrow (“CREST”), a five-year $25.0 million commitment that aims to close the gap between the demand for a skilled workforce for green jobs and the number of people ready for these opportunities in the U.S.
−Removed: and India, and AltFinance, a 10-year $30.0 million commitment to help equip Historically Black College and University students for careers in alternative investment management.
−Removed: Ares is committed to donating a portion of our annualized carried interest allocations and incentive fees from certain funds to the Ares Foundation, which helps further align the firms’ investment and charitable activities.
−Removed: Moreover, the Ares Foundation benefits from the generosity of Ares employees who are able to donate cash, equity or a portion of the realized proceeds from carried interest in certain funds.
+Added: A 501(c)(3) qualifying organization sponsored by the firm, the Ares Foundation, launched in 2021, envisions a world in which people have access to the financial knowledge, resources and opportunities needed to achieve their full potential and chart pathways to self-sufficiency.
+Added: The Ares Foundation funds initiatives that help provide career preparation and reskilling, encourage entrepreneurship and deepen individuals’ understanding of personal finance.
+Added: This includes support for the design, pilot and scale up of new approaches that encourage innovation to help close the wealth gap in the communities where the firm does business.
+Added: Moreover, the Ares Foundation undertakes research and special initiatives intended to inform both the philanthropic sector and policy.
+Added: In addition, the Ares Foundation Learning Communities support grantees through knowledge-building and exchange to complement the funding they receive.
+Added: These communities of practice help organizations establish aligned networks, develop knowledge to inform their work and build organizational capacity for innovation by accessing support from other funders.
+Added: The year-long, cohort experience explores topics like measurement, evaluation and storytelling.
+Added: Guided by the belief that as the firm thrives, so should our communities and our society, Ares is committed to donating a portion of our annualized, realized net performance income from select Ares funds to tie investment performance to social impact.
• Pathfinder and Other Funds:
−Removed: In addition, Ares has committed to donate a minimum of 10% of the carried interest generated from Ares Pathfinder Fund, L.P.
+Added: In addition, Ares committed to donate a minimum of 10% of the carried interest generated from Ares Pathfinder Fund, L.P.
(“Pathfinder I”) and Ares Pathfinder Fund II, L.P.
−Removed: (“Pathfinder II”) and 5% of the incentive fees generated from an open-ended core alternative credit fund to global health and education charities, contributed by the firm and our team members.
−Removed: We believe that Pathfinder I is the first institutional private investment fund to utilize a predefined structure to make a substantial commitment to charitable activities.
+Added: (“Pathfinder II”) and 5% of the incentive fees generated from an open-ended core alternative credit fund to global health and educational charities, contributed by the firm and our team members.
• Ares in Motion (“AIM”):
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AIM engages employees in grassroots volunteerism, encourages their service with nonprofit boards and other pro bono opportunities, and amplifies their personal donations with charitable matches.
−Removed: Furthermore, employees who volunteer as AIM Champions enjoy opportunities to organize and lead volunteer activities in the U.S., Europe and Asia-Pacific to benefit the communities in which they live and work.
+Added: Furthermore, employees who volunteer as AIM Champions enjoy opportunities to organize and lead volunteer activities in the U.S., Europe and Asia-Pacific (“APAC”) to benefit the communities in which they live and work.
Our annual Summer of Service engages Ares employees around the world in both service and skills-based “give back” opportunities.
In addition, our nonprofit board training and placement program provides a way for team members to make a difference in their communities beyond firm-sponsored volunteer activities.
−Removed: AIM also helps bring our team members into thoughtful dialogue with nonprofit leaders through virtual fireside chat events so that employees can learn more about their organizations, understand the purpose and significance of their work, and glean valuable insights to apply professionally and personally.
−Removed: Furthermore, we leverage AIM to sponsor and match team members’ support of charitable causes like crisis relief, social justice, mental health and DEI.
+Added: AIM also helps bring our team members into thoughtful dialogue with nonprofit leaders through virtual fireside chat events so that employees can
+Added: learn more about their organizations, understand the purpose and significance of their work, and glean valuable insights to apply professionally and personally.
+Added: Furthermore, we leverage AIM to sponsor and match team members’ support of charitable causes like disaster relief, mental health, and education.
In addition, we offer matching funds to augment team members’ sponsorship of nonprofits’ mission-driven events.
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In 2024, we raised $92.7 billion in gross new capital commitments for more than 185 different investment vehicles.
−Removed: Of the $74.5 billion, $65.9 billion was raised directly from over 625 institutional investors (over 325 existing and approximately 300 new to Ares) and $8.6 billion was raised through intermediaries.
+Added: Of the $92.7 billion, $70.4 billion was raised directly from over 660 institutional investors, of which over 310 were new to Ares, and $22.3 billion was raised through intermediaries.
The charts below summarize our gross new capital commitments by investment group and strategy ($ in billions):
+Added: $69.1 Real Assets:
+Added: Direct Lending European Direct Lending Liquid Credit Alternative Credit Real Estate Debt North American Real Estate Equity European Real Estate Equity
+Added: Opportunistic Credit APAC Credit Other Infrastructure Debt Infrastructure Opportunities
Private Equity:
−Removed: Direct Lending European Direct Lending Alternative Credit Corporate Private Equity Other
−Removed: Liquid Credit APAC Credit Other
$0.5 Secondaries:
−Removed: Real Estate Equity Infrastructure Opportunities European Real Estate Equity Credit
−Removed: Secondaries Real Estate Secondaries Infrastructure Secondaries
−Removed: Real Estate Debt Infrastructure Debt Private Equity Secondaries Other
+Added: Corporate Private Equity Other Private Equity Secondaries Infrastructure Secondaries
+Added: Secondaries Real Estate Secondaries
Other Businesses:
−Removed: Insurance SPACs
The chart below summarizes gross new capital raised from existing and new direct institutional investors for the year ended December 31, 2024 :
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In 2024 , w e invested $106.7 billion across our diverse global platform as shown in the following charts ($ in billions):
−Removed: Credit $53.2 Private Equity:
−Removed: Direct Lending Alternative Credit European Direct Lending Special Opportunities Corporate Private Equity
−Removed: Liquid Credit APAC Credit
−Removed: Real Estate Equity European Real Estate Equity Infrastructure Debt Private Equity Secondaries Real Estate Secondaries
−Removed: Infrastructure Opportunities Real Estate Debt Infrastructure Secondaries Credit
+Added: Credit $87.6 Real Assets:
+Added: Direct Lending Alternative Credit European Direct Lending Liquid Credit North American Real Estate Equity Real Estate Debt Infrastructure Debt
+Added: Opportunistic Credit APAC Credit Other European Real Estate Equity Infrastructure Opportunities
+Added: Private Equity:
+Added: Corporate Private Equity APAC Private Equity Private Equity Secondaries Real Estate Secondaries
+Added: Infrastructure Secondaries Credit
Other Businesses:
−Removed: Of the $68.1 billion invested, $42.5 billion was tied to our drawdown funds.
+Added: Of the $106.7 billion invested, $50.1 billion was from our drawdown funds.
Our capital deployment in drawdown funds was comprised of the following ($ in billions):
−Removed: Credit Private Equity Real Assets Secondaries
+Added: Credit Real Assets Private Equity Secondaries
Investment Groups
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Cr edit Group
−Removed: Our Credit Group is one of the largest managers of credit strategies across the non-investment grade credit universe, with $284.8 billion of AUM and over 270 funds as of December 31, 2023 .
+Added: Through our Credit Group, we serve as one of the largest managers of credit strategies across the non-investment grade credit universe, with $348.8 billion of AUM and over 280 funds as of December 31, 2024 .
The Credit Group provides solutions for investors seeking to access a wide range of credit assets, including liquid credit, alternative credit and direct lending products.
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Liquid Credit:
−Removed: Our liquid credit investment solutions help traditional fixed income investors access the syndicated loan and high yield bond markets in North America and Europe and capitalize on opportunities across multi-asset credit.
+Added: Our liquid credit investment solutions help fixed income investors access the syndicated loan and high yield bond markets in North America and Europe and capitalize on opportunities across multi-asset credit.
The syndicated loans strategy focuses on evaluating individual credit opportunities related primarily to non-investment grade senior secured loans and primarily targets first lien senior secured loans, with a secondary focus on second lien senior secured loans and subordinated and other unsecured loans.
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Multi-asset credit is a “go anywhere” strategy designed to offer investors a flexible solution to global credit investing by allowing us to tactically allocate between multiple asset classes in various market condition s.
−Removed: As of December 31, 2023 , our liquid credit team managed $47.3 billion of AUM in over 110 funds and separately managed accounts (“SMAs”).
+Added: As of December 31, 2024 , our liquid credit team of over 45 investment professionals managed $46.9 billion of AUM in over 115 funds and separately managed accounts (“SMAs”).
Alternative Credit:
Our alternative credit strategy seeks to capitalize on asset-focused investment opportunities that fall outside of traditional, well-defined markets such as corporate debt, real estate and private equity.
−Removed: As of December 31, 2023, our dedicated team of over 65 professionals managed $33.9 billion of AUM in over 25 private funds and SMAs for a global investor base.
+Added: As of December 31, 2024, our alternative credit team of over 75 professionals managed $41.5 billion of AUM in over 25 private funds and SMAs for a global investor base.
Our alternative credit strategy emphasizes downside protection and capital preservation through a focus on investments that tend to share the following key attributes:
asset security, covenants, cash flow velocity and other features designed to capture value and minimize risk to principal.
−Removed: Our investment approach is designed to capture and create value by leveraging our firm’s platform insights to assess risk and relative value.
+Added: Our investment approach is designed to capture and create value by including our firm’s platform insights to assess risk and relative value.
+Added: Opportunistic Credit :
+Added: Our opportunistic credit strategy seeks to invest in middle market companies that need flexible capital solutions, primarily in the form of debt and preferred equity and to a lesser extent, common equity.
+Added: We partner with healthy, stressed and distressed companies across North America and Europe, operating in the void between traditional senior private debt and private equity.
+Added: We seek to consistently invest in private market opportunities and, when deemed attractive, flex into stressed public markets, often seeking to leverage a public investment into a private follow-on opportunity.
+Added: As of December 31, 2024, our opportunistic credit team of over 30 investment professionals managed $14.9 billion of AUM in four funds as of December 31, 2024.
+Added: Our special opportunities strategy, formerly part of the Private Equity Group, was integrated into the Credit Group in 2024 to form the foundation for our opportunistic credit strategy.
Direct Lending:
−Removed: Our direct lending strategy is one of the largest self-originating direct lenders to the U.S.
−Removed: and European markets, with $191.4 billion of AUM in over 90 funds and investment vehicles as of December 31, 2023 .
+Added: Through our direct lending strategy, we serve as one of the largest self-originating direct lenders to the U.S.
+Added: and European markets, with $233.7 billion of AUM in over 115 funds and investment vehicles, including more than 40 SMAs, as of December 31, 2024 .
We manage various types of direct lending vehicles within our U.S.
and European direct lending teams including commingled funds, SMAs for large institutional investors seeking tailored investment solutions and joint venture lending programs.
−Removed: As of December 31, 2023 , we managed over 55 SMAs across our direct lending strategy.
Our direct lending team has a multi-channel origination strategy designed to address a broad set of investment opportunities in the middle market.
We focus on being the lead or sole lender to our portfolio companies which we believe allows us to exert greater influence over deal terms, capital structure, documentation, fees and pricing, while securing our position as a preferred source of financing for our transaction partners.
−Removed: The team maintains a flexible investment strategy with the capability to invest in first lien senior secured loans (including “ unitranche ” loans which are loans that combine senior and subordinated debt, generally in a first lien position), second lien senior secured loans, subordinated debt, preferred equity and non-control equity co-investments in private middle market companies.
+Added: The team maintains a flexible investment strategy with the capability to invest in first lien senior secured loans (including “ unitranche ” loans which are loans that combine senior and subordinated debt, generally in a first lien position), second lien senior secured loans, subordinated debt, preferred equity and non-control equity co-investments in middle market companies.
Direct Lending:
−Removed: Our leading U.S.
−Removed: team is comprised of over 180 investment professionals that cover more than 650 financial sponsors and provide a wide range of financing solutions to middle market companies that typically range from $10 million to over $500 million in earnings before interest, tax, depreciation and amortization (“EBITDA”).
+Added: direct lending team is comprised of over 225 investment professionals that cover more than 565 financial sponsors and provide a wide range of financing solutions to middle market companies that typically range from $10 million to over $500 million in earnings before interest, tax, depreciation and amortization (“EBITDA”).
As of December 31, 2024 , our U.S.
−Removed: direct lending team and its affiliates managed $123.1 billion of AUM in approximately 55 funds and investment vehicles.
−Removed: team manages corporate lending activities through our inaugural vehicle and publicly-traded business development company (“BDC”), ARCC, our non-traded BDC, ASIF, as well as private commingled funds and SMAs.
+Added: direct lending team and its affiliates managed $159.1 billion of AUM in over 80 funds and investment vehicles.
Primary areas of focus for our U.S.
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• Ares Capital Corporation:
−Removed: ARCC is a leading specialty finance company focused on providing direct loans to and making other investments in private middle market companies in the U.S.
+Added: ARCC is a leading specialty finance company focused on providing direct loans to and making other investments in middle market companies in the U.S.
ARCC has elected to be regulated as a BDC and was the largest publicly-traded BDC by market capitalization in the U.S.
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• Ares Strategic Income Fund:
−Removed: ASIF is a closed-end investment company focused primarily on providing direct loans to private middle market companies in the U.S., and to a lesser extent, broadly syndicated loans and
−Removed: other more liquid credit opportunities, including in publicly-traded debt instruments.
+Added: ASIF is a closed-end investment company focused primarily on providing direct loans to private market companies in the U.S., and to a lesser extent, broadly syndicated loans and other more liquid credit opportunities, including in publicly-traded debt instruments.
ASIF has elected to be regulated as a BDC.
Commingled Funds and SMAs:
−Removed: Outside of ARCC, U.S.
−Removed: direct lending also generates fees from other funds, including the following fund families:
−Removed: Ares Private Credit Solutions, which focus on junior debt investments in upper middle market companies;
−Removed: Ares Senior Direct Lending Fund, which focus on first lien senior secured loans to North American middle market companies;
−Removed: Ares Commercial Finance, which focuses on asset-based and cash flow loans to middle market and specialty finance companies;
−Removed: and SMAs for large institutional investors.
+Added: Outside of ARCC and ASIF, U.S.
+Added: direct lending also generates fees from other funds, including commingled funds which focus on:
+Added: (i) first lien senior secured loans to middle market companies;
+Added: (ii) junior debt investments in upper middle market companies;
+Added: (iii) flexible capital to sports leagues and teams, sports industry related companies and entertainment companies;
+Added: (iv) flexible capital to commercial-stage specialty healthcare companies;
+Added: and (v) asset-based loans to middle market and specialty finance companies.
European Direct Lending:
Our European direct lending team is comprised of over 90 investment professionals, with the ability to invest across the capital structure and across several geographies in Europe.
−Removed: The team covers over 395 financial sponsors, offers self-originated, flexible and scaled debt capital to predominantly middle market and large capitalization companies with EBITDA typically ranging from €10 million to over €300 million.
+Added: The team covers over 395 financial sponsors, offers self-originated, flexible and scaled debt capital predominantly to companies with EBITDA typically ranging from €10 million to over €250 million.
As of December 31, 2024, our European direct lending team managed $74.6 billion of AUM in over 35 funds, including commingled funds and SMAs .
−Removed: Our APAC credit team manages credit, private equity and special situations investments in the APAC region.
+Added: Our European team also manages an open-ended fund that primarily invests in directly originated, senior secured, floating-rate loans to European companies.
+Added: Our open-ended European direct lending fund provides investors the opportunity to generate attractive current income and increased portfolio diversification.
+Added: Our APAC credit team manages credit and special situations investments in the APAC region.
Our APAC special situations strategy focuses on primary and secondary special situations, primarily targeting restructuring-related situations, deep value acquisitions and distressed financing.
Our APAC private credit strategy targets privately sourced loans in high quality businesses across the region.
−Removed: The team consists of approximately 70 investment professionals.
−Removed: APAC credit benefits from having an on-the-ground presence in offices across the APAC region and a comprehensive range of local market licenses and entities to provide our clients with an extensive regional investment platform.
APAC credit primarily employs a direct origination model and aims to provide flexible capital solutions to its investee companies and compelling risk-reward investment opportunities to our investors.
−Removed: As of December 31, 2023, APAC credit had $11.9 billion of AUM in over 15 funds and related co-investment vehicles.
+Added: As of December 31, 2024, our APAC credit team of over 70 investment professionals managed $11.5 billion of AUM in over 15 funds and related co-investment vehicles.
The following charts present the Credit Group’s AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
$348.8 FPAUM:
−Removed: Direct Lending European Direct Lending Liquid Credit Alternative Credit APAC Credit Other
−Removed: Private Equity Group
−Removed: Our Private Equity Group has achieved compelling investment returns for its limited partners and, as of December 31, 2023 , managed $39.1 billion of AUM in over 65 funds.
−Removed: The group broadly categorizes its investment strategies into corporate private equity, special opportunities and APAC private equity.
−Removed: Our private equity professionals have demonstrated ability to deploy capital across market environments, which allows them to stay both active and disciplined in their assessment of the best relative value opportunities.
−Removed: The group manages funds focused primarily on investing in North America, Europe and Asia-Pacific.
−Removed: Corporate Private Equity:
−Removed: Our team consists of over 55 investment professionals based primarily in Los Angeles and London.
−Removed: Our private equity funds are leaders in the North American and European middle market, where they focus on growth buyouts, with the ability to flex into distressed investing during periods of market volatility and dislocation.
−Removed: We seek to invest in high-quality middle market companies in the core industries of healthcare, services, industrials and consumer across North America and Europe, where we can utilize the team’s extensive growth-oriented investing experience, dedicated value creation system and ability to flex into distressed to target attractive returns across market environments.
−Removed: This differentiated strategy, together with the broad resources of the Ares platform, widens our universe of potential investment opportunities and allows us to remain active across various market environments and to be highly selective in making investments by identifying the most attractive relative value opportunities.
−Removed: Special Opportunities:
−Removed: Our special opportunities team consists of over 25 investment professionals and employs an “all weather” flexible capital strategy to finance debt and non-control equity solutions in healthy, stressed and distressed middle market companies undergoing transformational change.
−Removed: Our team partners with companies in North America and Europe to enhance enterprise values, filling the void between for-control private equity and traditional private debt.
−Removed: The strategy seeks to consistently invest in a range of private, special-situation opportunities and flex into distressed public market debt when attractive.
−Removed: We believe the special opportunities team benefits from:
−Removed: (i) advantaged sourcing;
−Removed: (ii) private equity integration, with an ability to leverage the deep industry experience of the corporate private equity professionals;
−Removed: (iii) an extensive network and information edge;
−Removed: and (iv) an experienced team utilizing a consistent and repeatable investment process.
−Removed: In February 2024, we announced that our special opportunities strategy, historically reported as a component of our Private Equity Group, will be integrated into the Credit Group to align management of this strategy and will form the foundation for a new opportunistic credit strategy.
−Removed: The change will be presented in our results beginning in 2024.
−Removed: Adjusted for this change, as of December 31, 2023, the Credit Group managed $299.4 billion in AUM with approximately 490 investment professionals and the Private Equity Group managed $24.5 billion in AUM with approximately 85 investment professionals, with both groups continuing to manage investments across the U.S., Europe and Asia-Pacific.
−Removed: APAC Private Equity:
−Removed: The APAC private equity strategy was established in connection with the Crescent Point Acquisition, investing in industry leading consumer companies in seven core sectors that we believe benefit disproportionately from higher disposable income levels.
−Removed: The strategy focuses on primarily pursuing structured growth equity investments in control, joint control and minority ownership formats.
−Removed: Our APAC private equity team consists of over 25 investment professionals and focuses on investing in companies that give us exposure to increasing consumer spending and urbanization in our target markets.
−Removed: In times of economic dislocation, we also seek to invest opportunistically where the focus is on dislocations and catalysts that lead to high-quality assets becoming available for purchase at deeply discounted prices.
−Removed: While we look for deep value opportunities in consumer-driven companies, our deep value approach often includes asset-oriented opportunities.
−Removed: The following charts present the Private Equity Group’s AUM and FPAUM as of December 31, 2023 by investment strategy ($ in billions):
−Removed: Private Equity Special Opportunities APAC Private Equity
+Added: Direct Lending European Direct Lending Liquid Credit Alternative Credit Opportunistic Credit APAC Credit Other
Real Assets Group
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With our experienced team, along with our expansive network of relationships, our Real Assets Group capitalizes on opportunities in equity and debt investing across real estate and infrastructure investment strategies.
−Removed: Our real estate equity investments focus on implementing hands-on value creation initiatives to mismanaged and capital-starved assets, platform-level investments, as well as new developments, ultimately selling stabilized assets back into the market.
−Removed: Our real estate debt strategies utilize diverse sources of capital to directly originate and manage commercial mortgage loans on properties that range from stabilized to those requiring hands-on value creation.
+Added: Our real estate strategies encompass equity and debt across core, value-add and opportunistic strategies in North America and Europe.
+Added: We provide investors access to our real estate investment capabilities through several vehicles:
+Added: closed-end North American and European multi-sector equity funds, an open-ended industrial real estate fund, open-ended U.S.
+Added: and European debt funds, SMAs, our diversified non-traded REIT, our industrial non-traded REIT and our publicly-traded commercial mortgage REIT, ACRE.
+Added: Our regional teams have local expertise and relationships and plug into Ares’ global network to gain insights into the companies and industries that are often the tenants in our buildings or are driving commercial activity in the markets where we invest.
+Added: Our real estate portfolio is primarily allocated to industrial, multifamily and adjacent sectors.
+Added: As we manage strategies across the return spectrum, capital stack and across geographies, we provide our investors with a full range of solutions and access to the widest set of opportunities sourced by our team.
Our real estate platform has achieved significant scale over time through both organic fundraising efforts as well as various acquisitions.
−Removed: Today, we provide investors access to our real estate investment capabilities through several vehicles:
−Removed: closed-end U.S.
−Removed: and European diversified equity funds, an open-end U.S.
−Removed: industrial-focused equity fund, open-end U.S.
−Removed: and European debt funds, equity and debt SMAs, our non-traded REITs, Ares Real Estate Income Trust, Inc.
−Removed: (“AREIT”) and Ares Industrial Real Estate Income Trust, Inc.
−Removed: (“AIREIT”), and our publicly-traded commercial mortgage REIT, ACRE.
−Removed: The group’s activities are managed by dedicated equity and debt teams in the U.S.
Real Estate Equity :
−Removed: Our real estate equity team, with over 220 investment professionals, has extensive real estate private equity experience in the U.S.
+Added: Our real estate equity team, with over 255 investment professionals, has extensive real estate private equity experience in North America and Europe.
Our team primarily acquires standing assets and improves them through renovating, repositioning and retenanting and selectively developing assets in supply-constrained markets.
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• Real Estate Core/Core-Plus :
−Removed: core/core-plus real estate strategy focuses on the acquisition of assets with strong long-term cash flow potential and durable tenancy diversified across end-user industries and
+Added: core/core-plus real estate strategy focuses on the acquisition of assets with strong long-term cash flow potential and durable tenancy diversified across end-user industries and geographies.
We deploy capital across all major property types, with a strong focus on industrial and multifamily assets located in top-tier primary and regional distribution markets across the U.S.
• Real Estate Value-Add:
−Removed: and European value-add real estate strategy focuses on undermanaged and underfunded income-producing assets across various property sectors in the U.S.
+Added: Our North American and European value-add real estate strategy focuses on undermanaged and underfunded income-producing assets across various property sectors in North America and Europe.
The strategy seeks to create value and generate stable and growing distributions to investors by buying properties at attractive valuations, implementing asset management initiatives to increase income and identifying multiple exit strategies upfront.
• Real Estate Opportunistic:
−Removed: and European opportunistic real estate strategy capitalizes on increased investor demand for developed and stabilized assets by focusing on the repositioning of assets, capitalization of distressed and special situations, and development of core-quality assets across all major property types, as well as select and adjacent sectors, throughout the U.S.
+Added: Our North American and European opportunistic real estate strategy capitalizes on increased investor demand for developed and stabilized assets by focusing on the repositioning of assets, capitalization of distressed and special situations, and risk-mitigated developments across all major property types, as well as select and adjacent sectors, across North America and Europe.
Real Estate Debt :
Our real estate debt team, with over 40 professionals, primarily focuses on directly originating a wide range of financing opportunities in the U.S.
−Removed: As of December 31, 2023, our real estate debt team managed $11.1 billion of AUM globally through open-end funds, SMAs and ACRE.
−Removed: By investing through multiple investment vehicles, our real estate debt team has the ability to provide flexible financing across the capital structure.
−Removed: While our real estate debt strategies focus predominantly on directly originated transactions, we also selectively pursue secondary market acquisitions and syndicated transactions.
+Added: As of December 31, 2024, our real estate debt team managed $17.5 billion of AUM globally through open-ended funds, SMAs and ACRE.
+Added: By investing through multiple investment vehicles, our real estate debt team has the ability to provide flexible financing across the capital structure and risk-return spectrum, including core/core-plus, value-add, and opportunistic debt.
+Added: While our real estate debt strategy focuses predominantly on directly originated transactions, we also have the ability to selectively pursue secondary market acquisitions and syndicated transactions.
Infrastructure:
−Removed: Our long-tenured global infrastructure team utilizes deep local sourcing capabilities and extensive sector experience to seek to originate and manage diverse, high-quality investments in private infrastructure assets across the globe and, as of December 31, 2023 , managed $15.7 billion of AUM in over 15 investment vehicles.
+Added: Our long-tenured global infrastructure team seeks to utilize its strong local sourcing capabilities and extensive sector experience to originate and manage diverse, high-quality infrastructure investments across the globe and, as of December 31, 2024 , managed $17.0 billion of AUM in more than 20 investment vehicles.
Infrastructure Opportunities :
Our infrastructure opportunities team consists of over 30 investment professionals and managed $7.4 billion of AUM in more than ten investment vehicles as of December 31, 2024 .
−Removed: We utilize a broad origination strategy, flexible investment approach, and leverage industry relationships and the Ares platform to seek attractive risk-adjusted returns across the climate infrastructure market.
−Removed: We believe our experience as value-add investors, flexible approach, and broad infrastructure experience positions us well to take advantage of the transitioning infrastructure industry.
+Added: We seek to utilize a broad origination strategy, flexible investment approach, and leverage industry relationships and the Ares platform to build a portfolio of high-quality climate investments and deliver attractive risk-adjusted returns.
+Added: We believe our experience as value-add investors, flexible approach, and broad infrastructure experience positions us well to take advantage of the growing opportunity set across the climate infrastructure market.
+Added: Our infrastructure opportunities team also manages an infrastructure private BDC,
+Added: which primarily invests in stable, operating infrastructure assets that provide current income in a perpetual, semi-liquid and tax-efficient structure.
Infrastructure Debt :
Our global infrastructure debt team consists of over 25 investment professionals and sources assets and businesses across regions with defensive characteristics across the digital, transport, energy and utility sectors.
−Removed: As of December 31, 2023, our global infrastructure debt team managed $9.4 billion of AUM in more than five investment vehicles.
+Added: As of December 31, 2024, our global infrastructure debt team managed $9.6 billion of AUM in ten investment vehicles.
We employ a direct origination and tailored structuring approach to provide borrowers with flexible financing solutions.
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The following charts present the Real Assets Group’s AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
−Removed: Real Estate Equity Real Estate Debt European Real Estate Equity Infrastructure Debt Infrastructure Opportunities
+Added: North American Real Estate Equity Real Estate Debt Infrastructure Debt European Real Estate Equity Infrastructure Opportunities
+Added: Private Equity Group
+Added: Our Private Equity Group has achieved compelling investment returns for limited partners and, as of December 31, 2024 , managed $24.0 billion of AUM in over 60 funds.
+Added: The group broadly categorizes its investment strategies into corporate private equity, which focuses on investments in North America and Europe, and APAC private equity, which focuses on investments in the APAC region.
+Added: Corporate Private Equity:
+Added: Our team consists of over 50 investment professionals based primarily in Los Angeles and London.
+Added: Our private equity funds are leaders in the North American and European middle market, where they focus on growth buyouts, with the ability to flex into distressed investing during periods of market transition and dislocation.
+Added: We seek to invest in high-quality middle market companies in our core industries of healthcare, services, industrials and consumer where we can utilize the team’s extensive growth-oriented investing experience and dedicated value creation system to target attractive returns across market environments.
+Added: This differentiated strategy, together with the broad resources of the Ares platform, widens our universe of potential investment opportunities and allows us to remain active across various market environments.
+Added: APAC Private Equity:
+Added: Our APAC private equity strategy focuses on investing in seven key consumer categories that we believe benefit disproportionately from higher disposable income levels.
+Added: The strategy focuses on primarily pursuing structured growth equity investments in control, joint control and minority ownership formats.
+Added: Our APAC private equity team consists of over 25 investment professionals as of December 31, 2024 and focuses on investing in companies that give us exposure to increasing consumer spending and urbanization in our target markets.
+Added: In times of economic dislocation, we also seek to invest opportunistically where the focus is on dislocations and catalysts that lead to high-quality assets becoming available for purchase at deeply discounted prices.
+Added: While we look for deep value opportunities in consumer-driven companies, our deep value approach can develop into asset-oriented opportunities.
+Added: The following charts present the Private Equity Group’s AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
+Added: Corporate Private Equity APAC Private Equity
Secondaries Group
−Removed: Our Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit, with $24.7 billion of AUM in over 75 funds as of December 31, 2023.
−Removed: The team has extensive experience investing across the secondaries market primarily in North America.
+Added: Our Secondaries Group invests in secondary markets primarily in North America and across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.
+Added: As of December 31, 2024, our team manages $29.2 billion of AUM in over 85 funds.
+Added: Our team has a track record of innovation through customized transaction solutions tailored to meet the needs of limited partners and general partners.
We have established ourselves among the most active secondary investors engaged in recapitalizing and restructuring existing limited partnership interests in funds with a focus on transactions that can address pending fund maturity, strategy change or the need for additional equity capital.
Private Equity Secondaries :
−Removed: Our private equity secondaries team has an established track record of providing customized private equity transaction solutions to institutional limited partners and general partners.
−Removed: As of December 31, 2023, our private equity secondaries team of more than 35 investment professionals managed $13.1 billion of AUM in approximately 35 funds and open-end accounts.
−Removed: Our private equity secondaries team acquires interests across a range of partnership vehicles, including private equity funds, multi-asset portfolios, as well as single asset joint ventures.
−Removed: The private equity secondaries strategy seeks to achieve attractive secondary cash flow and diversification characteristics by investing across the spectrum of private equity secondaries transactions, including through APMF, a closed-end interval fund.
+Added: The private equity secondaries strategy seeks to achieve attractive secondary cash flow and diversification characteristics by investing across the spectrum of private equity secondaries transactions.
+Added: As of December 31, 2024, our private equity secondaries team of more than 35 investment professionals managed $15.8 billion of AUM in over 40 funds and related co-investment vehicles.
We continue to maintain a differentiated investment strategy that utilizes our skills in fundamental manager and portfolio analysis, our quantitative research capabilities and the support and insights from the wider Ares platform with the aim to generate strong risk-adjusted returns.
+Added: Our private equity secondaries team also manages APMF.
+Added: APMF invests in an actively managed portfolio of private equity and other private assets across the spectrum of private equity secondaries transactions.
Real Estate Secondaries :
−Removed: Our real estate secondaries team has a track record of innovation through customized transaction solutions tailored to meet the needs of limited partners and general partners.
−Removed: As of December 31, 2023, our real estate secondaries team of more than 25 investment professionals managed $7.8 billion of AUM in approximately 30 funds and related co-investment vehicles.
−Removed: Our real estate secondaries team acquires interests across a range of partnership vehicles, including private real estate funds, multi-asset portfolios and single property joint ventures.
+Added: As of December 31, 2024, our real estate secondaries team of more than 20 investment professionals managed $7.8 billion of AUM in over 30 funds and related co-investment vehicles.
+Added: Our real estate secondaries team acquires interests and provides secondary solutions across a range of partnership vehicles, including private real estate funds, multi-asset portfolios and single property joint ventures.
Our team seeks broad diversification by property sector and geography and to drive investment results through underwriting, transaction structuring and portfolio construction.
Infrastructure Secondaries:
−Removed: Our infrastructure secondaries team has a strong track record of providing customized infrastructure transaction solutions tailored to meet the needs of limited partners and general partners.
−Removed: As of December 31, 2023, our infrastructure secondaries team of more than ten investment professionals managed $2.4 billion of AUM in ten funds and related co-investment vehicles.
The infrastructure secondaries strategy seeks to accelerate the benefits of traditional infrastructure by providing diversified low risk exposure through preferred structure, traditional limited partnership and general partner led continuation vehicle transactions.
+Added: As of December 31, 2024, our infrastructure secondaries team of more than ten investment professionals managed $3.7 billion of AUM in more than ten funds and related co-investment vehicles.
Our team focuses on achieving diversification through building a portfolio that provides inflation protection and exposure to uncorrelated assets.
Credit Secondaries:
−Removed: Our credit secondaries strategy seeks to create a highly diversified portfolio of primarily senior secured private credit interests across North America and Europe, acquired directly or indirectly through secondary market
−Removed: transactions.
−Removed: As of December 31, 2023, our credit secondaries team of ten investment professionals managed $1.4 billion of AUM in four funds and related co-investment vehicles.
+Added: Our credit secondaries strategy seeks to create a highly diversified portfolio of primarily senior secured private credit interests across North America and Europe, acquired directly or indirectly through secondary market transactions.
+Added: As of December 31, 2024, our credit secondaries team of more than ten investment professionals managed $1.9 billion of AUM in three funds and related co-investment vehicles.
+Added: Our team represents a combination of our credit and
+Added: secondaries capabilities, leveraging extensive industry experience and a cycle-tested investment approach that enable us to identify attractive risk-adjusted opportunities.
The following charts present the Secondaries Group’s AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
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therefore, we present the results for these businesses collectively.
−Removed: These strategies seek to expand our reach in new global markets and include AIS and our SPACs.
+Added: These strategies seek to expand our reach in new global markets and include AIS, our SPAC business and our venture capital business.
Ares Insurance Solutions:
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AIS strives to provide insurers with attractive risk and capital adjusted return profiles that fit within regulatory, rating agency and other counterparty guidelines.
−Removed: Leveraging approximately 1,000 investment professionals across the firm’s investment groups, AIS creates tailored investment solutions that meet the unique objectives of our insurance clients.
+Added: Leveraging over 1,100 investment professionals across the firm’s investment groups, AIS creates tailored investment solutions that meet the unique objectives of our insurance clients.
AIS is overseen by an experienced management team with direct insurance industry experience in many areas directly applicable to AIS and our insurance company clients.
Members of the Ares team have previously held senior positions at leading insurers.
−Removed: AIS acts as the dedicated investment manager, capital solutions and corporate development partner to Aspida Life Insurance Company (“Aspida Life”) and Aspida Life Re Ltd.
−Removed: (“Aspida Re”).
−Removed: Aspida Life and Aspida Re are insurance companies that focus on the U.S.
−Removed: life and annuity insurance and reinsurance markets.
+Added: AIS acts as the dedicated investment manager, capital solutions and corporate development partner to Aspida Life Insurance Company and Aspida Life Re Limited (collectively referred to as “Aspida”), which are insurance companies that focus on the U.S.
+Added: life and annuity insurance and reinsurance markets, respectively.
AIS manages $18.7 billion of AUM as of December 31, 2024, of which $12.3 billion is sub-advised by Ares vehicles and included within other strategies.
−Removed: Ares Acquisition Corporation:
−Removed: Ares Acquisition Corporation (formerly NYSE:
−Removed: AAC) (“AAC I”) was a SPAC sponsored by Ares and formed in 2020 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
−Removed: AAC I did not complete a business combination within the time period required by its amended and restated memorandum and articles of association, and in the fourth quarter of 2023, the remaining outstanding Class A ordinary shares of AAC I were redeemed in full and AAC I ceased all operations other than legal dissolution.
Ares Acquisition Corporation II:
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AAC II is seeking to pursue an initial business combination target in any industry or sector in North America, Europe or Asia.
+Added: Venture Capital:
+Added: Our venture capital business is focused on fund strategies that seek to advance proprietary artificial intelligence solutions and to partner with industry leading vendors to help drive efficiencies for our portfolio companies, assets and certain investment and business processes.
The following charts present Other Businesses AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
−Removed: Insurance SPACs
+Added: Insurance Other
Product Offering
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We have demonstrated an ability to consistently generate attractive and differentiated investment returns across these investment strategies and through various market environments.
−Removed: We believe the breadth of our product offering, our expertise in various investment strategies and our proficiency in attracting and satisfying our growing institutional and retail client base has enabled and will continue to enable us to increase our AUM across each of our investment groups.
+Added: We believe the breadth of our product offering, our expertise in various investment strategies and our proficiency in attracting and satisfying our growing institutional and wealth client base has enabled and will continue to enable us to increase our AUM across each of our investment groups.
Investor Base and Fundraising
−Removed: Our diverse investor base includes direct institutional relationships and a significant number of retail investors.
+Added: Our diverse investor base includes direct institutional relationships and a significant number of wealth investors.
Our high-quality institutional investor base includes corporate and public pension funds, insurance companies, sovereign wealth funds, banks, investment managers, endowments and foundations.
−Removed: We have grown the number of these relationships from over 900 in 2018 to over 2,300 in 2023 .
+Added: We have grown the number of these relationships from over 850 in 2019 to approximately 2,700 in 2024 .
As of December 31, 2024, $389.9 billion, or 80% of our $484.4 billion of AUM, was attributable to our direct institutional relationships.
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Institutional Direct Retail Institutional Intermediaries Pension Insurance Bank North America Europe APAC
−Removed: Sovereign Wealth Fund High Net Worth and Private Bank Investment Manager Middle East & Africa Other
+Added: Sovereign Wealth Fund Other High Net Worth and Private Bank Middle East & Africa
+Added: Investment Manager
The following chart presents the AUM of investors committed to more than one of our funds as of December 31, 2024 compared to December 31, 2019 ($ in billions):
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As of December 31, 2024 , $106.0 billion, or 27%, of our direct institutional AUM was managed through SMAs.
−Removed: Our retail vehicles and their affiliates, including ARCC, ACRE, ARDC, ASIF, APMF, CADC, AREIT and AIREIT account for $53.8 billion, or 13%, of our AUM.
−Removed: We have over 945 institutional investors and hundreds of thousands of retail investor accounts across our retail vehicles.
We believe that client relationships are fundamental to our business and that our performance across our investment groups coupled with our focus on client service has resulted in strong relationships with our investors.
−Removed: Our dedicated and extensive in-house relationship management team, comprised of over 135 professionals located in North America, Europe, APAC and the Middle East, is dedicated to raising capital globally across all of our funds, servicing existing fund investors and tailoring offerings to meet their needs, developing products to complement our existing offerings, and deepening existing relationships to expand them across our platform.
+Added: Our dedicated and extensive in-house relationship management team, comprised of over 175 professionals located in North America, Europe,
+Added: APAC and the Middle East, is dedicated to raising capital globally across all of our funds, servicing existing fund investors and tailoring offerings to meet their needs, developing products to complement our existing offerings, and deepening existing relationships to expand them across our platform.
We also have strategic initiatives focused on expanding our presence in Latin America and Australia.
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This team is supported by product managers and investor relations professionals with deep experience in each of our complementary investment groups that are dedicated to servicing our existing and prospective investors.
−Removed: In addition to our expansive relationships with institutional investors, we have further diversified our investor base with our retail distribution channel.
−Removed: AWMS, our wholly owned subsidiary, facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel with over 125 professionals.
+Added: In addition to our expansive relationships with institutional investors, we have further diversified our investor base through our publicly-traded vehicles and through our wealth distribution platform, AWMS.
+Added: AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel with over 140 professionals.
+Added: As of December 31, 2024, our publicly-traded and perpetual wealth vehicles account for $74.3 billion, or 15%, of our AUM.
Operations Management Group
−Removed: The OMG consists of shared resource groups to support our operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy and relationship management and distribution.
−Removed: Our clients seek to partner with investment management firms that not only have compelling investment track records across multiple investment products but also possess seasoned infrastructure support functions.
+Added: The OMG consists of shared resource groups to support our operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy and relationship management, and distribution, including AWMS.
+Added: Our clients seek to partner with investment management firms that not only have compelling investment track records across multiple investment products but also possess seasoned operational support functions.
As such, significant investments have been made to develop the OMG.
−Removed: The OMG also includes AWMS.
−Removed: We have successfully launched new business lines, integrated acquired businesses into the operations and created scale within the OMG to support a much larger platform in the future.
+Added: We have successfully launched new business lines, integrated acquired businesses into our operations and created scale within the OMG to support a much larger platform.
Organizational Structure
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Inclusive of Class A common stock held directly by Ares employees and assuming the full exchange of AOG Units for shares of our Class A common stock, Ares employee ownership would represent 42.05% of all outstanding shares.
+Added: Economic interests of AMC are calculated based on 199,872,571 outstanding shares of Class A common stock and 3,489,911 outstanding shares of non-voting common stock.
Holding Company Structure
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Holders of shares of our Class A common stock are entitled to one vote per share of our Class A common stock.
−Removed: On any date on which the Ares Ownership Condition (as defined in the Certificate of Incorporation) is satisfied, holders of shares of our Class B common stock are, in the aggregate, entitled to a number of votes equal to (x) four times the aggregate number of votes attributable to our Class A common stock minus (y) the aggregate number of votes attributable to our Class C common stock.
−Removed: On any date on which the Ares Ownership Condition is not satisfied, holders of shares of our Class B common stock are not entitled to vote on any matter submitted to a vote of our stockholders.
+Added: On any date on which the Ares Ownership Condition (as defined in the Certificate of Incorporation) is satisfied, the holder of shares of our Class B common stock is, in the aggregate, entitled to a number of votes equal to (x) four times the aggregate number of votes attributable to our Class A common stock minus (y) the aggregate number of votes attributable to our Class C common stock.
+Added: On any date on which the Ares Ownership Condition is not satisfied, the holder of shares of our Class B common stock is not entitled to vote on any matter submitted to a vote of our stockholders.
The holder of shares of our Class C common stock is generally entitled to a number of votes equal to the number of AOG Units (as defined in the Certificate of Incorporation) held of record by each Ares Operating Group Limited Partner (as defined in the Certificate of Incorporation) other than the Company and its subsidiaries.
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The Company also has non-voting common stock solely held by SMBC, which has the same economic rights as the Class A common stock.
+Added: Our Series B mandatory convertible preferred stock has voting rights with respect to certain amendments to our Certificate of Incorporation or the Certificate of Designations, certain business combination transactions and certain other matters, subject to certain exceptions.
+Added: However, holders of our Series B mandatory convertible preferred stock are not entitled to vote on an as-converted basis with common stockholders on matters on which holders of common stockholders are entitled to vote.
Accordingly, AMC and any direct subsidiaries of AMC that are treated as corporations for U.S.
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The AOG Units held by AMC and its subsidiaries are economically identical in all respects to the AOG Units that are not held by AMC and its subsidiaries.
+Added: In connection with the issuance of the Series B mandatory convertible preferred stock, the Ares Operating Group entity also issued preferred “mirror units” with economic terms designed to mirror those of our Series B mandatory convertible preferred stock.
Accordingly, AMC receives the distributive share of income of the Ares Operating Group from its equity interest in the Ares Operating Group.
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In the case of our SMAs that are not structured as single investor vehicles, the investor, rather than us, generally controls custody of the investments with respect to which we advise.
−Removed: We also manage closed-end interval funds (APMF and CADC) that allow for periodic redemptions of the various share classes, four publicly-traded corporations (AAC II, ACRE, ARCC and ARDC), two non-traded REITs (AIREIT and AREIT) and a non-traded BDC (ASIF).
−Removed: ACRE, ARDC and ARCC do not have redemption provisions or a requirement to return capital to investors upon exiting the investments made with such capital, except as required by applicable law (including distribution requirements that must be met to maintain regulated investment company (“RIC”) or REIT status).
−Removed: However, ACRE’s charter includes certain limitations relating to the ownership or purported transfer of its common stock in violation of the REIT ownership requirements.
+Added: We also manage several publicly-traded and perpetual wealth vehicles with varying redemption criteria.
In addition, Class A ordinary shares issued by AAC II are redeemable for cash by the public shareholders in the event that AAC II does not complete a business combination or tender offer associated with stockholder approval provisions.
Our funds are generally advised by Ares Management LLC, which is registered under the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”), a wholly owned subsidiary thereof or subsidiary controlled by AMC.
−Removed: Responsibility for the day-to-day operations of each investment vehicle is typically delegated to the Ares entity serving as investment adviser pursuant to an investment advisory, management or similar agreement.
−Removed: Generally, the material terms of our
−Removed: investment advisory agreements relate to the scope of services to be rendered by the investment adviser to the applicable vehicle, the calculation of management fees to be borne by investors in our investment vehicles and certain rights of termination with respect to our investment advisory agreements.
−Removed: With the exception of certain of the publicly-traded investment vehicles, the investment vehicles themselves do not generally register as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”), in reliance on applicable exemptions thereunder.
+Added: Responsibility for the day-to-day operations of each investment vehicle is typically delegated to the Ares entity serving as
+Added: investment adviser pursuant to an investment advisory, management or similar agreement.
+Added: Generally, the material terms of our investment advisory agreements relate to the scope of services to be rendered by the investment adviser to the applicable vehicle, the calculation of management fees to be borne by investors in our investment vehicles and certain rights of termination with respect to our investment advisory agreements.
+Added: With the exception of certain of the publicly-traded and perpetual wealth vehicles, the investment vehicles themselves do not generally register as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”), in reliance on applicable exemptions thereunder.
The governing agreements of many of our funds provide that, subject to certain conditions, third-party investors in those funds have the right to terminate the investment period or the fund without cause.
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To further align our interests with those of investors in our funds, we have invested the firm’s capital and that of our professionals in the funds we sponsor and manage.
−Removed: General partner capital commitments to our funds are determined separately with respect to our funds and, generally, are less than 5% of the total commitments of any particular fund.
+Added: General partner capital commitments to our funds are determined separately with respect to our funds and, generally, do not exceed 5% of the total commitments of any particular fund.
We determine the general partner capital commitments based on a variety of factors, including regulatory requirements, investor requirements, estimates regarding liquidity over the estimated time period during which commitments will be funded, estimates regarding the amounts of capital that may be appropriate for other opportunities or other funds we may be in the process of raising or are considering raising, prevailing industry standards with respect to sponsor commitments and our general working capital requirements.
−Removed: Our general partner capital commitments are typically funded with cash and not with carried interest or deferral of management fees.
−Removed: We generally offer a portion of the general partner commitments to our eligible professionals in accordance with the Investment Company Act.
−Removed: Ares employees had capital commitments of $2.4 billion in Ares-managed funds as of December 31, 2023.
−Removed: For more information, see “Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Sources and Uses of Liquidity.”
+Added: Our general partner capital commitments are typically funded with cash and not with carried interest or deferring management fees.
+Added: We offer a portion of the general partner commitments to our eligible professionals in many of our funds.
+Added: As of December 31, 2024, we and our employees had more than $6.0 billion invested in or committed to Ares-managed vehicles, including $3.0 billion of capital commitments from Ares, $2.8 billion of capital commitments from our employee co-investment vehicles and $0.2 billion of employee investments in our publicly-traded and perpetual wealth vehicles.
Regulatory and Compliance Matters
−Removed: Our businesses, as well as the financial services industry, generally are subject to extensive regulation, including periodic examinations, by governmental agencies and self-regulatory organizations or exchanges in the U.S.
−Removed: and foreign jurisdictions in which we operate relating to, among other things, antitrust laws, anti-money laundering laws, anti-bribery laws relating to foreign officials, tax laws and data privacy laws with respect to client and other information, and some of our funds invest in businesses that operate in highly regulated industries.
+Added: Our businesses, as well as the financial services industry, generally are subject to extensive regulation, including periodic examinations and potential investigations by governmental agencies and self-regulatory organizations or exchanges in the U.S.
+Added: and foreign jurisdictions in which we operate relating to, among other things, the management of our funds, antitrust laws, anti-money laundering laws, anti-bribery laws relating to foreign officials, tax laws and data privacy laws with respect to client and other information, and some of our funds invest in businesses that operate in highly regulated industries.
Each of the regulatory bodies with jurisdiction over us has regulatory powers dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities.
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All employees must annually certify their understanding of, compliance with and adherence to key global Ares policies, procedures and code of ethics.
−Removed: We maintain a compliance group, supervised by our Chief Compliance Officer, that is responsible for monitoring our compliance with the regulatory and legal requirements to which we are subject and managing our compliance policies and procedures.
−Removed: Our compliance policies and procedures seek to address a variety of regulatory and compliance risks such as the handling of material non-public information, position reporting, personal securities trading, valuation of investments on a fund-specific basis, document retention, potential conflicts of interest and the allocation of investment opportunities.
−Removed: Many jurisdictions in which we operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including the General Data Protection Regulation (“GDPR”), a European Union (“EU”) regulation designed to protect privacy rights of individuals residing in the European Economic Area (the “EEA”), the GDPR as it forms part of the laws of England and Wales, Scotland and Northern Ireland by virtue of Section 3 of the European Union Withdrawal Act 2018 (as amended) and the Data Protection Act 2018 (collectively, “U.K.
−Removed: GDPR”) with respect to individuals residing in the United Kingdom (the “U.K.”), and various state and federal privacy laws applicable to individuals residing in the U.S., including the California Consumer Privacy Act (the “CCPA”), as amended by the California Privacy Rights Act.
−Removed: Other comprehensive privacy laws have been enacted or passed in numerous U.S.
−Removed: states, including Colorado, Connecticut, Delaware, Indiana, Iowa, Montana, New Jersey, Oregon, Tennessee, Texas, Utah and Virginia.
−Removed: Various global privacy laws also apply to our business, including those in Australia, the Cayman Islands, Hong Kong, India, Korea, Japan, Dubai and Singapore.
−Removed: These privacy laws are quickly evolving and may conflict with one another.
+Added: We maintain a compliance group, supervised by our Chief Compliance Officer, that is responsible for monitoring our compliance with the regulatory and legal requirements to which we are subject and managing our compliance policies and procedures, which seek to address a variety of regulatory and compliance risks.
+Added: Many jurisdictions in which we operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including the General Data Protection Regulation (“GDPR”), a European Union (“EU”)
+Added: regulation designed to protect privacy rights of individuals residing in the European Economic Area (the “EEA”), the GDPR as it forms part of the laws of England and Wales, Scotland and Northern Ireland by virtue of Section 3 of the European Union Withdrawal Act 2018 (as amended) and the Data Protection Act 2018 (collectively, “U.K.
+Added: GDPR”) with respect to individuals residing in the United Kingdom (the “U.K.”), and numerous state and federal privacy laws applicable to individuals residing in the U.S.
+Added: Various global privacy laws also apply to our business.
+Added: These privacy laws and related regulations are quickly evolving and may conflict with one another.
Any failure to comply with such laws or regulations could result in substantial fines, penalties and/or sanctions, litigation, as well as reputational harm.
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The SEC oversees the activities of our subsidiaries that are registered investment advisers under the Investment Advisers Act.
−Removed: The Financial Industry Regulatory Authority (“FINRA”) and the SEC oversee the activities of our wholly owned subsidiaries, AWMS and Ares Management Capital Markets LLC (formerly known as Ares Investor Services LLC) (“AMCM”), as registered broker-dealers.
+Added: The Financial Industry Regulatory Authority (“FINRA”) and the SEC oversee the activities of our wholly owned subsidiaries, AWMS and Ares Management Capital Markets LLC (“AMCM”), as registered broker-dealers.
In addition, we regularly rely on exemptions from various requirements of the Securities Act, the Exchange Act, the Investment Company Act, the Commodity Exchange Act and the U.S.
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Under Regulation Best Interest, high cost, high risk and complex products may be subject to greater scrutiny by broker-dealers and their salespersons.
−Removed: The full impact of Regulation Best Interest and state fiduciary standards on broker-dealers cannot be determined at this time.
−Removed: However, it may negatively impact whether broker-dealers and their associated persons are willing to recommend investment products, including our funds, to retail customers, which may adversely impact our ability to distribute our products to certain investors.
+Added: Regulation Best Interest may negatively impact whether broker-dealers and their associated persons are willing to recommend investment products, including our funds, to retail customers, which may adversely impact our ability to distribute our products to certain investors.
As such, Regulation Best Interest may reduce the ability of our funds to raise capital, which would adversely affect our business and results of operations.
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The SEC adopted changes to Form PF in 2023, which, among other requirements, requires current reporting upon the occurrence of certain fund-level events.
−Removed: In 2024, the SEC and the Commodity Futures Trading Commission (the “CFTC”) adopted joint amendments to Form PF that will require additional basic information about advisers and the private funds they advise, including identifying information, assets under management,
−Removed: withdrawal and redemption rights, gross asset value and net asset value, inflows and outflows, base currency, borrowings and types of creditors, fair value hierarchy, beneficial ownership and fund performance, as well as additional specific information regarding funds that must report as hedge funds on the form.
−Removed: These amendments will likely increase related administrative costs and burdens.
−Removed: ARCC and ASIF are registered investment companies that have each elected to be treated as a business development company under the Investment Company Act.
−Removed: APMF, ARDC and CADC are registered investment companies under the Investment Company Act.
−Removed: Each of the registered investment companies has elected, for U.S.
−Removed: federal tax purposes, to be treated as a RIC under Subchapter M of the U.S.
+Added: In 2024, the SEC and the Commodity Futures Trading Commission (the “CFTC”) adopted joint amendments to Form PF that will require additional basic information about advisers and the private funds they advise which will likely increase related administrative costs and burdens.
+Added: ARCC, ASIF and our infrastructure private BDC have each elected to be treated as a business development company under the Investment Company Act.
+Added: APMF, ARDC and CADC are diversified, closed-ended management investment companies registered under the Investment Company Act.
+Added: With the exception of our infrastructure private BDC, which has elected to be treated as a corporation for U.S.
+Added: federal tax purposes, each of the other five companies has elected, for U.S.
+Added: tax purposes, to be treated as a regulated investment company (“RIC”) under Subchapter M of the U.S.
Internal Revenue Code of 1986, as amended (the “Code”).
−Removed: To maintain its RIC status under the Code, a RIC must timely distribute an amount equal to at least 90% of its investment company taxable income (as defined by the Code, which generally includes net ordinary income and net short term capital gains) to its stockholders.
−Removed: In addition, a RIC generally will be required to pay an excise tax equal to 4% on certain undistributed taxable income unless it distributes in a timely manner an amount at least equal to the sum of:
−Removed: (i) 98% of its ordinary income recognized during a calendar year;
−Removed: (ii) 98.2% of its capital gain net income, as defined by the Code, recognized during the one-year period ending on October 31 of the calendar year;
−Removed: and (iii) any income recognized, but not distributed, in preceding years.
−Removed: The taxable income on which a RIC pays excise tax is generally distributed to its stockholders in the next tax year.
−Removed: Depending on the level of taxable income earned in a tax year, a RIC may choose to carry forward such taxable income for distribution in the following year, and pay any applicable excise tax.
−Removed: In addition, as business development companies, ARCC and ASIF must not acquire any assets other than “qualifying assets” specified in the Investment Company Act unless, at the time the acquisition is made, at least 70% of ARCC and ASIF’s respective total assets are qualifying assets (with certain limited exceptions).
−Removed: Qualifying assets include investments in “eligible portfolio companies.” ARCC and ASIF are also generally prohibited from issuing and selling its common stock at a price below net asset value per share and from incurring indebtedness (including for this purpose, preferred stock), if ARCC and ASIF’s respective asset coverage, as calculated pursuant to the Investment Company Act, equals less than 150% after such incurrence.
−Removed: ACRE, AREIT and AIREIT have each elected and qualified to be taxed as a real estate investment trust, or REIT, under the Code.
−Removed: To maintain its qualification as a REIT, each must distribute at least 90% of its taxable income to its stockholders and meet, on a continuing basis, certain other complex requirements under the Code.
+Added: ACRE, in addition to our diversified non-traded REIT and industrial non-traded REIT, have each elected and qualified to be taxed as a real estate investment trust, or REIT, under the Code.
AWMS and AMCM, our wholly owned subsidiaries, are registered as broker-dealers with the SEC, maintain licenses in many states, and are members of FINRA.
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In addition, FINRA promulgates and enforces rules governing the conduct of, and examines the activities of, its member firms.
−Removed: Due to the limited authority granted to each of our subsidiaries in its capacity as broker-dealers, they are not required to comply with certain regulations covering trade practices among broker-dealers and the use and safekeeping of customers’ funds and securities.
+Added: Due to the limited authority granted to each of our subsidiaries in their capacity as broker-dealers, they are not required to comply with certain regulations covering trade practices among broker-dealers and the use and safekeeping of customers’ funds and securities.
As registered broker-dealers and members of a self-regulatory organization, AWMS and AMCM are, however, subject to the SEC’s uniform net capital rule.
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See “Item 1A.
−Removed: Risk Factors—Risks Related to Our Businesses—Political and regulatory conditions, including the effects of negative publicity surrounding the financial industry in general and proposed legislation, could adversely affect our businesses.”
+Added: Risk Factors—Risks Related to Regulation—The publicly-traded and perpetual wealth investment vehicles that we manage are subject to regulatory complexities that limit the way in which they do business and may subject them to a higher level of regulatory scrutiny.”
Other Jurisdictions
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exited the EU on January 31, 2020.
−Removed: The withdrawal agreement which provided for a transitional period to allow for the terms of the U.K.’s future relationship with the EU to be negotiated, ended on December 31, 2020.
−Removed: EEA passporting rights are no longer available to the relevant U.K.
−Removed: entities following the end of the transitional period.
Various EU laws were “on-shored” into domestic U.K.
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and the EU formally came into force on May 1, 2021 and since its effectiveness, the TCA has governed certain matters between the U.K.
−Removed: In addition, the Temporary Marketing Permission Regime (the “TMPR”) allows our alternative investment fund managers (“AIFMs”) to continue to market those funds in the U.K.
−Removed: that were in existence on December 31, 2020, on broadly the same terms as previously applied.
−Removed: Unless extended, the TMPR lasts until December 31, 2025.
−Removed: Any marketing of a new fund coming into
−Removed: existence after December 31, 2020 must comply with the U.K.’s national private placement regime.
−Removed: Notwithstanding the TCA and the TMPR, there remains considerable uncertainty as to the nature of the U.K.’s future relationship with the EU, creating continuing uncertainty as to the full extent to which the businesses of the U.K.
+Added: There remains considerable uncertainty as to the nature of the U.K.’s future relationship with the EU, creating continuing uncertainty as to the full extent to which the businesses of the U.K.
Regulated Entities and our businesses generally could be adversely affected by Brexit.
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as a matter of domestic policy or because compliance with such legislation (whether in whole or part) is a necessary condition for market access into the EEA) and other EEA member states where we have operations.
−Removed: The U.K.’s departure has the potential to change the U.K.
−Removed: legislative and regulatory frameworks within which the U.K.
−Removed: Regulated Entities operate, which could adversely affect our businesses or cause a material increase in our tax liability.
AM Lux operates under the EU legislative frameworks.
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AIFMD regulates fund managers by, amongst other things, prescribing authorization conditions for an AIFM, restricting the activities that can be undertaken by an AIFM and prescribing the organizational requirements, operating conditions, and regulatory standards relating to such things as initial capital, remuneration, conflicts, risk management, leverage, liquidity management, delegation of duties, transparency and reporting requirements.
−Removed: In the EU (but not the U.K.), AIFMD is expected to be amended in 2024.
−Removed: On November 10, 2023, the European Commission published a near-final amending directive, commonly referred to as “AIFMD II”.
−Removed: Assuming AIFMD II is adopted promptly and published in the Official Journal without delay in 2024, most of the changes will become effective in 2026, subject to the grandfathering period for certain of the loan origination provisions and certain Annex IV disclosure requirements which will become effective a year later.
+Added: In the EU, an amending directive to AIFMD, commonly referred to as “AIFMD II”, was published on March 26, 2024 and will become effective from April 16, 2026, subject to the grandfathering period for certain of the loan origination provisions and certain Annex IV disclosure requirements which will become effective a year later (see “—Alternative Investment Fund Managers Directive” for further detail).
It is not yet clear to what extent (if any) the U.K.
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AM Lux is subject to certain provisions of EU MiFID II because it has top-up permissions to provide certain MIFID investment services.
−Removed: The main business of AM Lux and the U.K.
−Removed: Regulated Entities is to provide asset management services to clients in Europe.
−Removed: MiFID II and MiFIR extended the Markets and Financial Instruments Directive (“MiFID”) requirements in a number of areas with more prescriptive and onerous obligations with respect to costs and charges disclosure, product design and governance, the receipt and payment of inducements, the receipt of and payment for investment research, suitability and appropriateness assessments, conflicts of interest, record-keeping, best execution, transaction and trade reporting, remuneration, training and competence and corporate governance.
Certain aspects of MIFID II and MiFIR are subject to review and change in both the EU and the U.K.
−Removed: Effective January 1, 2022, the U.K.
−Removed: introduced a prudential regulatory framework for U.K.
−Removed: investment firms (the “Investment Firm Prudential Regime” or “IFPR”).
−Removed: IFPR applies to AML and AELM as U.K.
−Removed: MiFID investment firms as well as to AMUKL, as a U.K.
−Removed: AIFM with MiFID “top-up” permissions.
−Removed: Under IFPR, among other requirements, AML, AMUKL and AELM are required to maintain more onerous policies regarding remuneration of staff, to set an appropriate ratio between the variable and fixed components of total remuneration and to meet requirements on the structure of variable remuneration.
−Removed: AML and AMUKL are considered to be part of the same “prudential consolidation group”, and many of the requirements of IFPR (including but not limited to capital, liquidity and remuneration) apply at the consolidated group level.
−Removed: Under IFPR, each of AML, AMUKL and AELM have made public disclosures on their websites in relation to their:
−Removed: (i) own funds, own funds requirements and governance structures;
−Removed: (ii) risk management;
−Removed: and (iii) remuneration.
−Removed: The new public disclosure requirements mandate more detail, including quantitative information on remuneration paid to staff, split in between classes of employees, and confirmation of the highest severance payment awarded to an individual material risk taker.
−Removed: The requirements of this
−Removed: regime may lead to additional operational and compliance complexity in the short to medium term and possibly higher regulatory capital requirements for the affected firms.
−Removed: has introduced an important and substantial regime, the Consumer Duty, designed to improve outcomes for retail investors, aspects of which became effective on July 31, 2023.
−Removed: Although Ares entities do not generally deal with consumers in the ordinary sense, the regime will apply to certain of our funds.
−Removed: Our operations and our investment activities worldwide are subject to a variety of regulatory regimes that vary by country.
+Added: In addition to Europe, our operations and our investment activities are subject to a variety of other regulatory regimes that vary by country.
These include operating subsidiaries of Ares Management Asia (Holdings) Limited, which are subject to regulation by various regulatory authorities, including the Securities and Futures Commission of Hong Kong and Monetary Authority of Singapore.
12 unchanged sentences
Corporate buyers may be able to achieve synergistic cost savings with regard to an investment that may provide them with a competitive advantage in bidding for an investment.
−Removed: Lastly, institutional and individual investors are allocating increasing amounts of capital to alternative investment strategies.
+Added: Additionally, institutional and individual investors are allocating increasing amounts of capital to alternative investment strategies.
Several large institutional investors have announced a desire to consolidate their investments in a more limited number of managers.
We expect that this will cause competition in our industry to intensify and could lead to a reduction in the size and duration of pricing inefficiencies that many of our funds seek to exploit.
+Added: Additionally, technological innovation, including the use of artificial intelligence and data science, has the potential to disrupt the financial industry and change the way financial institutions, including asset managers, do business.
+Added: Some of our competitors may be more successful than us in the development and implementation of new technologies, including services and platforms based on artificial intelligence, to address various matters including investor demand, operations or investment activity.
+Added: If we are unable to adequately advance our capabilities in these areas, or do so at a slower pace than others in our industry, we may be at a competitive disadvantage.
Competition is also intense for the attraction and retention of qualified employees.
6 unchanged sentences
Information on our website is not a part of this report and is not incorporated by reference herein.
−Removed: We make available free of charge on our website or provide a link on our website to our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
+Added: We make available free of charge on our website our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
To access these filings, go to the “Investor Resources” section of our website and then click on “SEC Filings.” In addition, these reports and the other documents we file with the SEC are available at a website maintained by the SEC at http://www.sec.gov.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.