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Item 7. Management’s Discussion and Analysis

2025-02-27 compared with 2024-02-27 · 910 added, 775 removed, 1193 unchanged (59% of the section changed)

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Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023.

We have reclassified certain prior period amounts to conform to the current year presentation.

Amounts and percentages presented throughout our discussion and analysis of financial condition and results of operations may reflect rounded results in thousands (unless otherwise indicated) and consequently, totals may not appear to sum.

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We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles.

For the year ended December 31, 2023, approximately 95% of our management fees were derived from perpetual capital vehicles and long-dated funds.

For the year ended December 31, 2024, 95% of our management fees were derived from perpetual capital vehicles or long-dated funds.

Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility.

However, our results from operations, including the fair value of our AUM, are affected by a

variety of factors.

Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Western Europe and Asia.

However, our results from operations, including the fair value of our AUM, are affected by a variety of factors.

Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and APAC.

The following table presents returns of selected market indices:

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Index Non-U.S.

Infrastructure equities S&P Global Infrastructure Index Global 6.8 15.1

Real estate equities FTSE NAREIT All Equity REITs Index U.S.

Real estate equities FTSE EPRA/NAREIT Developed Europe Index Europe (6.5) 17.4

During 2023, global markets endured heightened volatility but finished the year positively with improving investor sentiment amid the possibility of monetary easing in 2024.

Despite the macroeconomic headwinds and escalated conflicts in the Middle East and Ukraine, U.S.

and European high yield bonds and leveraged loans returned positive performance.

The Asian markets experienced mixed performance as the region overall continued to show growth primarily driven by resilient demand in Southeast Asia and India.

India, in particular, demonstrated healthy economic growth driven by its manufacturing and services sectors.

On the other hand, China’s weaker than expected economic recovery led Chinese policymakers to continue taking measures to support economic growth.

Overall, reduced lending activity by banks and limited capital accessibility continued to fuel private credit growth.

Global equity markets similarly rallied during the fourth quarter to finish the year on a positive note.

While the public markets ended the year positively, the private markets continued to experience challenges with downward pressure on valuations and muted the opportunities for realizations.

The private equity markets also experienced a prolonged slowdown in deal activity, and we believe potential liquidity constraints from investors have increased the need for flexible capital solutions.

In addition, businesses have struggled to navigate this challenging growth and inflationary environment, which we believe has heightened the need for partnerships with value-add managers.

This environment underscores the importance of investing in resilient industries with long-term secular tailwinds where we have expertise.

Our focus continues to be on investment opportunities in the healthcare and services sectors, with limited exposure to energy, and we continue to invest opportunistically in consumer and industrials.

Asset selectivity, deliberate portfolio construction, a flexible investment mandate and a differentiated view to drive value creation through earnings growth will be instrumental in delivering attractive returns to investors.

The commercial real estate markets continued to be impacted by the macroeconomic environment throughout 2023.

European and U.S.

real estate deal activity remained subdued with limited transactional liquidity.

Given the higher interest rate environment, property valuations remain soft, with capitalization rate yields widening further over the year.

However, we believe certain of these market trends will be offset by continued strong fundamentals, such as occupancy and rental rates, in property types that include multifamily and industrial.

The current market environment has had a more pronounced negative impact on certain industries, including energy, which is an industry in which few of our funds have made investments.

As of December 31, 2023, 1% of our total AUM was invested in debt and equity investments in the energy sector (of which less than 1% of our total AUM was invested in midstream investments and also includes oil and gas exploration) and less than 1% of our total AUM was invested in renewable energy investments.

During 2024, global markets were fueled by the easing of monetary policy by the Federal Reserve and several other major central banks with predominately positive returns despite seeing mixed performances towards the end of the year.

and European high yield bonds and leveraged loans showed positive performance driven by stable demand and improved access to capital markets.

The APAC markets experienced favorable performance, with growth driven by moderate inflation, lower unemployment and lower interest rate expectations, which supported consumption in Southeast Asia, India, and Australia.

China announced policy stimulus measures affecting monetary policy, the property sector and equity markets, contributing to positive investor sentiment.

Globally, reduced bank lending and limited capital accessibility continued to support private credit growth.

The private equity industry benefited from lower interest rates, cooling inflation and tighter credit spreads, leading to a meaningful increase in the private equity deal value in the U.S.

Despite challenges such as inflation and potential tariffs, market sentiment remains optimistic due to lower taxes, favorable regulations and technology advancements.

We believe that demand for strong performance, combined with a favorable deal-making environment, will support deployment opportunities in 2025.

and European commercial real estate markets experienced increased deal activity on a year over year basis that was largely supported by the improving macroeconomic environment.

Property valuations are showing signs of recovery, and capitalization rates are stabilizing or compressing.

The European real estate markets are showing slower signs of recovery, with the volatility in interest rates having a greater impact on performance during the year.

Despite variations in market performance by sector and geography, we believe multifamily and industrial properties will benefit from favorable long-term structural trends.

Infrastructure investment opportunities continue to be supported by the convergence of two megatrends – digital infrastructure and artificial intelligence adoption – paired with surging power demand expectations.

Renewable energy transaction volume remained strong, which has supported elevated renewable energy revenue contract prices.

We believe our portfolios across all strategies are well positioned for a fluctuating interest rate environment.

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• Our ability to fundraise and increase AUM and fee paying AUM.

During the year ended December 31, 2023, we raised $74.5 billion of gross new capital across our commingled funds, SMAs and other vehicles, and continued to expand our investor base, raising capital from over 125 different investment vehicles and over 625 institutional investors, including

approximately 300 direct institutional investors that were new to Ares.

During the year ended December 31, 2024, we raised $92.7 billion of gross new capital across our commingled funds, SMAs, wealth products and other vehicles, and continued to expand our investor base, raising capital from over 185 different investment vehicles and over 660 institutional investors, including over 310 direct institutional investors that were new to Ares.

Our fundraising efforts helped drive AUM growth of 16% for 2024.

During 2024, we expect that our fundraising will come from a combination of our existing and new strategies in the U.S., Europe and APAC.

During 2025, we expect that our fundraising will come from a combination of our existing and new strategies in North America, Europe and APAC.

As of December 31, 2024, AUM not yet paying fees includes $81.0 billion of AUM available for future deployment which could generate approximately $728.8 million in potential incremental annual management fees.

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We continually seek to create avenues to meet our investors’ evolving needs by offering an expansive range of funds, developing new products and creating managed accounts and other investment vehicles tailored to our investors’ goals.

We continue to expand our distribution channels, expanding into the retail channel through our global wealth management offerings, as well as the needs of traditional institutional investors, such as pension funds, sovereign wealth funds, and endowments.

We continue to expand our distribution channels throughout the wealth channel with our global wealth management offerings, as well as the needs of traditional institutional investors, such as pension funds, sovereign wealth funds and endowments.

If market volatility persists or increases, investors may seek absolute return strategies that seek to mitigate volatility.

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Current market conditions and a changing regulatory environment have created opportunities for Ares’ businesses, which utilize flexible investment mandates to manage portfolios through market cycles.

See “Item 1A.

Risk Factors” included in this Annual Report on Form 10-K for a discussion of the risks our businesses are subject to.

Business—Overview” for a comprehensive overview of our business, and “Item 1A.

Risk Factors” for a discussion of the risks our businesses are subject to, both included in this Annual Report on Form 10-K.

Managing Business Performance

Operating Metrics

We measure our business performance using certain operating metrics that are common to the alternative asset management industry, which are discussed below.

We measure our business performance using certain operating metrics that are common to the alternative investment management industry and are discussed below.

Assets Under Management

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The tables below present rollforwards of our total AUM by segment ($ in millions):

Group Private Equity

Group Real Assets

Group Private Equity

Group Secondaries

Group Other Businesses

Businesses Total AUM

Balance at 12/31/2023

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$ 348,858 $ 75,298 $ 24,041 $ 29,153 $ 7,096 $ 484,446

Group Private Equity

Group Real Assets

Group Private Equity

Group Secondaries

Group Other Businesses

Businesses Total AUM

Balance at 12/31/2022

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AUM not yet paying fees

(1) Includes $15.1 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of December 31, 2023 and 2022, respectively and includes $4.3 billion and $3.4 billion of non-fee paying AUM based on our general partner commitment as of December 31, 2023 and 2022, respectively.

(1) Includes $14.4 billion and $15.1 billion of AUM of funds from which we indirectly earn management fees as of December 31, 2024 and 2023, respectively, and includes $4.7 billion and $4.3 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023, respectively.

Please refer to “— Results of Operations by Segment” for a more detailed presentation of AUM by segment for each of the periods presented.

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The tables below present rollforwards of our total FPAUM by segment ($ in millions):

Group Private Equity

Group Real Assets

Group Private Equity

Group Secondaries

Group Other Businesses

Businesses Total

Balance at 12/31/2023

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$ 209,145 $ 44,088 $ 11,427 $ 22,401 $ 5,492 $ 292,553

Group Private Equity

Group Real Assets

Group Private Equity

Group Secondaries

Group Other Businesses

Businesses Total

Balance at 12/31/2022

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Invested capital/other (1)

Market value (2)

Market value /reported value (2)

Collateral balances (at par) Capital commitments

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Perpetual Capital - Publicly-Traded

Vehicles Perpetual Capital - Non-Traded

Vehicles Perpetual Capital - Managed Accounts Perpetual Capital - Private Commingled Vehicles Long-Dated Funds (1)

Vehicles Perpetual Capital - Perpetual Wealth Vehicles

Perpetual Capital - Managed Accounts Perpetual Capital - Private Commingled Vehicles Long-Dated Funds (1)

(1) Long-dated funds generally have a contractual life of five years or more at inception.

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The charts below present our available capital and AUM not yet paying fees by segment ($ in billions):

Credit Private Equity Real Assets Secondaries

Credit Real Assets Private Equity Secondaries

Other Businesses

As of December 31, 2023, AUM Not Yet Paying Fees includes $62.9 billion of AUM available for future deployment that could generate approximately $621.6 million in potential incremental annual management fees.

As of December 31, 2024, AUM Not Yet Paying Fees includes $81.0 billion of AUM available for future deployment that could generate approximately $728.8 million in potential incremental annual management fees, which represents 29% embedded gross base management fee growth upon deployment.

As of December 31, 2023, AUM Not Yet Paying Fees included $62.9 billion of AUM available for future deployment that could generate approximately $621.6 million in potential incremental annual management fees.

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The charts below present our IEAUM and IGAUM by segment ($ in billions):

Credit Private Equity Real Assets Secondaries

Credit Real Assets Private Equity Secondaries

Other Businesses

The charts below present our IGAUM by strategy for funds generating fee related performance revenues and net fee related performance revenues by strategy as of and for the years ended:

Direct Lending European Direct Lending Alternative Credit Private Equity Secondaries U.S.

Real Estate Equity Real Estate Debt

Direct Lending European Direct Lending Alternative Credit Private Equity Secondaries North American Real Estate Equity Real Estate Debt

(1) Fee related performance revenues by strategy is presented net of the associated fee related performance compensation.

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Fund performance information for our funds considered to be “significant funds” is included throughout this discussion with analysis to facilitate an understanding of our results of operations for the periods presented.

Our significant funds are commingled funds that either contributed at least 1% of our total management fees or represented at least 1% of the Company’s total FPAUM for the past two consecutive quarters.

Our significant funds are commingled funds that either contributed at least 1% of our total management fees or comprised at least 1% of our total FPAUM for each of the last two consecutive quarters.

In addition to management fees, each of our significant funds may generate carried interest or incentive fees upon the achievement of performance hurdles.

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To further facilitate an understanding of the impact a significant fund may have on our results, we present our drawdown funds as either harvesting investments or deploying capital to indicate the fund’s stage in its life cycle.

A fund harvesting investments is generally not seeking to deploy capital into new investment opportunities, while a fund deploying capital is generally seeking new investment opportunities.

A fund harvesting investments is past its investment period and opportunistically seeking to monetize investments, while a fund deploying capital is generally seeking new investment opportunities.

Components of Consolidated Results of Operations

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Typically, terminations do not require liquidation of the SMAs and such SMAs will continue to exist until the underlying investments are liquidated.

The management fees we receive from our SMAs are generally paid on a periodic basis (typically quarterly, subject to the termination rights described above) and are based on either invested capital or on the net asset value of the separately managed account.

We receive management fees in accordance with the investment advisory and management agreements of our retail vehicles, including both our publicly-traded and non-traded vehicles, that must be reviewed or approved annually by their independent boards of directors.

Details regarding our management fees from our retail vehicles are presented below:

Annual Fee Rate Fee Base

ACRE 1.50% Stockholders’ equity

AIREIT 1.25% NAV

APMF 1.40% Total assets (including any assets relating to indebtedness or preferred shares that may be issued) minus liabilities (other than liabilities relating to indebtedness)

ARCC 1.50% Total assets (other than cash and cash equivalents)

ARCC Part I Fees 20.00% Net investment income (before ARCC Part I Fees and ARCC Part II Fees), subject to a fixed hurdle rate of 1.75% per quarter, or 7.00% per annum.

No fees are recognized until ARCC’s net investment income exceeds a 1.75% hurdle rate, with a catch-up provision to ensure that the Company receives 20.00% of the net investment income from the first dollar earned

ARDC 1.00% Total assets minus liabilities (other than liabilities relating to indebtedness)

AREIT 1.10% NAV

ASIF 1.25% NAV

ASIF Part I Fees 12.50% Net investment income (before ASIF Part I Fees and ASIF Part II Fees), subject to a fixed hurdle rate of 1.25% per quarter, or 5.00% per annum.

No fees are recognized until ASIF’s net investment income exceeds a 1.25% hurdle rate, with a catch-up provision to ensure that the Company receives 12.50% of the net investment income from the first dollar earned

CADC 1.25% Total assets minus liabilities (other than liabilities relating to indebtedness)

CADC Part I Fees 15.00% Net investment income (before CADC Part I Fees), subject to a fixed hurdle rate of 1.50% per quarter, or 6.00% per annum.

No fees are recognized until CADC’s net investment income exceeds the hurdle rate, with a catch-up provision to ensure that the Company receives 15.00% of the net investment income from the first dollar earned

Details regarding our management fees by strategy are presented below:

Fee Rate Fee Base Average Remaining Contract Term (1)

The investment advisory and management agreements of our publicly-traded and perpetual wealth vehicles must be reviewed or approved annually by their independent boards of directors.

Details regarding our management fees from our publicly-traded and perpetual wealth vehicles are presented below:

Vehicle Strategy Annual Fee Rate Fee Base

Direct Lending 1.50% Total assets (other than cash and cash equivalents)

ARCC Part I Fees U.S.

Direct Lending 20.00% Net investment income (before ARCC Part I Fees and ARCC Part II Fees), subject to a fixed hurdle rate of 1.75% per quarter, or 7.00% per annum.

No fees are recognized until net investment income exceeds a 1.75% hurdle rate, with a catch-up provision to ensure that we receive 20.00% of the net investment income from the first dollar earned

ARDC Liquid Credit 1.00% Total assets minus liabilities (other than liabilities relating to indebtedness)

Direct Lending 1.25% NAV

ASIF Part I Fees

Direct Lending 12.50% Net investment income (before ASIF Part I Fees and ASIF Part II Fees), subject to a fixed hurdle rate of 1.25% per quarter, or 5.00% per annum.

No fees are recognized until net investment income exceeds a 1.25% hurdle rate, with a catch-up provision to ensure that we receive 12.50% of the net investment income from the first dollar earned

Direct Lending 1.25% Total assets minus liabilities (other than liabilities relating to indebtedness)

CADC Part I Fees U.S.

Direct Lending 15.00% Net investment income (before CADC Part I Fees), subject to a fixed hurdle rate of 1.50% per quarter, or 6.00% per annum.

No fees are recognized until net investment income exceeds the hurdle rate, with a catch-up provision to ensure that we receive 15.00% of the net investment income from the first dollar earned

Open-ended European Direct Lending Fund European Direct Lending 1.25% NAV

Open-ended European Direct Lending Fund Part I Fees European Direct Lending 12.50% Net investment income (before open-ended European direct lending fund Part I Fees and open-ended European direct lending fund Part II Fees), subject to a fixed hurdle rate of 1.25% per quarter, or 5.00% per annum.

No fees are recognized until net investment income exceeds a 1.25% hurdle rate, with a catch-up provision to ensure that we receive 12.50% of the net investment income from the first dollar earned

Real Assets Group

ACRE Real Estate Debt 1.50% Stockholders’ equity

Diversified Non-traded REIT North American Real Estate Equity 1.10% NAV

Industrial Non-traded REIT North American Real Estate Equity 1.25% NAV

Infrastructure Private BDC Infrastructure Opportunities 1.25% NAV

Infrastructure Private BDC Part I Fees Infrastructure Opportunities 12.50% Net investment income (before infrastructure private BDC Part I Fees and infrastructure private BDC Part II Fees), subject to a fixed hurdle rate of 1.25% per quarter, or 5.00% per annum.

No fees are recognized until net investment income exceeds a 1.25% hurdle rate, with a catch-up provision to ensure that we receive 12.50% of the net investment income from the first dollar earned

Secondaries Group

APMF Private Equity Secondaries 1.40% Total assets (including any assets relating to indebtedness or preferred shares that may be issued) minus liabilities (other than liabilities relating to indebtedness)

(1) ARCC’s management fee rate is reduced from 1.50% to 1.00% on all assets financed using leverage over 1.0x debt to equity.

We are party to contractual expense support agreements with certain perpetual wealth vehicles under which we may advance a portion of certain expenses to support distribution efforts to investors.

These expenses are subject to reimbursement from the perpetual wealth vehicles and may result in a corresponding reduction to our Part I Fees until expenses have been recovered.

Details regarding our management fees by strategy, excluding publicly-traded and perpetual wealth vehicles described above, are presented below:

Strategy Fee Rate Fee Base Average Remaining Contract Term (1)

Liquid Credit (2)

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Alternative Credit 0.50% - 1.50% NAV, gross asset value, capital commitments or invested capital 4.1 years

Opportunistic Credit (3)

1.50% Invested capital or aggregate cost basis of unrealized portfolio investments 6.8 years

and European Direct Lending (4)

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1.00% - 2.00% Capital commitments, aggregate cost basis of unrealized portfolio investments or a combination thereof 3.8 years

Private Equity Group

Corporate Private Equity (5)

1.50% Capital commitments 5.2 years

Special Opportunities (6)

1.50% Invested capital or aggregate cost basis of unrealized portfolio investments 7.8 years

APAC Private Equity (7)

1.00% - 2.00% Invested capital, capital commitments or a combination thereof 3.9 years

Real Assets Group

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Infrastructure Opportunities (8)

1.00% - 1.50% Capital commitments 6.0 years

1.00% - 1.50% Invested capital, capital commitments 5.0 years

Infrastructure Debt 1.00% Invested capital 5.2 years

Private Equity Group

Corporate Private Equity (9)

1.50% Capital commitments 4.9 years

APAC Private Equity (10)

1.00% - 2.00% Invested capital, capital commitments or a combination thereof 3.1 years

Secondaries Group

Private Equity, Real Estate, Infrastructure Secondaries and Credit Secondaries (11)

0.50% - 1.25% Capital commitments, invested capital, reported value (largely represents NAV of each fund’s underlying limited partnership interests), called capital plus unfunded commitments or reported value plus unfunded commitments 7.2 years

Private Equity, Real Estate, Infrastructure and Credit Secondaries (11)

0.50% - 1.25% Capital commitments, invested capital, reported value (largely representing NAV of each fund’s underlying limited partnership interests), called capital plus unfunded commitments or reported value plus unfunded commitments 7.1 years

Other Businesses

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The funds in the high yield bond and multi-asset credit strategies are generally open-ended or managed account structures, which typically do not have investment period termination or management contract expiration dates.

(3) Fee range represents typical range during the investment period.

Management fees for opportunistic credit funds generally step down to between 1.00% to 1.25% of the invested capital or the aggregate cost basis of unrealized portfolio investments following the expiration or termination of the investment period.

(4) Following the expiration or termination of the investment period, the fee basis for certain closed-end funds and managed accounts in this strategy generally change either to the aggregate cost or to market value of the portfolio investments.

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The funds also include co-investment accounts with fees ranging from 0.25% to 1.00%, which generally do not include investment period termination or management contract termination dates.

(5) Fee range represents typical range during the investment period.

Management fees for corporate private equity funds generally step down to between 0.75% and 1.25% of the aggregate adjusted cost of unrealized portfolio investments following the earlier to occur of:

(i) the expiration or termination of the investment period;

and (ii) the activation of a successor fund.

(6) Fee range represents typical range during the investment period.

Management fees for special opportunities funds generally step down to between 1.00% to 1.25% of the invested capital or the aggregate cost basis of unrealized portfolio investments following the expiration or termination of the investment period.

(7) Fee range represents typical range during the investment period.

Management fees for APAC private equity funds generally step down to 2.00% of the aggregate adjusted cost of unrealized portfolio investments following the expiration or termination of the investment period.

The funds also include co-investment vehicles with fees rates of 2.00%, which generally do not include investment period termination or management contract termination dates.

(6) Certain funds pay a lower management fee rate on committed capital which increases when such capital is invested.

Following the expiration or termination of the investment period the basis on which management fees are earned for certain closed-end funds, managed accounts and co-investment vehicles in this strategy changes from committed capital to invested capital with no change in the management fee rate.

AIREIT and AREIT pay management fees based on NAV plus net capital raised and outstanding from our 1031 exchange programs.

Our diversified non-traded REIT and our industrial non-traded REIT pay management fees based on NAV plus net capital raised and outstanding from our 1031 exchange programs.

(7) The funds in this strategy are generally open-ended or managed account structures, which typically do not have investment period termination or management contract expiration dates.

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The infrastructure opportunities funds generally step down the fee base to the aggregated adjusted cost of unrealized portfolio investments, while retaining the same fee rate, following the expiration or termination of the investment period.

(9) Fee rate represents typical rate during the investment period.

Management fees for corporate private equity funds generally step down to 0.75% of the aggregate adjusted cost of unrealized portfolio investments following the earlier to occur of:

(i) the expiration or termination of the investment period;

and (ii) the activation of a successor fund.

(10) Fee rate represents typical rate during the investment period.

Management fees for APAC private equity funds generally step down the fee base to the aggregate adjusted cost of unrealized portfolio investments following the expiration or termination of the investment period.

The funds also include co-investment vehicles with fee rates of 2.00%, which generally do not include investment period termination or management contract termination dates.

(11) Funds in each strategy are comprised of closed-end funds with either investment period termination or management contract termination dates and certain open-end accounts that generally do not have termination dates.

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Incentive Fees.

The general partners, managers or similar entities of certain of our funds receive performance-based fees.

These fees are generally based on the annual investment returns of the applicable fund, subject to certain net loss carry-forward provisions, high-watermarks and/or preferred returns.

Such performance-based fees may also be based on a fund’s cumulative net investment returns for the measurement period, in some cases subject to a high-watermark or a preferred return.

The general partners, managers or similar entities of certain of our funds receive incentive fees, a performance-based fee representing a portion of the investment returns of the applicable fund for a specified measurement period, generally one year, subject to certain net loss carry-forward provisions, high-watermarks and/or preferred returns.

These performance-based fees may also be based on a fund’s cumulative net investment returns for the measurement period, in some cases subject to a high-watermark or a preferred return.

Incentive fees are realized at the end of a measurement period, typically quarterly or annually.

Realized incentive fees are generally higher during the second half of the year due to the nature of certain funds that typically realize incentive fees at the end of the calendar year.

Realized incentive fees are generally higher during the second half of the year, aligning with the measurement period that typically ends at the end of the calendar year.

Once realized, such incentive fees are not subject to repayment.

Cash from the realizations is typically received in the period subsequent to the measurement period.

Incentive fees are composed of both fee related performance revenues, which are based on perpetual capital, and those incentive fees earned from funds with stated investment periods:

Details regarding our fee related performance revenues are presented below:

Fee Rate Fee Base Annual Hurdle Rate

Open-ended core alternative credit fund 15.0% Incentive eligible fund’s profits 6.0%

and European Direct Lending 10.0% - 15.0% Incentive eligible fund’s profits 5.0% to 8.0%

Incentive fees are composed of both fee related performance revenues, which are earned from perpetual capital vehicles, and those incentive fees earned from funds with stated investment periods.

Details regarding our fee related performance revenues from our publicly-traded and perpetual wealth vehicles are presented below:

Vehicle Strategy Annual Fee Rate Fee Base Annual Hurdle Rate

Real Assets Group

AIREIT and AREIT 12.5% Annual investment returns, subject to certain net loss carry-forward provisions 5.0%

ACRE 20.0% The difference between ACRE’s core earnings (as defined in ACRE’s management agreement) and its shareholders' return on equity 8.0%

ACRE Real Estate Debt 20.0% The difference between ACRE’s core earnings (as defined in ACRE’s management agreement) and its shareholders' return on equity 8.0%

Diversified Non-traded REIT and Industrial Non-traded REIT North American Real Estate Equity 12.5% Annual investment returns, subject to certain net loss carry-forward provisions 5.0%

Secondaries Group

APMF 12.5% Annual investment returns, subject to certain net loss carry-forward provisions N/A

APMF Private Equity Secondaries 12.5% Quarterly investment returns, subject to certain net loss carry-forward provisions N/A

We are party to contractual expense limitation agreements with certain perpetual wealth vehicles under which we may advance a portion of certain expenses to reduce the perpetual wealth vehicles’ expense ratios.

Such expenses are subject to reimbursement from the perpetual wealth vehicles and may result in a corresponding reduction to our fee related performance revenues until the expenses have been recovered.

Details regarding our fee related performance revenues by strategy, excluding publicly-traded and perpetual wealth vehicles described above, are presented below:

Strategy Fee Rate Fee Base Annual Hurdle Rate

Alternative Credit 15.0% Incentive eligible fund’s profits 6.0%

and European Direct Lending 8.0% - 16.0% Incentive eligible fund’s profits 5.0% - 8.0%

Details regarding our incentive fees earned from funds with stated investment periods, which are generally based on a fund’s eligible profits, are presented below:

Fee Rate Annual Hurdle Rate

Liquid Credit 10.0% - 20.0% 3.0% to 12.0%

Alternative Credit 12.5% - 20.0% 5.0% to 7.0%

Strategy Fee Rate Annual Hurdle Rate

Liquid Credit 10.0% - 20.0% 3.0% - 12.0%

Alternative Credit 12.5% - 20.0% 6.0% - 7.0%

and European Direct Lending (1)

10.0% - 15.0% 5.0% to 8.0%

10.0% - 15.0% 5.0% - 8.0%

Real Assets Group

Real Estate Equity 15.0% - 18.0% 6.0% to 8.0%

(1) We may receive Part II Fees, which are not paid unless ARCC and ASIF achieve cumulative aggregate realized capital gains (net of cumulative aggregate realized capital losses and aggregate unrealized capital depreciation).

For ARCC and ASIF, incentive fees represent 20.0% and 12.5%, respectively, of the cumulative aggregate realized capital gains (net of cumulative aggregate realized losses and aggregate unrealized capital depreciation) and such fees are presented as incentive fees earned from funds with stated investment periods.

Performance Income.

We may receive performance income from our funds that may be either incentive fees earned from funds with stated investment periods as described above, or a special allocation of income, which we refer to as carried interest.

Performance income is recognized when specified investment returns are achieved by the fund.

Real Estate Equity 15.0% - 20.0% 6.0% - 8.0%

Infrastructure Opportunities (1)

Secondaries Group

Private Equity Secondaries 10.0% 8.0%

(1) We may receive Part II Fees, which are not paid unless ARCC, ASIF, our open-ended European direct lending fund and our infrastructure private BDC achieve cumulative aggregate realized capital gains (net of cumulative aggregate realized capital losses and aggregate unrealized capital depreciation), subject to certain catch-up provisions.

Incentive fees from ARCC represent 20.0% of the cumulative aggregate realized capital gains (net of cumulative aggregate realized losses and aggregate unrealized capital depreciation).

For ASIF, our open-ended European direct lending fund, and for our infrastructure private BDC, incentive fees represent 12.5% of the cumulative aggregate realized capital gains (net of cumulative aggregate realized losses and aggregate unrealized capital depreciation).

Such fees are presented as incentive fees earned from funds with stated investment periods.

Carried Interest Allocation.

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Funds generally follow either an American-style waterfall or a European-style waterfall.

For American-style waterfalls, the general partner is entitled to receive carried interest after a fund investment is realized if the investors in the fund have received distributions in excess of the capital contributed for such investment and all prior realized investments (plus allocable expenses), as well as the preferred return.

For European-style waterfalls, the general partner is entitled to receive carried interest if the investors in the fund have received distributions in an amount equal to all prior capital contributions plus a preferred return.

For American-style waterfalls, we in our role as general partner are entitled to receive carried interest after a fund investment is realized if the investors in the fund have received distributions in excess of the capital contributed for such investment and all prior realized investments (plus allocable expenses), as well as the preferred return.

For European-style waterfalls, we in our role as general partner are entitled to receive carried interest if the investors in the fund have received distributions in an amount equal to all prior capital contributions plus a preferred return.

For most funds, the carried interest is subject to a preferred return ranging from 5.0% to 10.0%, after which there is typically a catch-up allocation to the general partner.

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Details regarding our carried interest, which is generally based on a fund’s eligible profits, are presented below:

Fee Rate Annual Hurdle Rate

Liquid Credit and Alternative Credit 15.0% - 20.0% 6.0% to 8.0%

and European Direct Lending 10.0% - 20.0% 5.0% to 8.0%

15.0% - 20.0% 7.0% to 8.0%

Private Equity Group

Corporate Private Equity, Special Opportunities and APAC Private Equity 20.0% 8.0%

Strategy Fee Rate Annual Hurdle Rate

Liquid Credit and Alternative Credit 10.0% - 20.0% 6.0% - 8.0%

Opportunistic Credit 20.0% 8.0%

and European Direct Lending 10.0% - 20.0% 5.0% - 8.0%

15.0% - 20.0% 6.0% - 8.0%

Real Assets Group

Real Estate 10.0% - 20.0% 6.0% to 10.0%

Infrastructure 15.0% - 20.0% 5.0% to 8.0%

Real Estate 10.0% - 20.0% 7.0% - 10.0%

Infrastructure 15.0% - 20.0% 7.0% - 8.0%

Private Equity Group

Corporate Private Equity and APAC Private Equity 15.0% - 20.0% 8.0%

Secondaries Group

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Risk Factors—Risks Related to Our Funds—We may need to pay “clawback” or “contingent repayment” obligations if and when they are triggered under the governing agreements with our funds” included in this Annual Report on Form 10-K.

Performance Income.

Performance income is a term that we use to refer to a sub-set of performance-based fees and only includes incentive fees earned from funds with stated investment periods or carried interest.

Principal Investment Income (Loss).

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Details regarding our administrative, transaction and other fees are presented below:

Administrative fees Represent fees that we earn for providing administrative services to certain funds and may reflect either an expense reimbursements for costs incurred by certain professionals in performing services for a fund or may be based on fixed percentage of a fund’s invested capital

Administrative fees Represent fees that we earn for providing administrative services to certain funds and may reflect either expense reimbursements for the cost of certain professionals that perform services for a fund or may be based on fixed percentage of a fund’s invested capital

Transaction fees Typically represent fees earned from the arrangement and origination of loans and are generated primarily from funds within our direct lending and infrastructure debt strategies.

Property-related fees represent fees earned within funds in our real estate equity strategies and include the following:

Fees are based on a fixed percentage of original issue discount for our direct lending funds and based on a fixed percentage of loan originations for our infrastructure debt funds

Capital markets transaction fees represent fees that we earn for participating as an underwriter and/or acting as advisor on capital markets transactions

Property-related fees represent fees earned within our real estate equity strategies and include the following:

Acquisition fees Based on a percentage of a property’s cost at the time of property acquisition

Development fees Based on a percentage of development costs over the development period

Development fees Based on a percentage of costs to develop a property

Property management fees Based on tenancy of properties over the time associated property management services are provided

Sale and distribution fees represent fees earned through AWMS for the sale and distribution of fund shares in our non-traded vehicles and include the following:

Sales-based fees Based on a percentage of shares sold to retail investors in our non-traded vehicles.

Sale and distribution fees represent fees earned through AWMS for the sale and distribution of fund shares in our perpetual wealth vehicles and include the following:

Sales-based fees Based on a percentage of sales or subscriptions to investors in our perpetual wealth vehicles.

Sales-based fees are reported net of amounts re-allowed to participating broker-dealers for their ongoing shareholder services

Asset-based fees Based on the NAV of the applicable asset class.

Asset-based fees Based on the NAV of applicable funds and asset classes.

Asset-based fees are reported net of amounts re-allowed to participating broker-dealers for their ongoing shareholder services

Exchange program fees Based on a percentage of the value associated with the properties transacted through our 1031 exchange programs.

Exchange program fees are recognized when investors contribute real property through like-kind 1031 exchanges for fund shares and through other private placements and are composed of a program administration fee and a facilitation fee for advisory services and sales-based efforts, respectively

Exchange program fees are recognized when investors contribute real property through like-kind 1031 exchanges for fund shares and through other private placements.

These fees are composed of a program administration fee and a facilitation fee for advisory services and sales-based efforts, respectively

Compensation and Benefits.

Compensation generally includes salaries, bonuses, health and welfare benefits, payroll related taxes, equity compensation, Part I Fee incentive compensation and fee related performance compensation expenses.

Compensation generally includes salaries, bonuses, health and welfare benefits, payroll-related taxes, equity compensation, Part I Fee compensation and fee related performance compensation expenses.

Compensation and benefits expenses are typically correlated to the operating performance of our segments, which is used to determine incentive-based compensation for each segment.

Incentive-based compensation is accrued over the service period to which it relates.

Our discretionary incentive-based compensation generally represents our annual bonus pool, is based on our operating performance and may fluctuate throughout the year until payments are made.

The majority of our incentive-based compensation is paid during the fourth quarter.

Our discretionary incentive-based compensation includes our annual bonus pool, is based on our operating performance and may fluctuate throughout the year until payments are made.

The majority of our annual bonus payments are made in the fourth quarter.

Certain of our senior partners are not paid an annual salary or bonus, instead they only receive distributions based on their ownership interest when declared by our board of directors.

We use changes in headcount, which represents the full-time equivalency of active employees during each period, to analyze changes in compensation and benefits.

Part I Fee incentive compensation and fee related performance compensation represent approximately 60% of Part I Fees and of fee related performance revenues, respectively, before giving effect to payroll related taxes.

Compensation expense also includes employee commissions that are generated in connection with our like-kind 1031 exchange program and other private placement transactions conducted through AWMS.

Part I Fee compensation and fee related performance compensation represent approximately 60% of Part I Fees and of fee related performance revenues, respectively, before giving effect to payroll-related taxes.

We also reduce certain Part I Fee compensation and fee related performance compensation by a portion of the supplemental distribution fees paid to the extent that Part I Fees and fee related performance revenues are earned from certain perpetual wealth vehicles.

We pay sales-based bonuses for the sale and distribution of our wealth products through AWMS, including our exchange programs associated with our non-traded REITs.

Incremental changes in fair value of certain contingent liabilities established in connection with our various acquisitions are recognized ratably over the service period and are also presented within compensation and benefits.

We use changes in headcount, which represents the full-time equivalency of active employees during each period, to analyze changes in compensation and benefits.

Equity compensation represents a form of non-cash compensation that we use to align our employees with the long-term interests of our shareholders.

Equity-based awards are typically granted in the form of restricted units that generally vest over a service period between three and five years.

Equity-based awards are typically granted in the form of restricted units or restricted stock (collectively “unvested awards”) that generally vest over a service period between three and five years.

We issue equity awards with a long-term focus of limiting the average dilutive impact on our Class A common stockholders to no more than 1.5% annually.

Because we withhold shares equal to the fair value of our employee tax withholding liabilities and pay the taxes on their behalf in cash, fewer net shares are issued upon vesting.

This result has reduced the average annual dilutive impact of these awards to less than 1.0% annually.

This result has reduced the average annual dilutive impact of

these awards to less than 1.0% annually.

We expect the expenses recognized in connection with these awards to fluctuate with changes in the price of our Class A common stock.

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Depending on the nature of each fund, the performance related compensation generally represents 60% to 80% of the carried interest allocation and aforementioned incentive fees recognized by us before giving effect to payroll-related taxes.

We have an obligation to pay our professionals a portion of the carried interest allocation earned from certain funds.

The performance related compensation payable is calculated based upon the recognition of carried interest allocation and is not paid to recipients until the carried interest allocation is received.

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Although changes in performance related compensation are directly correlated with changes in carried interest allocation and incentive fees reported within our segment results, this correlation does not always exist when our results are reported on a fully consolidated basis in accordance with GAAP.

This discrepancy is caused when carried interest allocation

and incentive fees earned from our Consolidated Funds is eliminated upon consolidation and performance related compensation is not.

This discrepancy is caused when carried interest allocation and incentive fees earned from our Consolidated Funds is eliminated upon consolidation and performance related compensation is not.

General, Administrative and Other Expenses.

General and administrative expenses include costs primarily related to occupancy, professional services, travel, information services and information technology costs, placement fees, depreciation, amortization of intangibles, supplemental distribution fees and other general operating items.

Placement fees are paid to placement agents and include:

General and administrative expenses include costs primarily related to occupancy, professional services, travel, information services and information technology costs, marketing costs, depreciation, amortization of intangibles and other general operating items.

These expenses are largely influenced by changes in headcount growth, fundraising activities or strategic initiatives/acquisitions.

Marketing costs include placement fees and supplemental distribution fees.

Placement fees are fundraising costs for campaign funds and include:

(i) upfront fees based on commitments to a fund;

and (ii) service fees for periodic investor services that are recognized as services are provided.

Supplemental distribution fees are paid to brokerage firms, banks or other financial intermediaries for the distribution of shares in our non-traded vehicles and may be calculated on either sales volumes or levels of assets under management.

Supplemental distribution fees are fundraising costs associated with wealth products, generally paid to strategic investors and/or financial intermediaries for the distribution of shares and may be upfront on a portion of sales, ongoing as a percentage of net asset value or temporary in the form of a fee concession.

We may reduce Part I Fee compensation and fee related performance compensation associated with certain perpetual wealth vehicles by a portion of the supplemental distribution fees paid to the extent that Part I Fees and fee related performance revenues are earned from these vehicles.

In such instances, the related compensation will be less than 60%.

Expenses of Consolidated Funds.

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Other Income (Expense), Net.

Other income (expense), net consists of transaction gains (losses) on the revaluation of assets and liabilities denominated in non-functional currencies and of other non-operating and non-investment related activities, such as bargain purchase gain, changes in fair value of contingent obligations, loss on disposal of assets, among other items.

Other income (expense), net consists of (i) non-economic transaction gains (losses) on the revaluation of assets and liabilities denominated in currencies other than an entity’s functional currency;

and (ii) other non-operating and non-investment related activities, such as changes in fair value of contingent liabilities, loss on disposal of assets, among other items.

Net Realized and Unrealized Gains (Losses) on Investments of Consolidated Funds.

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and other foreign jurisdictions and, to a lesser extent, income taxes that are recorded for certain affiliated funds and co-investment vehicles that are consolidated in our financial results.

The majority of our Consolidated Funds are not subject to income tax as the funds’ investors are responsible for reporting their share of income or loss.

The majority of our Consolidated Funds are not subject to income tax as the funds’ investors are responsible for reporting their share of income or loss on a pass-through basis.

To the extent required by federal, state and foreign income tax laws and regulations, certain funds may incur income tax liabilities.

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Net income (loss) attributable to redeemable and non-controlling interests in AOG entities represents results attributable to the owners of AOG Units and other ownership interests that are not held by AMC.

In connection with our acquisition of SSG in July 2020, the former owners of SSG retained a 20% ownership interest in a subsidiary of an AOG entity that is reflected as redeemable interest in AOG entities.

In connection with our acquisition of a majority interest in SSG Capital Holdings Limited and its operating subsidiaries (“SSG” and subsequently rebranded as “Ares SSG”) in July 2020, the former owners of SSG retained a 20% ownership interest in a subsidiary of an AOG entity that is reflected as redeemable interest in AOG entities.

Net income (loss) attributable to redeemable interest in AOG entities is allocated based on the ownership percentage attributable to the redeemable interest.

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Consolidation and Deconsolidation of Ares Funds

Consolidated Funds represented approximately 4% of our AUM as of December 31, 2023, 2% of our management fees and 2% of our carried interest and incentive fees for the year ended December 31, 2023.

As of December 31, 2023, we consolidated 28 CLOs, 10 private funds and one SPAC, and as of December 31, 2022, we consolidated 25 CLOs, 10 private funds and one SPAC.

Consolidated Funds represented approximately 3% of our AUM as of December 31, 2024 and 2% of total revenues for the year ended December 31, 2024.

As of December 31, 2024, we consolidated 27 CLOs, ten private funds and one SPAC, and as of December 31, 2023, we consolidated 28 CLOs, ten private funds and one SPAC.

The activity of the Consolidated Funds is reflected within the consolidated financial statement line items indicated by reference thereto.

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We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity.

During the year ended December 31, 2024, we deconsolidated one CLO as a result of significant change in ownership.

During the year ended December 31, 2023, we deconsolidated one SPAC as a result of liquidation and one private fund as a result of a significant change in ownership.

During the year ended December 31, 2022, we did not deconsolidate any entities.

The performance of our Consolidated Funds is not necessarily consistent with, or representative of, the combined performance trends of all of our funds.

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Net income attributable to Ares Operating Group entities 814,963 885,796 (70,833) (8)

Net income (loss) attributable to redeemable interest in Ares Operating Group entities 226 (851) 1,077 NM

Net income attributable to redeemable interest in Ares Operating Group entities 103 226 (123) (54)

Net income attributable to non-controlling interests in Ares Operating Group entities 351,118 411,244 (60,126) (15)

Net income attributable to Ares Management Corporation 463,742 474,326 (10,584) (2)

Series B mandatory convertible preferred stock dividends declared 22,781 — 22,781 NM

Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $ 440,961 $ 474,326 (33,365) (7)

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Management Fees.

C apital deployment in direct lending funds within the Credit Group led to a rise in FPAUM and additional management fees of $166.1 million for the year ended December 31, 2023 compared to the prior year.

Part I Fees contributed $109.6 million to the increase for the year ended December 31, 2023 compared to the prior year.

The increase in Part I Fees was primarily due to the increase in pre-incentive fee net investment income generated by ARCC and CADC, driven by an increase in the average size of their portfolios and the impact of rising interest rates, given their primarily floating-rate loan portfolios.

Of the total increase in Part I Fees, ASIF contributed $5.1 million as it began generating fees during the third quarter of 2023.

Within the Real Assets Group, AIREIT and AREIT contributed additional management fees of $11.4 million for the year ended December 31, 2023 compared to the year ended December 31, 2022 driven by increases in the average capital base of AIREIT and AREIT.

Also, management fees from Ares Infrastructure Debt Fund V L.P.

(“IDF V”) increased by $9.3 million for the year ended December 31, 2023 compared to the prior year, primarily driven by deployment of capital.

Within the Private Equity Group, the Crescent Point Acquisition contributed $7.4 million to the increase in management fees for the year ended December 31, 2023.

C apital deployment in direct lending and alternative credit funds within the Credit Group led to a rise in FPAUM, contributing an increase in management fees of $230.6 million for the year ended December 31, 2024 compared to the prior year.

Part I Fees increased by $96.3 million for the year ended December 31, 2024 compared to the prior year.

The increase in Part I Fees was primarily due to:

(i) the increase in pre-incentive fee net investment income generated by ASIF, ARCC and CADC, driven by an increase in the average size of their portfolios;

and (ii) the increase in pre-incentive fee net investment income from our open-ended European direct lending fund that began generating Part I Fees after the third quarter of 2023.

For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”

Carried Interest Allocation.

The activity was principally composed of the following ($ in millions):

Year ended December 31, 2023 Primary Drivers Year ended December 31, 2022 Primary Drivers

Credit funds $ 498.7 Primarily from six direct lending funds and one alternative credit fund with $28.2 billion of IGAUM generating returns in excess of their hurdle rates.

Ares Capital Europe V, L.P.

The following table sets forth carried interest allocation by segment ($ in millions):

Year ended December 31,

Credit funds $ 607.2 $ 742.1

Real Assets funds 105.7 8.5

Private Equity funds (294.4) (118.8)

Secondaries funds

(28.3) (13.2)

Carried interest allocation $ 390.2 $ 618.6

The activity was principally composed of the following:

Year ended December 31, 2024 Year ended December 31, 2023

• Primarily from five direct lending funds, one opportunistic credit fund and two alternative credit funds with $36.2 billion of IGAUM generating returns in excess of their hurdle rates:

◦ Within our direct lending funds, Ares Capital Europe V, L.P.

(“ACE V”), Ares Private Credit Solutions II, L.P.

(“PCS II”) , Ares Sports Media and Entertainment Finance, L.P.

and our sixth European direct lending fund generated carried interest allocation of $181.1 million, $37.6 million, $22.0 million and $16.6 million, respectively, driven by net investment income on an increasing invested capital base.

Pathfinder I generated carried interest allocation of $66.3 million driven by market appreciation of certain investments and net investment income during the period.

(“PCS II”) and Ares Capital Europe VI, L.P.

(“ACE VI”) generated carried interest allocation of $153.2 million, $131.1 million and $54.5 million, respectively, driven by net investment income on an increasing invested capital base.

Ares Capital Europe IV, L.P.

(“ACE IV”) and Ares Private Credit Solutions, L.P.

(“PCS I”) generated carried interest allocation of $58.4 million and $45.3 million, respectively, primarily driven by net investment income during the period.

Our credit funds have benefited from rising interest rates on predominately floating-rate loans.

$ 200.0 Primarily from four direct lending funds and one alternative credit fund with $22.4 billion of IGAUM generating returns in excess of their hurdle rates.

ACE V generated carried interest allocation of $80.9 million driven by net investment income on an increasing invested capital base.

ACE IV, Pathfinder I, Ares Capital Europe III, L.P.

(“ACE III”) and PCS I generated carried interest allocation of $60.0 million, $25.7 million, $18.7 million and $6.5 million, respectively, primarily driven by net investment income during the period.

Private equity funds 124.6 Ares Corporate Opportunities Fund VI, L.P.

(“ACOF VI”) generated carried interest allocation of $190.0 million, driven by improving operating performance of portfolio companies that primarily operate in the retail and healthcare industries and market appreciation of an investment in a services company.

In addition, appreciation of Ares Special Opportunities Fund, L.P.

(“ASOF I”) and Ares Special Situations Fund IV, L.P.

(“SSF IV”) generated carried interest allocation of $82.7 million and $79.8 million, respectively, predominately driven by market appreciation and improved operating performance of portfolio companies that operate in the services industry.

Ares Special Opportunities Fund II, L.P.

(“ ASOF II ”) generated carried interest allocation of $80.9 million, driven by improving operating performance of portfolio companies that operate in the healthcare industry.

The appreciation was partially offset by the reversal of unrealized carried interest allocation of $268.1 million from Ares Corporate Opportunities Fund V, L.P.

(“ACOF V”), primarily driven by a lower stock price for Savers Value Village, Inc.

(“SVV”), and $35.8 million from Ares Corporate Opportunities Fund IV, L.P.

(“ACOF IV”), primarily driven by lower operating performance metrics of a portfolio company that operates in the healthcare industry.

187.4 Appreciation across several portfolio company investments, driven by improving operating performance metrics from portfolio companies that primarily operate in industries such as services, technology, retail, healthcare and energy, generated carried interest allocation of $76.9 million from ACOF V, $73.9 million from ACOF VI, $68.5 million from ASOF I and $42.6 million from SSF IV.

The appreciation was partially offset by the reversal of unrealized carried interest allocation of $62.4 million and $27.0 million from ACOF IV and Ares Corporate Opportunities Fund III, L.P.

(“ACOF III”), respectively, primarily driven by lower stock prices for certain publicly-traded investments.

Real assets funds 8.5 IDF V generated carried interest allocation of $37.9 million driven by net investment income during the period.

(“PCS I”) generated carried interest allocation of $57.0 million and $22.9 million, respectively, driven by net investment income during the period

◦ Within our opportunistic credit funds, Ares Special Opportunities Fund II, L.P.

(“ASOF II”) generated carried interest allocation of $177.3 million, driven by improved operating performance metrics from portfolio companies that operate in the services and retail industries

◦ Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $62.6 million and $39.1 million, respectively, driven by market appreciation of certain investments and net investment income during the period

• Reversal of unrealized carried interest allocation of $99.8 million and $23.7 million from Ares Special Situations Fund IV, L.P.

(“SSF IV”) and Ares Special Opportunities Fund, L.P.

(“ASOF I”), respectively, primarily due to the market depreciation of their investments in Savers Value Village, Inc.

(“SVV”), driven by its lower stock price and lower operating performance of portfolio companies that primarily operate in the retail, services and healthcare industries

• Reversal of unrealized carried interest allocation of $68.9 million from Ares Capital Europe III, L.P.

(“ACE III”) due to lower valuations of certain investments

• Primarily from six direct lending funds, three opportunistic credit funds and one alternative credit fund with $37.4 billion of IGAUM generating returns in excess of their hurdle rates:

◦ Within our direct lending funds, ACE V, PCS II, Ares Sports Media and Entertainment Finance, L.P.

and ACE VI generated carried interest allocation of $181.1 million, $37.6 million, $22.0 million and $16.6 million, respectively, driven by net investment income on an increasing invested capital base.

ACE IV and PCS I generated carried interest allocation of $58.4 million and $45.3 million, respectively, primarily driven by net investment income during the period.

Our direct lending funds have benefited from rising interest rates on predominately floating-rate loans

◦ Within our opportunistic credit funds, ASOF I and SSF IV generated carried interest allocation of $82.7 million and $79.8 million, respectively, predominately driven by market appreciation and improved operating performance of portfolio companies that operate in the services industry.

ASOF II generated carried interest allocation of $80.9 million, driven by improved operating performance of portfolio companies that operate in the healthcare industry

◦ Within our alternative credit funds, Pathfinder I generated carried interest allocation of $66.3 million, driven by market appreciation of certain investments and net investment income during the period

Real Assets funds

• Ares Infrastructure Debt Fund V, L.P.

(“IDF V”) generated carried interest allocation of $63.8 million, driven by net investment income during the period

• Ares Climate Infrastructure Partners, L.P.

(“ACIP I”) and Ares Energy Investors Fund V, L.P.

(“EIF V”) generated carried interest allocation of $44.0 million and $27.7 million, respectively, due to appreciation of certain investments

• Reversal of unrealized carried interest allocation of $26.3 million from Ares European Real Estate Fund IV SCSp.

(“EF IV”), primarily driven by the lower valuation of a residential property investment

• IDF V generated carried interest allocation of $37.9 million, driven by net investment income during the period

• ACIP I generated carried interest allocation of $19.0 million due to market appreciation of certain investments

Appreciation from properties, driven by increasing operating income primarily from industrial and multifamily investments, generated carried interest allocation of $3.1 million from U.S.

Real Estate Fund IX, L.P.

The appreciation was partially offset by the reversal of unrealized carried interest allocation of $12.6 million from Ares European Real Estate Fund IV SCSp.

(“EF IV”), $5.7 million from Ares Real Estate Opportunity Fund III, L.P.

(“US IX”) generated carried interest allocation of $3.1 million, driven by increasing operating income primarily from industrial and multifamily investments

• Reversal of unrealized carried interest allocation of $12.6 million from EF IV, $5.7 million from Ares Real Estate Opportunity Fund III, L.P.

(“AREOF III”), $5.5 million from Ares European Real Estate Fund V SCSp.

(“EF V”) and $19.1 million from two European real estate equity funds, primarily driven by lower valuations of certain properties, which were impacted by the market environment

49.6 ACIP I and Ares Energy Investors Fund V, L.P.

(“EIF V”) generated carried interest allocation of $38.1 million and $31.8 million, respectively, due to market appreciation of certain investments.

Appreciation from properties within real estate equity funds, driven by increasing operating income primarily from industrial and multifamily investments, generated carried interest allocation of $15.0 million from U.S.

Real Estate Fund VIII, L.P.

(“US VIII”), $7.4 million from US IX and $4.2 million from Ares U.S.

Real Estate Fund X, L.P.

In addition, realized gains from the sale of properties generated carried interest allocation of $17.3 million from AREOF III.

The activity was partially offset by the reversal of unrealized carried interest of $64.4 million from EF V, driven by a lower stock price for one of its publicly-traded investments.

Private Equity funds

• Reversal of unrealized carried interest allocation of $474.9 million from Ares Corporate Opportunities Fund V, L.P.

(“ACOF V”) due to the market depreciation of its investment in SVV, driven by its lower stock price

• Ares Corporate Opportunities Fund VI, L.P.

(“ACOF VI”) generated carried interest allocation of $220.3 million, driven by improved operating performance metrics from portfolio companies that primarily operate in the healthcare, services, industrial and retail industries

• ACOF VI generated carried interest allocation of $190.0 million, driven by improved operating performance of portfolio companies that primarily operate in the retail and healthcare industries and market appreciation of an investment in a services company

• Reversal of unrealized carried interest allocation of $268.1 million from ACOF V, primarily driven by a lower stock price for SVV, and $35.8 million from Ares Corporate Opportunities Fund IV, L.P.

(“ACOF IV”), primarily driven by lower operating performance metrics of a portfolio company that operates in the healthcare industry

Year ended December 31, 2024 Year ended December 31, 2023

Secondaries funds

(13.2) Depreciation across several investments in Landmark Equity Partners XVI, L.P.

(“LEP XVI”), led to the reversal of unrealized carried interest of $12.5 million.

21.0 Market appreciation of certain investments held in Landmark Real Estate Fund VIII, L.P.

(“LREF VIII”) generated carried interest allocation of $32.8 million.

The activity was partially offset by the reversal of unrealized carried interest of $18.4 million from LEP XVI, driven primarily by losses from the revaluation of limited partnership interests denominated in foreign currencies.

Carried interest allocation $ 618.6 $ 458.0

• Reversal of unrealized carried interest of $19.8 million from Landmark Real Estate Fund VIII, L.P.

(“LREF VIII”), primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios

• Reversal of unrealized carried interest of $28.9 million from Landmark Equity Partners XVI, L.P.

(“LEP XVI”), due to the lower valuation of certain portfolio investments

• Our third infrastructure secondaries fund and four private equity secondaries funds collectively generated carried interest allocation of $27.0 million, primarily driven by the appreciation of certain portfolio investments

• Depreciation across several investments in LEP XVI led to a reversal of unrealized carried interest

Incentive Fees.

The activity was principally composed of the following ($ in millions):

Year ended December 31, 2023 Primary Drivers Year ended December 31, 2022 Primary Drivers

Credit funds $ 248.4 Incentive fees generated from 24 U.S.

direct lending funds, ten European direct lending funds and seven alternative credit funds.

$ 101.2 Incentive fees generated from 15 European direct lending funds, 12 U.S.

direct lending funds and two alternative credit funds.

Real assets funds 15.4 Incentive fees generated from an open-ended industrial real estate fund.

199.4 Incentive fees generated from U.S.

real estate equity funds, including $140.5 million from AIREIT, $31.6 million from an open-ended industrial real estate fund and $23.7 million from AREIT.

The following table sets forth incentive fees by segment ($ in millions):

Year ended December 31,

Credit funds $ 287.8 $ 248.4

Real Assets funds 27.2 15.4

Secondaries funds

12.8 Incentive fees generated from APMF.

0.6 Incentive fees generated from a private equity secondaries fund and APMF.

Incentive fees $ 344.2 $ 276.6

We earned higher incentive fees for the year ended December 31, 2024 compared to the year ended December 31, 2023 as a result of growth in our IGAUM, primarily driven by deployment of capital within credit funds that are generating returns in excess of their hurdle rates mostly in our U.S.

and European direct lending strategies and our alternative credit strategy.

For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”

Principal Investment Income.

The activity for the year ended December 31, 2023 was primarily composed of:

(i) appreciation of our investments in certain funds in our European and U.S.

direct lending, special opportunities, infrastructure debt and alternative credit strategies;

(ii) dividend income from SSF IV and a European real estate fund;

(iii) interest income from an open-ended core alternative credit fund;

partially offset by (iv) unrealized losses of our investments in certain funds in our corporate private equity and real estate secondaries strategies.

The activity for the year ended December 31, 2022 was primarily composed of appreciation of our investments in certain funds in our infrastructure opportunities strategy, dividend income from various investments in funds within our U.S.

direct lending strategy and realized gains from the sale of underlying properties held by funds in our U.S.

real estate equity strategy.

For equity method investments where we serve as general partner, we present the activity of net realized and unrealized gains on investments and realized investment income together with net capital activity.

The following tables present the change in fair value of our equity method investments where we serve as general partner ($ in millions):

As of December 31, 2023

Activity during the period As of December 31, 2024

Cost Basis Fair Value Net Capital Activity Change in Unrealized Realized Cost Basis Fair Value

$ 453.3 $ 535.3 $ (43.8) $ 2.4 $ 43.0 $ 451.4 $ 536.9

The activity for the year ended December 31, 2024 was primarily attributable to:

• Principal investment income, primarily due to:

(i) realized gains generated from funds within our infrastructure debt, real estate debt and our U.S.

and European direct lending strategies;

and (ii) interest income from newly admitted investors in an insurance fund

• Net capital activity from our investments in credit funds, primarily driven by transfers of capital investments within European direct lending and APAC credit funds to employee co-investment vehicles

As of December 31, 2022

Activity during the period As of December 31, 2023

Cost Basis Fair Value Net Capital Activity Change in Unrealized Realized Cost Basis Fair Value

$ 480.9 $ 543.6 $ (44.8) $ 2.3 $ 34.2 $ 453.3 $ 535.3

The activity for the year ended December 31, 2023 was primarily attributable to:

• Principal investment income from realized gains generated from funds within our infrastructure debt and our U.S.

and European direct lending strategies

• Net capital activities from our investments in credit and private equity funds, primarily driven by:

(i) transfers of capital investments within opportunistic credit, alternative credit and corporate private equity funds to employee co-investment vehicles;

partially offset by (ii) investments made within our real estate debt strategy

Administrative, Transaction and Other Fees.

The increase in administrative, transaction and other fees for the year ended December 31, 2023 compared to the prior year was primarily driven by:

(i) higher administrative fees of $13.6 million as a result of the deconsolidation of a commercial finance fund during the second quarter of 2023;

(ii) an increase of $8.7 million in administrative service fees based on invested capital primarily from certain private funds within our Credit Group, driven by deployment;

(iii) higher credit transaction fees of $2.4 million primarily from the infrastructure debt strategy that are generated periodically and relate to the arrangement and origination of loans;

partially offset by (iv) lower acquisition and development fees of $11.4 million, resulting from a reduction in property-related activities within certain industrial U.S.

real estate equity funds;

(v) a decrease of $10.8 million in facilitation fees and program administration fees from reduced sales activity within the 1031 exchange programs associated with our non-traded REITs.

The increase for the year ended December 31, 2024 compared to the prior year was driven by:

(i) higher administrative service fees of $17.8 million primarily from private funds within our Credit Group that are based on invested capital and from our perpetual wealth vehicles;

and (ii) higher administrative fees of $5.2

million from a commercial finance fund that were previously eliminated when this fund was consolidated into our results until the second quarter of 2023;

and (iii) higher property management and development fees of $3.5 million resulting from an increase in property-related activities within certain North American real estate equity funds;

partially offset by (iv) lower credit transaction fees of $11.0 million, primarily from the infrastructure debt strategy, which are infrequent in nature and lower loan origination income earned from certain managed accounts within the U.S.

direct lending strategy, driven by a lower capacity of investable capital;

and (v) lower asset-based, net distribution fees associated with our non-traded REITs of $5.3 million.

Year ended December 31, Favorable (Unfavorable)

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Compensation and Benefits.

The decrease in compensation and benefits was primarily driven by the performance-based, acquisition-related compensation arrangements (“earnouts”) that were established in connection with the acquisition of Black Creek Group’s real estate investment advisory and distribution business (the “Black Creek Acquisition”).

The maximum contingent payment associated with the Black Creek Acquisition earnout was achieved and the incremental expense of $218.1 million was recorded during the year ended December 31, 2022.

Conversely, the earnout associated with a Landmark private equity secondaries fund was not achieved because revenue targets associated with fundraising did not meet certain thresholds.

As a result, the associated compensation expense of $21.0 million was reversed during the year ended December 31, 2022.

Excluding the impact of earnouts as described above, compensation and benefits increased by 14% for the year ended December 31, 2023 compared to the prior year , primarily driven by:

The increase in compensation and benefits for the year ended December 31, 2024 compared to the prior year reflects the continued growth in salary and benefits for increased staff levels.

The most significant expense increases were equity-based compensation, salary expense and Part I Fee compensation.

Equity-based compensation expense increased by $96.9 million from the prior year as result of newly issued unvested awards, magnified by our increased stock price.

In addition, we accelerated expense for certain awards requiring no future service as retirement provisions have been achieved.

These provisions increased expense by $17.4 million and $10.0 million for the years ended December 31, 2024 and 2023, respectively.

The increase in compensation and benefits for the year ended December 31, 2024 compared to the prior year was also driven by:

(i) an increase in salary expense of $54.2 million primarily attributable to headcount growth to support the expansion of our business;

(ii) higher Part I Fees compensation of $58.3 million;

and (iii) higher equity-based compensation expense of $55.6 million as the number of unvested restricted units being amortized

has increased as has the value of these units with our rising stock price.

and (ii) higher Part I Fee compensation of $43.1 million.

Compensation and benefits for the year ended December 31, 2024 also included:

(i) $20.0 million from the performance-based, acquisition-related compensation arrangement established in connection with the acquisition of Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) that closed in the fourth quarter of 2023;

and (ii) $17.7 million of bonus payments made at the close of the WSM Acquisition.

The performance-based, acquisition-related compensation arrangement for the Crescent Point Acquisition contributed $5.0 million of expense for the year ended December 31, 2023.

Commitments and Contingencies” for a further description of the contingent liabilities related to the Crescent Point Acquisition arrangement.

Average headcount increased by 11% to 2,971 professionals for the year-to-date period in 2024 from 2,674 professionals in 2023.

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Changes in performance related compensation are directly associated with the changes in carried interest allocation and incentive fees described above and include associated payroll-related taxes as well as carried interest and incentive fees allocated to charitable organizations as part of our philanthropic initiatives.

Performance related compensation generally represents 60% to 80% of carried interest allocation and incentive fees recognized before giving effect to payroll taxes and will vary based on the mix of funds generating carried interest allocation and incentive fees for that period.

General, Administrative and Other Expenses.

For each year presented, we recognized impairment charges and recorded accelerated amortization expense in connection with acquired intangible assets (as discussed further below).

Before giving effect to these costs, general, administrative and other expenses increased by 13% for the year ended December 31, 2023 compared to the prior year.

However, due to the recognition of higher impairment charges in the prior year, general, administrative and other expenses over the comparative period has actually decreased by $35.1 million, or 5%, but this trend is not expected to continue.

Travel, marketing and certain fringe benefits collectively increased by $26.8 million for the year ended December 31, 2023 compared to the prior year as we:

(i) continued to increase our marketing efforts driven by more investor meetings and events;

and (ii) conducted more in-person company meetings and events with a focus on promoting collaboration and integration of acquired businesses.

Occupancy costs, information services and information technology costs also increased during the comparative period, to support our growing headcount, the expansion of our business and the build out of our new corporate headquarters.

Collectively, these expenses increased by $25.9 million for the year ended December 31, 2023 compared to the prior year .

Additionally, professional service fees increased by $9.8 million for the year ended December 31, 2023 compared to 2022 primarily due to the reorganization of our income tax compliance function and to higher consulting fees to support various ongoing initiatives to enhance our operations.

Separately, we expect to incur higher supplemental distribution fees in future periods as we continue to develop our distribution relationships and expand our retail product offerings.

These expenses were $20.2 million and increased by $7.3 million for the year ended December 31, 2023 when compared to prior year and will fluctuate with sales volumes and assets under management of our non-traded products.

During the year ended December 31, 2023, we recognized non-cash impairment charges of $78.7 million related to certain intangible assets comprised of:

(i) $65.7 million to the fair value of certain client relationships from Landmark in connection with lower expected FPAUM in a private equity secondaries fund from existing investors;

(ii) $7.8 million to the carrying value of SSG’s trade name as we rebranded Ares SSG as APAC credit and discontinued the use of the SSG trade name;

and (iii) $5.2 million to the fair value of management contracts of certain funds in connection with lower than expected future fee revenue generated from these funds, of which $4.6 million was due to the shortened investment period of an infrastructure debt fund as we directed existing limited partner commitments to other investment vehicles within the strategy.

During the year ended December 31, 2022, we recognized non-cash impairment charges of $181.6 million, in connection with intangible assets associated with Landmark’s trade name, management contracts of certain Landmark funds, Black Creek funds and SSG funds and resulted in the amortization expense associated with these intangible assets to decrease in subsequent periods.

Excluding the non-cash impairment charges described above, amortization expense decreased by $7.6 million for the year ended December 31, 2023 compared to the prior year, as we no longer recognize amortization expense for the aforementioned intangible assets.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the prior year reflects the continued growth to support staff levels and fundraising activities.

The most significant expense increases were marketing costs, acquisition-related costs, occupancy costs, information services costs and information technology costs.

Marketing costs, which include placement fees and supplemental distribution fees, increased by $62.8 million for the year ended December 31, 2024 compared to the prior year, to support fundraising for our funds and distribution of shares in our perpetual wealth vehicles.

Supplemental distribution fees increased by $37.3 million over the comparative periods as a result of increases in sales volumes and net asset value of our wealth products.

We expect that these fees will fluctuate with sales

volumes and net asset value as we have expanded the diversity of our wealth products.

Placement fees increased by $14.2 million for the year ended December 31, 2024 compared to the prior year primarily due to new commitments to Ares Senior Direct Lending Fund III, L.P.

Marketing costs associated with fund formation, program sponsorships and investor events increased by $11.3 million for the year ended December 31, 2024 compared to the prior year, including our first firmwide annual general meeting with investors (“AGM”).

Acquisition-related costs increased by $45.4 million for the year ended December 31, 2024 compared to the prior year.

Acquisition-related costs generally precede a business combination, varying with the size, scale and complexity of the transaction.

The majority of the costs incurred in the current year are related to the GCP Acquisition.

The GCP Acquisition is expected to close in the first half of 2025.

We also incurred costs in the current year for various strategic acquisitions, including the WSM Acquisition which was completed in the fourth quarter of 2024.

We expect to continue to incur acquisition-related costs until acquisitions are completed.

In addition, occupancy costs, information services and information technology costs collectively increased by $39.7 million for the year ended December 31, 2024 compared to the prior year to support our growing headcount and the expansion of our business, including costs for our new corporate headquarters that we occupied beginning in third quarter of 2024.

During the year ended December 31, 2024, we recognized a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds primarily within the Credit Group.

During the year ended December 31, 2023, we recognized a non-cash impairment charge of $78.7 million, primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”).

Other Income (Expense)

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Other income (expense)

Net realized and unrealized gains on investments $ 77,573 $ 4,732 $ 72,841 NM

Net realized and unrealized gains on investments $ 16,570 $ 77,573 $ (61,003) (79)%

Interest and dividend income 43,054 19,276 23,778 123

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Net Realized and Unrealized Gains on Investments;

The activity for the year ended December 31, 2023 primarily includes a net gain of $70.9 million from our investment in X-energy.

AAC I entered into a contract to merge with X-energy that ultimately did not occur as the shareholders of AAC I elected to redeem the investments held in trust in lieu of completing the merger.

As the merger was not completed, we directly invested in X-energy.

The net gain is primarily a result of the increase in value of various common and preferred equity securities in X-energy.

The fair value of these investments are sensitive to changes in underlying assumptions and may demonstrate significant volatility over the short term.

The year ended December 31, 2023 also included:

(i) unrealized gains from the appreciation of certain strategic investments in companies that manage portfolios of non-performing loans and real estate owned properties;

(ii) unrealized gains and dividend income from our investment in APMF;

and partially offset by (iii) unrealized losses from our strategic investment in a U.S.

financial technology company.

The activity for the year ended December 31, 2022 reflects unrealized gains from the same strategic investments that manage portfolios of non-performing loans and real estate owned properties and was partially offset by unrealized losses from our investments in the subordinated notes of U.S.

Interest and Dividend Income.

For investments where we do not serve as general partner, we present the activity of net realized and unrealized gains on investments and interest and dividend income together with net capital activity.

The following tables present the change in fair value of these investments ($ in millions):

As of December 31, 2023

Activity during the period As of December 31, 2024

Cost Basis Fair Value Net Capital Activity Net Realized and Unrealized Gains (Losses) Interest and Dividend Income Other Adjustments Cost Basis Fair Value

$ 591.1 $ 675.1 $ (117.8) $ 16.6 $ 43.1 $ (0.7) $ 514.3 $ 616.3

The activity for the year ended December 31, 2024 was primarily attributable to:

• Net unrealized gains from the appreciation of our investment in APMF

• Interest and dividend income, primarily due to:

(i) interest income generated from our investments in CLOs;

and (ii) $11.5 million of interest income generated from capital raised in anticipation of the GCP Acquisition, which was temporarily invested in treasury-backed securities.

Following the completion of the GCP Acquisition, this portion of interest income will subside

• Net capital activity driven by the collection of principal associated with loans that we made within our real estate debt strategy

As of December 31, 2022

Activity during the period As of December 31, 2023

Cost Basis Fair Value Net Capital Activity Net Realized and Unrealized Gains (Losses) Interest and Dividend Income Other Adjustments Cost Basis Fair Value

$ 291.6 $ 325.3 $ 252.6 $ 77.6 $ 19.3 $ 0.3 $ 591.1 $ 675.1

The activity for the year ended December 31, 2023 was primarily attributable to:

• Net gains from our strategic investments in a U.S.

energy company, primarily as a result of the increase in value of our various common and preferred equity investments, and unrealized gains on our investments from:

and (ii) certain strategic investments in companies that manage portfolios of non-performing loans and real estate owned properties

• Interest and dividend income, primarily due to:

(i) interest income generated from our investments in CLOs;

and (ii) dividends from our investment in APMF

• Net capital activity driven by an investment made in a strategic investment in a Brazilian alternative asset manager and the deployment of capital into an investment within our real estate debt strategy

Interest Expense .

Higher average interest rates driven by rising SOFR rates and a higher average outstanding balance of the Credit Facility contributed to an increase in interest expense for the year ended December 31, 2023 compared to 2022.

The issuance of the 2028 Senior Notes in November 2023 also increased interest expense by $4.6 million for the year ended December 31, 2023 compared to the same period in 2022 and will result in interest expense of $8.2 million for the full quarter prospectively.

Interest expense increased for the year ended December 31, 2024 compared to the prior year primarily due to the i ssuance of the 2028 Senior Notes in November 2023 and 2054 Senior Notes in October 2024 that collectively increased interest expense by $37.8 million.

The increase in interest expense was partially offset by reductions of:

(i) $4.5 million from our Credit Facility due to lower average outstanding balance during the second half of 2024;

and (ii) $2.5 million from the repayment of our 2024 Senior Notes in October 2024.

We expect interest expense to trend higher in future periods as the issuance of our 2054 Senior Notes is expected to result in greater interest expense than the collective savings resulting from the lower anticipated balances from our Credit Facility and repayment of our 2024 Senior Notes.

The activity for the year ended December 31, 2024 also included $5.5 million of one-time interest expense related to a temporary bridge facility that was established in connection with the GCP Acquisition.

The facility was not utilized and was terminated in the fourth quarter of 2024.

Other Income, Net.

The activity for the years ended December 31, 2023 and 2022 primarily included transaction gains (losses) associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency.

We recognized transaction losses for the year ended December 31, 2023 primarily due to the Euro weakening against the British pound for the year-to-date period.

Transaction gains for the year ended December 31, 2022 were primarily attributable to the British pound weakening against the Euro.

The activity for the years ended December 31, 2024 and 2023 included transaction gains (losses) associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency.

The year ended December 31, 2024 included an insignificant amount of transaction gains associated with currency fluctuations.

Transaction losses for the year ended December 31, 2023 were primarily due to the Euro weakening against the British pound.

Income Tax Expense

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Net income $ 1,110,735 $ 1,160,092 (49,357) (4)

The increase in income tax expense was attributable to higher pre-tax income allocable to AMC for the year ended December 31, 2023 compared to the prior year as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes.

The decrease in income tax expense was attributable to lower pre-tax income allocable to AMC for the year ended December 31, 2024 compared to the prior year as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes.

The calculation of income taxes is also sensitive to any changes in weighted average daily ownership.

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Non-controlling AOG unitholders 36.39 39.17

The change in ownership was primarily driven by the issuance of Class A common stock in connection with stock option exercises, vesting of restricted stock awards, the completion of the SSG Buyout and the Crescent Point Acquisition.

The increase in the weighted average daily ownership for AMC common stockholders was partially offset by the issuance of AOG Units in connection with the settlement of the Black Creek earnout that increased the ownership of AOG Units not held by AMC.

The change in ownership compared to the prior year was primarily driven by the issuances of shares of Class A common stock in connection with exchanges of AOG Units, the public offering that closed during the year ended December 31, 2024 (the “Offering”), stock option exercises and vesting of restricted unit awards.

Redeemable and Non-Controlling Interests

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Net income attributable to Ares Operating Group entities 814,963 885,796 (70,833) (8)

Net income (loss) attributable to redeemable interest in Ares Operating Group entities 226 (851) 1,077 NM

Net income attributable to redeemable interest in Ares Operating Group entities 103 226 (123) (54)

Net income attributable to non-controlling interests in Ares Operating Group entities 351,118 411,244 (60,126) (15)

Net income attributable to Ares Management Corporation 463,742 474,326 (10,584) (2)

Series B mandatory convertible preferred stock dividends declared 22,781 — (22,781) NM

Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $ 440,961 $ 474,326 (33,365) (7)

The change in net income attributable to non-controlling interests in AOG entities over the comparative periods was a result of the respective changes in income before taxes and weighted average daily ownership, as presented above.

The change in net income attributable to non-controlling interests in AOG entities compared to the prior year was a result of the respective changes in income before taxes and weighted average daily ownership, as presented above.

Consolidated Results of Operations of the Consolidated Funds

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Income before taxes 391,098 460,153 (69,055) (15)

Income tax expense of Consolidated Funds 3,823 331 (3,492) NM

Income tax expense of Consolidated Funds 7,074 3,823 (3,251) (85)

Net income 384,024 456,330 (72,306) (16)

Revenues attributable to Ares Management Corporation eliminated upon consolidation 68,200 188,155 (119,955) (64)

Other expense, net attributable to Ares Management Corporation eliminated upon consolidation 5,688 18,074 12,386 69

Other expense (income), net attributable to Ares Management Corporation eliminated upon consolidation (20,052) 5,688 25,740 NM

General, administrative and other expense attributable to Ares Management Corporation eliminated upon consolidation — 433 433 100

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Non-GAAP Financial Measures

We use the following non-GAAP measures to make operating decisions, assess performance and allocate resources:

• Fee Related Earnings (“FRE”)

• Realized Income (“RI”)

These non-GAAP financial measures supplement and should be considered in addition to and not in lieu of, the results of operations, which are discussed further under “—Components of Consolidated Results of Operations” and are prepared in accordance with GAAP.

We use Realized Income (“RI”) as a non-GAAP profit measure in making operating decisions, assessing performance and allocating resources.

Fee Related Earnings (“FRE”) is a component of RI that excludes realized activities associated with investment income and performance income.

FRE and RI should be considered in addition to and not in lieu of, the results of operations, which are discussed further under “—Components of Consolidated Results of Operations” and are prepared in accordance with GAAP.

We operate through our distinct operating segments.

On March 31, 2023, we completed the SSG Buyout.

We rebranded Ares SSG as Ares Asia and the Ares SSG credit business, including the Asian special situations, Asian secured lending and APAC direct lending strategies, as APAC credit.

APAC credit has been reclassified effective January 1, 2023 and is now presented within the Credit Group.

In connection with this reclassification, we will no longer use Strategic Initiatives to describe all other operating segments, instead reporting the collective results as Other.

Separately, the Private Equity Group includes APAC private equity following the Crescent Point Acquisition.

Historical periods have been modified to conform to the current period presentation.

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.

For segment reporting purposes, the change will require the reclassification of the special opportunities strategy from the Private Equity Group to the Credit Group and will be presented in our results beginning in 2024.

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.

On January 1, 2024, we changed our segment composition.

The special opportunities strategy, historically part of the Private Equity Group, was renamed to opportunistic credit and integrated into the Credit Group.

Historical results have been modified to conform with the current presentation.

On December 1, 2024, we completed the WSM Acquisition.

The acquired business is presented within the Real Assets Group within our North American real estate equity strategy, which we renamed from U.S.

real estate equity following the WSM Acquisition.

The strategy name change did not result in any change to the historical composition of our segments.

The following table sets forth FRE and RI by reportable segment and the OMG ($ in thousands):

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Credit Group $ 1,568,157 $ 1,317,012 $ 251,145 19%

Private Equity Group 112,541 84,467 28,074 33

Real Assets Group 212,106 218,807 (6,701) (3)

Private Equity Group 60,546 53,057 7,489 14

Secondaries Group

126,172 104,387 21,785 21

8,530 (2,252) 10,782 NM

15,686 8,530 7,156 84

Operations Management Group (620,930) (538,052) (82,878) (15)

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Credit Group $ 1,684,817 $ 1,445,315 $ 239,502 17%

Private Equity Group 122,769 107,998 14,771 14

Real Assets Group 223,842 217,195 6,647 3

Private Equity Group 48,775 46,125 2,650 6

Secondaries Group 119,940 101,056 18,884 19

(6,703) (14,042) 7,339 52

10,304 (6,703) 17,007 NM

Operations Management Group (620,558) (537,460) (83,098) (15)

Realized Income $ 1,467,120 $ 1,265,528 201,592 16

Income before provision for income taxes is the GAAP financial measure most comparable to RI and FRE.

Income before provision for income taxes is the GAAP financial measure most comparable to RI.

The following table presents the reconciliation of income before taxes as reported within the Consolidated Statements of Operations to RI and FRE of the reportable segments and the OMG ($ in thousands):

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Acquisition-related compensation expense (1)

7,334 206,252

Acquisition and merger-related expense 57,360 12,000

Placement fee adjustment 5,715 (5,819)

Other expense, net 976 1,874

Other (income) expense, net (12,172) 976

Income before taxes of non-controlling interests in consolidated subsidiaries (22,267) (17,249)

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Total performance related compensation—realized 281,301 282,406

Total investment loss—realized 31,706 6,803

Total net investment loss—realized 43,495 31,706

Fee Related Earnings $ 1,361,737 $ 1,163,741

(1) Represents earnouts in connection with the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”), the acquisition of AMP Capital’s infrastructure debt platform (“Infrastructure Debt Acquisition”), the Black Creek Acquisition and the Crescent Point Acquisition that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Consolidated Statements of Operations.

(1) Represents bonus payments and contingent liabilities (“earnouts”) in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within our Consolidated Statements of Operations.

For the specific components and calculations of these non-GAAP measures, as well as additional reconciliations to the most comparable measures in accordance with GAAP, see “Note 14.

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The chart below presents Credit Group management fees and effective management fee rates ($ in millions):

Management fees on existing funds increased primarily from deployment of capital with Pathfinder I, an open-ended core alternative credit fund, ACE V, PCS II and Ares Senior Direct Lending Fund II, L.P.

(“ SDL II”) collectively generating additional management fees of $97.0 million for the year ended December 31, 2023 compared to the prior year .

Management fees from ARCC, excluding Part I Fees described below, increased by $19.3 million for the year ended December 31, 2023 compared to the prior year primarily due to an increase in the average size of ARCC’s portfolio.

Excluding catch-up fees, management fees from Ares SSG Capital Partners VI, L.P.

(“SSG Fund VI”) increased by $13.7 million for the year ended December 31, 2023 compared to the year ended December 31, 2022 primarily due to new capital commitments.

The remaining increase in management fees from funds in existence in both periods was primarily driven by deployment of capital in other direct lending funds and SMAs.

Management fees from CLOs also increased for the year

ended December 31, 2023 compared to the prior year primarily due to the net addition of four CLOs for the year ended December 31, 2023.

Part I Fees increased for the year ended December 31, 2023 compared to the year ended December 31, 2022 primarily due to an increase in pre-incentive fee net investment income generated by ARCC and CADC, driven by an increase in the average size of their portfolios and by the impact of rising interest rates, given their primarily floating-rate loan portfolios.

The increase in Part I Fees included fees from ASIF of $5.1 million beginning in the third quarter of 2023.

The following table presents the components of and causes for changes in the Credit Group’s management fees for the year ended December 31, 2024 compared to the prior year ($ in millions):

Year-over-year

Perpetual wealth vehicles:

Fees from ARCC, ASIF and CADC, excluding Part I Fees, due to increases in the average portfolio size of their portfolios $ 105.3

Part I Fees from ASIF, ARCC and CADC, driven by an increase in the average size of their portfolios

Part I Fees from our open-ended European direct lending fund that began generating fees during the first quarter of 2024 9.8

Capital deployment in private funds:

Fees from SDL III, ACE VI and Pathfinder II, which all launched during the second quarter of 2023 80.7

Fees from Ares Senior Direct Lending Fund II, L.P.

(“SDL II”), ASOF II, an open-ended core alternative credit fund and ACE V 61.1

Distributions that reduced the fee base of ASOF I and Ares Senior Direct Lending Fund, L.P.

(“ SDL I”) as the funds are past their investment periods

Reduction in fee rate of ACE III (21.0)

Cumulative effect of other changes 27.1

Total $ 324.5

The increase in effective management fee rate for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by the increase in Part I Fees’ contribution to the effective management fee rate.

Fee Related Performance Revenues.

The increase for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily attributable to higher returns from certain perpetual capital funds that have benefited from rising interest rates on predominately floating-rate loans.

Incentive fees from perpetual capital were mostly generated from 14 U.S.

direct lending funds, ten European direct lending funds and one alternative credit fund for the year ended December 31, 2023 compared to ten European direct lending and eight U.S.

direct lending funds for the year ended December 31, 2022.

The increase in other fees for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by higher administrative service fees of $8.1 million mostly earned from certain private funds that pay on invested capital.

The increase in other fees is partially offset by a decrease of $5.1 million in transaction fees, primarily from lower loan origination income generated from certain credit funds.

The chart below presents fee related performance revenues, including the number of funds generating, for the Credit Group by strategy ($ in millions):

The increase in fee related performance revenues for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily attributable to higher incentive fees earned from an open-ended core alternative credit fund, which increased its IGAUM over the current year measurement period.

The increase in other fees for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by higher administrative service fees of $7.7 million, which are earned from certain private funds that pay on invested capital.

Compensation and Benefits.

The increase in compensation and benefits for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by:

(i) higher fee related performance compensation and Part I Fees compensation of $59.4 million and $58.3 million, respectively, corresponding to the increases in revenues;

The increase in compensation and benefits for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by higher Part I Fee compensation of $43.1 million, corresponding to the increase in Part I Fees.

For the years ended December 31, 2024 and 2023, we reduced Part I Fee compensation by $11.7 million and $2.6 million, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.

The increase in compensation and benefits compared to the prior year was also driven by:

higher fee related performance compensation of $27.7 million, corresponding to the increase in fee related performance revenues;

and (ii) an increase in salary expense of $11.0 million, primarily attributable to headcount growth to support the expansion of our business;

Separately, compensation and benefits increased by $4.7 million for the nine months ended December 31, 2023 following the SSG Buyout on March 31, 2023, reflecting the costs associated with the 20% change in ownership that were previously not part of our cost structure.

Average headcount increased by 12% to 566 investment and investment support professionals for the year-to-date period in 2023 from 504 professionals in 2022 as we continued to add professionals primarily to support our growing direct lending and APAC credit platforms.

partially offset by (iii) lower incentive-based compensation.

Average headcount increased by 12% to 672 investment and investment support professionals for the year-to-date period in 2024 from 602 professionals in 2023 as we continued to add professionals, primarily to support our growing direct lending and alternative credit platforms.

General, Administrative and Other Expenses.

Certain expenses increased during the current period, including:

(i) occupancy costs, which support our growing headcount that are based in higher cost locations;

(ii) information services such as research and market data;

and (iii) information technology costs.

These expenses collectively increased by $9.4 million for the year ended December 31, 2023 compared to the prior year .

Additionally, supplemental distribution fees which fluctuate with sales volumes and managed assets of our non-traded products, contributed $5.1 million of the increase for the year ended December 31, 2023 when compared to prior year.

We expect to incur higher supplemental distribution fees in future periods as we continue to develop our distribution relationships and expand our retail product offerings.

For the year ended December 31, 2023, travel and marketing expenses have also increased by $4.1 million when compared to the year ended December 31, 2022, as marketing efforts continued to increase driven by more in-person investor meetings and events.

The increase in general, administrative and other expenses was primarily due to costs incurred to support distribution of shares in our perpetual wealth vehicles and fundraising for our funds.

Supplemental distribution fees were $30.4 million for the year ended December 31, 2024 and increased by $18.6 million for the year ended December 31, 2024 compared to the prior year a s we continue to develop our distribution relationships and expand our wealth product offerings.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the prior year was also driven by fundraising related expenses including:

(i) marketing costs of $5.7 million, largely attributable to fund formation costs for ACE VI and investor events, including our firmwide AGM event;

and (ii) placement fees of $2.9 million, primarily due to new commitments to SDL III.

Additionally, certain expenses increased during the current year, including occupancy costs, information services and information technology costs.

These expenses collectively increased by $8.4 million for the year ended December 31, 2024 compared to the prior year to support our growing headcount and the expansion of our business, including costs for our new corporate headquarters that we occupied beginning in third quarter of 2024.

Separately, professional service fees rose by $8.0 million for the year ended December 31, 2024 compared to the prior year, primarily related to certain non-recurring legal fees .

Realized Income

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Investment income—realized 21,159 36,490 (15,331) (42)

Interest and other investment income—realized 21,975 27,288 (5,313) (19)

Interest income 11,671 9,788 1,883 19

Interest expense (34,578) (29,732) (4,846) (16)

Realized net investment income 14,786 18,434 (3,648) (20)

Realized net investment income (loss) (1,748) 16,546 (18,294) NM

Realized Income $ 1,684,817 $ 1,445,315 239,502 17

Realized net performance income for the years ended December 31, 2023 and 2022 included aggregate tax distributions of $54.7 million and $48.1 million, respectively, from ACE IV, ACE V and PCS I, among other European direct lending funds.

Realized net performance income for the year ended December 31, 2023 also included incentive fees primarily from ten direct lending funds and six alternative credit funds.

Realized net performance income for the year ended December 31, 2022 also included incentive fees primarily from nine direct lending funds and two alternative credit funds.

Realized net investment income for the years ended December 31, 2023 and 2022 was primarily attributable to interest income generated from our CLO investments.

In addition, the year ended December 31, 2023 included realized gains from the sale of our investment in a commercial finance fund during the second quarter of 2023.

Realized net investment income for the year ended December 31, 2022 was also attributable to:

(i) realizations from the settlement of forward contracts entered into to hedge our exposure to foreign currency fluctuations, primarily from the Euro;

(ii) distributions from a U.S.

direct lending fund and a European direct lending fund;

and (iii) income recognized in connection with distributions from a commercial finance fund.

Interest expense, which is allocated among our segments based on the cost basis of balance sheet investments, increased over the comparative periods primarily due to rising SOFR rates and a higher average outstanding balance of the Credit Facility and to the issuance of the 2028 Senior Notes in November 2023.

The Credit Group’s realized activities were principally composed of and caused by the following:

Year ended December 31, 2024 Year ended December 31, 2023

Realized net performance income

Carried interest from:

• Aggregate tax distributions of $74.7 million primarily from ACE IV, ACE V, PCS I, ASOF I and an alternative credit fund

Incentive fees from:

• Incentive fees of $31.3 million, primarily generated from (i) seven direct lending funds and five alternative credit funds with $5.1 billion of IGAUM generating returns in excess of their hurdle rates;

and (ii) a U.S.

CLO that was driven by the reset of its capital structure and extension of its reinvestment period

Carried interest from:

• Aggregate tax distributions of $70.2 million primarily from ASOF I, ACE IV, ACE V and PCS I

Incentive fees from:

• Incentive fees of $27.7 million, primarily generated from ten direct lending funds and six alternative credit funds with $5.5 billion of IGAUM generating returns in excess of their hurdle rates

Realized investment income and interest income

• Distributions of investment income of $8.9 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs

• Distributions of investment income of $6.6 million from our investment in a U.S.

direct lending fund

• Interest income generated from 15 CLO investments of $4.6 million

• Interest income earned on treasury-backed securities of $3.0 million, which is allocated among our segments based on the cost basis of our balance sheet investments

• Distributions of investment income of $16.9 million from our investment in a commercial finance fund that was sold during the second quarter of 2023

• Distributions of investment income of $6.4 million generated from four liquid credit vehicles that are invested in the subordinated notes of CLOs

• Interest income generated from 16 CLO investments of $5.3 million

Interest expense, which is allocated among our segments based on the cost basis of our balance sheet investments, increased over the comparative periods primarily due to the issuance of the 2028 Senior Notes in November 2023 and 2054 Senior Notes in October 2024.

Credit Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Credit Group.

Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in thousands):

Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):

As of December 31,

Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income

ACE III $ 92,546 $ 57,948 $ 34,598 $ 100,774 $ 60,465 $ 40,309

ACE IV 149,584 97,123 52,461 168,204 104,286 63,918

ACE V 232,201 146,219 85,982 115,969 69,581 46,388

Pathfinder I $ 191.4 $ 165.7 $ 25.7 $ 155.1 $ 131.9 $ 23.2

ASOF I 318.4 223.2 95.2 357.0 250.2 106.8

ASOF II 258.2 181.4 76.8 80.9 56.6 24.3

PCS I 130.1 76.9 53.2 124.0 73.3 50.7

PCS II 171.4 101.5 69.9 38.1 22.6 15.5

Pathfinder I 155,136 131,866 23,270 88,879 75,547 13,332

ACE IV 168.8 109.6 59.2 149.6 97.1 52.5

ACE V 286.6 180.9 105.7 232.2 146.2 86.0

ACE VI 71.1 44.8 26.3 16.6 9.9 6.7

Other credit funds 332.0 207.0 125.0 397.7 253.6 144.1

Total Credit Group $ 1,928.0 $ 1,291.0 $ 637.0 $ 1,551.2 $ 1,041.4 $ 509.8

The following table presents the change in accrued performance income for the Credit Group ($ in thousands):

The following table presents the change in accrued performance income for the Credit Group ($ in millions):

As of December 31, 2023

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Accrued Carried Interest

ACE III European $ 100,774 $ (1,931) $ (6,237) $ (60) $ 92,546

ACE IV European 168,204 58,421 (77,097) 56 149,584

ACE V European 115,969 181,054 (64,079) (743) 232,201

Pathfinder I European $ 155.1 $ 62.6 $ (26.3) $ — $ 191.4

ASOF I European 357.0 (23.7) (14.9) — 318.4

ASOF II European 80.9 177.3 — — 258.2

PCS I European 124.0 22.9 (16.9) 0.1 130.1

PCS II European 38.1 131.1 — 2.2 171.4

Pathfinder I European 88,879 66,257 — — 155,136

ACE IV European 149.6 57.0 (38.7) 0.9 168.8

ACE V European 232.2 153.2 (101.1) 2.3 286.6

ACE VI European 16.6 54.5 — — 71.1

Other credit funds European 373.3 (40.2) (33.9) (6.6) 292.6

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Credit Alternative

Credit Opportunistic

Lending European

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Balance at 12/31/2023 $ 47,299 $ 33,886 $ 14,554 $ 123,073 $ 68,264 $ 11,920 $ 354 $ 299,350

Acquisitions — — — 362 — — — 362

Net new par/equity commitments 2,995 4,222 1,653 19,408 10,234 689 142 39,343

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Credit Alternative

Credit Opportunistic

Lending European

Direct Lending APAC

Credit Other Total Credit

Credit Other (1)

Balance at 12/31/2022 $ 43,864 $ 21,363 $ 13,720 $ 98,327 $ 50,642 $ 11,383 $ — $ 239,299

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Balance at 12/31/2023 $ 47,299 $ 33,886 $ 14,554 $ 123,073 $ 68,264 $ 11,920 $ 354 $ 299,350

(1) Activity within Other represents equity commitments to the platform that have not yet been allocated to an investment strategy.

(1) Activity within Other represents equity commitments to the platform that either have not yet been allocated to an investment strategy or have been allocated in a subsequent period as commitments to an investment strategy.

The components of our AUM for the Credit Group are presented below ($ in billions):

FPAUM AUM not yet paying fees Non-fee paying (1)

(1) Includes $15.1 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of December 31, 2023 and 2022, respectively, and includes $1.5 billion and $1.2 billion of non-fee paying AUM based on our general partner commitment as of December 31, 2023 and 2022, respectively.

(1) Includes $14.4 billion and $15.1 billion of AUM of funds from which we indirectly earn management fees as of December 31, 2024 and 2023, respectively, and includes $2.0 billion and $1.8 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023, respectively.

Credit Group—Fee Paying AUM

1 unchanged sentence

Credit Alternative

Credit Opportunistic

Lending European

2 unchanged sentences

Balance at 12/31/2023 $ 46,140 $ 23,218 $ 8,490 $ 67,596 $ 34,246 $ 5,590 $ 185,280

Acquisitions — — — 244 — — 244

Commitments 7,897 — — 11,088 300 41 19,326

5 unchanged sentences

Change in fund value 1,161 101 — 2,702 (1,537) (283) 2,144

Change in fee basis — — — — 1,286 — 1,286

Balance at 12/31/2024 $ 44,629 $ 29,384 $ 7,899 $ 86,415 $ 35,786 $ 5,032 $ 209,145

Credit Alternative

Credit Opportunistic

Lending European

9 unchanged sentences

Change in fund value 2,036 204 — 2,030 1,050 (144) 5,176

Change in fee basis — (1) — — (843) (844)

Balance at 12/31/2023 $ 46,140 $ 23,218 $ 8,490 $ 67,596 $ 34,246 $ 5,590 $ 185,280

7 unchanged sentences

ARCC contributed approximately 34% of the Credit Group’s total management fees for the year ended December 31, 2024.

In addition, eight other significant funds, CADC, Ares Senior Direct Lending Fund I, L.P.

(“ SDL I”) , ACE IV, ACE V, PCS II, Pathfinder I, SDL II and an open-ended core alternative credit fund, collectively contributed approximately 27% of the Credit Group’s management fees for the year ended December 31, 2023.

In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 34% of the Credit Group’s management fees for the year ended December 31, 2024.

The following table presents the performance data for our significant funds that are not drawdown funds in the Credit Group as of December 31, 2024 ($ in millions):

6 unchanged sentences

Direct Lending

Open-ended core alternative credit fund (4)

2021 5,841 14.6 10.9 11.6 8.6 Alternative Credit

2023 13,711 N/A 11.4 N/A 11.8 U.S.

Direct Lending

(1) Since inception returns are annualized.

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Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.

Additional information related to CADC can be found in its filings with the SEC, which are not part of this report.

Additional information related to CADC and ASIF can be found in its filings with the SEC, which are not part of this report.

(4) Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses.

The fund is made up of a Main Class (“Class M”) and a Constrained Class (“Class C”).

Class M includes investors electing to participate in all investments and Class C includes investors electing to be excluded from exposure to liquid investments.

Returns presented in the table are for onshore Class M.

The current quarter gross and net returns for Class M (offshore) are 2.9% and 2.0%, respectively.

The year-to-date gross and net returns for Class M (offshore) are 14.9% and 10.4%, respectively.

The since inception gross and net returns for Class M (offshore) are 11.6% and 8.2%, respectively.

The current quarter gross and net returns for Class C (offshore) are 2.9% and 1.6%, respectively.

The year-to-date gross and net returns for Class C (offshore) are 13.6% and 9.2%, respectively.

The since inception gross and net returns for Class C (offshore) are 11.3% and 8.0%, respectively.

The following table presents the performance data of the Credit Group’s significant drawdown funds as of December 31, 2024 ($ in millions):

4 unchanged sentences

Funds Harvesting Investments

SDL I Unlevered 2018 $ 4,818 $ 922 $ 872 $ 342 $ 711 $ 1,053 1.3x 1.2x 9.0 6.9 U.S.

Direct Lending

SDL I Levered 2,045 2,022 915 1,755 2,670 1.4x 1.3x 15.3 11.4

ACE IV Unlevered (7)

2 unchanged sentences

4,819 3,728 2,377 2,881 5,258 1.5x 1.4x 11.4 8.2

Pathfinder I 2020 4,227 3,683 3,177 566 3,503 4,069 1.4x 1.3x 15.3 11.0 Alternative Credit

SDL II Unlevered 2021 16,396 1,989 1,529 274 1,537 1,811 1.2x 1.2x 12.1 9.6 U.S.

Direct Lending

SDL II Levered 6,047 4,269 1,222 4,283 5,505 1.4x 1.3x 19.2 14.6

Funds Deploying Capital

PCS II 2020 6,023 5,114 3,552 907 3,572 4,479 1.3x 1.2x 12.5 8.6 U.S.

Direct Lending

ACE V Unlevered (8)

2 unchanged sentences

6,376 4,693 1,504 4,835 6,339 1.4x 1.3x 15.9 11.9

PCS II 2020 5,524 5,114 3,240 223 3,409 3,632 1.2x 1.1x 10.1 7.2 U.S.

Direct Lending

Pathfinder I 2020 4,286 3,683 2,702 201 3,127 3,328 1.3x 1.2x 18.1 12.9 Alternative Credit

SDL II Unlevered 2021 15,747 1,989 1,221 129 1,242 1,371 1.2x 1.1x 12.2 9.5 U.S.

ASOF II 2021 8,596 7,128 4,725 13 5,939 5,952 1.4x 1.3x 18.8 13.6 Opportunistic Credit

ACE VI Unlevered (9)

2022 20,086 7,439 1,197 29 1,282 1,311 1.1x 1.1x 21.7 15.9 European Direct Lending

ACE VI Levered (9)

9,667 2,943 119 3,179 3,298 1.2x 1.1x 23.0 16.1

SDL III Unlevered 2023 23,121 3,311 747 6 771 777 1.1x 1.0x NM NM U.S.

Direct Lending

SDL II Levered 6,047 3,567 602 3,655 4,257 1.3x 1.2x 20.2 15.2

Open-ended core alternative credit fund (9)

2021 4,674 4,229 3,219 263 3,260 3,523 1.1x 1.1x 11.9 8.6 Alternative Credit

(1) Realized value represents the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner.

SDL III Levered 11,959 2,038 47 2,175 2,222 1.1x 1.1x NM NM

(1) For funds other than our opportunistic credit funds, realized value represent the sum of all cash distributions to all partners and if applicable, exclude tax and incentive distributions made to the general partner.

For our opportunistic credit funds, realized value represent the sum of all cash distributions to the fee-paying limited partners and if applicable, exclude tax and incentive distributions made to the general partner.

(2) Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable.

There can be no assurance that unrealized values will be realized at the valuations indicated.

For funds other than our opportunistic credit funds, the unrealized value is based on all partners.

For our opportunistic credit funds, the unrealized value is based on the fee-paying limited partners.

(3) The gross multiple of invested capital (“MoIC”) is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

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(7) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling:

ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered.

ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered and one feeder fund:

ACE IV (D) Levered.

ACE IV (E) Levered includes the ACE IV (D) Levered feeder fund.

The gross and net IRR and MoIC presented in the table are for ACE IV (E) Unlevered and ACE IV (E) Levered.

Metrics for ACE IV (E) Levered are inclusive of a U.S.

dollar denominated feeder fund, which has not been presented separately.

Metrics for ACE IV (E) Levered exclude the U.S.

dollar denominated feeder fund.

The gross and net IRR for ACE IV (G) Unlevered are 9.7% and 7.1%, respectively.

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The gross and net MoIC for ACE IV (G) Levered are 1.6x and 1.4x, respectively.

The gross and net IRR for ACE IV (D) Levered are 12.9% and 9.5%, respectively.

The gross and net MoIC for ACE IV (D) Levered are 1.6x and 1.5x, respectively.

Original capital commitments are converted to U.S.

20 unchanged sentences

dollars at the prevailing quarter-end exchange rate.

(9) Performance for the open-ended core alternative credit fund, a perpetual capital vehicle, is presented as a drawdown fund as investor commitments to the fund are drawn sequentially in order of closing date, typically over a period of approximately 12 to 18 months.

The fund is made up of a Class M (“Main Class”) and a Class C (“Constrained Class”).

The Main Class includes investors electing to participate in all investments and the Constrained Class includes investors electing to be excluded from exposure to liquid investments.

The gross and net IRR and gross and net MoIC presented in the table are for the Main Class.

The gross and net IRRs for the Constrained Class are 10.8% and 7.7%, respectively.

The gross and net MoIC for the Constrained Class are 1.2x and 1.1x, respectively.

Private Equity Group—Year Ended December 31, 2023 Compared to Year Ended December 31, 2022

Fee Related Earnings

The following table presents the components of the Private Equity Group’s FRE ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2023 2022 $ Change % Change

Management fees $ 230,251 $ 199,837 $ 30,414 15%

Other fees 3,076 1,888 1,188 63

Compensation and benefits (85,024) (86,561) 1,537 2

General, administrative and other expenses (35,762) (30,697) (5,065) (16)

Fee Related Earnings $ 112,541 $ 84,467 28,074 33

Management Fees.

The chart below presents Private Equity Group management fees and effective management fee rates ($ in millions):

Management fees from ASOF II increased by $35.3 million for the year ended December 31, 2023 compared to the prior year primarily driven by deployment.

Management fees also increased by $7.4 million for the year ended December 31, 2023 due to the Crescent Point Acquisition.

The increase in management fees was partially offset by decrease of $5.0 million in fees from ACOF IV for the year ended December 31, 2023 compared to the prior year as the fund stopped paying management fees during the fourth quarter of 2022.

M anagement fees from ASOF I also decreased by $5.6 million for the year ended December 31, 2023 compared to the prior year due to asset realizations that reduced the fee base.

The increase in effective management fee rate for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by deployment of capital in ASOF II, which has a higher effective management fee rate than the Private Equity Group’s average effective management fee rate.

In addition, certain funds from the Crescent Point Acquisition contributed to the increase in effective management fee rate as those funds have a higher effective management fee rate than the Private Equity Group’s average effective management fee rate.

Other fees increased year ended December 31, 2023 compared to the prior year primarily due to higher administrative service fees on funds that pay on invested capital, driven by deployment from ASOF II and ACOF VI.

Compensation and Benefits.

Although salary and benefits costs have modestly increased during the year ended December 31, 2023 compared to the prior year to reflect merit increases for existing personnel, as well as changes in headcount from the Crescent Point Acquisition, compensation and benefits have decreased over the comparative period, primarily driven by lower incentive-based compensation which is discretionary and may fluctuate each year.

In connection to the Crescent Point Acquisition, we recognized $3.1 million of compensation and benefits for the three months ended December 31, 2023 following the transaction close date of October 2, 2023.

Average headcount increased by 6% to 129 investment and investment support professionals for the year-to-date period in 2023 from 122 professionals in 2022, primarily due to the Crescent Point Acquisition.

General, Administrative and Other Expenses.

Placement fees increased by $2.9 million for the year ended December 31, 2023 compared to the prior year primarily driven by new capital commitments to ASOF II subsequent to the second quarter of 2022 and through its final close in the fourth quarter of 2022.

Additionally, occupancy costs which support our professionals that are based in higher cost locations, increased by $1.4 million for the year ended December 31, 2023 when compared to the year ended December 31, 2022.

Separately, the Crescent Point Acquisition that closed on October 2, 2023, contributed an additional $1.2 million of expenses, primarily consisted of consulting fees and occupancy costs.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2023 2022 $ Change % Change

Fee Related Earnings $ 112,541 $ 84,467 $ 28,074 33%

Performance income—realized 117,899 123,806 (5,907) (5)

Performance related compensation—realized (89,767) (90,300) 533 1

Realized net performance income 28,132 33,506 (5,374) (16)

Investment income (loss)—realized (1,434) 3,432 (4,866) NM

Interest and other investment income—realized 4,952 2,546 2,406 95

Interest expense (21,422) (15,953) (5,469) (34)

Realized net investment loss (17,904) (9,975) (7,929) (79)

Realized Income $ 122,769 $ 107,998 14,771 14

Realized net performance income for the years ended December 31, 2023 and 2022 was primarily attributable to tax distributions from ASOF I.

Realized net performance income for the year ended December 31, 2023 also included realized gains from the partial sale of ACOF IV’s investment in AZEK, while the year ended December 31, 2022 included realized gains from the partial sale and recapitalization of ACOF IV’s investment in an energy company.

Realized net investment loss for the years ended December 31, 2023 and 2022 was primarily attributable to interest expense exceeding investment income during these periods.

Realized net investment loss for the year ended December 31, 2023 also reflects realized losses from two corporate private equity funds, including the liquidation of one of those funds following the disposition of its remaining assets.

The activity for the year ended December 31, 2023 was partially offset by dividend income from SSF IV and realized gains from the partial sale of ACOF IV’s investment in AZEK.

Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in thousands):

As of December 31,

Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income

ACOF IV $ 181,317 $ 145,197 $ 36,120 $ 282,624 $ 226,099 $ 56,525

ACOF V 474,878 380,807 94,071 742,962 594,369 148,593

ACOF VI 337,142 289,118 48,024 147,185 117,748 29,437

ASOF I 357,016 250,198 106,818 326,471 228,529 97,942

ASOF II 80,926 56,648 24,278 — — —

Other funds 192,167 141,481 50,686 108,997 75,583 33,414

Total Private Equity Group $ 1,623,446 $ 1,263,449 $ 359,997 $ 1,608,239 $ 1,242,328 $ 365,911

The following table presents the change in accrued carried interest for the Private Equity Group ($ in thousands):

As of December 31, 2022 Activity during the period As of December 31, 2023

Waterfall Type Accrued Carried Interest Change in Unrealized Realized Other Adjustments Accrued Carried Interest

ACOF IV American $ 282,624 $ (35,830) $ (65,477) $ — $ 181,317

ACOF V American 742,962 (268,084) — — 474,878

ACOF VI American 147,185 189,957 — — 337,142

ASOF I European 326,471 82,728 (52,183) — 357,016

ASOF II European — 80,926 — — 80,926

Other funds European 92,509 82,079 — 8,479 183,067

Other funds American 16,488 (7,149) (239) — 9,100

Total Private Equity Group $ 1,608,239 $ 124,627 $ (117,899) $ 8,479 $ 1,623,446

Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity Special

Opportunities APAC Private Equity Other (1)

Total Private

Balance at 12/31/2022 $ 20,939 $ 13,720 $ 90 $ — $ 34,749

Acquisitions — — 3,697 — 3,697

Net new par/equity commitments 1,482 — — 139 1,621

Capital reductions (9) — — — (9)

Distributions (1,794) (499) (16) — (2,309)

Change in fund value 380 1,333 (357) — 1,356

Balance at 12/31/2023 $ 20,998 $ 14,554 $ 3,414 $ 139 $ 39,105

Corporate Private

Equity Special

Opportunities APAC Private Equity Other Total Private

Balance at 12/31/2021 $ 21,502 $ 11,765 $ 137 $ — $ 33,404

Net new par/equity commitments — 2,202 — — 2,202

Capital reductions (8) (200) — — (208)

Distributions (1,009) (268) (56) — (1,333)

Change in fund value 453 221 10 — 684

Balance at 12/31/2022 $ 20,938 $ 13,720 $ 91 $ — $ 34,749

(1) Activity within Other represents equity commitments to the platform that have not yet been allocated to an investment strategy.

The components of our AUM for the Private Equity Group are presented below ($ in billions):

FPAUM Non-fee paying (1)

AUM not yet paying fees

(1) Includes $1.7 billion and $1.3 billion of non-fee paying AUM based on our general partner commitment as of December 31, 2023 and 2022, respectively.

Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity Special

Opportunities APAC Private Equity Total Private

Balance at 12/31/2022 $ 11,277 $ 7,166 $ 4 $ 18,447

Acquisitions — — 1,692 1,692

Deployment/subscriptions/increase in leverage 220 2,518 14 2,752

Distributions (38) (1,194) — (1,232)

Change in fee basis — — (45) (45)

Balance at 12/31/2023 $ 11,459 $ 8,490 $ 1,665 $ 21,614

Corporate Private

Equity Special

Opportunities APAC Private Equity Total Private

Balance at 12/31/2021 $ 12,420 $ 4,216 $ 53 $ 16,689

Deployment/subscriptions/increase in leverage 36 4,453 — 4,489

Distributions (385) (1,503) (14) (1,902)

Change in fund value — — (4) (4)

Change in fee basis (794) — (31) (825)

Balance at 12/31/2022 $ 11,277 $ 7,166 $ 4 $ 18,447

The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):

Invested capital Capital commitments

Private Equity Group—Fund Performance Metrics as of December 31, 2023

Four significant funds, ACOF V, ASOF I, ACOF VI and ASOF II, collectively contributed approximately 85% of the Private Equity Group’s management fees for the year ended December 31, 2023.

The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of December 31, 2023 ($ in millions):

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Fund Gross (3)

Funds Harvesting Investments

ACOF V 2017 $ 8,765 $ 7,850 $ 7,611 $ 3,505 $ 8,253 $ 11,758 1.5x 1.4x 11.6 8.3 Corporate Private Equity

ASOF I 2019 5,559 3,518 5,500 4,462 3,775 8,237 1.8x 1.6x 26.0 20.2 Special Opportunities

Funds Deploying Capital

ACOF VI 2020 7,419 5,743 5,109 593 6,696 7,289 1.4x 1.3x 24.2 17.9 Corporate Private Equity

ASOF II 2021 7,580 7,128 5,926 1,371 5,241 6,612 1.2x 1.1x 14.4 9.6 Special Opportunities

(1) Realized value represents the sum of all cash dividends, interest income, other fees and cash proceeds from realizations of interests in portfolio investments.

Realized value excludes any proceeds related to bridge financings.

(2) Unrealized value represents the fair market value of remaining investments.

Unrealized value does not take into account any bridge financings.

There can be no assurance that unrealized investments will be realized at the valuations indicated.

(3) The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable.

The gross MoICs are also calculated before giving effect to any bridge financings.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(4) The net MoIC is calculated at the fund-level.

The net MoIC is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or performance fees.

The net MoIC is after giving effect to management fees, carried interest, as applicable, and other expenses.

The net MoICs are also calculated before giving effect to any bridge financings.

Inclusive of bridge financings, the net MoIC would be 1.3x for ACOF V and 1.2x for ACOF VI.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5) The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period.

Gross IRRs reflect returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows.

The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable.

The gross IRRs are also calculated before giving effect to any bridge financings.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(6) The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period.

Net IRRs reflect returns to the fee-paying limited partners and if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The cash flow dates used in the net IRR calculation are based on the actual dates of the cash flows.

The net IRRs are calculated after giving effect to management fees, carried interest as applicable, and other expenses and exclude commitments by the general partner and Schedule I investors who do not pay either management fees or carried interest.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

The net IRRs are also calculated before giving effect to any bridge financings.

Inclusive of bridge financings, the net IRRs would be 8.4% for ACOF V and 16.6% for ACOF VI.

(9) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in pound sterling:

ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds:

ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes.

ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered.

Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR for ACE VI (G) Unlevered are 22.2% and 15.9%, respectively.

The gross and net MoIC for ACE VI (G) Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (G) Levered are 18.9% and 7.7%, respectively.

The gross and net MoIC for ACE VI (G) Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (E) II Unlevered are 22.4% and 17.5%, respectively.

The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (E) II Levered are 20.9% and 14.9%, respectively.

The gross and net MoIC for ACE VI (E) II Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (D) Levered are 23.5% and 17.0%, respectively.

The gross and net MoIC for ACE VI (D) Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (Y) Unlevered are 15.8% and 11.1%, respectively.

The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (D) Rated Notes are 26.0% and 14.0%, respectively.

The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively.

Original capital commitments are converted to U.S.

dollars at the prevailing exchange rate at the time of the fund's closing.

All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S.

dollars at the prevailing quarter-end exchange rate.

Real Assets Group—Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

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The chart below presents Real Assets Group management fees and effective management fee rates ($ in millions):

Management fees from IDF V increased by $9.3 million for the year ended December 31, 2023 compared to the prior year primarily driven by deployment of capital.

Our second climate infrastructure fund, which launched during the second quarter of 2023, contributed additional management fees of $4.8 million primarily driven by new capital commitments for the year ended December 31, 2023.

Management fees from AREIT and AIREIT also collectively increased by $11.4 million for the year ended December 31, 2023 compared to the prior year driven by increases in the average capital base of AREIT and AIREIT.

The increase over the comparative period also included $1.5 million from make-whole termination fees, driven by the early termination of the advisory agreements of two U.S.

industrial real estate equity funds, which resulted in the acceleration of contractual management fees.

Management fees for the year ended December 31, 2023 included:

(i) $1.8 million of catch-up fees from our fourth U.S.

opportunistic real estate equity fund;

and (ii) $0.3 million of catch-up fees from Ares European Real Estate Fund VI, L.P.

Catch-up fees for the year ended December 31, 2022 included $4.8 million from US X.

Excluding catch-up fees previously discussed, management fees for the year ended December 31, 2023 compared to the prior year increased by:

(i) $15.1 million for our fourth U.S.

opportunistic real estate equity fund;

(ii) $2.9 million for EF VI;

and (iii) $3.3 million for US X, which closed in the third quarter of 2022.

The increase in management fees for these funds was primarily driven by new capital commitments.

Management fees from our most recent real estate equity funds increase once capital is invested and deployment in these funds has also contributed to the increase in fees over the comparative period.

The increase in effective management fee rate for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily due to additional capital raised in our non-traded REITs, which have effective management fee rates between 1.10% and 1.25%.

Fee Related Performance Revenues.

AREIT and AIREIT generated $164.3 million of incentive fees for the year ended December 31, 2022 but did not meet the performance hurdles to generate incentive fees for the year ended December 31, 2023, resulting in a decrease in fee related performance revenues.

The decrease in other fees for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily attributable to a decrease of:

(i) $11.4 million in acquisition and development fees resulting from a reduction in property-related activities within certain industrial U.S.

real estate equity funds;

and (ii) $2.9 million related to program administration fees resulting from the management and creation of our 1031 exchange program that is used by our non-traded REITs.

The decrease for the year ended December 31, 2023 compared to the year ended December 31, 2022 was partially offset by higher credit transaction fees of $7.5 million.

Credit transaction fees are generated periodically within the infrastructure debt strategy and relate to the arrangement and origination of loans.

The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the year ended December 31, 2024 compared to the prior year ($ in millions):

Year-over-year Change

Capital commitments:

Fees from Ares U.S.

Real Estate Opportunity Fund IV, L.P.

(“AREOF IV”) and our second climate infrastructure fund, excluding catch-up fees

Fees from our fourth European value-add real estate equity fund (excluding catch-up fees), which launched during the second quarter of 2024

Catch-up fees 5.7

Capital deployment in IDF V 8.6

Fees from the WSM Acquisition effective December 1, 2024 2.1

Distributions that reduced the fee bases of Infrastructure Debt Fund IV, L.P.

(“IDF IV”) and Infrastructure Debt Fund III, L.P.

(“IDF III”) as the funds are past their investment periods

Decrease in NAV of our industrial non-traded REIT due to lower valuations of certain properties (8.1)

Contractual reduction in the fee base of AREOF III that was triggered at the expiration of the fund’s investment period at the end of the fourth quarter of 2023

Cumulative effect of other changes (0.8)

The increase in effective management fee rate for the year ended December 31, 2024 compared to the prior year was primarily driven by the deployment of capital within our real estate equity funds.

Certain of our private real estate equity funds pay a fee on committed capital that increases once that capital is invested.

As a result, our effective management fee rate increases as capital is deployed.

The decrease in other fees for the year ended December 31, 2024 compared to the prior year was driven by:

(i) lower credit transaction fees of $8.1 million from the infrastructure debt strategy, which are infrequent in nature;

partially offset by (ii) higher administrative service fees of $1.7 million, mostly from certain infrastructure debt funds that started paying such fees to us subsequent to the third quarter of 2023;

and (iii) higher property management and development fees of $3.5 million resulting from an increase in property-related activities within certain North American real estate equity funds.

Compensation and Benefits.

The decrease in compensation and benefits for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by lower fee related performance compensation of $103.3 million, corresponding to the decrease in fee related performance revenues.

The decrease over the comparative period was partially offset by higher salary expense of $11.5 million, primarily attributable to headcount growth.

Average headcount increased by 13% to 356 investment and investment support professionals for the year-to-date period in 2023 from 314 professionals in 2022.

The increase in compensation and benefits for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by (i) an increase in salary expenses of $7.4 million, primarily attributable to headcount growth to support the expansion of our business;

and (ii) an increase in payroll-related taxes of $2.8 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2024;

partially offset by (iii) lower incentive-based compensation;

and (iv) higher administrative fees reimbursement of expenses for increased services provided throughout the current year.

Average headcount increased by 10% to 391 investment and investment support professionals for the year-to-date period in 2024 from 356 professionals for the same period in 2023.

General, Administrative and Other Expenses.

Certain expenses increased during the current period, including:

(i) occupancy costs which support our growing headcount that are based in higher cost locations;

(ii) information services such as research and market data;

and (iii) information technology costs.

Collectively, these expenses increased by $4.0 million for the year ended December 31, 2023 compared to the prior year .

Additionally, the increase in general, administrative and other expenses was also driven by:

(i) travel, marketing and certain fringe benefits, which collectively increased by $3.1 million, as we continued to increase marketing efforts driven by more investor meetings and events and conducted more in-person company meetings and events with a focus on promoting collaboration;

and (ii) placement fees, which increased by $1.5 million, primarily attributable to new commitments in IDF V during 2022 and our fourth U.S.

opportunistic real estate equity fund in connection with our fundraising efforts.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to marketing and fundraising activities, including supplemental distribution fees charged in connection with an amended servicing arrangement with a distribution partner.

Supplemental distribution fees increased by $3.3 million for the year ended December 31, 2024 compared to the prior year .

Other marketing costs also increased by $2.0 million over the comparative periods, driven by:

(i) investor events, including our firmwide AGM event;

and (ii) fund formation costs for AREOF IV.

In addition, certain expenses increased for the year ended December 31, 2024 compared to the prior year , including:

(i) higher information technology costs related to software license fees of $3.1 million;

and (ii) higher professional service fees of $2.0 million, which included non-recurring legal expenses of $1.5 million incurred during the first quarter of 2024.

Realized Income

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Realized net performance income 23,034 8,222 14,812 180

Investment income (loss)—realized (4,498) 3,115 (7,613) NM

Interest and other investment income—realized 11,055 9,045 2,010 22

Investment income—realized 5,184 3,392 1,792 53

Interest income 7,649 3,165 4,484 142

Interest expense (24,131) (16,391) (7,740) (47)

Realized net investment income (loss) (9,834) 814 (10,648) NM

Realized net investment loss (11,298) (9,834) (1,464) (15)

Realized Income $ 223,842 $ 217,195 6,647 3

Realized net performance income for the years ended December 31, 2023 and 2022 included incentive fees generated from an open-ended industrial real estate fund and carried interest received upon realizations from US VIII, driven by multifamily property sales.

Realized net performance income for the year ended December 31, 2023 also included carried interest received upon realizations from a U.S.

real estate equity fund driven by multifamily property sales, while realized net performance income for the year ended December 31, 2022 included tax distributions from US IX.

Realized net investment loss for the year ended December 31, 2023 was primarily attributable to:

(i) interest expense exceeding investment income during the periods;

and (ii) realized losses recognized from a real estate debt vehicle, where financing costs are exceeding investment returns due to limited investment opportunities.

This activity was partially offset by distributions of investment income from multiple real estate equity and real estate debt vehicles during the period.

Realized net investment income for the year ended December 31, 2022 included dividend income generated from an infrastructure opportunities fund.

The Real Assets Group’s realized activities were principally composed of and caused by the following:

Year ended December 31, 2024 Year ended December 31, 2023

Realized net performance income

Carried interest from:

• Distributions of $8.8 million from U.S.

Real Estate Fund VIII, L.P.

(“US VIII”) and a North American real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments

• Realized gains of $3.1 million from the partial sale of ACIP’s investment in a renewable energy company

Incentive fees from:

• An industrial North American real estate equity fund of $8.7 million, that is based upon a three-year measurement period

• An open-ended industrial real estate fund of $2.1 million, that varies based upon a three-year measurement period calculated for each fund investor

Carried interest from:

• Distributions of $1.8 million from US VIII and a North American real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments

Incentive fees from:

• Incentive fees of $5.7 million generated from an open-ended industrial real estate fund that varies based upon a three-year measurement period calculated for each fund investor

Realized investment income and interest income

• Distributions of investment income of $15.6 million, primarily from funds within our real estate debt and infrastructure debt strategies

• Interest income earned on treasury-backed securities of $2.1 million, which is allocated among our segments based on the cost basis of our balance sheet investments

• Interest earned from loans that we made within our real estate debt strategy

• Realized gains of $1.2 million from the sale of an infrastructure opportunities fund’s investment in a wind energy company

• Realized loss of $12.4 million associated with a guarantee of a credit facility provided in connection with a historical acquisition

• Distributions of investment income of $7.8 million, primarily from funds within our real estate debt, infrastructure debt and infrastructure opportunities strategies

• Realized losses of $6.2 million from a real estate debt vehicle, where interest expense was incurred with no associated investment income during the periods.

These realized losses are not expected to recur as we restructured the arrangement in the fourth quarter of 2023

Real Assets Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Real Assets Group.

Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in thousands):

Accrued net performance income excludes net performance income that has been realized but not yet received as of the reporting date ($ in millions):

As of December 31,

Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income

US VIII $ 32,199 $ 20,651 $ 11,548 $ 36,822 $ 23,566 $ 13,256

$ 20.1 $ 12.9 $ 7.2 $ 32.2 $ 20.7 $ 11.5

US IX 99.8 61.9 37.9 90.0 55.8 34.2

EF IV 49,150 29,490 19,660 61,791 37,075 24,716

IDF V 56,065 33,677 22,388 16,848 10,108 6,740

AREOF III 24.5 14.8 9.7 35.7 21.4 14.3

EF IV 22.9 13.7 9.2 49.2 29.5 19.7

EIF V 121.3 90.7 30.6 93.6 70.0 23.6

IDF V 113.7 69.3 44.4 56.1 33.7 22.4

ACIP 97.7 66.8 30.9 61.4 42.2 19.2

Other real assets funds 68.3 44.3 24.0 78.7 50.2 28.5

Total Real Assets Group $ 568.3 $ 374.4 $ 193.9 $ 496.9 $ 323.5 $ 173.4

The following table presents the change in accrued performance income for the Real Assets Group ($ in thousands):

The following table presents the change in accrued performance income for the Real Assets Group ($ in millions):

As of December 31, 2023 Activity during the period As of December 31, 2024

3 unchanged sentences

US IX European 90.0 9.8 — — 99.8

EF IV American 61,791 (12,641) — — 49,150

IDF V European 16,848 37,875 — 1,342 56,065

AREOF III European 35.7 (11.2) — — 24.5

EF IV American 49.2 (26.3) — — 22.9

EIF V European 93.6 27.7 — — 121.3

IDF V European 56.1 63.8 — (6.2) 113.7

ACIP European 61.4 44.0 (7.7) — 97.7

Other real assets funds European 51.0 8.8 (12.2) 5.0 52.6

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The tables below present rollforwards of AUM for the Real Assets Group ($ in millions):

Equity European Real

North American Real Estate Equity European Real

Estate Equity Real Estate

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Balance at 12/31/2023 $ 29,177 $ 6,941 $ 13,597 $ 6,248 $ 9,450 $ 65,413

Acquisitions 2,488 — — — — 2,488

Net new par/equity commitments 2,684 1,465 1,580 664 974 7,367

3 unchanged sentences

Redemptions (883) — (210) — — (1,093)

Net allocations among investment strategies — — — — 20 20

Change in fund value 441 (358) 167 927 438 1,615

Balance at 12/31/2024 $ 32,959 $ 7,808 $ 17,479 $ 7,444 $ 9,608 $ 75,298

Equity European Real

North American Real Estate Equity European Real

Estate Equity Real Estate

3 unchanged sentences

Balance at 12/31/2022 $ 31,460 $ 7,196 $ 12,526 $ 5,194 $ 9,685 $ 66,061

Acquisitions — — — — 8,184 8,184

Net new par/equity commitments 3,116 36 1,278 1,218 428 6,076

8 unchanged sentences

AUM not yet paying fees

(1) Includes $0.6 billion of non-fee paying AUM based on our general partner commitment as of December 31, 2023 and 2022, respectively.

(1) Includes $1.0 billion and $0.6 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023, respectively.

Real Assets Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Real Assets Group ($ in millions):

Equity European Real

North American Real Estate Equity European Real

Estate Equity Real Estate

3 unchanged sentences

Balance at 12/31/2023 $ 20,844 $ 5,913 $ 3,553 $ 5,148 $ 5,880 $ 41,338

Acquisitions 1,554 — — — — 1,554

Commitments 2,278 936 — 226 — 3,440

3 unchanged sentences

Redemptions (883) — (210) — — (1,093)

Net allocations among investment strategies — — — — 20 20

Change in fund value 197 (390) 94 57 (114) (156)

1 unchanged sentence

Balance at 12/31/2024 $ 22,678 $ 6,295 $ 3,923 $ 5,129 $ 6,063 $ 44,088

Equity European Real

North American Real Estate Equity European Real

Estate Equity Real Estate

3 unchanged sentences

Balance at 12/31/2022 $ 21,788 $ 5,566 $ 3,759 $ 4,524 $ 5,970 $ 41,607

Acquisitions — — — — 4,855 4,855

Commitments 2,525 26 (5) 1,128 — 3,674

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The charts below present FPAUM for the Real Assets Group by its fee bases ($ in billions):

Market value (1)

Invested capital/other (1)

Market value (2)

Capital commitments

(1) Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.

(2) Amounts represent FPAUM from funds that primarily invest in illiquid strategies.

The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.

(2) Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.

Real Assets Group—Fund Performance Metrics as of December 31, 2024

Five significant funds, AIREIT, AREIT, Ares Infrastructure Debt Fund IV L.P.

(“IDF IV”), IDF V and an open-ended industrial real estate fund, collectively contributed approximately 44% of the Real Assets Group’s management fees for the year ended December 31, 2023.

The significant funds presented in the tables below collectively contributed approximately 37% of the Real Assets Group’s management fees for the year ended December 31, 2024.

The following table presents the performance data for our significant funds that are not drawdown funds in the Real Assets Group as of December 31, 2024 ($ in millions):

2 unchanged sentences

Fund Gross Net Gross Net

2012 $ 5,267 N/A (4.8) N/A 6.7 U.S.

Real Estate Equity

2017 7,718 N/A (9.8) N/A 9.9 U.S.

Real Estate Equity

Diversified non-traded REIT (2)

2012 $ 5,663 N/A (0.4) N/A 6.1 North American Real Estate Equity

Industrial non-traded REIT (3)

2017 7,354 N/A 0.8 N/A 8.5 North American Real Estate Equity

Open-ended industrial real estate fund (4)

2017 4,957 (8.1) (7.7) 19.9 16.2 U.S.

Real Estate Equity

2017 5,083 4.3 3.3 17.5 14.3 North American Real Estate Equity

(1) Since inception returns are annualized.

5 unchanged sentences

The inception date used in the calculation of the since inception return is the date in which the first shares of common stock were sold after converting to a NAV-based REIT.

Additional information related to AREIT can be found in its filings with the SEC, which are not part of this report.

(3) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period.

3 unchanged sentences

Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.

Additional information related to AIREIT can be found in its filings with the SEC, which are not part of this report.

(4) Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses.

1 unchanged sentence

Net returns are calculated by subtracting the applicable management fees, incentive fees, as applicable and other expenses from the gross returns on a quarterly basis.

The following table presents the performance data of the Real Assets Group’s significant drawdown funds as of December 31, 2023 ($ in millions):

The following table presents the performance data of the Real Assets Group’s significant drawdown fund as of December 31, 2024 ($ in millions):

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

2 unchanged sentences

Fund Gross (3)

Fund Harvesting Investments

2018 $ 3,120 $ 4,012 $ 4,531 $ 2,235 $ 2,875 $ 5,110 1.2x 1.2x 6.9 5.3 Infrastructure Debt

Fund Deploying Capital

2020 $ 4,849 $ 4,585 $ 3,813 $ 912 $ 3,550 $ 4,462 1.2x 1.2x 12.9 10.1 Infrastructure Debt

(1) Realized value includes distributions of operating income, sales and financing proceeds received.

(1) Realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners.

(2) Unrealized value represents the fund's NAV reduced by the accrued incentive allocation, if applicable.

20 unchanged sentences

Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7) IDF IV is made up of U.S.

Dollar hedged, U.S.

Dollar unhedged, Euro unhedged, Yen hedged parallel funds and a single investor U.S.

Dollar parallel fund.

(7) IDF V is made up of U.S.

Dollar hedged, Euro unhedged, GBP hedged, Yen hedged, and single investor parallel funds.

The gross and net IRR and MoIC presented in the table are for the U.S.

Dollar hedged parallel fund.

The gross and net IRR for the U.S.

Dollar unhedged parallel fund are 6.6% and 4.5%, respectively.

The gross and net MoIC for the U.S.

Dollar unhedged parallel fund are 1.2x and 1.1x, respectively.

The gross and net IRR for the Euro unhedged parallel fund are 6.4% and 5.1%, respectively.

The gross and net MoIC for the Euro unhedged parallel fund are 1.2x and 1.1x, respectively.

The gross and net IRR for the Yen hedged parallel fund are 4.6% and 2.8%, respectively.

The gross and net MoIC for the Yen hedged parallel fund are 1.1x and 1.1x, respectively.

The gross and net IRR for the single investor U.S.

2 unchanged sentences

Dollar parallel fund are 1.2x and 1.2x, respectively.

Original capital commitments are converted to U.S.

Dollars at the prevailing exchange rate at the time of fund's closing.

All other values for IDF IV are for the combined fund and are converted to U.S.

Dollars at the prevailing quarter-end exchange rate.

(8) IDF V is made up of U.S.

Dollar hedged, Euro unhedged, GBP hedged, Yen hedged and a single investor parallel fund.

The gross and net IRR and MoIC presented in the table are for the U.S.

Dollar hedged parallel fund.

The gross and net IRR for the Euro unhedged parallel fund are 13.7% and 10.8%, respectively.

4 unchanged sentences

The gross and net MoIC for the Yen hedged parallel fund are 1.1x and 1.1x, respectively.

The gross and net IRR for the single investor U.S.

Dollar parallel fund are 10.0% and 7.7%, respectively.

The gross and net MoIC for the single investor U.S.

Dollar parallel fund are 1.1x and 1.1x, respectively.

Original capital commitments are converted to U.S.

2 unchanged sentences

Dollars at the prevailing quarter-end exchange rate.

Private Equity Group—Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Fee Related Earnings

The following table presents the components of the Private Equity Group’s FRE ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2024 2023 $ Change % Change

Management fees $ 137,130 $ 126,721 $ 10,409 8%

Other fees 1,695 1,693 2 —

Compensation and benefits (56,830) (58,408) 1,578 3

General, administrative and other expenses (21,449) (16,949) (4,500) (27)

Fee Related Earnings $ 60,546 $ 53,057 7,489 14

Management Fees.

The chart below presents Private Equity Group management fees and effective management fee rates ($ in millions):

The following table presents the components of and causes for changes in the Private Equity Group’s management fees for the year ended December 31, 2024 compared to the prior year ($ in millions):

Year-over-year Change

Fees from the Crescent Point Acquisition effective October 2, 2023

Change in fee base from capital commitments to invested capital and reduction in fee rate from 1.50% to 0.75% for an energy opportunities fund, which were both contractually triggered at the expiration of the fund’s investment period (11.3)

The decrease in effective management fee rate for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by the reduction in fee rate for the energy opportunities fund as discussed above, partially offset by certain funds within our APAC private equity strategy that have a higher effective management fee rate than the average effective management fee rate of the funds within our corporate private equity strategy.

Compensation and Benefits.

Although salary expenses increased for the year ended December 31, 2024 compared to the prior year reflecting the full year impact from the increase in headcount from the Crescent Point Acquisition, compensation and benefits decreased slightly over the comparative periods.

The decrease for the year ended December 31, 2024 compared to the prior year was primarily driven by lower incentive-based compensation paid to our corporate private equity team.

Average headcount increased by 10% to 103 investment and investment support professionals for the year-to-date period in 2024 from 94 professionals in 2023, driven by the increase in headcount from the Crescent Point Acquisition and partially offset by a decrease in headcount for our corporate private equity team.

General, Administrative and Other Expenses.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the prior year largely reflect Crescent Point’s operating expenses following the Crescent Point Acquisition.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2024 2023 $ Change % Change

Fee Related Earnings $ 60,546 $ 53,057 $ 7,489 14%

Performance income—realized 43,299 65,716 (22,417) (34)

Performance related compensation—realized (36,334) (52,984) 16,650 31

Realized net performance income 6,965 12,732 (5,767) (45)

Investment income (loss)—realized 1,926 (712) 2,638 NM

Interest income 1,970 38 1,932 NM

Interest expense (22,632) (18,990) (3,642) (19)

Realized net investment loss (18,736) (19,664) 928 5

Realized Income $ 48,775 $ 46,125 2,650 6

The Private Equity Group’s realized activities were principally composed of and caused by the following:

Year ended December 31, 2024 Year ended December 31, 2023

Realized net performance income

Carried interest from:

• Realized gains from ACOF IV’s investments in various energy companies and ACOF VI’s investment in Frontier Communications Parent, Inc.

Carried interest from:

• Realized gains from the partial sale of ACOF IV’s investment in The AZEK Company (“AZEK”)

Realized investment income (loss) and interest income

• Distributions of investment income from our corporate private equity funds

• Interest income earned on treasury-backed securities, which is allocated among our segments based on the cost basis of our balance sheet investments

• Realized losses of $4.6 million in connection with the liquidation and disposition of remaining assets of certain legacy funds

• Realized gains of $4.0 million from the partial sale of ACOF IV’s investment in AZEK

Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in millions):

As of December 31,

Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income Accrued Performance Income Accrued Performance Compensation Accrued Net Performance Income

ACOF IV $ 166.8 $ 133.6 $ 33.2 $ 181.3 $ 145.2 $ 36.1

ACOF V — — — 474.9 380.8 94.1

ACOF VI 523.1 442.8 80.3 337.1 289.1 48.0

Other funds 20.9 14.8 6.1 55.2 42.3 12.9

Total Private Equity Group $ 710.8 $ 591.2 $ 119.6 $ 1,048.5 $ 857.4 $ 191.1

The following table presents the change in accrued carried interest for the Private Equity Group ($ in millions):

As of December 31, 2023 Activity during the period As of December 31, 2024

Waterfall Type Accrued Carried Interest Change in Unrealized Realized Accrued Carried Interest

ACOF IV American $ 181.3 $ (5.5) $ (9.0) $ 166.8

ACOF V American 474.9 (474.9) — —

ACOF VI American 337.1 220.3 (34.3) 523.1

Other funds European 46.1 (33.0) — 13.1

Other funds American 9.1 (1.3) — 7.8

Total Private Equity Group $ 1,048.5 $ (294.4) $ (43.3) $ 710.8

Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Other (1)

Total Private

Balance at 12/31/2023 $ 20,998 $ 3,414 $ 139 $ 24,551

Net new par/equity commitments 458 3 58 519

Capital reductions (4) — — (4)

Distributions (685) (19) — (704)

Redemptions — (2) — (2)

Net allocations among investment strategies 150 — (197) (47)

Change in fund value 147 (419) — (272)

Balance at 12/31/2024 $ 21,064 $ 2,977 $ — $ 24,041

Corporate Private

Equity APAC Private

Equity Other (1)

Total Private

Balance at 12/31/2022 $ 20,939 $ 90 $ — $ 21,029

Acquisitions — 3,697 — 3,697

Net new par/equity commitments 1,482 — 139 1,621

Capital reductions (9) — — (9)

Distributions (1,794) (16) — (1,810)

Change in fund value 380 (357) — 23

Balance at 12/31/2023 $ 20,998 $ 3,414 $ 139 $ 24,551

The components of our AUM for the Private Equity Group are presented below ($ in billions):

FPAUM Non-fee paying (1)

AUM not yet paying fees

(1) Includes $1.2 billion and $1.4 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023, respectively.

Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2023 $ 11,459 $ 1,665 $ 13,124

Deployment/subscriptions/increase in leverage 28 19 47

Distributions (54) — (54)

Redemptions — (2) (2)

Change in fund value (21) — (21)

Change in fee basis (1,552) (115) (1,667)

Balance at 12/31/2024 $ 9,860 $ 1,567 $ 11,427

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2022 $ 11,277 $ 4 $ 11,281

Acquisitions — 1,692 1,692

Deployment/subscriptions/increase in leverage 220 14 234

Distributions (38) — (38)

Change in fee basis — (45) (45)

Balance at 12/31/2023 $ 11,459 $ 1,665 $ 13,124

The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):

Capital commitments Invested capital

Private Equity Group—Fund Performance Metrics as of December 31, 2024

The significant funds presented in the table below collectively contributed approximately 72% of the Private Equity Group’s management fees for the year ended December 31, 2024.

The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of December 31, 2024 ($ in millions):

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Fund Gross (3)

Fund Harvesting Investments

ACOF V 2017 $ 7,827 $ 7,850 $ 7,611 $ 3,510 $ 7,350 $ 10,860 1.4x 1.3x 8.1 6.1 Corporate Private Equity

Fund Deploying Capital

ACOF VI 2020 8,142 5,743 5,256 1,471 7,248 8,719 1.6x 1.4x 23.0 17.0 Corporate Private Equity