Ares is a leading global alternative investment manager with $622.5 billion of assets under management and over 4,250 employees in over 55 o ffices in more than 25 countries .
−Removed: We offer our investors a range of investment strategies and seek to deliver attractive performance to an investor base that includes approximately 2,700 direct institutional relationships and a significant retail investor base across our publicly-traded funds, sub-advised accounts and perpetual wealth vehicles.
+Added: We offer our investors a range of investment strategies and seek to deliver attractive performance to an investor base that includes over 2,850 direct institutional relationships and a significant retail investor base across our publicly-traded funds, sub-advised accounts and perpetual wealth vehicles.
Since our inception in 1997, we have adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns through market cycles.
−Removed: Ares believes each of its distinct but complementary investment groups in Credit, Real Assets, Private Equity and Secondaries is a market leader based on assets under management and investment performance.
+Added: Ares believes each of its distinct but complementary investment groups in Credit, Real Assets, Secondaries and Private Equity is a market leader based on assets under management and investment performance.
We believe we create value for our stakeholders not only through our investment performance, but also by expanding our product offerings, enhancing our distribution channels, increasing our global presence, investing in our non-investment functions, securing strategic partnerships and completing strategic acquisitions and portfolio purchases.
Our AUM has grown to $622.5 billion as of December 31, 2025 from $94.0 billion a decade earlier.
−Removed: A s shown in the chart below, over the past five and ten years, our assets under management have achieved a compound annual growth rate (“CAGR”) of 27% and 19%, respectively ($ in billions):
+Added: A s shown in the chart below, over the past five and 10 years, our assets under management have achieved a compound annual growth rate (“CAGR”) of 26% and 21%, respectively ($ in billions):
We have an established track record of delivering strong risk-adjusted returns through market cycles.
12 unchanged sentences
• Collaborative Culture:
−Removed: We share ideas, relationships and information across our investment groups, which enables us to more effectively source, evaluate and manage investments.
+Added: We share ideas, relationships and information, which enables our investment groups to more effectively source, evaluate and manage investments.
We also leverage the OMG to help drive the efficiencies across the platforms and support our investment process.
2 unchanged sentences
We believe the exchange of information enhances our ability to analyze investments, deploy capital and improve the performance of our funds and portfolio companies.
−Removed: We have established deep and sophisticated independent research capabilities in over 55 industries and insights from investments in over 1,900 companies, over 1,750 alternative credit investments, over 555 properties, over 60 infrastructure assets and over 885 limited partnership interests.
+Added: We have established deep and sophisticated independent research capabilities in over 55 industries and insights from investments in over 2,150 companies, over 1,900 alternative credit investments, over 1,300 properties, over 90 infrastructure assets and over 1,000 limited partnership interests in investment funds.
Our investment process leverages the power of the Ares platform and an extensive network of professionals across our investment areas to identify and source attractive risk-adjusted return opportunities while emphasizing capital preservation.
2 unchanged sentences
The investment committees of our investment groups review and evaluate investment opportunities in a framework that includes a qualitative and quantitative assessment of the key risks of each investment.
−Removed: We do not have a centralized investment committee and instead our investment committees are structured with overlapping membership from different investment groups to ensure consistency of approach, shared investment experience and collaboration across our platform.
+Added: We do not have a centralized investment committee and instead our investment committees are generally structured with overlapping membership from different investment groups to ensure consistency of approach, shared investment experience and collaboration across our platform.
Our extensive network of investment professionals includes local and other individuals based in our markets with the knowledge, experience and relationships that enable them to identify and take advantage of a wide range of investment opportunities.
3 unchanged sentences
Each investment decision involves an intensive due diligence process that is generally focused on evaluating the target company or portfolio, as applicable, and its current and future prospects, its management team and industry, its ability to withstand adverse conditions and its capital structure, sponsorship and structural protection, among others.
−Removed: On January 1, 2024, we changed our segment composition.
−Removed: The special opportunities strategy, historically part of the Private Equity Group, is now referred to as opportunistic credit and is presented within the Credit Group.
• Real Assets :
With our experienced team, along with our expansive network of relationships, our Real Assets Group manages equity and debt strategies across real estate and infrastructure investments.
−Removed: Across our real estate equity and debt investment strategies, our team differentiates itself through its cycle-tested leadership, demonstrated performance across market cycles, access to real-time property market and corporate trends, and proven ability to create value
−Removed: through a disciplined investment process.
−Removed: Our real estate activities are managed by equity and debt teams in North America and Europe, along with our vertically-integrated operating platform.
+Added: Across our real estate investment strategies, our team differentiates itself through its cycle-tested leadership, demonstrated performance across market cycles, access to real-time property market and corporate trends, and proven ability to create value through a disciplined investment process.
+Added: Our real estate activities are managed by equity and debt teams in the Americas, Europe and Asia-Pacific (“APAC”), supported by our vertically-integrated operating platforms.
These professionals collaborate frequently within and across strategies to enhance sourcing, exchange information to inform underwriting and leverage relationships to drive pricing power.
−Removed: Our real estate equity and debt teams have the flexibility to invest across the risk-return spectrum through core/core-plus, value-add and opportunistic investment strategies.
−Removed: On December 1, 2024, Ares completed the acquisition of Walton Street Capital Mexico S.
−Removed: and certain of its affiliates (“WSM”) (the “WSM Acquisition”), a real estate asset management platform focused primarily on the industrial real estate sector in Mexico.
−Removed: The activities of WSM are presented within the Real Assets Group within our North American real estate equity strategy, which we renamed from U.S.
−Removed: real estate equity following the WSM Acquisition.
−Removed: The strategy name change did not result in any change to the historical composition of our segments.
−Removed: The infrastructure strategy invests through both debt and equity in infrastructure assets and companies that provide essential services with stable cash flows and high barriers to entry.
+Added: Our real estate teams have the flexibility to invest across the risk-return spectrum through core/core-plus, value-add and opportunistic investments.
+Added: The infrastructure strategy invests through both equity and debt in infrastructure assets and companies that provide essential services with stable cash flows and high barriers to entry.
These investments typically demonstrate a lower correlation to public markets and may have inflation protections.
−Removed: Across our infrastructure opportunities and debt investment strategies, we have a long-tenured global team utilizing deep local sourcing capabilities and extensive sector experience to originate and manage a portfolio of diverse, high-quality investments across the globe.
−Removed: We have dedicated direct infrastructure opportunities and debt teams that collaborate to share market insights, support underwriting and enhance origination.
−Removed: Our infrastructure opportunities strategy focuses on value-add equity with a flexible mandate in climate infrastructure.
−Removed: Our infrastructure debt strategy targets global assets and businesses with defensive characteristics across the digital, transport, energy and utility sectors.
−Removed: Leveraging the established long-standing relationships, the strategy seeks to generate exclusive deal flow and high-quality investment opportunities.
−Removed: • Private Equity :
−Removed: Our private equity investment professionals have deep domain expertise and a demonstrated ability to deploy capital across market environments, which allows them to be disciplined in their assessment of the best relative value opportunities and pursuit of attractive returns.
−Removed: We seek to be a private equity partner of choice to management teams and believe our partnership mentality and growth-oriented mindset helps well-position our portfolio companies for long-term success, whereby management teams gain access to our value creation expertise and extensive internal and external networks from diligence to exit.
−Removed: We believe our team’s continuity, significant industry and regional experience, accumulated knowledge of investing across market cycles and transaction types, along with our culture of collaboration, have been critical to our success.
+Added: Within our infrastructure strategy, we have a long-tenured global team utilizing deep local sourcing capabilities and extensive sector experience to originate and manage a portfolio of diverse, high-quality investments across the globe.
+Added: We have dedicated direct infrastructure teams that collaborate to share market insights, support underwriting and enhance origination.
+Added: Our infrastructure opportunities investment approach focuses on both core and value-add equity strategies leveraging flexible capital to build a diversified infrastructure portfolio.
+Added: Our infrastructure debt investment approach targets global assets and businesses with defensive characteristics across the digital, transport, energy and utility sectors.
+Added: Our digital infrastructure investment approach combines investment management with in-house data center development and operational expertise.
+Added: Leveraging the established long-standing relationships, the infrastructure strategy seeks to generate exclusive deal flow and high-quality investment opportunities.
+Added: On March 1, 2025, we completed the acquisition of the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), and existing capital commitments to certain managed funds (such acquisition of GCP International and the capital commitments, the “GCP Acquisition”).
+Added: The GCP Acquisition added complementary logistics and digital infrastructure investment capabilities and expanded our geographic presence.
+Added: The activities of GCP International are included within the Real Assets Group.
• Secondaries:
2 unchanged sentences
These strategies involve the acquisition of interests from investors in existing funds as well as recapitalizing and restructuring the funds, including transactions that can address pending fund maturity, strategy change or the need for additional equity capital.
+Added: • Private Equity :
+Added: Our private equity investment professionals have demonstrated an ability to deploy capital across market environments, which allows them to be disciplined in their assessment of the best relative value opportunities and pursuit of attractive returns.
+Added: From diligence through exit, our private equity investment professionals partner closely with management teams to scale businesses organically and inorganically, leveraging thematic insights, operational expertise and leveraging the resources of our broader platform.
+Added: Our private equity strategies are centered on driving durable growth and positioning companies for long-term success beyond our period of partnership.
+Added: We believe our deep industry experience and collaborative culture enable us to identify catalysts, unlock value and deliver repeatable outcomes across market cycles.
• Our other businesses include:
(i) Ares Insurance Solutions (“AIS”);
−Removed: (ii) activities from our company sponsored SPAC that is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination;
−Removed: and (iii) a venture capital business with fund strategies that are focused on applied artificial intelligence, among others.
+Added: (ii) strategic investments resulting from company sponsored SPACs that were formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination;
+Added: (iii) a venture capital business with fund strategies that are focused on growth-stage companies and applied artificial intelligence, among others;
+Added: and (iv) other initiatives, including investments in certain structured financing vehicles that we manage.
We also recognize the importance of what we consider material environmental, social and governance (“ESG”) factors in our investment process to help enable us to generate attractive risk-adjusted returns and have adopted a responsible investment program for this purpose.
5 unchanged sentences
We believe that our strong performance, consistent growth and high talent retention through economic cycles is due largely to the effective application of this principle across our broad organization of over 4,250 employees.
−Removed: The management of our operating businesses is currently overseen by our board of directors and managed by our
−Removed: senior leadership.
+Added: The management of our operating businesses is currently overseen by our board of directors and managed by our senior leadership.
We have an Operating Committee comprised of leadership from our investment and business operations groups that meets regularly to discuss strategy and operational matters.
−Removed: We also have a Partners Committee comprised of senior leadership from across the firm that meets periodically to discuss our business, including investment and operating performance, fundraising, market conditions, strategic initiatives and other firm matters.
+Added: We also have a Partners Committee comprised of senior leadership from across the firm that meets periodically to discuss our business, including investment and operating
+Added: performance, fundraising, market conditions, strategic initiatives and other firm matters.
Each of our investment groups is led by its own deep leadership team of highly accomplished investment professionals, who average approximately 25 years of investment experience in managing, advising, underwriting and restructuring companies.
15 unchanged sentences
We pursue several strategic paths to hire top talent, including campus and lateral recruiting efforts.
−Removed: We prioritize making all new team members feel welcome and set them up for success through comprehensive onboarding training, ongoing touchpoints, and connections with our employee resource groups (“ERGs”), which are grassroots, employee-led, executive-sponsored groups and open to all team members.
−Removed: We seek feedback throughout the year to improve our recruiting and onboarding processes.
+Added: We prioritize making all new team members feel welcome and set them up for success through comprehensive onboarding training, ongoing touchpoints, and connections with our employee communities that are open to all employees.
• Internship Training Program:
Ares offers a formal internship program for students between their junior and senior years of college with the possibility of conversion to a full-time position in our analyst program upon graduation.
−Removed: Available roles span our investment and non-investment teams.
+Added: Available roles span our investment, wealth management and institutional fundraising businesses.
• Mentoring, Training and Employee Engagement:
We provide formal and informal mentoring, learning and development, and employee engagement opportunities.
−Removed: We host frequent townhall meetings hosted by senior leadership and events to foster belonging.
−Removed: We also conduct anonymous firmwide surveys at least annually to evaluate employee morale, productivity and overall well-being.
+Added: We host frequent town hall meetings hosted by senior leadership and events to foster information sharing, relationship building and connection.
+Added: We also conduct surveys to measure employee engagement and overall well-being, using the results to develop action plans to improve the employee experience.
• Education Sponsorship Program:
−Removed: Employees are encouraged to participate in degree programs, business-related seminars, workshops, ad-hoc academic courses, continued education seminars to maintain job-related licenses and other outside training courses to facilitate professional development.
+Added: Employees are encouraged to participate in degree programs, ad-hoc academic courses and other outside business-related seminars and training opportunities to facilitate ongoing professional development and to maintain job-related licenses and/or certifications.
• Internal Training and Development Programs:
−Removed: We continue to foster an environment that cultivates company and employee growth through educational programs focused on professional development, mandatory training and other learning opportunities that are offered in person or online.
−Removed: Our team is focused on the training and development of our employees and has invested in management development training for our leaders.
+Added: We continue to foster an environment that cultivates employee growth through internal educational programs focused on various professional skills, management and leadership training, mandatory compliance and policy training and other learning opportunities.
• Performance Management:
−Removed: We take a continuous feedback approach to performance management, encouraging leaders and team members to participate in goal setting and ongoing feedback discussions throughout the year.
−Removed: Our formal, firm-wide annual review process includes a self-assessment, a 360-degree feedback component, and round table discussions.
−Removed: Year-end evaluations are provided to employees by managers and include ratings to provide transparent feedback.
−Removed: In addition to the annual review, we also conduct mid-year performance reviews that are less formal and serve to evaluate progress against goals and as an opportunity to discuss specific career development
−Removed: objectives that were identified in the annual assessment.
−Removed: Training is provided for each phase of our performance assessment process.
+Added: We take a continuous feedback approach to performance management, encouraging leaders and team members to participate in goal setting and ongoing transparent feedback discussions throughout the year.
+Added: Our formal, firm-wide annual review process includes a self-assessment, a 360-degree feedback component, and talent assessment discussions between managers and employees.
• Retention, Rewards and Recognition:
−Removed: We provide competitive compensation and benefits to:
−Removed: (i) attract and retain talent;
−Removed: (ii) align the incentives of our employees with our investors and stakeholders;
−Removed: and (iii) support our employees across many aspects of their lives.
−Removed: We also have programs that seek to recognize significant team member contributions at the firm level.
−Removed: Environmental, Social and Governance:
−Removed: We believe that targeted ESG efforts are a part of our objective of delivering attractive investment returns to our investors.
−Removed: We pursue a strategy that is designed to mitigate risks and create value by seeking to address business-relevant ESG issues.
−Removed: Our strategy starts with a corporate sustainability program focused on our corporate operations and then scales through our Responsible Investment Program that focuses on our investment platform.
−Removed: • Governance :
−Removed: We have defined three tiers of roles and responsibilities for our ESG integration process:
−Removed: (i) oversight responsibility;
−Removed: (ii) defining implementation;
−Removed: and (iii) driving implementation.
−Removed: The oversight responsibility tier is led by our Global Head of ESG and consists of our most-senior professionals and decision-making bodies, including our board of directors.
−Removed: Next, our dedicated ESG team is responsible for defining implementation steps and processes in partnership with respective investment teams and ESG champions embedded within each business line to adapt Ares’ approach to strategy-specific implementation steps.
−Removed: Finally, we focus on driving implementation utilizing strategy-specific processes.
−Removed: Investment professionals, including our portfolio management teams, seek to execute ESG-related tasks for select investments and scalability of our approach.
−Removed: • Responsible Investment Program:
−Removed: Our Responsible Investment Program describes our ESG integration and management processes.
−Removed: We believe our approach to integrating and managing what we consider to be material ESG considerations in the investment process can help manage risk, shape the long-term growth and performance of our investments and enable value creation opportunities.
−Removed: We aim to engage portfolio companies and assets to address business-relevant risks and opportunities and act responsibly towards stakeholders in line with our fiduciary duties.
−Removed: • Reports and Disclosures:
−Removed: Our annual Sustainability Report communicates Ares’ corporate and strategy-specific progress and select highlights of our sustainability efforts.
−Removed: Additionally, where appropriate, we aim to engage with industry organizations to help shape emerging areas of ESG practice.
−Removed: Our Sustainability Disclosures supplement our annual Sustainability Report and are aligned with applicable Sustainability Accounting Standards Board (“SASB”) Standards and also considers the Global Reporting Initiative (“GRI”) Standards.
−Removed: We also publish our annual Climate Action Report aligned with the Taskforce on Climate-related Financial Disclosures (“TCFD”) recommendations.
−Removed: We believe the TCFD recommendations provide a useful framework to increase transparency on climate-related risks and opportunities within financial markets.
+Added: We provide market-competitive compensation and benefits designed to:
+Added: (i) attract, develop and retain top talent through programs that support career growth and mobility;
+Added: (ii) align employee incentives with long-term investor and shareholder outcomes through a mix of base salary, annual performance-based bonuses and equity and carried interest participation;
+Added: and (iii) support employees across multiple dimensions of well-being, including health and wellness, financial security and work-life balance.
+Added: Our approach focuses on an appropriate
+Added: balance between short and long-term wealth creation which varies by seniority, while also working to ensure pay for performance and pay equality.
+Added: In addition, we maintain firm-wide recognition programs, including discretionary awards and enterprise-level acknowledgements that celebrate significant contributions, collaboration and innovation aligned with our values and strategic objectives.
+Added: Responsible Investment:
+Added: We believe the consideration and integration of ESG factors into the investment and portfolio management processes helps enable us to generate attractive investment returns to our investors.
+Added: Our approach seeks to integrate what we consider to be business-relevant ESG considerations in the investment process to help manage risk, shape the long-term growth and performance of our investments and enable value creation opportunities.
+Added: Our Responsible Investment Policy describes the ESG integration and management processes that we believe are broadly relevant for our asset classes.
+Added: We also publish annual sustainability-related reports and disclosures on our website, which provide further details about our approach to responsible investment and other sustainability topics relevant to our business.
Diversity, Equity and Inclusion:
−Removed: We consider diversity, equity and inclusion (“DEI”) in connection with various talent processes and global business practices.
−Removed: Our human resources function, our global DEI Council, our DEI team and business leaders across the Ares platform work in partnership to implement a strategic framework to attract, engage and develop diverse talent within a welcoming environment, as well as to support DEI efforts in select investments and through our broader involvement in our communities.
+Added: We consider diversity, equity and inclusion as an embedded component of our various talent processes and global business practices.
+Added: Our human resources function and our business leaders, as well as our global Diversity, Equity and Inclusion Council and team work in partnership to implement a strategic framework to attract, engage and develop talent within an environment of inclusion and excellence, as well as to support diversity, equity and inclusion efforts in select investments and through our broader involvement in our communities.
• People and Culture:
As part of our ongoing effort to foster a culture built on apprenticeship, we support the growth and advancement of talent through various mentorship and professional development programs.
−Removed: In line with our continued commitment to support an environment where all team members experience a genuine sense of belonging, we hold educational trainings and employee engagement events, often in partnership with our 14 employee communities that help to support our DEI strategy and recognize the different cultures, backgrounds and experiences of our employees.
−Removed: To create more transparency, we also aim to conduct periodic reviews with business leadership to assess our people and strategies to enable the long-term success of talent at Ares.
−Removed: In addition, as part of our commitment to equitable pay for all employees, we monitor and assess total compensation to help ensure we have alignment with role responsibilities and contributions.
+Added: In line with our continued commitment to support an environment where all team members experience a genuine sense of belonging, we hold educational trainings and employee engagement events, often in partnership with our 14 employee communities that help to support our inclusion strategy and recognize the different cultures, backgrounds and experiences of our employees.
+Added: In addition, as part of our commitment to pay equality for all employees, we monitor and assess total compensation to help ensure we have alignment with role responsibilities and contributions.
• Business Processes and Investment Platform:
−Removed: We seek to embed DEI best practices into our business and investment diligence processes in an effort to drive innovation and returns.
−Removed: We have identified DEI champions within each investment group to help develop strategies for their asset class and integrate DEI considerations into the investment lifecycle, as appropriate.
−Removed: We also partner with select Ares private equity portfolio companies to understand their DEI efforts.
+Added: We seek to embed diversity, equity and inclusion best practices into our business and investment diligence processes in an effort to drive innovation and returns.
+Added: We work with each investment group to help develop strategies for their asset class and integrate diversity, equity and inclusion considerations into the investment lifecycle, as appropriate.
• Communities:
−Removed: We partner with organizations to foster diversity within our communities and promote corporate citizenship through charity and volunteerism.
−Removed: In partnership with our ERGs, we donated to various community organizations.
+Added: We partner with organizations to foster inclusion within our communities and promote corporate citizenship through charity and volunteerism.
+Added: In partnership with our employee communities, we donated to various community organizations.
Health and Wellness :
We believe that healthy team members are more productive, and we invest heavily in benefits and initiatives to support our working families.
−Removed: In addition to medical, dental, vision, life insurance, disability insurance and retirement benefits, we provide generous primary and non-primary caregiver leave, domestic partner health and life insurance, adoption and reproductive assistance, family care resources (including back-up care benefits and baby baskets for new parents) and mental health benefits.
+Added: In addition to medical, dental, vision, life insurance, disability insurance and retirement benefits, we provide generous primary and non-primary caregiver leave, domestic partner health and life insurance, adoption and reproductive assistance, family care resources and mental health benefits.
We also provide employees with access to a medical advisory team and concierge service at no cost to help them navigate complex health situations and concerns.
1 unchanged sentence
We believe that our culture benefits from people collaborating in-person in our offices, while also recognizing the value of flexibility.
−Removed: We are committed to providing flexibility to our employees, and in 2024, we continued to offer business group flexibility frameworks as well as our summer “Work From Anywhere” program, which allows people to work virtually for up to a maximum of three weeks.
−Removed: We will continue to offer a flexible working structure in 2025, while evaluating the ongoing effectiveness and determining what works best for our organization.
+Added: We are committed to providing flexibility to our employees, and in 2025, we continued to offer business-group-driven flexibility frameworks, a day off for mental health and our summer “Work From Anywhere” program, which allows people to work virtually for up to a maximum of three weeks.
Philanthropy:
5 unchanged sentences
• Ares Charitable Foundation (the “Ares Foundation”):
−Removed: A 501(c)(3) qualifying organization sponsored by the firm, the Ares Foundation, launched in 2021, envisions a world in which people have access to the financial knowledge, resources and opportunities needed to achieve their full potential and chart pathways to self-sufficiency.
+Added: A 501(c)(3) qualifying organization sponsored by the firm, the Ares Foundation, launched in 2021 and envisions a world in which people have access to the financial knowledge, resources and opportunities needed to advance economically and chart pathways to self-sufficiency.
The Ares Foundation funds initiatives that help provide career preparation and reskilling, encourage entrepreneurship and deepen individuals’ understanding of personal finance.
−Removed: This includes support for the design, pilot and scale up of new approaches that encourage innovation to help close the wealth gap in the communities where the firm does business.
−Removed: Moreover, the Ares Foundation undertakes research and special initiatives intended to inform both the philanthropic sector and policy.
−Removed: In addition, the Ares Foundation Learning Communities support grantees through knowledge-building and exchange to complement the funding they receive.
−Removed: These communities of practice help organizations establish aligned networks, develop knowledge to inform their work and build organizational capacity for innovation by accessing support from other funders.
+Added: This includes support for the design, pilot and scale up of
+Added: new approaches that encourage innovation to help individuals achieve economic mobility as well as support local economies .
+Added: Moreover, the Ares Foundation undertakes research and special initiatives intended to inform the philanthropic and non-profit sectors, business and industry and civil society.
+Added: In addition to fiscal support, the Ares Foundation engages its grantees through learning communities that provide a forum for non-profits to deepen their understanding of and share best practices with one another.
+Added: These communities of practice help organizations establish aligned networks, develop knowledge to inform their work and build organizational capacity for innovation, including to help them attract support from other funders.
The year-long, cohort experience explores topics like measurement, evaluation and storytelling.
−Removed: Guided by the belief that as the firm thrives, so should our communities and our society, Ares is committed to donating a portion of our annualized, realized net performance income from select Ares funds to tie investment performance to social impact.
+Added: Ares believes that the communities where we do business should share in the firm’s success.
+Added: As such, the firm donates a portion of annualized, realized net performance income from select Ares funds to the Ares Foundation to tie investment performance to social impact.
• Pathfinder and Other Funds:
3 unchanged sentences
• Ares in Motion (“AIM”):
−Removed: Our signature platform for employee engagement has empowered our team members to support local communities and nonprofit organizations since 2012.
−Removed: AIM engages employees in grassroots volunteerism, encourages their service with nonprofit boards and other pro bono opportunities, and amplifies their personal donations with charitable matches.
−Removed: Furthermore, employees who volunteer as AIM Champions enjoy opportunities to organize and lead volunteer activities in the U.S., Europe and Asia-Pacific (“APAC”) to benefit the communities in which they live and work.
−Removed: Our annual Summer of Service engages Ares employees around the world in both service and skills-based “give back” opportunities.
−Removed: In addition, our nonprofit board training and placement program provides a way for team members to make a difference in their communities beyond firm-sponsored volunteer activities.
−Removed: AIM also helps bring our team members into thoughtful dialogue with nonprofit leaders through virtual fireside chat events so that employees can
−Removed: learn more about their organizations, understand the purpose and significance of their work, and glean valuable insights to apply professionally and personally.
−Removed: Furthermore, we leverage AIM to sponsor and match team members’ support of charitable causes like disaster relief, mental health, and education.
−Removed: In addition, we offer matching funds to augment team members’ sponsorship of nonprofits’ mission-driven events.
−Removed: The firm also sponsors these kinds of events through our business lines, and offers opportunities for employees to participate in these funded activities.
+Added: Launched in 2012, AIM is Ares’ global community engagement program designed to foster volunteerism and philanthropy in local communities.
+Added: AIM provides employees with opportunities for skills-based and service-based volunteering, non-profit board service and pro bono engagements.
+Added: Through AIM, we host more than 100 volunteer events annually across major campaigns, offering matching programs to amplify employee charitable contributions and mobilize resources for disaster and humanitarian relief.
+Added: We also train and place employees on non-profit boards, deepening community impact and leadership development.
+Added: Ares is committed to leveraging AIM to strengthen communities worldwide while fostering employee growth and engagement.
2025 Highlights
In 2025, we raised $113.2 billion in gross new capital commitments for more than 190 different investment vehicles.
−Removed: Of the $92.7 billion, $70.4 billion was raised directly from over 660 institutional investors, of which over 310 were new to Ares, and $22.3 billion was raised through intermediaries.
+Added: Of the $113.2 billion, $77.4 billion was raised directly from over 540 institutional investors, including more than 235 that were new to Ares, and $35.8 billion was raised through intermediaries.
The charts below summarize our gross new capital commitments by investment group and strategy ($ in billions):
$66.9 Real Assets:
−Removed: Direct Lending European Direct Lending Liquid Credit Alternative Credit Real Estate Debt North American Real Estate Equity European Real Estate Equity
−Removed: Opportunistic Credit APAC Credit Other Infrastructure Debt Infrastructure Opportunities
+Added: Direct Lending Liquid Credit European Direct Lending Opportunistic Credit Real Estate Infrastructure
+Added: Alternative Credit APAC Credit
$12.9 Private Equity:
−Removed: $0.5 Secondaries:
−Removed: Corporate Private Equity Other Private Equity Secondaries Infrastructure Secondaries
+Added: Private Equity Secondaries Infrastructure Secondaries Corporate Private Equity APAC Private Equity
Secondaries Real Estate Secondaries
1 unchanged sentence
The chart below summarizes gross new capital raised from existing and new direct institutional investors for the year ended December 31, 2025 :
−Removed: Re-Up Existing - New Product New
−Removed: In 2024, 85% of our fundraising from direct institutional investors was from existing investors that either committed to a new product or re-upped their commitment to a subsequent fund vintage within the same product.
+Added: Same Product Existing - New Product New
+Added: In 2025, 79% of our fundraising from direct institutional investors was from existing investors that either committed to a new product or committed to a subsequent fund vintage within the same product.
We believe the fundraising from existing investors demonstrates our investors’ satisfaction with our performance, disciplined management of their capital and diverse product offering.
2 unchanged sentences
Credit $111.1 Real Assets:
−Removed: Direct Lending Alternative Credit European Direct Lending Liquid Credit North American Real Estate Equity Real Estate Debt Infrastructure Debt
−Removed: Opportunistic Credit APAC Credit Other European Real Estate Equity Infrastructure Opportunities
+Added: Direct Lending Alternative Credit European Direct Lending Liquid Credit Real Estate Infrastructure
+Added: Opportunistic Credit APAC Credit
$6.0 Private Equity:
−Removed: Corporate Private Equity APAC Private Equity Private Equity Secondaries Real Estate Secondaries
+Added: Private Equity Secondaries Real Estate Secondaries Corporate Private Equity APAC Private Equity
Infrastructure Secondaries Credit
2 unchanged sentences
Our capital deployment in drawdown funds was comprised of the following ($ in billions):
−Removed: Credit Real Assets Private Equity Secondaries
+Added: Credit Real Assets Secondaries Private Equity
Investment Groups
2 unchanged sentences
(2) $86.5 billion in AUM represents investments by insurance companies in various Ares’ funds, SMAs and co-investments versus one discrete insurance platform.
+Added: The AUM for these investments is included across each of our investment strategies and presented within other businesses to demonstrate the scale of our aggregated insurance platform.
Cr edit Group
1 unchanged sentence
The Credit Group provides solutions for investors seeking to access a wide range of credit assets, including liquid credit, alternative credit and direct lending products.
−Removed: The Credit Group capitalizes on opportunities across traded and non-traded corporate and consumer debt across the U.S.
−Removed: and European markets, providing investors access to directly originated fixed and floating rate credit assets along with the ability to capitalize on illiquidity premiums across the credit spectrum.
−Removed: and European direct lending strategies are among the largest in their respective markets.
+Added: The Credit Group is one of the largest self-originating direct lenders to the U.S.
+Added: and European middle markets with a growing presence in the APAC region, offering one-stop financing solutions for small-to-medium sized companies and counterparties that we believe are increasingly underserved by traditional bank lenders.
+Added: Our approach combines structuring expertise and origination capabilities to deliver directly originated fixed and floating rate credit assets, enabling investors to capitalize on illiquidity premiums across the credit spectrum.
+Added: and European direct lending strategies rank among the largest in their respective markets, supported by investment committee members who average decades of experience.
The Credit Group offers the following credit strategies across the liquid and illiquid spectrum:
Liquid Credit:
−Removed: Our liquid credit investment solutions help fixed income investors access the syndicated loan and high yield bond markets in North America and Europe and capitalize on opportunities across multi-asset credit.
−Removed: The syndicated loans strategy focuses on evaluating individual credit opportunities related primarily to non-investment grade senior secured loans and primarily targets first lien senior secured loans, with a secondary focus on second lien senior secured loans and subordinated and other unsecured loans.
−Removed: The high yield bond strategy seeks to deliver a diversified portfolio of liquid, traded non-investment grade corporate bonds, including secured, unsecured and subordinated debt instruments.
−Removed: Multi-asset credit is a “go anywhere” strategy designed to offer investors a flexible solution to global credit investing by allowing us to tactically allocate between multiple asset classes in various market condition s.
+Added: Our liquid credit investment solutions help fixed income investors access the syndicated loan and high yield bond markets in the U.S.
+Added: and Europe and capitalize on opportunities across multi-asset credit.
+Added: The syndicated loans strategy seeks to deliver a diversified portfolio of liquid, traded secured loans to corporate issuers, offering one of the few floating-rate fixed income alternatives that can help investors manage duration.
+Added: The high yield bond strategy seeks to deliver a diversified portfolio of liquid, traded corporate bonds, incorporating secured, unsecured and subordinated debt instruments of issuers.
+Added: Multi-asset credit is a global, highly flexible “go-anywhere” strategy that combines syndicated loans, high yield bonds and other credit assets, allowing us to tactically allocate across markets and capture strong relative value in varying conditions.
As of December 31, 2025 , our liquid credit team of over 45 investment professionals managed $53.1 billion of AUM in over 115 funds and separately managed accounts (“SMAs”).
Alternative Credit:
−Removed: Our alternative credit strategy seeks to capitalize on asset-focused investment opportunities that fall outside of traditional, well-defined markets such as corporate debt, real estate and private equity.
−Removed: As of December 31, 2024, our alternative credit team of over 75 professionals managed $41.5 billion of AUM in over 25 private funds and SMAs for a global investor base.
+Added: Our alternative credit strategy focuses on asset-based finance and providing investment opportunities in the non-traditional markets, leveraging structural gaps to deliver attractive yields.
Our alternative credit strategy emphasizes downside protection and capital preservation through a focus on investments that tend to share the following key attributes:
1 unchanged sentence
Our investment approach is designed to capture and create value by including our firm’s platform insights to assess risk and relative value.
+Added: As of December 31, 2025, our alternative credit team of over 85 professionals managed $48.1 billion of AUM in over 25 private funds and SMAs.
Opportunistic Credit :
−Removed: Our opportunistic credit strategy seeks to invest in middle market companies that need flexible capital solutions, primarily in the form of debt and preferred equity and to a lesser extent, common equity.
−Removed: We partner with healthy, stressed and distressed companies across North America and Europe, operating in the void between traditional senior private debt and private equity.
−Removed: We seek to consistently invest in private market opportunities and, when deemed attractive, flex into stressed public markets, often seeking to leverage a public investment into a private follow-on opportunity.
−Removed: As of December 31, 2024, our opportunistic credit team of over 30 investment professionals managed $14.9 billion of AUM in four funds as of December 31, 2024.
−Removed: Our special opportunities strategy, formerly part of the Private Equity Group, was integrated into the Credit Group in 2024 to form the foundation for our opportunistic credit strategy.
+Added: Our opportunistic credit strategy primarily targets debt and structured investments in middle market companies requiring flexible capital.
+Added: We partner with healthy, stressed and distressed companies operating in the void between traditional senior private debt and private equity, with a focus in the U.S., Canada and Europe.
+Added: We seek to consistently invest in a range of private opportunities and flex into public markets, when deemed attractive, often seeking to leverage a public investment into a private follow-on opportunity.
+Added: As of December 31, 2025, our opportunistic credit team of over 35 investment professionals managed $19.8 billion of AUM in seven funds.
Direct Lending:
−Removed: Through our direct lending strategy, we serve as one of the largest self-originating direct lenders to the U.S.
−Removed: and European markets, with $233.7 billion of AUM in over 115 funds and investment vehicles, including more than 40 SMAs, as of December 31, 2024 .
We manage various types of direct lending vehicles within our U.S.
and European direct lending teams including commingled funds, SMAs for large institutional investors seeking tailored investment solutions and joint venture lending programs.
+Added: We serve as one of the largest self-originating direct lenders to the U.S.
+Added: and European markets, with $274.3 billion of AUM in over 105 fund, investment vehicles and SMAs, as of December 31, 2025 .
Our direct lending team has a multi-channel origination strategy designed to address a broad set of investment opportunities in the middle market.
4 unchanged sentences
As of December 31, 2025 , our U.S.
−Removed: direct lending team and its affiliates managed $159.1 billion of AUM in over 80 funds and investment vehicles.
+Added: direct lending team and its affiliates managed $189.6 billion of AUM in approximately 90 funds and investment vehicles.
Primary areas of focus for our U.S.
−Removed: direct lending teams include:
−Removed: • Ares Capital Corporation:
−Removed: ARCC is a leading specialty finance company focused on providing direct loans to and making other investments in middle market companies in the U.S.
−Removed: ARCC has elected to be regulated as a BDC and was the largest publicly-traded BDC by market capitalization in the U.S.
−Removed: as of December 31, 2024.
−Removed: • Ares Strategic Income Fund:
−Removed: ASIF is a closed-end investment company focused primarily on providing direct loans to private market companies in the U.S., and to a lesser extent, broadly syndicated loans and other more liquid credit opportunities, including in publicly-traded debt instruments.
−Removed: ASIF has elected to be regulated as a BDC.
−Removed: Commingled Funds and SMAs:
−Removed: Outside of ARCC and ASIF, U.S.
−Removed: direct lending also generates fees from other funds, including commingled funds which focus on:
+Added: direct lending teams include our publicly-traded business development company (“BDC”) , ARCC, our non-traded BDC, Ares Strategic Income Fund (“ASIF”) and a number of U.S.
+Added: commingled funds and SMAs which focus on:
(i) first lien senior secured loans to middle market companies;
6 unchanged sentences
The team covers over 435 financial sponsors, offers self-originated, flexible and scaled debt capital predominantly to companies with EBITDA typically ranging from €10 million to over €250 million.
−Removed: As of December 31, 2024, our European direct lending team managed $74.6 billion of AUM in over 35 funds, including commingled funds and SMAs .
−Removed: Our European team also manages an open-ended fund that primarily invests in directly originated, senior secured, floating-rate loans to European companies.
−Removed: Our open-ended European direct lending fund provides investors the opportunity to generate attractive current income and increased portfolio diversification.
−Removed: Our APAC credit team manages credit and special situations investments in the APAC region.
−Removed: Our APAC special situations strategy focuses on primary and secondary special situations, primarily targeting restructuring-related situations, deep value acquisitions and distressed financing.
−Removed: Our APAC private credit strategy targets privately sourced loans in high quality businesses across the region.
+Added: As of December 31, 2025, our European direct lending team managed $84.7 billion of AUM in over 35 funds, including commingled funds, SMAs and perpetual wealth vehicles .
+Added: Our APAC credit team manages credit, private equity and special situations investments in the APAC region.
+Added: Our APAC credit strategy focuses on credit opportunities with strong downside protection and equity-like returns and high-quality privately sourced loans in high-quality businesses across the region.
APAC credit primarily employs a direct origination model and aims to provide flexible capital solutions to its investee companies and compelling risk-reward investment opportunities to our investors.
4 unchanged sentences
Real Assets Group
−Removed: Our Real Assets Group manages comprehensive public and private equity and debt strategies with $75.3 billion of AUM in over 80 investment vehicles as of December 31, 2024.
−Removed: With our experienced team, along with our expansive network of relationships, our Real Assets Group capitalizes on opportunities in equity and debt investing across real estate and infrastructure investment strategies.
−Removed: Our real estate strategies encompass equity and debt across core, value-add and opportunistic strategies in North America and Europe.
−Removed: We provide investors access to our real estate investment capabilities through several vehicles:
−Removed: closed-end North American and European multi-sector equity funds, an open-ended industrial real estate fund, open-ended U.S.
−Removed: and European debt funds, SMAs, our diversified non-traded REIT, our industrial non-traded REIT and our publicly-traded commercial mortgage REIT, ACRE.
−Removed: Our regional teams have local expertise and relationships and plug into Ares’ global network to gain insights into the companies and industries that are often the tenants in our buildings or are driving commercial activity in the markets where we invest.
−Removed: Our real estate portfolio is primarily allocated to industrial, multifamily and adjacent sectors.
+Added: Our Real Assets Group capitalizes on opportunities in equity and debt investing across real estate and infrastructure investment strategies.
+Added: As of December 31, 2025, our team manages $139.1 billion of AUM in over 110 investment vehicles.
+Added: Our real estate strategy encompasses equity and debt across core, value-add and opportunistic investments in predominantly the Americas, Europe and APAC.
+Added: We provide investors access to our real estate investment capabilities through private commingled vehicles, SMAs, publicly-traded funds and perpetual wealth vehicles.
+Added: Leveraging deep local expertise, our regional teams gain insights into market dynamics and tenant industries, enhancing our ability to source and underwrite opportunities.
+Added: Our real estate portfolio is primarily allocated to industrial, multifamily and adjacent sectors aligned with long-term demand drivers.
As we manage strategies across the return spectrum, capital stack and across geographies, we provide our investors with a full range of solutions and access to the widest set of opportunities sourced by our team.
−Removed: Our real estate platform has achieved significant scale over time through both organic fundraising efforts as well as various acquisitions.
+Added: Our real estate platform has achieved significant scale over time through both organic fundraising efforts as well as through various
+Added: acquisitions.
+Added: As of December 31, 2025, our real estate team of over 740 investment professionals managed $113.8 billion of AUM in over 85 investment vehicles.
• Real Estate Equity:
−Removed: Our real estate equity team, with over 255 investment professionals, has extensive real estate private equity experience in North America and Europe.
−Removed: Our team primarily acquires standing assets and improves them through renovating, repositioning and retenanting and selectively developing assets in supply-constrained markets.
−Removed: As of December 31, 2024, our real estate equity team managed $40.8 billion of AUM in over 45 investment vehicles.
−Removed: Primary areas of focus for our real estate equity teams include:
−Removed: • Real Estate Core/Core-Plus :
−Removed: core/core-plus real estate strategy focuses on the acquisition of assets with strong long-term cash flow potential and durable tenancy diversified across end-user industries and geographies.
−Removed: We deploy capital across all major property types, with a strong focus on industrial and multifamily assets located in top-tier primary and regional distribution markets across the U.S.
−Removed: • Real Estate Value-Add:
−Removed: Our North American and European value-add real estate strategy focuses on undermanaged and underfunded income-producing assets across various property sectors in North America and Europe.
−Removed: The strategy seeks to create value and generate stable and growing distributions to investors by buying properties at attractive valuations, implementing asset management initiatives to increase income and identifying multiple exit strategies upfront.
−Removed: • Real Estate Opportunistic:
−Removed: Our North American and European opportunistic real estate strategy capitalizes on increased investor demand for developed and stabilized assets by focusing on the repositioning of assets, capitalization of distressed and special situations, and risk-mitigated developments across all major property types, as well as select and adjacent sectors, across North America and Europe.
+Added: Primary areas of focus for our real estate equity team include:
+Added: • Logistics :
+Added: Our logistics real estate platform is focused on investment in strategically located, institutional quality properties through market cycles.
+Added: We focus on logistics markets that have historically exhibited stable occupancy levels and rent growth over cycles.
+Added: Our vertically-integrated operating teams are strategically located across the Americas, Europe and APAC in our key target markets, to invest in core, value-add, and development opportunities that are accretive to our portfolios and drive returns for our investors.
+Added: Marq Logistics represents the brand of our vertically-integrated global logistics real estate platform that we use to manage our portfolio of logistics properties.
+Added: • Diversified:
+Added: Our diversified real estate platform is dedicated to investing across sectors and property types in the U.S.
+Added: Our platform seeks investments in cash flowing, de-risked development and scalable portfolio investments, with the opportunity to create value through repositioning, lease-up, re-tenanting, redevelopment and/or complex recapitalizations.
• Real Estate Debt:
−Removed: Our real estate debt team, with over 40 professionals, primarily focuses on directly originating a wide range of financing opportunities in the U.S.
−Removed: As of December 31, 2024, our real estate debt team managed $17.5 billion of AUM globally through open-ended funds, SMAs and ACRE.
+Added: Our real estate debt team primarily focuses on directly originating a wide range of financing opportunities in the U.S.
By investing through multiple investment vehicles, our real estate debt team has the ability to provide flexible financing across the capital structure and risk-return spectrum, including core/core-plus, value-add, and opportunistic debt.
−Removed: While our real estate debt strategy focuses predominantly on directly originated transactions, we also have the ability to selectively pursue secondary market acquisitions and syndicated transactions.
+Added: While our real estate debt team focuses predominantly on directly originated transactions, we also have the ability to selectively pursue secondary market acquisitions and syndicated transactions.
Infrastructure:
−Removed: Our long-tenured global infrastructure team seeks to utilize its strong local sourcing capabilities and extensive sector experience to originate and manage diverse, high-quality infrastructure investments across the globe and, as of December 31, 2024 , managed $17.0 billion of AUM in more than 20 investment vehicles.
+Added: Our long-tenured global infrastructure team, with over 130 investment professionals, seeks to utilize its strong local sourcing capabilities and extensive sector experience to originate and manage diverse, high-quality infrastructure investments across the globe and, as of December 31, 2025 , managed $25.3 billion of AUM in more than 25 investment vehicles.
• Infrastructure Opportunities:
−Removed: Our infrastructure opportunities team consists of over 30 investment professionals and managed $7.4 billion of AUM in more than ten investment vehicles as of December 31, 2024 .
−Removed: We seek to utilize a broad origination strategy, flexible investment approach, and leverage industry relationships and the Ares platform to build a portfolio of high-quality climate investments and deliver attractive risk-adjusted returns.
−Removed: We believe our experience as value-add investors, flexible approach, and broad infrastructure experience positions us well to take advantage of the growing opportunity set across the climate infrastructure market.
−Removed: Our infrastructure opportunities team also manages an infrastructure private BDC,
−Removed: which primarily invests in stable, operating infrastructure assets that provide current income in a perpetual, semi-liquid and tax-efficient structure.
+Added: Our infrastructure opportunities team seeks to utilize a broad origination strategy, flexible investment approach, and leverage industry relationships and the Ares platform to build a portfolio of high-quality infrastructure investments and deliver attractive risk-adjusted returns.
+Added: We believe our experience as core and value-add investors, our flexible approach, and broad infrastructure experience position us well to take advantage of the growing opportunity set in the middle market across both the energy transition and the broader infrastructure market.
• Infrastructure Debt:
−Removed: Our global infrastructure debt team consists of over 25 investment professionals and sources assets and businesses across regions with defensive characteristics across the digital, transport, energy and utility sectors.
−Removed: As of December 31, 2024, our global infrastructure debt team managed $9.6 billion of AUM in ten investment vehicles.
−Removed: We employ a direct origination and tailored structuring approach to provide borrowers with flexible financing solutions.
+Added: Our infrastructure debt team sources assets and businesses across regions with defensive characteristics across the digital, transport, energy and utility sectors.
We aim to deliver attractive risk-adjusted returns focused on cash yield by targeting infrastructure debt investments with defensive characteristics that have the potential to perform across different market cycles.
Our structuring experience helps enhance cash yield and reduce downside risks in a core asset class.
+Added: • Digital Infrastructure:
+Added: Our digital infrastructure team manages a fully vertically-integrated global business, combining competitive investment management with in-house data center development and operational expertise.
+Added: Ada Infrastructure, our dedicated data center operating platform, includes professionals from established hyperscalers and operators.
+Added: We aim to maximize value and deliver enhanced risk-adjusted returns at scale for investors by leveraging our fully integrated approach, offering differentiated sourcing, underwriting, technical insights and operational expertise.
The following charts present the Real Assets Group’s AUM and FPAUM as of December 31, 2025 by investment strategy ($ in billions):
−Removed: North American Real Estate Equity Real Estate Debt Infrastructure Debt European Real Estate Equity Infrastructure Opportunities
−Removed: Private Equity Group
−Removed: Our Private Equity Group has achieved compelling investment returns for limited partners and, as of December 31, 2024 , managed $24.0 billion of AUM in over 60 funds.
−Removed: The group broadly categorizes its investment strategies into corporate private equity, which focuses on investments in North America and Europe, and APAC private equity, which focuses on investments in the APAC region.
−Removed: Corporate Private Equity:
−Removed: Our team consists of over 50 investment professionals based primarily in Los Angeles and London.
−Removed: Our private equity funds are leaders in the North American and European middle market, where they focus on growth buyouts, with the ability to flex into distressed investing during periods of market transition and dislocation.
−Removed: We seek to invest in high-quality middle market companies in our core industries of healthcare, services, industrials and consumer where we can utilize the team’s extensive growth-oriented investing experience and dedicated value creation system to target attractive returns across market environments.
−Removed: This differentiated strategy, together with the broad resources of the Ares platform, widens our universe of potential investment opportunities and allows us to remain active across various market environments.
−Removed: APAC Private Equity:
−Removed: Our APAC private equity strategy focuses on investing in seven key consumer categories that we believe benefit disproportionately from higher disposable income levels.
−Removed: The strategy focuses on primarily pursuing structured growth equity investments in control, joint control and minority ownership formats.
−Removed: Our APAC private equity team consists of over 25 investment professionals as of December 31, 2024 and focuses on investing in companies that give us exposure to increasing consumer spending and urbanization in our target markets.
−Removed: In times of economic dislocation, we also seek to invest opportunistically where the focus is on dislocations and catalysts that lead to high-quality assets becoming available for purchase at deeply discounted prices.
−Removed: While we look for deep value opportunities in consumer-driven companies, our deep value approach can develop into asset-oriented opportunities.
−Removed: The following charts present the Private Equity Group’s AUM and FPAUM as of December 31, 2024 by investment strategy ($ in billions):
−Removed: Corporate Private Equity APAC Private Equity
+Added: $139.1 FPAUM:
+Added: Real Estate Infrastructure
Secondaries Group
7 unchanged sentences
We continue to maintain a differentiated investment strategy that utilizes our skills in fundamental manager and portfolio analysis, our quantitative research capabilities and the support and insights from the wider Ares platform with the aim to generate strong risk-adjusted returns.
−Removed: Our private equity secondaries team also manages APMF.
−Removed: APMF invests in an actively managed portfolio of private equity and other private assets across the spectrum of private equity secondaries transactions.
Real Estate Secondaries :
4 unchanged sentences
The infrastructure secondaries strategy seeks to accelerate the benefits of traditional infrastructure by providing diversified low risk exposure through preferred structure, traditional limited partnership and general partner led continuation vehicle transactions.
−Removed: As of December 31, 2024, our infrastructure secondaries team of more than ten investment professionals managed $3.7 billion of AUM in more than ten funds and related co-investment vehicles.
+Added: As of December 31, 2025, our infrastructure secondaries team of more than 10 investment professionals managed $6.9 billion of AUM in more than 15 funds and related co-investment vehicles.
Our team focuses on achieving diversification through building a portfolio that provides inflation protection and exposure to uncorrelated assets.
Credit Secondaries:
−Removed: Our credit secondaries strategy seeks to create a highly diversified portfolio of primarily senior secured private credit interests across North America and Europe, acquired directly or indirectly through secondary market transactions.
−Removed: As of December 31, 2024, our credit secondaries team of more than ten investment professionals managed $1.9 billion of AUM in three funds and related co-investment vehicles.
−Removed: Our team represents a combination of our credit and
−Removed: secondaries capabilities, leveraging extensive industry experience and a cycle-tested investment approach that enable us to identify attractive risk-adjusted opportunities.
+Added: Our credit secondaries strategy seeks to construct a highly diversified portfolio of leading secondary credit interests, with a focus on first-lien, senior secured portfolios across North America and Western Europe, acquired directly or indirectly through secondary market transactions.
+Added: As of December 31, 2025, our credit secondaries team of more than 10 investment professionals managed $4.9 billion of AUM in five funds and related co-investment vehicles.
+Added: Our team represents a combination of both our credit and secondaries capabilities, leveraging extensive industry experience and a rigorous and cycle-tested investment approach.
The following charts present the Secondaries Group’s AUM and FPAUM as of December 31, 2025 by investment strategy ($ in billions):
Private Equity Secondaries Real Estate Secondaries Infrastructure Secondaries Credit
+Added: Private Equity Group
+Added: Our Private Equity Group has achieved compelling investment returns for limited partners and, as of December 31, 2025 , managed $25.3 billion of AUM in over 60 funds.
+Added: The group broadly categorizes its investment strategies into corporate private equity, which focuses on investments in North America and Europe, and APAC private equity, which focuses on investments in the APAC region.
+Added: Corporate Private Equity:
+Added: Our team consists of over 45 investment professionals based primarily in Los Angeles and London.
+Added: Our private equity funds are leaders in the Americas and European middle market, where they focus on growth buyout transactions.
+Added: We seek to bring large capital resources to high-quality, services-oriented middle market companies where we can utilize the team’s thematic approach, extensive growth-oriented investing experience and dedicated value creation system to target attractive returns across market environments.
+Added: This differentiated strategy, together with the broad resources of the Ares platform and the team’s collaborative partnership approach, positions us as a partner of choice.
+Added: APAC Private Equity:
+Added: Our APAC private equity team of over 35 investment professionals as of December 31, 2025 focuses on primarily pursuing structured growth equity investments in control, joint control and minority ownership formats.
+Added: We seek to invest in high-quality middle market companies in our core industries, namely consumer, healthcare and services, that give us exposure to rising consumer and business activity in the APAC region.
+Added: In times of economic dislocation, we also seek to invest opportunistically where the focus is on dislocations and catalysts that lead to high-quality assets becoming available for purchase at deeply discounted prices.
+Added: While we look for deep value opportunities in consumer-driven companies, our deep value approach can develop into asset-oriented opportunities.
+Added: The following charts present the Private Equity Group’s AUM and FPAUM as of December 31, 2025 by investment strategy ($ in billions):
+Added: Corporate Private Equity APAC Private Equity
Other Businesses
1 unchanged sentence
therefore, we present the results for these businesses collectively.
−Removed: These strategies seek to expand our reach in new global markets and include AIS, our SPAC business and our venture capital business.
+Added: These strategies seek to expand our reach in new global markets and include AIS, our SPAC business and our venture capital business that invests in growth-stage companies.
+Added: Other businesses also includes other initiatives, such as activities for our investments into certain structured financing vehicles that support capital raising efforts across our platform.
Ares Insurance Solutions:
1 unchanged sentence
AIS strives to provide insurers with attractive risk and capital adjusted return profiles that fit within regulatory, rating agency and other counterparty guidelines.
−Removed: Leveraging over 1,100 investment professionals across the firm’s investment groups, AIS creates tailored investment solutions that meet the unique objectives of our insurance clients.
+Added: Leveraging over 1,650 investment professionals across our investment groups, AIS creates tailored investment solutions that meet the unique objectives of our insurance clients.
AIS is overseen by an experienced management team with direct insurance industry experience in many areas directly applicable to AIS and our insurance company clients.
Members of the Ares team have previously held senior positions at leading insurers.
−Removed: AIS acts as the dedicated investment manager, capital solutions and corporate development partner to Aspida Life Insurance Company and Aspida Life Re Limited (collectively referred to as “Aspida”), which are insurance companies that focus on the U.S.
+Added: AIS acts as the dedicated investment manager, capital solutions and corporate development partner to Aspida Life Insurance Company (“Aspida Life”) and Aspida Life Re Limited (“Aspida Re,” collectively with Aspida Life, Aspida Holdings Ltd.
+Added: and its subsidiaries, “Aspida”), which are insurance companies that focus on the U.S.
life and annuity insurance and reinsurance markets, respectively.
2 unchanged sentences
Ares Acquisition Corporation II (NYSE:
−Removed: AACT) (“AAC II”) is a SPAC sponsored by Ares and formed in 2021 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
−Removed: AAC II is seeking to pursue an initial business combination target in any industry or sector in North America, Europe or Asia.
+Added: AACT) (“AAC II”) was a SPAC sponsored by Ares and formed in 2021 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
+Added: In September 2025, AAC II was renamed Kodiak AI, Inc.
+Added: KDK) and completed a business combination with Kodiak Robotics, Inc.
+Added: Our investments in AAC II were converted into various non-controlling financial interests in KDK.
Venture Capital:
9 unchanged sentences
Our high-quality institutional investor base includes corporate and public pension funds, insurance companies, sovereign wealth funds, banks, investment managers, endowments and foundations.
−Removed: We have grown the number of these relationships from over 850 in 2019 to approximately 2,700 in 2024 .
+Added: We have grown the number of these relationships from over 1,090 in 2020 to over 2,850 in 2025 .
As of December 31, 2025, $470.1 billion, or 76% of our $622.5 billion of AUM, was attributable to our direct institutional relationships.
As of December 31, 2025, our total AUM was divided by channel, and further our institutional direct AUM by client type and geographic origin as follows ($ in billions):
−Removed: Institutional Direct Retail Institutional Intermediaries Pension Insurance Bank North America Europe APAC
−Removed: Sovereign Wealth Fund Other High Net Worth and Private Bank Middle East & Africa
−Removed: Investment Manager
+Added: Institutional Direct Perpetual Wealth Vehicles Publicly-Traded Vehicles Pension Insurance Bank Americas APAC Europe
+Added: Institutional Intermediaries Sovereign Wealth Fund Investment Manager High Net Worth and Private Bank Middle East & Africa
The following chart presents the AUM of investors committed to more than one of our funds as of December 31, 2025 compared to December 31, 2020 ($ in billions):
4 unchanged sentences
We believe that client relationships are fundamental to our business and that our performance across our investment groups coupled with our focus on client service has resulted in strong relationships with our investors.
−Removed: Our dedicated and extensive in-house relationship management team, comprised of over 175 professionals located in North America, Europe,
−Removed: APAC and the Middle East, is dedicated to raising capital globally across all of our funds, servicing existing fund investors and tailoring offerings to meet their needs, developing products to complement our existing offerings, and deepening existing relationships to expand them across our platform.
+Added: Our dedicated and extensive in-house relationship management team, comprised of over 200 professionals located in North America, Europe, APAC and the Middle East, is dedicated to raising capital globally across all of our funds, servicing existing fund investors and
+Added: tailoring offerings to meet their needs, developing products to complement our existing offerings, and deepening existing relationships to expand them across our platform.
We also have strategic initiatives focused on expanding our presence in Latin America and Australia.
3 unchanged sentences
AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel with over 175 professionals.
−Removed: As of December 31, 2024, our publicly-traded and perpetual wealth vehicles account for $74.3 billion, or 15%, of our AUM.
+Added: As of December 31, 2025, our publicly-traded funds and our perpetual wealth vehicles account for $108.4 billion, or 17%, of our AUM.
Operations Management Group
The OMG consists of shared resource groups to support our operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy and relationship management, and distribution, including AWMS.
+Added: In 2025, we restructured and expanded our capital markets professionals and formalized and expanded our Capital Solutions Group in order to improve execution on financing and capital markets activities.
Our clients seek to partner with investment management firms that not only have compelling investment track records across multiple investment products but also possess seasoned operational support functions.
6 unchanged sentences
AMC consolidates the financial results of the Ares Operating Group, its consolidated subsidiaries and certain consolidated funds.
−Removed: (1) Assuming the full exchange of AOG Units for shares of our Class A common stock, as of December 31, 2024, Ares Owners Holdings L.P.
+Added: (1) Assuming the full exchange of AOG Units and conversion of Series B mandatory convertible preferred stock for shares of our Class A common stock, as of December 31, 2025, Ares Owners Holdings L.P.
would hold 32.54%, Sumitomo Mitsui Banking Corporation (“SMBC”) would hold 5.02% and the public would hold 62.44% of AMC.
−Removed: Inclusive of Class A common stock held directly by Ares employees and assuming the full exchange of AOG Units for shares of our Class A common stock, Ares employee ownership would represent 42.05% of all outstanding shares.
+Added: Inclusive of Class A common stock held directly by Ares employees and assuming the full exchange of AOG Units and conversion of Series B mandatory convertible preferred stock for shares of our Class A common stock, Ares employee ownership would represent 37.13% of all outstanding shares.
Economic interests of AMC are calculated based on 227,459,008 outstanding shares of Class A common stock and 3,489,911 outstanding shares of non-voting common stock.
12 unchanged sentences
Our Series B mandatory convertible preferred stock has voting rights with respect to certain amendments to our Certificate of Incorporation or the Certificate of Designations, certain business combination transactions and certain other matters, subject to certain exceptions.
−Removed: However, holders of our Series B mandatory convertible preferred stock are not entitled to vote on an as-converted basis with common stockholders on matters on which holders of common stockholders are entitled to vote.
+Added: However, holders of our Series B mandatory convertible preferred stock are not entitled to vote on an as-converted basis with common stockholders on matters on which holders of common stock are entitled to vote.
Accordingly, AMC and any direct subsidiaries of AMC that are treated as corporations for U.S.
16 unchanged sentences
Our Credit Group funds also include structured funds in which the investor’s capital is fully funded upon or soon after the subscription for interests in the fund.
−Removed: The CLOs that we manage are structured investment vehicles that are generally private limited liability companies.
+Added: The CLOs that we manage are structured financing vehicles that are generally private limited liability companies.
Our drawdown funds are generally organized as limited partnerships or limited liability companies.
3 unchanged sentences
In the case of our SMAs that are not structured as single investor vehicles, the investor, rather than us, generally controls custody of the investments with respect to which we advise.
−Removed: We also manage several publicly-traded and perpetual wealth vehicles with varying redemption criteria.
−Removed: In addition, Class A ordinary shares issued by AAC II are redeemable for cash by the public shareholders in the event that AAC II does not complete a business combination or tender offer associated with stockholder approval provisions.
+Added: We also manage several publicly-traded funds and perpetual wealth vehicles with varying redemption criteria.
Our funds are generally advised by Ares Management LLC, which is registered under the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”), a wholly owned subsidiary thereof or subsidiary controlled by AMC.
−Removed: Responsibility for the day-to-day operations of each investment vehicle is typically delegated to the Ares entity serving as
−Removed: investment adviser pursuant to an investment advisory, management or similar agreement.
−Removed: Generally, the material terms of our investment advisory agreements relate to the scope of services to be rendered by the investment adviser to the applicable vehicle, the calculation of management fees to be borne by investors in our investment vehicles and certain rights of termination with respect to our investment advisory agreements.
−Removed: With the exception of certain of the publicly-traded and perpetual wealth vehicles, the investment vehicles themselves do not generally register as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”), in reliance on applicable exemptions thereunder.
+Added: Responsibility for the day-to-day operations of each investment vehicle is typically delegated to the Ares entity serving as investment adviser pursuant to an investment advisory, management or similar agreement.
+Added: Generally, the material terms of our investment advisory agreements relate to the scope of services to be rendered by the investment adviser to the applicable
+Added: vehicle, the calculation of management fees to be borne by investors in our investment vehicles and certain rights of termination with respect to our investment advisory agreements.
+Added: With the exception of certain of the publicly-traded funds and perpetual wealth vehicles, the investment vehicles themselves do not generally register as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”), in reliance on applicable exemptions thereunder.
The governing agreements of many of our funds provide that, subject to certain conditions, third-party investors in those funds have the right to terminate the investment period or the fund without cause.
3 unchanged sentences
Fee Structure
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Consolidated Results of Operations” for an overview of our fee structure, including management fee, incentive fee and carried interest arrangements with our funds.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Consolidated Results of Operations” for an overview of our fee structure, including management fee, administrative, transaction and other fees, incentive fee and carried interest arrangements with our funds.
Capital Invested In and Through Our Funds
4 unchanged sentences
We offer a portion of the general partner commitments to our eligible professionals in many of our funds.
−Removed: As of December 31, 2024, we and our employees had more than $6.0 billion invested in or committed to Ares-managed vehicles, including $3.0 billion of capital commitments from Ares, $2.8 billion of capital commitments from our employee co-investment vehicles and $0.2 billion of employee investments in our publicly-traded and perpetual wealth vehicles.
+Added: As of December 31, 2025, we and our employees had more than $7.2 billion invested in or committed to Ares-managed vehicles, including $3.4 billion of capital commitments from Ares, $3.6 billion of capital commitments from our employee co-investment vehicles and $0.2 billion of employee investments in our publicly-traded funds and our perpetual wealth vehicles.
Regulatory and Compliance Matters
Our businesses, as well as the financial services industry, generally are subject to extensive regulation, including periodic examinations and potential investigations by governmental agencies and self-regulatory organizations or exchanges in the U.S.
−Removed: and foreign jurisdictions in which we operate relating to, among other things, the management of our funds, antitrust laws, anti-money laundering laws, anti-bribery laws relating to foreign officials, tax laws and data privacy laws with respect to client and other information, and some of our funds invest in businesses that operate in highly regulated industries.
+Added: and foreign jurisdictions in which we operate relating to, among other things, the management of our funds, antitrust laws, foreign investment review regimes, anti-money laundering laws, anti-bribery laws relating to foreign officials, tax laws and data privacy laws with respect to client and other information.
+Added: In addition, some of our funds invest in businesses that operate in highly regulated industries.
Each of the regulatory bodies with jurisdiction over us has regulatory powers dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities.
8 unchanged sentences
We maintain a compliance group, supervised by our Chief Compliance Officer, that is responsible for monitoring our compliance with the regulatory and legal requirements to which we are subject and managing our compliance policies and procedures, which seek to address a variety of regulatory and compliance risks.
−Removed: Many jurisdictions in which we operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including the General Data Protection Regulation (“GDPR”), a European Union (“EU”)
−Removed: regulation designed to protect privacy rights of individuals residing in the European Economic Area (the “EEA”), the GDPR as it forms part of the laws of England and Wales, Scotland and Northern Ireland by virtue of Section 3 of the European Union Withdrawal Act 2018 (as amended) and the Data Protection Act 2018 (collectively, “U.K.
+Added: Many jurisdictions in which we operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including the General Data Protection Regulation (“GDPR”), a European Union (“EU”) regulation designed to protect privacy rights of individuals residing in the European Economic Area (the “EEA”), the GDPR as
+Added: it forms part of the laws of England and Wales, Scotland and Northern Ireland by virtue of Section 3 of the European Union Withdrawal Act 2018 (as amended) and the Data Protection Act 2018 (collectively, “U.K.
GDPR”) with respect to individuals residing in the United Kingdom (the “U.K.”), and numerous state and federal privacy laws applicable to individuals residing in the U.S.
Various global privacy laws also apply to our business.
−Removed: These privacy laws and related regulations are quickly evolving and may conflict with one another.
−Removed: Any failure to comply with such laws or regulations could result in substantial fines, penalties and/or sanctions, litigation, as well as reputational harm.
−Removed: Moreover, to the extent that these laws and regulations or the enforcement of the same become more stringent, or if new laws or regulations or enacted, our financial performance or plans for growth may be adversely impacted.
+Added: These privacy laws and related regulations are regularly evolving and may conflict with one another.
+Added: Any failure to comply with such laws or regulations could result in substantial fines, penalties and/or sanctions, litigation and reputational harm.
+Added: Moreover, to the extent that these laws and regulations or the enforcement of the same become more stringent or change, or if new laws or regulations are enacted, our financial performance or plans for growth may be adversely impacted.
The SEC oversees the activities of our subsidiaries that are registered investment advisers under the Investment Advisers Act.
−Removed: The Financial Industry Regulatory Authority (“FINRA”) and the SEC oversee the activities of our wholly owned subsidiaries, AWMS and Ares Management Capital Markets LLC (“AMCM”), as registered broker-dealers.
+Added: The Financial Industry Regulatory Authority (“FINRA”) and the SEC oversee the activities of our wholly owned subsidiary, AMCM, as a registered broker-dealer.
In addition, we regularly rely on exemptions from various requirements of the Securities Act, the Exchange Act, the Investment Company Act, the Commodity Exchange Act and the U.S.
3 unchanged sentences
See “Item 1A.
−Removed: Risk Factors—Risks Related to Regulation—Extensive regulation affects our activities, increases the cost of doing business and creates the potential for significant liabilities and penalties that could adversely affect our businesses and results of operations.” Since September 2019, the SEC has required broker-dealers, or natural persons who are associated persons of broker-dealers, to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities, without placing the financial or other interest of the broker, dealer or natural person who is an associated person of a broker-dealer making the recommendation ahead of the interest of the retail customer (“Regulation Best Interest”).
+Added: Risk Factors—Risks Related to Regulation—Extensive regulation affects our activities, increases the cost of doing business and creates the potential for significant liabilities and penalties that could adversely affect our businesses and results of operations.” The SEC requires broker-dealers, or natural persons who are associated persons of broker-dealers, to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities, without placing the financial or other interest of the broker, dealer or natural person who is an associated person of a broker-dealer making the recommendation ahead of the interest of the retail customer (“Regulation Best Interest”).
Regulation Best Interest requires broker-dealers to evaluate available alternatives, including those that may have lower expenses and/or lower investment risk than our investment funds.
13 unchanged sentences
The SEC adopted changes to Form PF in 2023, which, among other requirements, requires current reporting upon the occurrence of certain fund-level events.
−Removed: In 2024, the SEC and the Commodity Futures Trading Commission (the “CFTC”) adopted joint amendments to Form PF that will require additional basic information about advisers and the private funds they advise which will likely increase related administrative costs and burdens.
−Removed: ARCC, ASIF and our infrastructure private BDC have each elected to be treated as a business development company under the Investment Company Act.
−Removed: APMF, ARDC and CADC are diversified, closed-ended management investment companies registered under the Investment Company Act.
−Removed: With the exception of our infrastructure private BDC, which has elected to be treated as a corporation for U.S.
−Removed: federal tax purposes, each of the other five companies has elected, for U.S.
−Removed: tax purposes, to be treated as a regulated investment company (“RIC”) under Subchapter M of the U.S.
+Added: In 2024, the SEC and the Commodity Futures Trading Commission (the “CFTC”) adopted joint amendments to Form PF that will require additional basic information about advisers and the private funds they advise, although the SEC and CFTC recently extended the compliance date for such amendments to October 2026 and noted that the agencies were engaging in a substantive review of Form PF.
+Added: To the extent that we are required to report additional (or different) information on Form PF, such reporting will likely increase related administrative costs and burdens.
+Added: ARCC, ASIF and our open-ended core infrastructure fund have each elected to be treated as a business development company under the Investment Company Act.
+Added: Ares Private Markets Fund (“APMF”), Ares Dynamic Credit Allocation Fund, Inc.
+Added: ARDC) (“ARDC”) and CION Ares Diversified Credit Fund (“CADC”) are diversified, closed-ended management investment companies registered under the Investment Company Act.
+Added: With the exception of our open-ended core infrastructure fund, which has elected to be treated as a corporation for U.S.
+Added: federal tax purposes, each of the other five companies has
+Added: elected, for U.S.
+Added: federal tax purposes, to be treated as a regulated investment company (“RIC”) under Subchapter M of the U.S.
Internal Revenue Code of 1986, as amended (the “Code”).
−Removed: ACRE, in addition to our diversified non-traded REIT and industrial non-traded REIT, have each elected and qualified to be taxed as a real estate investment trust, or REIT, under the Code.
−Removed: AWMS and AMCM, our wholly owned subsidiaries, are registered as broker-dealers with the SEC, maintain licenses in many states, and are members of FINRA.
−Removed: As a broker-dealer, each subsidiary is subject to regulation and oversight by the SEC and state securities regulators.
+Added: Ares Commercial Real Estate Corporation (NYSE:
+Added: ACRE) (“ACRE”), in addition to our diversified non-traded REIT and industrial non-traded REIT, have each elected and qualified to be taxed as a real estate investment trust, or REIT, under the Code.
+Added: We operate our wealth distribution platform, AWMS, through our wholly owned subsidiary AMCM.
+Added: AMCM is registered as a broker-dealer with the SEC, maintains licenses in many states and is a member of FINRA.
+Added: As a broker-dealer, AMCM is subject to regulation and oversight by the SEC and state securities regulators.
In addition, FINRA promulgates and enforces rules governing the conduct of, and examines the activities of, its member firms.
−Removed: Due to the limited authority granted to each of our subsidiaries in their capacity as broker-dealers, they are not required to comply with certain regulations covering trade practices among broker-dealers and the use and safekeeping of customers’ funds and securities.
−Removed: As registered broker-dealers and members of a self-regulatory organization, AWMS and AMCM are, however, subject to the SEC’s uniform net capital rule.
−Removed: Rule 15c3-1 of the Exchange Act, which specifies the minimum level of net capital a broker-dealer must maintain and also requires that a significant part of a broker-dealer’s assets be kept in relatively liquid form.
+Added: Due to the limited authority granted to AMCM in its capacity as a broker-dealer, it is not required to comply with certain regulations covering trade practices among broker-dealers and the use and safekeeping of customers’ funds and securities.
+Added: As a registered broker-dealer and member of a self-regulatory organization, AMCM is, however, subject to the SEC’s uniform net capital rule, Rule 15c3-1 of the Exchange Act, which specifies the minimum level of net capital a broker-dealer must maintain and also requires that a significant part of a broker-dealer’s assets be kept in relatively liquid form.
+Added: In January 2026, our wholly owned subsidiary, Ares Wealth Management Solutions, LLC, was consolidated with and into AMCM.
See “Item 1A.
15 unchanged sentences
and the EU formally came into force on May 1, 2021 and since its effectiveness, the TCA has governed certain matters between the U.K.
−Removed: There remains considerable uncertainty as to the nature of the U.K.’s future relationship with the EU, creating continuing uncertainty as to the full extent to which the businesses of the U.K.
+Added: There remains considerable uncertainty as to the nature of the U.K.’s future relationship with the EU and the full extent to which the businesses of the U.K.
Regulated Entities and our businesses generally could be adversely affected by Brexit.
See “Item 1A.
−Removed: Risk Factors—Risks Related to Regulation—The U.K.’s exit from the EU (“Brexit”) could adversely affect our business and our operations.” Despite the U.K.’s departure from the EU, new and existing EU legislation is expected to continue to impact our business in the U.K.
+Added: Risk Factors—Risks Related to Regulation—The U.K.’s divergence from the EU (“Brexit”) could adversely affect our business and our operations.” Despite Brexit, new and existing EU legislation is expected to continue to impact our business in the U.K.
(whether because its effect is preserved in the U.K.
1 unchanged sentence
AM Lux operates under the EU legislative frameworks.
−Removed: Notwithstanding the U.K.’s withdrawal from the EU, the U.K.
+Added: Notwithstanding Brexit, the U.K.
Regulated Entities generally continue to be regulated under these frameworks to the extent they were preserved in U.K.
6 unchanged sentences
AIFMD regulates fund managers by, amongst other things, prescribing authorization conditions for an AIFM, restricting the activities that can be undertaken by an AIFM and prescribing the organizational requirements, operating conditions, and regulatory standards relating to such things as initial capital, remuneration, conflicts, risk management, leverage, liquidity management, delegation of duties, transparency and reporting requirements.
−Removed: In the EU, an amending directive to AIFMD, commonly referred to as “AIFMD II”, was published on March 26, 2024 and will become effective from April 16, 2026, subject to the grandfathering period for certain of the loan origination provisions and certain Annex IV disclosure requirements which will become effective a year later (see “—Alternative Investment Fund Managers Directive” for further detail).
−Removed: It is not yet clear to what extent (if any) the U.K.
−Removed: will seek to reflect AIFMD II in its domestic rules implementing AIFMD.
+Added: In the EU, an amending directive to AIFMD, commonly referred to as “AIFMD II”, was published on March 26, 2024 and will become effective April 16, 2026, subject to the grandfathering period for certain of the loan origination provisions and certain Annex IV disclosure requirements which will become effective a year later (see “—Alternative Investment Fund Managers Directive” for further detail).
+Added: In addition, the EU Digital Operational Resilience Act (“DORA”), which became applicable in January 2025, imposes requirements on a wide range of EU financial entities (including certain alternative investment fund managers) relating to information and communications technology (“ICT”) risk management, incident reporting, operational resilience testing and oversight of third-party ICT service providers.
+Added: Compliance with DORA may require enhancements to our technology, risk management and vendor oversight practices.
+Added: The EU has also adopted the EU Artificial Intelligence Act, which applies on a phased basis beginning in 2025 and is intended to regulate certain artificial intelligence systems based on their level of risk.
+Added: Depending on our and our portfolio companies’ use of artificial intelligence technologies, we may be required to implement additional governance, risk management, documentation and compliance measures to comply with the EU Artificial Intelligence Act.
AML and AELM are both investment firms within the meaning of Directive 2014/65/EU on Markets in Financial Instruments (“MiFID II”).
7 unchanged sentences
In addition to Europe, our operations and our investment activities are subject to a variety of other regulatory regimes that vary by country.
−Removed: These include operating subsidiaries of Ares Management Asia (Holdings) Limited, which are subject to regulation by various regulatory authorities, including the Securities and Futures Commission of Hong Kong and Monetary Authority of Singapore.
−Removed: In addition, as the ultimate parent of the controlling entity of Aspida Re, a Bermuda Class E insurance company, we are considered its “shareholder controller” (as defined in the Bermuda Insurance Act) by the Bermuda Monetary Authority (the “BMA”).
+Added: These include operating subsidiaries of Ares Management Asia (Holdings) Limited, which are subject to regulation by various regulatory authorities, including the Securities and Futures Commission of Hong Kong and Monetary Authority of Singapore, as well as the expansion of our investment activities in Japan, Brazil, Vietnam and Australia in connection with recent strategic acquisitions, which are subject to the applicable regulatory authorities and regimes.
+Added: In addition, the Bermuda Monetary Authority (the “BMA”) considers us to be the “shareholder controller” (as defined in the Bermuda Insurance Act) of Aspida Re, a Bermuda Class E insurance company.
The investment management industry is intensely competitive, and we expect it to remain so.
14 unchanged sentences
Additionally, technological innovation, including the use of artificial intelligence and data science, has the potential to disrupt the financial industry and change the way financial institutions, including asset managers, do business.
−Removed: Some of our competitors may be more successful than us in the development and implementation of new technologies, including services and platforms based on artificial intelligence, to address various matters including investor demand, operations or investment activity.
−Removed: If we are unable to adequately advance our capabilities in these areas, or do so at a slower pace than others in our industry, we may be at a competitive disadvantage.
+Added: Some of our competitors may be more successful than us in the development and implementation of new technologies, including services
+Added: and platforms based on artificial intelligence, to address various matters including investor demand, operations or investment activity.
+Added: We are advancing our capabilities in these areas as their application to our industry continues to evolve, but if we are unable to adequately do so, or do so at a slower pace than others in our industry, we may be at a competitive disadvantage.
+Added: See “Item 1A.
+Added: Risk Factors—General Risk Factors—Technological developments in artificial intelligence could disrupt the markets in which we operate and subject us to increased competition, legal and regulatory risks and compliance costs.”
Competition is also intense for the attraction and retention of qualified employees.
9 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.