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Item 7. Management’s Discussion and Analysis

2026-02-25 compared with 2025-02-27 · 882 added, 838 removed, 1265 unchanged (58% of the section changed)

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The following discussion analyzes the financial condition and results of operations of the Company.

“Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under generally accepted accounting principles in the United States (“GAAP”) to be consolidated within our consolidated financial statements included in this Annual Report on Form 10-K.

“Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, structured financing vehicles, CLOs and SPACs that are required under generally accepted accounting principles in the United States (“GAAP”) to be consolidated within our consolidated financial statements included in this Annual Report on Form 10-K.

Additional terms used by the Company are defined in the Glossary and throughout the Management’s Discussion and Analysis in this Annual Report on Form 10-K.

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The following table presents returns of selected market indices:

Type of Index Name of Index Region Year ended December 31, 2024 Year ended December 31, 2023

Type of Index Name of Index Region Year ended December 31, 2025

High yield bonds ICE BAML High Yield Master II Index U.S.

High yield bonds ICE BAML European Currency High Yield Index Europe 5.3

Leveraged loans Credit Suisse Leveraged Loan Index (“CSLLI”) U.S.

Leveraged loans Credit Suisse Western European Leveraged Loan Index Europe 8.5 12.5

Leveraged loans S&P UBS Leveraged Loan Index U.S.

Leveraged loans S&P UBS Western European Leveraged Loan Index Europe 4.0

Equities S&P 500 Index U.S.

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Real estate equities FTSE EPRA/NAREIT Developed Europe Index Europe 2.3

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Real estate equities Tokyo Stock Exchange REIT Index APAC 21.8

Despite periods of volatility in 2025 driven by interest rate cuts and tariff-related uncertainty, markets largely remained resilient across regions and asset classes.

and European high yield bonds and leveraged loans delivered stable returns, supported by strong credit metrics and sustained investor demand.

and international public equity markets generated positive performance supported by the macroeconomic conditions across regions.

Global commercial real estate markets experienced mixed performance throughout the year.

real estate market slightly declined amid broader policy uncertainty and weaker sector performance, while the European real estate market continued to recover with support from declining interest rate expectations.

While performance varies by sector and geography, we believe multifamily and industrial properties will continue to benefit from favorable long-term structural trends.

In addition, renewable energy has continued to scale, with strong transaction volumes supporting elevated revenue contract prices amid positive demand momentum.

The climate infrastructure market remained resilient, bolstered by continued progress in clean energy deployment, the expansion of digital infrastructure and the adoption of artificial intelligence.

Private equity activity improved during the year, supported by interest rate cuts and moderating inflation.

Transaction and exit activity accelerated amid a narrowing valuation gap between buyers and sellers.

We believe that stabilized market conditions, with a renewed focus on value creation strategies that emphasize operational improvements, selective deployment, talent optimization and digital transformation are essential to support long-term momentum.

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

On a market value basis, approximately 85% of our debt assets and 52% of our total assets were floating rate instruments as of December 31, 2025.

In 2024, some of the considerations pertaining to our strategic decisions included:

In 2025, several central tenets contributed to the growth of our platform, including:

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

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Our fundraising efforts helped drive AUM growth of 29% for 2025.

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

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

Our potential future deployment, coupled with our future fundraising prospects, gives us the opportunity to increase our management fees in 2025.

During 2026, we expect that our fundraising will come from a combination of our existing and new strategies in the Americas, Europe and APAC.

As of December 31, 2025, AUM not yet paying fees includes $78.8 billion of AUM available for future deployment and $4.3 billion of development assets not yet stabilized that could collectively generate approximately $730.4 million in potential incremental annual management fees.

Our potential future deployment, the creation of new development assets and the stabilization of existing development assets, coupled with our future fundraising prospects, creates additional opportunity to increase our management fees in 2026.

• Our ability to attract new capital and investors with our broad multi-asset class product offering.

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

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

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

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

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Our ability to maintain and grow our revenue base is dependent upon our ability to successfully deploy the capital that our investors have committed to our funds.

Greater competition, high valuations, cost of credit and other general market conditions have affected and may continue to affect our ability to identify and execute attractive investments.

Under our disciplined investment approach, we deploy capital only when we have sourced a suitable investment opportunity at an attractive price.

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We believe we continue to be well-positioned to invest our assets opportunistically.

As of December 31, 2024, we had $133.1 billion of capital available for investment compared to $111.4 billion as of December 31, 2023.

As of December 31, 2025, we had $156.0 billion of dry powder compared to $133.1 billion as of December 31, 2024.

• Our ability to invest capital and generate returns through market cycles.

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Group Real Assets

Group Private Equity

Group Secondaries

Group Private Equity

Businesses Total AUM

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Acquisitions — 45,281 — 856 — 46,137

Net new par/equity commitments 39,343 7,367 519 4,453 6,442 58,124

Net new debt commitments 29,268 4,049 — 625 — 33,942

New par/equity commitments 36,518 14,316 11,855 2,282 7,129 72,100

New debt commitments 30,389 9,611 1,083 — — 41,083

Capital reductions (13,310) (3,275) (280) (55) — (16,920)

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Group Real Assets

Group Private Equity

Group Secondaries

Group Private Equity

Businesses Total AUM

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Acquisitions 362 2,488 — — 71 2,921

Net new par/equity commitments 40,393 6,076 1,621 3,648 7,008 58,746

Net new debt commitments 14,897 726 — — — 15,623

New par/equity commitments 39,343 7,367 4,453 519 6,442 58,124

New debt commitments 29,268 4,049 625 — — 33,942

Capital reductions (10,546) (1,086) — (4) — (11,636)

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Group Real Assets

Group Private Equity

Group Secondaries

Group Private Equity

Businesses Total

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Commitments 28,769 8,004 6,205 564 5,907 49,449

Deployment/subscriptions/increase in leverage 29,479 3,180 47 395 174 33,275

Deployment/increase in leverage 34,118 6,527 1,132 65 395 42,237

Capital reductions (10,404) (1,190) — (11) — (11,605)

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Group Real Assets

Group Private Equity

Group Secondaries

Group Private Equity

Businesses Total

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Commitments 19,326 3,440 2,793 — 5,745 31,304

Deployment/subscriptions/increase in leverage 26,219 2,968 234 473 150 30,044

Deployment/increase in leverage 29,479 3,180 395 47 174 33,275

Capital reductions (11,972) (12) — — — (11,984)

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$384.9 FPAUM:

Invested capital/other (1)

Market value /reported value (2)

Collateral balances (at par) Capital commitments

(1) Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.

Invested capital Market value/reported value (1)

Capital commitments Collateral balances (at par) GAV

(1) Includes $91.8 billion and $71.9 billion from funds that primarily invest in illiquid strategies as of December 31, 2025 and 2024, respectively.

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The chart below presents our perpetual capital AUM by segment and type ($ in billions)

Credit Real Assets Secondaries Other Businesses Publicly-Traded

Vehicles Perpetual Wealth Vehicles Private Commingled Vehicles Managed Accounts

Management Fees By Type

We view the duration of funds we manage as a metric to measure the stability of our future management fees.

For both the years ended December 31, 2024 and 2023, 95% of management fees were earned from perpetual capital or long-dated funds.

The charts below present the composition of our segment management fees by the initial fund duration:

For the years ended December 31, 2025 and 2024, 93% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.

The charts below present the composition of our segment management fees by fund type:

Perpetual Capital - Publicly-Traded

Vehicles Perpetual Capital - Perpetual Wealth Vehicles

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

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

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

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

Credit Real Assets Private Equity Secondaries

Other Businesses

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

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

Credit Real Assets Secondaries

Private Equity Other Businesses

Incentive Eligible Assets Under Management and Incentive Generating Assets Under Management

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

Credit Real Assets Private Equity Secondaries

Other Businesses

Credit Real Assets Secondaries

Private Equity Other Businesses

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

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

Real Estate U.S.

Direct Lending European Direct Lending Alternative Credit Private Equity Secondaries

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

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Components of Consolidated Results of Operations

GCP Acquisition Overview

On March 1, 2025, we completed the GCP Acquisition.

The GCP Acquisition added complementary logistics and digital infrastructure investment capabilities and expanded our geographic presence.

The activities of GCP International are included within the Real Assets Group segment.

The GCP Acquisition added geographic exposure in Asia with a significant logistics platform in Japan, logistics platforms in emerging economies such as Brazil and Vietnam and an expanded presence in Europe and the U.S.

The GCP Acquisition has broadened our vertically integrated operating and development capabilities across sectors and regions.

We anticipate that the size and composition of fees earned, particularly our other fees, will be impacted by these expanded capabilities.

The activities of GCP International are reflected within our results of operations beginning on March 1, 2025.

Therefore, our analysis compared to the prior year will lack comparability, particularly in our Real Assets Group segment.

Because the activities of GCP International represent 10 months of activity within the year ended December 31, 2025, we will separately discuss the significant impact of the GCP Acquisition within our discussion of our results of operations.

In addition, various components of the agreed-upon purchase price for the GCP Acquisition are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees on March 1, 2025.

Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration and will have a varying impact on our results of operations in the current year as well as in future periods.

We expect expenses to fluctuate during an integration period as we continue to seek to generate more cost savings and to execute on synergy opportunities.

In connection with the GCP Acquisition, we also entered into contingent compensation arrangements with the sellers and with certain of its professionals that became Ares employees.

The portion of the arrangements that are attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration.

The portion of the arrangements that are attributable to the professionals that became Ares employees requires continued service through the measurement periods and will be accounted for as compensation.

These arrangements will have a varying impact on our results of operations in the current year as well as in future periods that is dependent on these classifications as well as the expected attainment of the measurement criteria.

For further discussion, see “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidated Results of Operations of the Company” as well as “Note 3.

Business Combinations” and “Note 9.

Commitments and Contingencies” within our consolidated financial statements.

Management Fees.

The investment adviser of our funds generally receives an annual management fee based on a percentage of the fund’s capital commitments, contributed capital, net asset value or invested capital during the investment period, which may then change at the end of the investment period.

For certain of our SMAs, we receive an annual management fee based on a percentage of invested capital, contributed capital or net asset value throughout the term of the SMA.

We also may receive special fees, including agency and arrangement fees.

In certain circumstances, we are contractually required to offset certain amounts of such special fees against management fees relating to the applicable fund.

The investment adviser of our funds generally receives an annual management fee based on a percentage of capital commitments, invested capital, NAV or the fair value of assets, among others.

For certain of our SMAs, we receive an annual management fee based on a percentage of invested capital or NAV throughout the term of the SMA.

We also may receive other fees, including agency and arrangement fees.

In certain circumstances, we are contractually required to offset certain amounts of these other fees against management fees relating to the applicable fund.

The investment adviser of each of our CLOs typically receives annual management fees based on the gross aggregate collateral balance for CLOs, at par, adjusted for cash and defaulted or discounted collateral.

The management fees of CLOs accounted for approximately 2% of our total management fees on a consolidated basis and 3% on an unconsolidated basis for the year ended December 31, 2025.

The management fees we receive from our drawdown style funds are typically payable on a quarterly basis over the life of the fund and do not fluctuate with the changes in investment performance of the fund.

The management fees we receive from our drawdown style funds are typically payable on a quarterly basis over the life of the fund and do not fluctuate with the changes in value of the underlying investments within the fund.

The investment management agreements we enter into with clients in connection with contractual SMAs may generally be terminated by such clients with reasonably short prior written notice.

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

Typically, terminations do not require liquidation of assets so that SMAs will continue to pay fees until the underlying investments are liquidated.

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

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

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

Vehicle Strategy Annual Fee Rate Fee Base

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

ARCC Part I Fees U.S.

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

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

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

Direct Lending 1.25% NAV

ASIF Part I Fees

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

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

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

CADC Part I Fees U.S.

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

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

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

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

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

Real Assets Group

ACRE Real Estate Debt 1.50% Stockholders’ equity

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

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

Infrastructure Private BDC Infrastructure Opportunities 1.25% NAV

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

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

Secondaries Group

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

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

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

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

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

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

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

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Real Assets Group

Real Estate Equity (6)

0.50% - 1.50% Invested capital, NAV, capital commitments or a combination thereof 5.1 years

Real Estate Debt 0.50% - 1.00% Invested capital or NAV N/A (7)

Infrastructure Opportunities (8)

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

Infrastructure Debt 1.00% Invested capital 5.2 years

Real Estate (6)

0.45% - 1.50% Capital commitments, invested capital, GAV, NAV, aggregate cost basis of unrealized portfolio investments or a combination thereof 4.6 years

Infrastructure (7)

0.75% - 1.50% Capital commitments, invested capital, GAV or NAV 6.3 years

Secondaries Group

Private Equity, Real Estate, Infrastructure and Credit Secondaries (8)

0.50% - 1.25% Capital commitments, invested capital, reported value (largely representing NAV of each fund’s underlying limited partnership interests), called capital plus unfunded commitments or reported value plus unfunded commitments 8.1 years

Private Equity Group

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1.00% - 2.00% Invested capital, capital commitments or a combination thereof 4.7 years

Secondaries Group

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

Other Businesses

Ares Insurance Solutions (11)

0.30% Monthly weighted average market value of the assets N/A (12)

0.28% Monthly weighted average market value of assets N/A (11)

(1) Represents the average remaining contract term pursuant to the funds’ governing documents within each strategy, excluding perpetual capital vehicles, as of December 31, 2025.

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

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

In addition, certain real estate funds pay a management fee of 7.50% of net operating income.

For these funds, we present an effective fee rate as a percentage of GAV.

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

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

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

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

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

Management fees for corporate private equity funds generally step down to 0.75% to 1.00% of the aggregate adjusted cost of unrealized portfolio investments following the earlier to occur of:

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

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

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

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

The funds also include co-investment vehicles with fee rates of 2.00%, which are excluded from the calculation of average remaining contract term because they will generally cease at the same time as the related funds.

(11) Ares Insurance Solutions earns a tiered management fee that starts at 0.30% and steps down to 0.15% of the monthly weighted average market value.

Ares Insurance Solutions generally includes open-ended or managed account structures, which typically do not have investment period termination or management contract expiration dates.

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

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

Vehicle Strategy Annual Fee Rate Fee Base

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

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

Direct Lending 1.25% NAV

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

Open-Ended Sports, Media and Entertainment Opportunities Fund U.S.

Direct Lending 1.40% NAV

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

Open-Ended European Direct Lending ELTIF European Direct Lending 1.25% NAV

Real Assets Group

ACRE Real Estate 1.50% Stockholders’ equity

Diversified Non-Traded REIT Real Estate 1.10% NAV

Industrial Non-Traded REIT Real Estate 1.25% NAV

J-REIT Real Estate Various

• Comprised of multiple components, including:

◦ 0.18% on total assets (“J-REIT Fee I”)

◦ 3.50% on net operating income (“J-REIT Fee II”)

◦ Sum of J-REIT Fee I and J-REIT Fee II, multiplied by 0.033%, multiplied by earnings per outstanding investment unit

Open-Ended Core Infrastructure Fund

Infrastructure 1.25% NAV

Secondaries Group

Part I Fees are based on net investment income (before Part I Fees and Part II Fees, where applicable), subject to hurdle rates as presented for each applicable fund below.

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

Vehicle Strategy Annual Fee Rate Hurdle Rate Catch-Up Provision

ARCC Part I Fees U.S.

Direct Lending 20% 1.75% per quarter or 7% per annum 20%

ASIF Part I Fees

Direct Lending 12.5% 1.25% per quarter or 5% per annum 12.5%

CADC Part I Fees U.S.

Direct Lending 15% 1.50% per quarter or 6% per annum 15%

Open-Ended European Direct Lending Fund Part I Fees European Direct Lending 12.5% 1.25% per quarter or 5% per annum 12.5%

Open-Ended European Direct Lending ELTIF Part I Fees European Direct Lending 12.5% 1.25% per quarter or 5% per annum 12.5%

Real Assets Group

Open-Ended Core Infrastructure Fund Part I Fees

Infrastructure 12.5% 1.25% per quarter or 5% per annum 12.5%

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

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

Incentive Fees.

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

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

Realized incentive fees are generally higher during the second half of the year, aligning with the

measurement period that typically ends at the end of the calendar year.

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

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

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

Vehicle Strategy Annual Fee Rate Fee Base Annual Hurdle Rate

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

Vehicle Strategy Fee Rate Fee Base Annual Hurdle Rate

Real Assets Group

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

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

ACRE Real Estate 20% The difference between ACRE’s core earnings (as defined in ACRE’s management agreement) and its shareholders’ return on equity 8%

Diversified Non-Traded REIT and Industrial Non-Traded REIT Real Estate 12.5% Annual investment returns, subject to certain net loss carry-forward provisions 5%

Secondaries Group

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

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

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

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

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

Strategy Fee Rate Fee Base Annual Hurdle Rate

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and European Direct Lending 8% - 16% Incentive eligible fund’s profits 5% - 8%

Real Assets Group

Real Estate 15% - 20% Incentive eligible fund’s profits 6% - 8%

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

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Real Assets Group

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

Infrastructure Opportunities (1)

Real Estate 15% - 20% 6% - 8%

Infrastructure (1)

Secondaries Group

Private Equity Secondaries 10% 8%

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

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

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

(1) We may receive Part II Fees from certain publicly-traded funds and perpetual wealth vehicles, which are not paid unless these funds achieve cumulative aggregate realized capital gains (net of cumulative aggregate realized capital losses and aggregate unrealized capital depreciation), subject to certain catch-up provisions.

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

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

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

For most funds, the carried interest is subject to a preferred return ranging from 5% to 10%, after which there is typically a catch-up allocation to the general partner.

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These repayment obligations may be related to amounts previously distributed to us and our senior professionals and are generally referred to as contingent repayment obligations.

Contingent repayment obligations operate with respect to only a given fund’s net investment performance, and carried interest of other funds are not netted for determining this contingent obligation.

Although a contingent repayment obligation is several to each person who received a distribution, and not a joint obligation, and our professionals who receive carried interest have guaranteed repayment of such contingent obligation, the governing agreements of our funds generally provide that, if a recipient does not fund his or her respective share, we may have to fund such additional amounts beyond the amount of carried interest we retained, although we generally will retain the right to pursue remedies against those carried interest recipients who fail to fund their obligations.

Certain funds may make distributions to their partners to provide them with cash sufficient to pay applicable federal, state and local tax liabilities attributable to the fund’s income that is allocated to them.

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Tax distributions from European-style waterfall funds generally precede investors in the fund receiving the preferred return.

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

Strategy Fee Rate Annual Hurdle Rate

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

Alternative Credit 20% 6%

Opportunistic Credit 20% 8%

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Infrastructure 15% - 20% 7% - 8%

Private Equity Group

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

Secondaries Group

Private Equity, Real Estate, Infrastructure and Credit Secondaries 10% - 15% 7% - 8%

Private Equity Group

Corporate Private Equity and APAC Private Equity 15% - 20% 8%

Other Businesses

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Performance Income.

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

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

Principal Investment Income (Loss).

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Administrative, Transaction and Other Fees.

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

Details regarding our administrative, transaction and other fees are presented below, which are typically payable at the time of the related transaction, unless otherwise noted:

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

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

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

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

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

Typically payable quarterly

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

Fees are based on a fixed percentage of original issue discount for our direct lending funds

Capital markets transaction fees Represent fees earned by AMCM for participating as an underwriter, placement agent and/or acting as advisor on capital markets transactions

Property-related fees represent fees earned from real estate and digital infrastructure funds and include the following:

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

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

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

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

Development fees Based on a percentage of costs to develop a property and recognized over the development period.

Typically payable monthly or at varying milestones throughout the development period

Leasing fees Based on a percentage of rental income at lease execution, lease commencement or lease renewal

Property management fees Based on a percentage of rental income or net operating income over the time associated property management services are provided.

Typically payable monthly throughout the tenancy period

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

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

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

Sales-based fees are reported net of amounts re-allowed to participating broker-dealers for their sales platform services.

Typically payable quarterly throughout the service period

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

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

Typically payable quarterly throughout the service period

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

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Compensation and Benefits.

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

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

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

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

We use changes in headcount, which represents the full-time equivalency of active employees during each period, to analyze changes in certain compensation and benefits expenses, primarily salaries, benefits and payroll-related taxes.

Incentive-based compensation is typically correlated to the operating performance of our segments and is accrued over the service period to which it relates.

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

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

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

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

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

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

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

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

Equity-based awards are typically granted in the form of restricted units or restricted stock

(collectively “unvested awards”) that vest over service periods up to five years from the grant date.

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

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

This result has reduced the average annual dilutive impact of

these awards to less than 1.0% annually.

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

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

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Performance related compensation includes compensation directly related to carried interest allocation and incentive fees earned from funds with stated investment periods, generally consisting of percentage interests that we grant to our professionals.

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

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

In certain instances, we may transfer our rights to performance income to structured financing vehicles that we manage.

Although these transfers typically result in a reclassification of the associated performance income to investment income, we remain obligated to compensate our professionals who retain the rights to their allocation of performance income, which continue to be reported within performance related compensation.

Performance related compensation may also include a portion of the profits from certain of our strategic investments that are payable to professionals although the profits generated from these strategic investments represent investment income and are not reported within performance income.

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

Performance related compensation may include allocations to charitable organizations as part of our philanthropic initiatives.

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

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

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

This discrepancy is caused when carried interest allocation and incentive fees earned from our Consolidated Funds is eliminated upon consolidation and performance related compensation is not, and similarly, investment income associated with strategic investments that generate profits interests for our professionals are not presented within performance income.

General, Administrative and Other Expenses.

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

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

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

Expenses of Consolidated Funds.

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Interest Expense.

Interest expense includes interest related to our Credit Facility, which has a variable interest rate based upon SOFR plus a credit spread that is adjusted with changes to corporate credit ratings and with the achievement of certain ESG-related targets, and to our senior and subordinated notes, each of which have fixed coupon rates.

Interest expense includes interest related to our Credit Facility, which has a variable interest rate based upon SOFR plus a credit spread that is adjusted with changes to corporate credit ratings, and to our senior and subordinated notes, each of which have fixed coupon rates.

Other Income (Expense), Net.

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

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

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

(ii) changes in fair value of contingent earnout arrangements;

and (iii) other non-operating and non-investment related activities, such as loss on disposal of assets, among other items.

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

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

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

Net income (loss) attributable to redeemable interest in AOG entities represents income generated by certain non-controlled investments owned by a third-party.

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

On March 31, 2023, we acquired a portion of the remaining ownership interest in SSG that was retained by the former owners of SSG (the “SSG Buyout”), and we now own 100% of Ares SSG’s fee-generating business.

Following the SSG Buyout, legacy owners of SSG retained an ownership interest in certain non-controlled investments that will continue to be reflected as redeemable interests, and the income generated by these investments will continue to be allocated ratably based on ownership.

Net income (loss) attributable to non-controlling interests in AOG entities is generally allocated based on the weighted average daily ownership of the other AOG unitholders, except for income (loss) generated from certain joint venture partnerships.

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Consolidation and Deconsolidation of Ares Funds

We consolidate (i) entities that we have both significant economics and the power to direct the activities of the entity that impact economic performance;

and (ii) entities in which we hold a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity.

Certain funds that have historically been consolidated in the financial statements may no longer be consolidated because:

(i) such funds have been liquidated or dissolved;

or (ii) we are no longer deemed to have a controlling interest in the entity.

Consolidated Funds represented approximately 6% of our AUM as of December 31, 2025 and 3% of total revenues for the year ended December 31, 2025.

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

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

The impact of consolidation also typically will decrease management fees, carried interest allocation and incentive fees reported under GAAP to the extent these amounts are eliminated upon consolidation.

The impact of consolidation also typically will decrease revenues reported under GAAP to the extent these amounts are eliminated upon consolidation.

The assets and liabilities of our Consolidated Funds are held within separate legal entities and, as a result, the liabilities of our Consolidated Funds are typically non-recourse to us.

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The net economic ownership interests of our Consolidated Funds, to which we have no economic rights, are reflected as redeemable and non-controlling interests in the Consolidated Funds within our consolidated financial statements.

Redeemable interest in Consolidated Funds represent the shares issued by our SPACs that are redeemable for cash by the public shareholders in the event that the SPAC does not complete a business combination or tender offer associated with shareholder approval provisions.

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

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

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

Redeemable interest in Consolidated Funds represented the shares issued by our SPAC that were redeemable for cash by the public shareholders until the completion of a business combination or tender offer associated with shareholder approval provisions.

We have transferred certain financial interests to structured financing vehicles that we manage, including but not limited to collateralized fund obligations, rated note feeders and private asset-backed notes, among other secondary solutions.

These financial interests include our capital interests and rights to performance income in funds that we manage.

The purpose of these transferred interests is to provide collateral or other forms of similar credit-enhancement, including subordination and liquidity support, to the structured financing vehicles.

These structured financing vehicles are typically designed to meet investors’ risk-return, liquidity, diversification and risk-based capital treatment objectives and to support capital raising efforts across our platform.

The transfer of these financial interests does not subject us to the additional risk of loss;

instead our maximum risk of loss equals the value of our transferred interest and only in the event that the returns generated by the structured financing vehicles do not meet stated performance thresholds.

These structured financing vehicles typically represent variable interest entities that are consolidated with our results.

As a result, the financial interests that we transfer will typically be reclassified from investments in the funds that we manage and/or from accrued performance income to investments of the Consolidated Funds upon consolidation.

Any future investment income and performance income resulting from these financial interests will be presented within the results of operations of our Consolidated Funds as a result of consolidation.

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

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Net income attributable to Ares Operating Group entities 834,454 814,963 19,491 2

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

Net income attributable to redeemable interest in Ares Operating Group entities 1,349 103 1,246 NM

Net income attributable to non-controlling interests in Ares Operating Group entities 305,743 351,118 (45,375) (13)

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Management Fees.

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

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

The increase in Part I Fees was primarily due to:

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

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

Within the Credit Group, our publicly-traded funds and our perpetual wealth vehicles contributed an increase in management fees of $172.8 million for the year ended December 31, 2025 compared to the prior year, primarily driven by increases in the average size of their portfolios.

C apital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to an increase in management fees of $112.5 million for the year ended December 31, 2025 compared to the prior year.

Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition generated $202.8 million in additional management fees for the year ended December 31, 2025.

In addition, management fees also increased by $20.3 million for the year ended December 31, 2025 compared to the prior year , driven by the WSM Acquisition, which began generating fees in the fourth quarter of 2024.

In addition, Part I Fees increased by $74.5 million for the year ended December 31, 2025 compared to the prior year.

The increase in Part I Fees were primarily attributable to ASIF, our open-ended European direct lending fund, our open-ended core infrastructure fund and CADC driven by increase in net investment income from their growing portfolio of investments.

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

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Real Assets funds 100.4 105.7

Private Equity funds (294.4) (118.8)

Secondaries funds

(28.3) (13.2)

Private Equity funds 177.0 (294.4)

Other businesses 143.0 26.8

Elimination of carried interest from Consolidated Funds (31.6) (26.8)

Carried interest of non-controlling interests in consolidated subsidiaries (39.8) (8.8)

Carried interest allocation $ 1,154.0 $ 390.2

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Year ended December 31, 2025 Year ended December 31, 2024

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

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

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

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

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

Ares Capital Europe IV, L.P.

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

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

• Primarily from one opportunistic credit fund, four direct lending funds and two alternative credit funds with $42.6 billion of IGAUM generating returns in excess of their hurdle rates:

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

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

(“ASOF II”) generated carried interest allocation of $174.7 million, driven by improved profitability of portfolio companies that operate in the services, healthcare and industrial industries

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

(“ACE V”), Ares Capital Europe VI, L.P.

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

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

(“ACE IV”) generated carried interest allocation of $130.7 million, $119.2 million, $89.7 million and $36.5 million, respectively, driven by net investment income during the period

◦ Within our alternative credit funds, Ares Pathfinder Fund II, L.P.

(“Pathfinder II”) and Ares Pathfinder Fund, L.P.

(“Pathfinder I”) generated carried interest allocation of $88.1 million and $63.0 million, respectively, driven by market appreciation of certain investments and net investment income during the period

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

◦ Within our opportunistic credit funds, ASOF II generated carried interest allocation of $177.3 million, driven by improved operating performance metrics from portfolio companies that operate in the services and retail industries

◦ Within our direct lending funds, ACE V, PCS II, ACE IV, ACE VI and Ares Private Credit Solutions, L.P.

(“PCS I”) generated carried interest allocation of $153.2 million, $131.1 million, $57.0 million, $54.5 million and $22.9 million, respectively, driven by net investment income during the period

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Real Assets funds

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(“IDF V”) generated carried interest allocation of $42.0 million, driven by net investment income during the period

• Ares Climate Infrastructure Partners, L.P.

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

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

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

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

• Ares Climate Infrastructure Partners II, L.P.

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

(“EIF V”) generated carried interest allocation of $26.6 million and $22.1 million, respectively, driven by the appreciation of certain portfolio investments

• IDF V generated carried interest allocation of $63.8 million, driven by net investment income during the period

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

Real Estate Fund IX, L.P.

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

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

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

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

Private Equity funds

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

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

• Ares Corporate Opportunities Fund VI, L.P.

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

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

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

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

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

• Ares Climate Infrastructure Partners, L.P.

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

• Reversal of unrealized carried interest of $26.3 million from Ares European Real Estate Fund IV SCSp (“EF IV”), primarily driven by the lower valuation of a residential property investment

Secondaries funds

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

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

• Landmark Real Estate Fund IX, L.P.

(“LREF IX”) and Landmark Equity Partners XVII, L.P.

(“LEP XVII”) generated carried interest allocation of $27.1 million and $20.4 million, respectively, primarily driven by appreciation of certain portfolio investments

• Ares Secondaries Infrastructure Solutions III, L.P.

(“ASIS III”) and four private equity secondaries funds collectively generated carried interest allocation of $27.0 million, primarily driven by the appreciation of certain portfolio investments

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

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

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

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

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

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

Year ended December 31, 2025 Year ended December 31, 2024

Private Equity funds

• Ares Corporate Opportunities Fund VI, L.P.

(“ACOF VI”) generated carried interest allocation of $191.5 million, driven by improved profitability of portfolio companies that primarily operate in the healthcare, services, industrial and retail industries

• Reversal of unrealized carried interest of $13.1 million from a corporate private equity extended value fund, driven by lower operating performance from a portfolio company that operates in the industrial industry

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

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

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

Other businesses

• Carried interest allocation of $118.0 million attributable to the change in value from previously held Ares Acquisition Corporation II Class A ordinary shares that converted into equity securities of Kodiak AI, Inc.

KDK) following the business combination

• Carried interest allocation of $25.0 million from an insurance fund that is eliminated upon consolidation

• Carried interest allocation from an insurance fund that is eliminated upon consolidation

Incentive Fees.

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Incentive fees $ 362.5 $ 344.2

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

and European direct lending strategies and our alternative credit strategy.

The increase in incentive fees for the year ended December 31, 2025 compared to the prior year was primarily due to higher fees generated from (i) APMF and our open-ended core alternative credit fund, resulting from increased IGAUM;

(ii) our U.S.

open-ended industrial real estate fund that crystallizes incentive fees by investor based on performance over three-year measurement periods;

and (iii) our diversified non-traded REIT, driven by strong fund performance.

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

Principal Investment Income.

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

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

As of December 31, 2023

Activity during the period As of December 31, 2024

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

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

The activity for the year ended December 31, 2025 was primarily attributable to:

• Principal investment income, primarily due to:

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

and European direct lending strategies;

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

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

As of December 31, 2022

Activity during the period As of December 31, 2023

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

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

• Unrealized gains from our investments in various European real estate equity and U.S.

direct lending, partially offset by an unrealized loss from a U.S.

real estate equity fund

• Interest and dividend income primarily generated from our investments in various real estate, direct lending and opportunistic credit funds, and interest income from newly admitted investors in an insurance fund, where capital account balances were reallocated from existing investors in exchange for interest to compensate for carrying costs

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

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

and European direct lending strategies

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

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

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

• Interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs

• Realized gains generated from our investments in various infrastructure debt, real estate debt and direct lending funds

Administrative, Transaction and Other Fees.

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

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

and (ii) higher administrative fees of $5.2

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

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

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

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

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

The increase for the year ended December 31, 2025 compared to the prior year was driven by incremental fees of $157.2 million following the completion of the GCP Acquisition.

The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees.

For the year ended December 31, 2025, these incremental fees largely represented development, property management and leasing fees.

The increase in fees over the comparative period, excluding the aforementioned impact from the GCP Acquisition, was also driven by higher administrative service fees of $20.8 million, primarily from:

(i) our perpetual wealth vehicles;

and (ii) new and existing private funds within our Credit Group that are based on invested capital.

In addition, we earned higher capital markets transaction fees of $4.3 million associated with increased transaction volumes generated by AMCM during the current year as we are investing in the capital markets business to create greater revenue growth opportunities over time.

Year ended December 31, Favorable (Unfavorable)

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Compensation and Benefits.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In connection with the GCP Acquisition, various components of the agreed-upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees following the GCP Acquisition.

The year ended December 31, 2025 included the following acquisition-related compensation expenses:

(i) equity-based compensation expense of $227.6 million, from awards associated with the purchase price of the GCP Acquisition, with $110.0 million of expense from the portion of these awards that immediately vested;

(ii) other compensation costs of $48.5 million that were settled in cash;

and (iii) compensation expense of $71.3 million for certain contingent earnout arrangements established in connection with the GCP Acquisition.

Commitments and Contingencies” within our consolidated financial statements for a further description of the contingent earnout arrangements established in connection with acquisitions.

In addition, the GCP Acquisition contributed incremental employment related costs of $170.5 million for the year ended December 31, 2025, largely reflecting salary expense and incentive-based compensation.

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $316.0 million, or 18%, for the year ended December 31, 2025 compared to the prior year.

The increase in expenses reflect the continued growth in salary and benefits for our increased staffing levels.

Equity-based compensation expense also increased by $160.1 million for the year ended December 31, 2025 compared to the prior year as a result of issuing new discretionary and bonus-related awards at an increased stock price as of the grant date.

In addition, Part I Fee compensation increased by $36.8 million over the comparative period, corresponding to the increase in Part I Fees.

We reduced Part I Fee compensation by $22.4 million and $11.7 million for the years ended December 31, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.

Full-time equivalent headcount increased by 34% to 3,967 professionals for the year-to-date period in 2025 from 2,971 professionals in 2024.

The GCP Acquisition added 805 professionals to our headcount as of December 31, 2025, which represents 690 full-time equivalents for the year-to-date period.

For detail regarding the fluctuations of compensation and benefits within each of our segments see “—Results of Operations by Segment.”

Performance Related Compensation.

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

The majority of the changes in performance related compensation are directly associated with the changes in carried interest allocation and incentive fees as described above.

These changes also include associated payroll-related taxes as well as the portions that are allocated to charitable organizations as part of our philanthropic initiatives.

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

The performance related compensation ratio is also impacted by additional expense that is payable to professionals as a result of gains recognized from profit interests held in a strategic investment.

The corresponding income from this strategic investment is reflected within components of other income rather than carried interest allocation or incentive fees.

General, Administrative and Other Expenses.

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

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

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

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

We expect that these fees will fluctuate with sales

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

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

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

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

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

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

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

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

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

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

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

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

General, administrative and other expenses incurred in connection with the activities resulting from the GCP Acquisition were $179.4 million for the year ended December 31, 2025.

These expenses were driven by:

(i) operating costs of $93.2 million, including non-recurring integration costs of $20.1 million and (ii) amortization expense of $86.2 million related to the intangible assets recorded in connection with the GCP Acquisition.

We have also incurred acquisition-related operating expenses in connection with the GCP Acquisition of $35.3 million and $33.4 million during the years ended December 31, 2025 and 2024, respectively.

In each case, such costs were largely paid to advisors and professional services providers to assist in completing the transaction.

General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $78.2 million, or 11%, for the year ended December 31, 2025 compared to the prior year.

The increase in expenses reflect growing staffing levels and fundraising activities.

The most significant expense increases were supplemental distribution fees, occupancy costs and information technology costs.

Supplemental distribution fees increased by $58.9 million for the year ended December 31, 2025 compared to the prior year.

In the current year, supplemental distribution fees included a one-time expense of $30.7 million pursuant to the termination of a distribution agreement with a strategic partner that will result in annual cost savings of approximately $9.3 million per year.

The increase in supplemental distribution fees was also driven by higher sales volumes and NAVs of our perpetual wealth vehicles and by the ongoing development of our distribution relationships and expansion of our wealth product offerings.

In addition, occupancy costs and information technology costs collectively increased by $25.3 million for the year ended December 31, 2025 compared to the prior year.

The increase in these expenses was primarily to support our growing headcount and the expansion of our business, including the expansion of our New York headquarters.

Other Income (Expense)

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Other income (expense)

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

Net realized and unrealized gains on investments $ 307,582 $ 16,570 $ 291,012 NM

Interest and dividend income 47,451 43,054 4,397 10

Interest expense (171,642) (142,966) (28,676) (20)

Other income, net 627 4,819 (4,192) (87)

Other income (expense), net (319,745) 627 (320,372) NM

Net realized and unrealized gains on investments of Consolidated Funds 551,076 313,963 237,113 76

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Interest and Dividend Income.

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

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

As of December 31, 2023

Activity during the period As of December 31, 2024

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

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

The activity for the year ended December 31, 2025 was primarily attributable to:

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

• Interest and dividend income, primarily due to:

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

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

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

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

As of December 31, 2022

Activity during the period As of December 31, 2023

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

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

• Unrealized gains of $233.3 million from our strategic investments in a U.S.

nuclear energy company

• Interest and dividend income primarily included:

(i) dividend income from our strategic investment in a Brazilian alternative asset manager;

(ii) income from our investments in CLOs and CLO-based investments;

and (iii) $11.9 million of interest income earned from treasury-backed securities.

These treasury-backed securities were sold and the proceeds from the sale were used to fund the GCP Acquisition

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

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

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

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

• Interest and dividend income, primarily due to:

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

and (ii) dividends from our investment in APMF

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

• Net unrealized gains primarily from our investment in APMF

• Interest and dividend income primarily included:

(i) dividend income from our strategic investment in a Brazilian alternative asset manager;

(ii) income from our investments in CLOs and CLO-based investments;

and (iii) $11.5 million of interest income earned from aforementioned treasury-backed securities

Interest Expense .

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

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

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

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

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

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

Interest expense increased for the year ended December 31, 2025 compared to the prior year due to higher collective interest expense associated with our term debt obligations and a higher average outstanding balance of our Credit Facility over the comparative period.

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

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

Other Income, Net.

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

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

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

Other Income (Expense), Net.

Other income (expense), net for the year ended December 31, 2025 consists of non-cash expense of $301.1 million from the revaluation of contingent consideration primarily from the GCP Acquisition.

The purchase agreement for the GCP Acquisition contains contingent earnout arrangements that are dependent on achievement of revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds.

Commitments and Contingencies” within our consolidated financial statements for a further description of the contingent earnout arrangements established in connection with acquisitions.

Income Tax Expense

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Net income $ 1,088,358 $ 1,110,735 (22,377) (2)

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

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

The increase in income tax expense was primarily attributable to higher pre-tax income allocable to AMC and higher entity level taxes in foreign and local jurisdictions for the year ended December 31, 2025 compared to the prior year .

The allocation of taxable income is also sensitive to any changes in weighted average daily ownership as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes.

The following table summarizes weighted average daily ownership:

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Non-controlling AOG unitholders 33.05 36.39

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

The change in ownership compared to the prior year was primarily driven by the issuances of shares of Class A common stock in connection with the GCP Acquisition, exchanges of AOG Units and vesting of restricted unit awards.

Redeemable and Non-Controlling Interests

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Net income attributable to Ares Operating Group entities 834,454 814,963 19,491 2

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

Net income attributable to redeemable interest in Ares Operating Group entities 1,349 103 1,246 NM

Net income attributable to non-controlling interests in Ares Operating Group entities 305,743 351,118 (45,375) (13)

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Revenues attributable to Ares Management Corporation eliminated upon consolidation 178,773 68,200 110,573 162

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

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

Other income, net attributable to Ares Management Corporation eliminated upon consolidation (39,015) (20,052) 18,963 95

Net income attributable to non-controlling interests in Consolidated Funds $ 253,904 $ 295,772 (41,868) (14)

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For segment reporting purposes, revenues and expenses are presented before giving effect to the results of our Consolidated Funds and the results attributable to non-controlling interests of joint ventures that we consolidate.

As a result, segment revenues from management fees, fee related performance revenues, performance income and investment income are different than those presented on a consolidated basis in accordance with GAAP.

As a result, segment revenues are different than those presented on a consolidated basis in accordance with GAAP.

Revenues recognized from Consolidated Funds are eliminated in consolidation and those attributable to the non-controlling interests of joint ventures have been excluded by us.

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

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

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

We operate through our distinct operating segments.

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

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

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

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

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

real estate equity following the WSM Acquisition.

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

In the first quarter of 2025, we combined the presentation of real estate strategies and infrastructure strategies within Real Assets.

Real estate includes Americas real estate equity, European real estate equity, APAC real estate equity and real estate debt.

Americas real estate equity, which we had recently renamed from North American real estate equity, now includes the activities of Brazil following the GCP Acquisition.

APAC real estate equity is newly established following the GCP Acquisition and primarily represents the activities in Japan and Vietnam.

Infrastructure includes digital infrastructure, infrastructure opportunities and infrastructure debt.

Digital infrastructure is newly established following the GCP Acquisition.

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

Interest expense was historically allocated among our segments based only on the cost basis of our balance sheet investments.

Beginning in the first quarter of 2025, we changed our interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of our balance sheet investments.

Prior period amounts have been reclassified to conform to the current period presentation.

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

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Real Assets Group 464,660 212,106 252,554 119

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

Secondaries Group

208,406 126,172 82,234 65

Private Equity Group 58,320 60,546 (2,226) (4)

27,404 15,686 11,718 75

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Real Assets Group 442,054 218,210 223,844 103

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

Secondaries Group 203,300 101,036 102,264 101

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

Private Equity Group 39,539 52,501 (12,962) (25)

15,420 27,821 (12,401) (45)

Operations Management Group (804,302) (620,558) (183,744) (30)

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Acquisition-related compensation expense (1)

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

105,202 38,150

Acquisition, merger and transaction-related expense 65,363 57,360

Placement fee adjustment (3,891) 5,715

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Fee Related Earnings $ 1,775,300 $ 1,361,737

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

(1) Represents bonus payments, a portion of earnouts and other costs in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within our Consolidated Statements of Operations.

For the specific components and calculations of these non-GAAP measures, as well as additional reconciliations to the most comparable measures in accordance with GAAP, see “Note 15.

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Year-over-year

Perpetual wealth vehicles:

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

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

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

Publicly-traded funds and perpetual wealth vehicles:

Base management fees from ARCC, ASIF and CADC due to increases in the average size of their portfolios $ 128.7

Part I Fees from ASIF, our open-ended European direct lending fund and CADC, driven by increases in net investment income from their growing portfolio of investments

Base management fees from our open-ended European direct lending fund due to the expiration of a fee waiver during the first quarter of 2025 and to an increase in the average size of its portfolio 36.4

Capital deployment in private funds:

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

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

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

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

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

Reduction in fee rate of ACE III (21.0)

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

(“SDL III”), ASOF II, Pathfinder II, ACE VI and our open-ended core alternative credit fund 136.4

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

(“ SDL I”), ACE III and PCS I as the funds are past their investment periods

Cumulative effect of other changes 33.4

Total $ 351.5

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

Fee Related Performance Revenues .

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

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

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

Fee related performance revenues increased for the year ended December 31, 2025 compared to the prior year, primarily due to higher incentive fees from:

(i) a European direct lending fund that crystallized a deferred payment during the first quarter of 2025 due to the restructuring of its hold back provisions;

(ii) the aforementioned European direct lending fund that crystallized higher fees in 2025 due to lower hold back amounts subsequent to the restructuring of its hold back provisions;

and (iii) our open-ended core alternative credit fund, driven by increased IGAUM and improved fund performance.

In addition, incentive fees from our closed-end sports, media and entertainment fund were recognized as fee related performance revenues in 2025 as this fund converted from having a finite term to a perpetual capital vehicle in 2025.

Incentive fees generated from this closed-end sports, media and entertainment fund were presented within realized performance income in previous periods.

Separately, we recognized lower incentive fees of $30.6 million from three direct lending funds for the year ended December 31, 2025 compared to the prior year.

These three funds are subject to three-year hold back provisions and had crystallized deferred payments in 2024.

The increase in other fees for the year ended December 31, 2025 compared to the prior year was primarily driven by higher administrative service fees of $8.2 million, which are earned from certain private funds that pay on invested capital.

In addition, we earned higher capital markets transaction fees of $3.0 million associated with increased transaction volumes generated by AMCM during the current year.

Compensation and Benefits.

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

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

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

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

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

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

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

The increase in compensation and benefits for the year ended December 31, 2025 compared to the year ended December 31, 2024 was primarily driven by higher:

(i) incentive-based compensation;

(ii) Part I Fee compensation of $36.8 million, corresponding to the increase in Part I Fees;

and (iii) fee related performance compensation of $4.3 million, corresponding to the increase in fee related performance revenues.

We reduced Part I Fee compensation by $20.1 million and $11.7 million for the years ended December 31, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.

Full-time equivalent headcount increased by 5% to 705 investment and investment support professionals for the year-to-date period in 2025 from 672 professionals in 2024 to support our growing direct lending and alternative credit platforms.

General, Administrative and Other Expenses.

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

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

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

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

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

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

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

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

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

Supplemental distribution fees increased by $17.9 million for the year ended December 31, 2025 compared to the prior year a s we continue to develop our distribution relationships and expand our wealth product offerings.

In addition, occupancy costs and information technology costs collectively increased by $4.4 million for the year ended December 31, 2025 compared to the prior year.

The increase in these expenses was primarily to support our growing headcount and the expansion of our business.

Conversely, marketing costs decreased by $5.5 million for the year ended December 31, 2025 compared to the prior year , largely attributable to fund formation costs for ACE VI that did not recur in 2025 .

Realized Income

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Interest expense (20,041) (31,285) 11,244 36

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

Realized net investment income 984 1,545 (561) (36)

Realized Income $ 1,952,297 $ 1,688,110 264,187 16

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Realized net performance income

Carried interest from:

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

Incentive fees from:

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

and (ii) a U.S.

Carried interest:

• Tax distributions of $84.7 million primarily from ASOF II, ACE V, ACE IV and Pathfinder I

• Distributions of $12.8 million from two alternative credit funds, which are European-style waterfall funds that are past their investment periods and monetizing investments

Incentive fees:

• $13.1 million generated from five direct lending funds and three alternative credit funds with $4.1 billion of IGAUM generating returns in excess of their hurdle rates

• $4.6 million from an alternative credit fund that crystallized in connection with a loan repayment

Carried interest:

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

Incentive fees:

• $31.3 million primarily generated from seven direct lending funds and five alternative credit funds with $5.1 billion of IGAUM generating returns in excess of their hurdle rates, and from a U.S.

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

Carried interest from:

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

Incentive fees from:

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

Realized investment income and interest income

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

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

• Income of $11.0 million generated from our investments in 13 CLOs and CLO-based investments

• Income of $3.1 million generated from our investment in an opportunistic credit fund

• Income of $13.5 million generated from our investments in 19 CLOs and CLO-based investments

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

direct lending fund

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

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

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

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

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

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

Interest expense allocated to the Credit Group decreased for the year ended December 31, 2025 compared to the prior year as a significant portion of the current year’s interest expense was allocated based on capital used to finance the GCP Acquisition, which occurred within the Real Assets Group.

Credit Group—Performance Income

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Pathfinder I $ 216.3 $ 183.9 $ 32.4 $ 191.4 $ 165.7 $ 25.7

Pathfinder II 134.7 105.4 29.3 46.6 36.3 10.3

ASOF I 276.4 204.6 71.8 318.4 223.2 95.2

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Pathfinder I European $ 191.4 $ 63.0 $ (38.1) $ — $ 216.3

Pathfinder II European 46.6 88.1 — — 134.7

ASOF I European 318.4 (4.0) (21.1) (16.9) 276.4

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Total Credit Group $ 1,928.0 $ 818.9 $ (383.9) $ (28.3) $ 2,334.7

The reduction in ASOF I accrued carried interest that is presented within other adjustments results from a partial transfer of our rights to receive the carried interest from this fund in exchange for a capital interest in a structured financing vehicle.

As a result, the value associated with the transferred carried interest is now reflected as an investment in the structured financing vehicle.

Credit Group—Assets Under Management

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Balance at 12/31/2024 $ 46,895 $ 41,565 $ 14,964 $ 159,129 $ 74,560 $ 11,470 $ 275 $ 348,858

Acquisitions — — — 362 — — — 362

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

Net new debt commitments 6,615 250 — 21,010 1,773 (380) — 29,268

New par/equity commitments 7,697 3,829 5,611 13,487 5,350 544 — 36,518

New debt commitments 3,531 300 350 22,686 3,522 — — 30,389

Capital reductions (4,885) (745) (351) (3,932) (3,127) (270) — (13,310)

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

Net new par/equity commitments 2,808 8,351 — 15,960 12,508 387 379 40,393

Net new debt commitments 1,978 400 — 8,492 3,826 201 — 14,897

Acquisitions — — — 362 — — — 362

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

New debt commitments 6,615 250 — 21,010 1,773 (380) — 29,268

Capital reductions (7,011) (30) (1,022) (2,608) 55 70 — (10,546)

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Balance at 12/31/2024 $ 46,895 $ 41,565 $ 14,964 $ 159,129 $ 74,560 $ 11,470 $ 275 $ 348,858

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

(1) Amounts represent equity commitments to the platform that have not yet been allocated to an investment strategy.

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

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

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

FPAUM Non-fee paying (1)

AUM not yet paying fees

(1) Includes $18.2 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of December 31, 2025 and 2024, respectively, and includes $2.0 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2025 and 2024.

Credit Group—Fee Paying AUM

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

Acquisitions — — — 244 — — 244

Commitments 12,636 10 — 11,902 3,705 516 28,769

Deployment/subscriptions/increase in leverage 114 4,024 573 17,482 6,326 960 29,479

Deployment/increase in leverage 50 5,654 2,624 17,215 7,218 1,357 34,118

Capital reductions (4,893) — — (3,893) (1,520) (98) (10,404)

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

Acquisitions — — — 244 — — 244

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

Deployment/subscriptions/increase in leverage 282 5,463 2,518 11,246 5,554 1,156 26,219

Deployment/increase in leverage 114 4,024 573 17,482 6,326 960 29,479

Capital reductions (6,859) — — (2,929) (2,133) (51) (11,972)

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

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

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

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In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 42% of the Credit Group’s management fees for the year ended December 31, 2025.

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

Year of Inception AUM Year-To-Date Since Inception (1)

Investment Strategy

The following table presents the performance data for our significant perpetual funds in the Credit Group as of December 31, 2025 ($ in millions):

Investment Strategy Year of Inception AUM Year-To-Date Since Inception (1)

Fund Gross Net Gross Net

2004 $ 32,302 N/A 13.8 N/A 12.1 U.S.

Direct Lending

2017 7,208 N/A 10.2 N/A 6.9 U.S.

Direct Lending

Direct Lending 2004 $ 35,901 N/A 10.3 N/A 12.0

Direct Lending 2017 8,730 N/A 7.6 N/A 7.0

Open-ended core alternative credit fund (4)

Alternative Credit 2021 7,546 12.7 9.3 11.8 8.8

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

Direct Lending

Direct Lending 2023 24,334 N/A 9.3 N/A 10.9

Open-ended European direct lending fund (5)

European Direct Lending 2024 6,410 N/A 7.4 N/A 9.6

(1) Since inception returns are annualized.

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The since inception gross and net returns for Class C (offshore) are 11.3% and 8.1%, respectively.

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

Returns are shown for the Euro hedged distributing institutional share class.

Shares of other classes may have lower returns due to higher selling commissions and fees, and currency hedging.

Actual individual stockholder returns will vary.

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

The following table presents the performance data of the Credit Group’s significant drawdown funds as of December 31, 2025 ($ in millions):

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Primary Investment Strategy Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Total Value MoIC IRR(%)

Fund Gross (3)

Funds Deploying Capital

Direct Lending 2020 $ 6,512 $ 5,114 $ 4,053 $ 1,426 $ 4,087 $ 5,513 1.4x 1.3x 13.0 9.2

ASOF II Opportunistic Credit 2021 9,134 7,128 6,202 399 7,859 8,258 1.5x 1.3x 17.9 13.1

ACE VI Unlevered (7)

European Direct Lending 2022 24,675 7,439 3,299 216 3,404 3,620 1.1x 1.1x 12.3 8.8

ACE VI Levered (7)

9,667 3,679 286 3,928 4,214 1.2x 1.1x 18.6 13.2

SDL III Unlevered (8)

Direct Lending 2023 27,353 3,311 1,473 93 1,496 1,589 1.1x 1.1x 12.9 9.6

SDL III Levered 11,959 4,540 407 4,766 5,173 1.2x 1.1x 24.6 17.3

Pathfinder II Alternative Credit 2023 7,233 6,612 3,576 155 3,947 4,102 1.2x 1.2x 22.2 15.3

Funds Harvesting Investments

ACE IV Unlevered (9)

2018 $ 8,252 $ 2,851 $ 2,190 $ 1,402 $ 1,441 $ 2,843 1.4x 1.3x 8.2 5.9 European Direct Lending

European Direct Lending 2018 5,215 2,851 2,454 2,273 956 3,229 1.4x 1.3x 7.9 5.7

ACE IV Levered (9)

4,819 4,095 4,055 1,793 5,848 1.6x 1.4x 10.8 7.7

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

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

Direct Lending

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

Funds Deploying Capital

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

Direct Lending

ACE V Unlevered (10)

2020 16,256 7,026 5,194 1,058 5,198 6,256 1.3x 1.2x 11.3 8.4 European Direct Lending

ACE V Levered (8)

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

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

ACE VI Unlevered (9)

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

ACE VI Levered (9)

European Direct Lending 2020 17,387 7,026 5,831 1,832 5,582 7,414 1.4x 1.3x 10.1 7.5

6,376 5,304 2,364 5,130 7,494 1.5x 1.4x 14.1 10.3

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

Direct Lending

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

SDL II Unlevered U.S.

Direct Lending 2021 16,275 1,989 1,700 494 1,606 2,100 1.3x 1.2x 11.2 8.9

SDL II Levered 6,047 4,924 2,051 4,564 6,615 1.5x 1.3x 17.5 13.3

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

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Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling:

(7) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in GBP:

ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds:

ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes.

ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered.

Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR for ACE VI (G) Unlevered are 14.3% and 10.1%, respectively.

The gross and net MoIC for ACE VI (G) Unlevered are 1.2x and 1.1x, respectively.

The gross and net IRR for ACE VI (G) Levered are 22.4% and 13.3%, respectively.

The gross and net MoIC for ACE VI (G) Levered are 1.2x and 1.2x, respectively.

The gross and net IRR for ACE VI (E) II Unlevered are 12.1% and 8.5%, respectively.

The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (E) II Levered are 19.4% and 13.8%, respectively.

The gross and net MoIC for ACE VI (E) II Levered are 1.2x and 1.2x, respectively.

The gross and net IRR for ACE VI (D) Levered are 22.2% and 16.9%, respectively.

The gross and net MoIC for ACE VI (D) Levered are 1.2x and 1.2x, respectively.

The gross and net IRR for ACE VI (Y) Unlevered are 10.7% and 7.3%, respectively.

The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (D) Rated Notes are 19.1% and 12.0%, respectively.

The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively.

Original capital commitments are converted to U.S.

Dollars at the prevailing exchange rate at the time of the fund’s closing.

All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S.

Dollars at the prevailing quarter-end exchange rate.

(8) SDL III Unlevered includes investor commitments in three currencies:

Dollars, GBP, and Yen.

The gross and net IRR and MoIC presented in the table are for investors committed in U.S.

The gross and net IRR for investors committed in GBP are 13.8% and 10.3%, respectively.

The gross and net MoIC for investors committed in GBP are 1.1x and 1.1x, respectively.

The gross and net IRR for investors committed in Yen are 7.3% and 3.7%, respectively.

The gross and net MoIC for investors committed in Yen are 1.1x and 1.0x, respectively.

Original capital commitments are converted to U.S.

Dollars at the prevailing exchange rate at the time of the fund’s closing.

All other values for SDL III Unlevered are for the combined fund and are converted to U.S.

Dollars at the prevailing quarter-end exchange rate.

(9) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in GBP:

ACE IV (E) Unlevered, ACE IV (G) Unlevered, ACE IV (E) Levered and ACE IV (G) Levered and one feeder fund:

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Dollars at the prevailing quarter-end exchange rate.

(8) ACE V is made up of four parallel funds, two denominated in Euros and two denominated in pound sterling:

(10) ACE V is made up of four parallel funds, two denominated in Euros and two denominated in GBP:

ACE V (E) Unlevered, ACE V (G) Unlevered, ACE V (E) Levered, and ACE V (G) Levered, and two feeder funds:

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Dollars at the prevailing quarter-end exchange rate.

(9) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in pound sterling:

ACE VI (E) Unlevered, ACE VI (E) II Unlevered, ACE VI (G) Unlevered, ACE VI (E) Levered, ACE VI (E) II Levered, and ACE VI (G) Levered, and three feeder funds:

ACE VI (D) Levered, ACE VI (Y) Unlevered and ACE VI (D) Rated Notes.

ACE VI (E) II Levered includes ACE VI (D) Levered feeder fund and ACE VI (E) II Unlevered includes ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR and gross and net MoIC presented in the table are for ACE VI (E) Unlevered and ACE VI (E) Levered.

Metrics for ACE VI (E) II Levered exclude the ACE VI (D) Levered feeder fund and metrics for ACE VI (E) II Unlevered exclude ACE VI (Y) Unlevered and ACE VI (D) Rated Notes feeder funds.

The gross and net IRR for ACE VI (G) Unlevered are 22.2% and 15.9%, respectively.

The gross and net MoIC for ACE VI (G) Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (G) Levered are 18.9% and 7.7%, respectively.

The gross and net MoIC for ACE VI (G) Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (E) II Unlevered are 22.4% and 17.5%, respectively.

The gross and net MoIC for ACE VI (E) II Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (E) II Levered are 20.9% and 14.9%, respectively.

The gross and net MoIC for ACE VI (E) II Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (D) Levered are 23.5% and 17.0%, respectively.

The gross and net MoIC for ACE VI (D) Levered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (Y) Unlevered are 15.8% and 11.1%, respectively.

The gross and net MoIC for ACE VI (Y) Unlevered are 1.1x and 1.1x, respectively.

The gross and net IRR for ACE VI (D) Rated Notes are 26.0% and 14.0%, respectively.

The gross and net MoIC for ACE VI (D) Rated Notes are 1.2x and 1.1x, respectively.

Original capital commitments are converted to U.S.

dollars at the prevailing exchange rate at the time of the fund's closing.

All other values for ACE VI Unlevered and ACE VI Levered are for the combined levered and unlevered parallel funds and are converted to U.S.

dollars at the prevailing quarter-end exchange rate.

Real Assets Group—Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

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Management fees $ 678,355 $ 401,968 $ 276,387 69%

Fee related performance revenues — 334 (334) (100)

Other fees 27,263 29,695 (2,432) (8)

Fee related performance revenues 35,665 — 35,665 NM

Other fees 181,104 27,263 153,841 NM

Compensation and benefits (315,616) (160,357) (155,259) (97)

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The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the year ended December 31, 2025 compared to the prior year ($ in millions):

Year-over-year Change

Year-over-year

Fees from acquisitions:

Fees from the GCP Acquisition effective March 1, 2025, excluding catch-up fees $ 199.1

Fees from the WSM Acquisition effective December 1, 2024 20.2

Catch-up fees generated from U.S.

Logistics Partners V, L.P.

Perpetual wealth vehicles:

Base management fees from our open-ended core infrastructure fund, our diversified non-traded REIT and our U.S.

open-ended industrial real estate fund, driven by additional capital raised

Part I Fees from our open-ended core infrastructure fund which started generating Part I Fees in the third quarter of 2025, driven by an increase in net investment income from its growing portfolio of investments 3.9

Capital commitments:

Fees from Ares U.S.

Fees from our 11th U.S.

value-add real estate equity fund, fourth European value-add real estate equity fund, our sixth infrastructure debt fund and ACIP II, excluding catch-up fees

Catch-up fees from our fourth European value-add real estate equity fund, ACIP II and our 11th U.S.

value-add real estate equity fund 3.1

Catch-up fees from Ares U.S.

Real Estate Opportunity Fund IV, L.P.

(“AREOF IV”) and our second climate infrastructure fund, excluding catch-up fees

Fees from our fourth European value-add real estate equity fund (excluding catch-up fees), which launched during the second quarter of 2024

Catch-up fees 5.7

Capital deployment in IDF V 8.6

Fees from the WSM Acquisition effective December 1, 2024 2.1

Distributions that reduced the fee bases of Infrastructure Debt Fund IV, L.P.

(“IDF IV”) and Infrastructure Debt Fund III, L.P.

(“IDF III”) as the funds are past their investment periods

Decrease in NAV of our industrial non-traded REIT due to lower valuations of certain properties (8.1)

Contractual reduction in the fee base of AREOF III that was triggered at the expiration of the fund’s investment period at the end of the fourth quarter of 2023

(“AREOF IV”), which had its final close in the third quarter of 2024 (6.5)

Distributions that reduced the fee base of EIF V, Infrastructure Debt Fund IV, L.P.

Power Fund IV, L.P.

as the funds are past their investment periods (8.9)

Cumulative effect of other changes 6.7

The increase in effective management fee rate for the year ended December 31, 2024 compared to the prior year was primarily driven by the deployment of capital within our real estate equity funds.

Certain of our private real estate equity funds pay a fee on committed capital that increases once that capital is invested.

As a result, our effective management fee rate increases as capital is deployed.

The decrease in other fees for the year ended December 31, 2024 compared to the prior year was driven by:

(i) lower credit transaction fees of $8.1 million from the infrastructure debt strategy, which are infrequent in nature;

partially offset by (ii) higher administrative service fees of $1.7 million, mostly from certain infrastructure debt funds that started paying such fees to us subsequent to the third quarter of 2023;

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

Total $ 276.4

The decrease in effective management fee rate for the year ended December 31, 2025 compared to the prior year was primarily driven by lower effective management fee rates from funds that we manage as a result of the GCP Acquisition and the impact of the fees received from these funds.

Certain of these funds pay management fees based on net operating income and we present the associated effective management fee rates as a percentage of fund assets, which may result in greater variability in the Real Assets Group’s effective management fee rate.

In addition, due to the vertically integrated focus of the acquired platform following the GCP Acquisition, we expect the size and composition of other fees earned from certain funds will increase relative to management fees.

Fee Related Performance Revenues .

Fee related performance revenues for the year ended December 31, 2025 were primarily attributable to incentive fees earned from:

open-ended industrial real estate fund that crystallizes incentive fees by investor based on performance over three-year measurement periods;

and (ii) our diversified non-traded REIT, driven by strong fund performance.

The increase in other fees for the year ended December 31, 2025 compared to the prior year was driven by incremental fees of $143.1 million following the completion of the GCP Acquisition.

The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees.

For the year ended December 31, 2025, these incremental fees largely represented development, property management and leasing fees.

Excluding the aforementioned impact of the GCP Acquisition, other fees increased by $10.3 million, or 37.8%, for the year ended December 31, 2025 compared to the prior year, primarily due to higher property management fees earned as we internalized certain property management services.

We expect property management fees to increase in future periods as we expand these services across more properties and retain the fees for services that were previously outsourced to third-parties.

Compensation and Benefits.

The increase in compensation and benefits for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by (i) an increase in salary expenses of $7.4 million, primarily attributable to headcount growth to support the expansion of our business;

and (ii) an increase in payroll-related taxes of $2.8 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2024;

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

and (iv) higher administrative fees reimbursement of expenses for increased services provided throughout the current year.

Average headcount increased by 10% to 391 investment and investment support professionals for the year-to-date period in 2024 from 356 professionals for the same period in 2023.

The GCP Acquisition added 524 professionals to our headcount as of December 31, 2025, which represents 464 full-time equivalents for the year-to-date period.

Headcount growth attributable to the GCP Acquisition contributed $113.3 million in employment related costs for the year ended December 31, 2025, largely reflecting salary expense and incentive-based compensation.

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $42.5 million, or 26%, for the year ended December 31, 2025 compared to the prior year.

The increase in compensation and benefits over the comparative period was driven by:

(i) higher fee related performance compensation of $20.2 million, corresponding to the aforementioned increase in fee related performance revenues;

and (ii) higher incentive-based compensation.

Full-time equivalent headcount increased by 127% to 886 investment and investment support professionals for the year-to-date period in 2025 from 391 professionals for the same period in 2024, including the impact of the GCP Acquisition previously discussed.

General, Administrative and Other Expenses.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to marketing and fundraising activities, including supplemental distribution fees charged in connection with an amended servicing arrangement with a distribution partner.

Supplemental distribution fees increased by $3.3 million for the year ended December 31, 2024 compared to the prior year .

Other marketing costs also increased by $2.0 million over the comparative periods, driven by:

(i) investor events, including our firmwide AGM event;

and (ii) fund formation costs for AREOF IV.

In addition, certain expenses increased for the year ended December 31, 2024 compared to the prior year , including:

(i) higher information technology costs related to software license fees of $3.1 million;

and (ii) higher professional service fees of $2.0 million, which included non-recurring legal expenses of $1.5 million incurred during the first quarter of 2024.

The GCP Acquisition contributed $44.6 million in general, administrative and other expenses for the year ended December 31, 2025.

We expect operating expenses to fluctuate during an integration period as we continue to seek to generate cost savings and to execute on synergy opportunities.

General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $13.6 million, or 24%, for the year ended December 31, 2025 compared to the prior year.

The increase was primarily driven by supplemental distribution fees, which increased by $9.3 million for the year ended December 31, 2025 compared to the prior year, as we expanded our wealth product offerings with our open-ended core infrastructure fund.

In addition, occupancy costs and information technology costs collectively increased by $2.9 million for the year ended December 31, 2025 compared to the prior year to support our growing headcount and the expansion of our business.

Realized Income

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Realized net performance income 31,930 23,034 8,896 39

Investment income—realized 5,184 3,392 1,792 53

Investment income—realized 31,356 5,184 26,172 NM

Interest income 6,895 7,649 (754) (10)

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Realized net performance income

Carried interest from:

Carried interest:

• Tax distributions of $12.6 million from EIF V

• Distributions of $15.3 million from U.S.

Real Estate Fund IX, L.P.

(“US IX”), U.S.

Real Estate Fund VIII, L.P.

(“US VIII”) and a North American real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments

• Realized gains of $3.1 million from the partial sale of ACIP’s investment in a renewable energy company

Incentive fees from:

• An industrial North American real estate equity fund of $8.7 million, that is based upon a three-year measurement period

• An open-ended industrial real estate fund of $2.1 million, that varies based upon a three-year measurement period calculated for each fund investor

Carried interest from:

• Distributions of $1.8 million from US VIII and a North American real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments

Incentive fees from:

• Incentive fees of $5.7 million generated from an open-ended industrial real estate fund that varies based upon a three-year measurement period calculated for each fund investor

(“US VIII”) and a U.S.

real estate equity fund, which are all European-style waterfall funds that are past their investment periods and monetizing investments

• Distributions of $2.1 million from the sale of an ACIP I co-investment vehicle’s investment in a renewable energy company

Carried interest:

• Distributions of $8.8 million from US VIII and a U.S.

real estate equity fund, which are both European-style waterfall funds that are past their investment periods and monetizing investments

• Distributions of $3.1 million from the partial sale of an ACIP I co-investment vehicle’s investment in a renewable energy company

Incentive fees:

• $8.7 million generated from a U.S.

industrial real estate equity fund that is based upon a three-year measurement period

• $2.1 million generated from a U.S.

open-ended industrial real estate fund that varies based upon a three-year measurement period calculated for each fund investor

Realized investment income and interest income

• Distributions of investment income of $15.6 million, primarily from funds within our real estate debt and infrastructure debt strategies

• Interest income earned on treasury-backed securities of $2.1 million, which is allocated among our segments based on the cost basis of our balance sheet investments

• Income of $20.1 million from our APAC real estate equity and real estate debt funds

• Income of $3.5 million from US VIII, which is past its investment period and monetizing investments

• Income of $15.6 million primarily from our real estate debt and infrastructure debt funds

• Interest earned from loans that we made within our real estate debt strategy

• Realized gains of $1.2 million from the sale of an infrastructure opportunities fund’s investment in a wind energy company

• Income of $1.2 million from the sale of an infrastructure opportunities fund’s investment in a wind energy company

• Realized loss of $12.4 million associated with a guarantee of a credit facility provided in connection with a historical acquisition

• Distributions of investment income of $7.8 million, primarily from funds within our real estate debt, infrastructure debt and infrastructure opportunities strategies

• Realized losses of $6.2 million from a real estate debt vehicle, where interest expense was incurred with no associated investment income during the periods.

These realized losses are not expected to recur as we restructured the arrangement in the fourth quarter of 2023

Interest expense increased over the comparative period primarily due to financing costs incurred in connection with the GCP Acquisition.

Interest expense is allocated among our segments primarily based on the cost basis of our balance sheet investments and the cost of acquisitions.

The financing costs to complete the GCP Acquisition resulted in a greater allocation of interest expense to the Real Assets Group in the current year.

Real Assets Group—Performance Income

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

$ 20.1 $ 12.9 $ 7.2 $ 32.2 $ 20.7 $ 11.5

US IX $ 85.0 $ 52.7 $ 32.3 $ 99.8 $ 61.9 $ 37.9

AREOF III 24.5 14.8 9.7 35.7 21.4 14.3

EF IV 22.9 13.7 9.2 49.2 29.5 19.7

EIF V 93.6 70.0 23.6 121.3 90.7 30.6

IDF V 172.5 106.9 65.6 113.7 69.3 44.4

ACIP 97.7 66.8 30.9 61.4 42.2 19.2

ACIP I 84.8 58.2 26.6 97.7 66.8 30.9

Other Real Assets funds 151.1 104.6 46.5 135.8 85.7 50.1

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Accrued Carried Interest

US VIII European $ 32.2 $ (0.1) $ (12.0) $ — $ 20.1

US IX European $ 99.8 $ 11.5 $ (26.3) $ — $ 85.0

AREOF III European 35.7 (11.2) — — 24.5

EF IV American 49.2 (26.3) — — 22.9

EIF V European 121.3 22.1 (49.8) — 93.6

IDF V European 113.7 42.0 — 16.8 172.5

ACIP European 61.4 44.0 (7.7) — 97.7

ACIP I European 97.7 (7.6) (5.3) — 84.8

Other Real Assets funds European 97.2 34.9 (17.9) 0.9 115.1

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The tables below present rollforwards of AUM for the Real Assets Group ($ in millions):

North American Real Estate Equity European Real

Estate Equity Real Estate

Debt Infrastructure

Opportunities Infrastructure

Debt Total Real

Real Estate Infrastructure Total Real

Balance at 12/31/2024 $ 58,246 $ 17,052 $ 75,298

Acquisitions 43,273 2,008 45,281

Net new par/equity commitments 2,684 1,465 1,580 664 974 7,367

Net new debt commitments 200 — 3,849 — — 4,049

New par/equity commitments 7,799 6,517 14,316

New debt commitments 8,597 1,014 9,611

Capital reductions (3,014) (261) (3,275)

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Balance at 12/31/2025 $ 113,745 $ 25,343 $ 139,088

North American Real Estate Equity European Real

Estate Equity Real Estate

Debt Infrastructure

Opportunities Infrastructure

Debt Total Real

Real Estate Infrastructure Total Real

Balance at 12/31/2023 $ 49,715 $ 15,698 $ 65,413

Net new par/equity commitments 3,116 36 1,278 1,218 428 6,076

Net new debt commitments — — 726 — — 726

Acquisitions 2,488 — 2,488

New par/equity commitments 5,729 1,638 7,367

New debt commitments 4,049 — 4,049

Capital reductions (1,086) — (1,086)

1 unchanged sentence

Redemptions (1,093) — (1,093)

Net allocations among investment strategies — 20 20

Change in fund value 250 1,365 1,615

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The tables below present rollforwards of fee paying AUM for the Real Assets Group ($ in millions):

North American Real Estate Equity European Real

Estate Equity Real Estate

Debt Infrastructure

Opportunities Infrastructure

Debt Total Real

Real Estate Infrastructure Total Real

Balance at 12/31/2024 $ 32,896 $ 11,192 $ 44,088

1 unchanged sentence

Commitments 5,662 2,342 8,004

Deployment/subscriptions/increase in leverage 609 668 828 98 977 3,180

Deployment/increase in leverage 3,824 2,703 6,527

Capital reductions (1,190) — (1,190)

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Balance at 12/31/2025 $ 71,063 $ 13,002 $ 84,065

North American Real Estate Equity European Real

Estate Equity Real Estate

Debt Infrastructure

Opportunities Infrastructure

Debt Total Real

Real Estate Infrastructure Total Real

Balance at 12/31/2023 $ 30,310 $ 11,028 $ 41,338

Acquisitions 1,554 — 1,554

Commitments 3,214 226 3,440

Deployment/subscriptions/increase in leverage 199 221 602 350 1,596 2,968

Deployment/increase in leverage 2,105 1,075 3,180

Capital reductions (12) — (12)

1 unchanged sentence

Redemptions (1,093) — (1,093)

Net allocations among investment strategies — 20 20

Change in fund value (99) (57) (156)

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The charts below present FPAUM for the Real Assets Group by its fee bases ($ in billions):

Invested capital/other (1)

Market value (2)

Invested capital GAV Market value (1)

Capital commitments

(1) Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.

(1) Amounts represent FPAUM from funds that primarily invest in illiquid strategies.

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The significant funds presented in the tables below collectively contributed approximately 34% of the Real Assets Group’s management fees for the year ended December 31, 2025.

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

Year of Inception AUM Year-To-Date Since Inception (1)

Investment Strategy

The following table presents the performance data for our significant perpetual funds in the Real Assets Group as of December 31, 2025 ($ in millions):

Investment Strategy Year of Inception AUM Year-To-Date Since Inception (1)

Fund Gross Net Gross Net

Diversified non-traded REIT (2)

2012 $ 5,663 N/A (0.4) N/A 6.1 North American Real Estate Equity

Real Estate 2012 $ 7,417 N/A 11.6 N/A 6.5

Real Estate 2012 7,547 N/A N/A N/A 13.3

Industrial non-traded REIT (4)

2017 7,354 N/A 0.8 N/A 8.5 North American Real Estate Equity

Real Estate 2017 7,648 N/A 8.3 N/A 8.5

open-ended industrial real estate fund (5)

2017 5,083 4.3 3.3 17.5 14.3 North American Real Estate Equity

Real Estate 2017 5,983 7.7 6.5 16.3 13.3

Japanese open-ended industrial real estate fund Real Estate 2020 3,915 10.1 9.4 13.1 11.8

(1) Since inception returns are annualized.

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(3) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period.

Actual individual stockholder returns will vary.

Net returns are calculated using the fund’s NAV and assume distributions are reinvested at NAV on the semi-annual period-end date.

NAVs are calculated semi-annually in February and August, and therefore, only the since inception return is presented.

The inception date used in the calculation of the since inception return is the date in which the fund’s investment units began to be listed on the Tokyo Stock Exchange.

The since inception return is calculated based on the most recent NAV date.

Additional information related to J-REIT can be found in its materials posted to its website, which are not part of this report.

(4) Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period.

Returns are shown for institutional share class.

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The following table presents the performance data of the Real Assets Group’s significant drawdown fund as of December 31, 2025 ($ in millions):

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Primary Investment Strategy Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Total Value MoIC IRR(%)

Fund Gross (3)

Fund Deploying Capital

2020 $ 4,849 $ 4,585 $ 3,813 $ 912 $ 3,550 $ 4,462 1.2x 1.2x 12.9 10.1 Infrastructure Debt

Fund Harvesting Investments

Europe Logistics Income Partners II SCSp (“EIP II”) (7)

Real Estate 2020 $ 4,144 $ 1,839 $ 1,790 $ 346 $ 1,639 $ 1,985 1.2x 1.1x 2.8 2.4

(1) Realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners.

21 unchanged sentences

Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(7) IDF V is made up of U.S.

Dollar hedged, Euro unhedged, GBP hedged, Yen hedged, and single investor parallel funds.

The gross and net IRR and MoIC presented in the table are for the U.S.

Dollar hedged parallel fund.

The gross and net IRR for the single investor U.S.

Dollar parallel fund are 10.2% and 7.8%, respectively.

The gross and net MoIC for the single investor U.S.

Dollar parallel fund are 1.2x and 1.2x, respectively.

The gross and net IRR for the Euro unhedged parallel fund are 13.7% and 10.8%, respectively.

The gross and net MoIC for the Euro unhedged parallel fund are 1.3x and 1.2x, respectively.

The gross and net IRR for the GBP hedged parallel fund are 12.3% and 9.3%, respectively.

The gross and net MoIC for the GBP hedged parallel fund are 1.2x and 1.1x, respectively.

The gross and net IRR for the Yen hedged parallel fund are 8.8% and 6.2%, respectively.

The gross and net MoIC for the Yen hedged parallel fund are 1.1x and 1.1x, respectively.

(7) EIP II is a Euro-denominated fund.

Original capital commitments are converted to U.S.

Dollars at the prevailing exchange rate at the time of fund’s closing.

All other values for IDF V are for the combined fund and are converted to U.S.

All other values for EIP II are converted to U.S.

Dollars at the prevailing quarter-end exchange rate.

Private Equity Group—Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Fee Related Earnings

The following table presents the components of the Private Equity Group’s FRE ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2024 2023 $ Change % Change

Management fees $ 137,130 $ 126,721 $ 10,409 8%

Other fees 1,695 1,693 2 —

Compensation and benefits (56,830) (58,408) 1,578 3

General, administrative and other expenses (21,449) (16,949) (4,500) (27)

Fee Related Earnings $ 60,546 $ 53,057 7,489 14

Management Fees.

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

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

Year-over-year Change

Fees from the Crescent Point Acquisition effective October 2, 2023

Change in fee base from capital commitments to invested capital and reduction in fee rate from 1.50% to 0.75% for an energy opportunities fund, which were both contractually triggered at the expiration of the fund’s investment period (11.3)

The decrease in effective management fee rate for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by the reduction in fee rate for the energy opportunities fund as discussed above, partially offset by certain funds within our APAC private equity strategy that have a higher effective management fee rate than the average effective management fee rate of the funds within our corporate private equity strategy.

Compensation and Benefits.

Although salary expenses increased for the year ended December 31, 2024 compared to the prior year reflecting the full year impact from the increase in headcount from the Crescent Point Acquisition, compensation and benefits decreased slightly over the comparative periods.

The decrease for the year ended December 31, 2024 compared to the prior year was primarily driven by lower incentive-based compensation paid to our corporate private equity team.

Average headcount increased by 10% to 103 investment and investment support professionals for the year-to-date period in 2024 from 94 professionals in 2023, driven by the increase in headcount from the Crescent Point Acquisition and partially offset by a decrease in headcount for our corporate private equity team.

General, Administrative and Other Expenses.

The increase in general, administrative and other expenses for the year ended December 31, 2024 compared to the prior year largely reflect Crescent Point’s operating expenses following the Crescent Point Acquisition.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2024 2023 $ Change % Change

Fee Related Earnings $ 60,546 $ 53,057 $ 7,489 14%

Performance income—realized 43,299 65,716 (22,417) (34)

Performance related compensation—realized (36,334) (52,984) 16,650 31

Realized net performance income 6,965 12,732 (5,767) (45)

Investment income (loss)—realized 1,926 (712) 2,638 NM

Interest income 1,970 38 1,932 NM

Interest expense (22,632) (18,990) (3,642) (19)

Realized net investment loss (18,736) (19,664) 928 5

Realized Income $ 48,775 $ 46,125 2,650 6

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

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

Realized net performance income

Carried interest from:

• Realized gains from ACOF IV’s investments in various energy companies and ACOF VI’s investment in Frontier Communications Parent, Inc.

Carried interest from:

• Realized gains from the partial sale of ACOF IV’s investment in The AZEK Company (“AZEK”)

Realized investment income (loss) and interest income

• Distributions of investment income from our corporate private equity funds

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

• Realized losses of $4.6 million in connection with the liquidation and disposition of remaining assets of certain legacy funds

• Realized gains of $4.0 million from the partial sale of ACOF IV’s investment in AZEK

Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in millions):

As of December 31,

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

ACOF IV $ 166.8 $ 133.6 $ 33.2 $ 181.3 $ 145.2 $ 36.1

ACOF V — — — 474.9 380.8 94.1

ACOF VI 523.1 442.8 80.3 337.1 289.1 48.0

Other funds 20.9 14.8 6.1 55.2 42.3 12.9

Total Private Equity Group $ 710.8 $ 591.2 $ 119.6 $ 1,048.5 $ 857.4 $ 191.1

The following table presents the change in accrued carried interest for the Private Equity Group ($ in millions):

As of December 31, 2023 Activity during the period As of December 31, 2024

Waterfall Type Accrued Carried Interest Change in Unrealized Realized Accrued Carried Interest

ACOF IV American $ 181.3 $ (5.5) $ (9.0) $ 166.8

ACOF V American 474.9 (474.9) — —

ACOF VI American 337.1 220.3 (34.3) 523.1

Other funds European 46.1 (33.0) — 13.1

Other funds American 9.1 (1.3) — 7.8

Total Private Equity Group $ 1,048.5 $ (294.4) $ (43.3) $ 710.8

Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Other (1)

Total Private

Balance at 12/31/2023 $ 20,998 $ 3,414 $ 139 $ 24,551

Net new par/equity commitments 458 3 58 519

Capital reductions (4) — — (4)

Distributions (685) (19) — (704)

Redemptions — (2) — (2)

Net allocations among investment strategies 150 — (197) (47)

Change in fund value 147 (419) — (272)

Balance at 12/31/2024 $ 21,064 $ 2,977 $ — $ 24,041

Corporate Private

Equity APAC Private

Equity Other (1)

Total Private

Balance at 12/31/2022 $ 20,939 $ 90 $ — $ 21,029

Acquisitions — 3,697 — 3,697

Net new par/equity commitments 1,482 — 139 1,621

Capital reductions (9) — — (9)

Distributions (1,794) (16) — (1,810)

Change in fund value 380 (357) — 23

Balance at 12/31/2023 $ 20,998 $ 3,414 $ 139 $ 24,551

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

FPAUM Non-fee paying (1)

AUM not yet paying fees

(1) Includes $1.2 billion and $1.4 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023, respectively.

Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2023 $ 11,459 $ 1,665 $ 13,124

Deployment/subscriptions/increase in leverage 28 19 47

Distributions (54) — (54)

Redemptions — (2) (2)

Change in fund value (21) — (21)

Change in fee basis (1,552) (115) (1,667)

Balance at 12/31/2024 $ 9,860 $ 1,567 $ 11,427

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2022 $ 11,277 $ 4 $ 11,281

Acquisitions — 1,692 1,692

Deployment/subscriptions/increase in leverage 220 14 234

Distributions (38) — (38)

Change in fee basis — (45) (45)

Balance at 12/31/2023 $ 11,459 $ 1,665 $ 13,124

The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):

Capital commitments Invested capital

Private Equity Group—Fund Performance Metrics as of December 31, 2024

The significant funds presented in the table below collectively contributed approximately 72% of the Private Equity Group’s management fees for the year ended December 31, 2024.

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

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Fund Gross (3)

Fund Harvesting Investments

ACOF V 2017 $ 7,827 $ 7,850 $ 7,611 $ 3,510 $ 7,350 $ 10,860 1.4x 1.3x 8.1 6.1 Corporate Private Equity

Fund Deploying Capital

ACOF VI 2020 8,142 5,743 5,256 1,471 7,248 8,719 1.6x 1.4x 23.0 17.0 Corporate Private Equity

(1) Realized value represents the sum of all cash dividends, interest income, other fees and cash proceeds from realizations of interests in portfolio investments.

Realized value excludes any proceeds related to bridge financings.

(2) Unrealized value represents the fair market value of remaining investments.

Unrealized value does not take into account any bridge financings.

There can be no assurance that unrealized investments will be realized at the valuations indicated.

(3) The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable.

The gross MoICs are also calculated before giving effect to any bridge financings.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(4) The net MoIC is calculated at the fund-level.

The net MoIC is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or performance fees.

The net MoIC is after giving effect to management fees, carried interest, as applicable, and other expenses.

The net MoICs are also calculated before giving effect to any bridge financings.

Inclusive of bridge financings, the net MoIC would be 1.3x for ACOF V and 1.4x for ACOF VI.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(5) The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period.

Gross IRRs reflect returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows.

The gross IRRs are calculated before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable.

The gross IRRs are also calculated before giving effect to any bridge financings.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

(6) The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period.

Net IRRs reflect returns to the fee-paying limited partners and if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest.

The cash flow dates used in the net IRR calculation are based on the actual dates of the cash flows.

The net IRRs are calculated after giving effect to management fees, carried interest as applicable, and other expenses and exclude commitments by the general partner and Schedule I investors who do not pay either management fees or carried interest.

The funds may utilize a credit facility during the investment period and for general cash management purposes.

Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

The net IRRs are also calculated before giving effect to any bridge financings.

Inclusive of bridge financings, the net IRRs would be 6.2% for ACOF V and 16.2% for ACOF VI.

Secondaries Group—Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

12 unchanged sentences

The following table presents the components of and causes for changes in the Secondaries Group’s management fees for the year ended December 31, 2025 compared to the prior year ($ in millions):

Year-over-year Change

Fees from APMF, primarily driven by additional capital raised

Fees from our third infrastructure secondaries fund, which launched during the fourth quarter of 2023 (exclusive of catch-up fees)

Catch-up fees in 2024 generated from our third infrastructure secondaries fund 1.9

Catch-up fees in 2023 generated from Landmark Real Estate Fund IX, L.P.

(“LREF IX”) (7.9)

Year-over-year

Capital commitments:

Catch-up fees generated from ASIS III and related vehicles $ 24.2

Base management fees from ASIS III

Perpetual wealth vehicles:

Fees from APMF, driven by additional capital raised

Management fees from Ares Credit Secondaries Fund, L.P.

(“ACS”), driven by capital deployment 5.1

Cumulative effect of other changes 2.3

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Fee Related Performance Revenues .

The years ended December 31, 2024 and 2023 reflect incentive fees recognized from APMF.

The activity for the year ended December 31, 2024 includes gains recognized in connection with acquiring a sizable portfolio of limited partnership interests during the second quarter of 2024.

The increase in fee related performance revenues for the year ended December 31, 2025 compared to the year ended December 31, 2024 was attributable to higher incentive fees earned from APMF, driven by increased IGAUM and higher investment returns over the comparative period .

The increase in other fees for the year ended December 31, 2025 compared to the prior year was primarily attributable to capital markets transaction fees associated with underwriting services provided by AMCM on capital markets transactions.

Compensation and Benefits.

The increase in compensation and benefits for the year ended December 31, 2024 compared to the year ended December 31, 2023 was driven by higher fee related performance compensation of $2.3 million, corresponding to the increase in fee related performance revenues.

For the years ended December 31, 2024 and 2023, we reduced fee related performance compensation by $9.5 million and $2.1 million, respectively, to reclaim a portion of the supplemental distribution fees paid to distribution partners.

The increase in compensation and benefits was also driven by an increase in payroll-related taxes of $1.5 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2024.

Average headcount increased by 7% to 112 investment and investment support professionals for the year-to-date period in 2024 from 105 professionals in 2023.

The increase in compensation and benefits for the year ended December 31, 2025 compared to the year ended December 31, 2024 was driven by:

(i) higher fee related performance compensation of $14.5 million, corresponding to the increase in fee related performance revenues;

and (ii) higher incentive-based compensation.

We reduced fee related performance compensation by $11.1 million and $9.5 million for the years ended December 31, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees paid to distribution partners.

Full-time equivalent headcount increased by 4% to 116 investment and investment support professionals for the year-to-date period in 2025 from 112 professionals in 2024.

General, Administrative and Other Expenses.

In an effort to accelerate the growth of APMF’s assets, we entered into agreements beginning in the second quarter of 2023 to pay distribution partners fees to raise additional capital.

We refer to these fees as supplemental distribution fees, and these fees are based on assets and/or sales.

These fees contributed to an increase in expense of $11.4 million for the year ended December 31, 2024 compared to the prior year .

Supplemental distribution fees are expected to fluctuate with sales and the growth in assets, and may reduce fee related performance compensation to the extent that fee related performance revenues are earned from APMF.

The increase in general, administrative and other expenses was primarily due to higher supplemental distribution fees of $4.7 million to support distribution of APMF shares.

Realized Income

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Realized Income $ 203,300 $ 101,036 102,264 101

Realized net performance income for the year ended December 31, 2023 was primarily attributable to tax distributions from LREF VIII.

Realized net investment loss for the years ended December 31, 2024 and 2023 largely represents interest expense exceeding investment income during these periods.

The realized investment activity for the years ended December 31, 2024 and 2023 was primarily attributable to dividend income received from APMF.

Realized net investment loss for the years ended December 31, 2025 and 2024 largely represents allocated interest expense exceeding investment income during these periods.

Interest expense allocated to the Secondaries Group decreased for the year ended December 31, 2025 compared to the prior year as a significant portion of the current year’s interest expense was allocated based on capital used to finance the GCP Acquisition, which occurred within the Real Assets Group.

Prior to the GCP Acquisition, capital used to finance the acquisition of Landmark Partners, LLC resulted in greater interest expense allocated to the Secondaries Group in prior periods.

Secondaries Group—Performance Income

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As of December 31, 2024 Activity during the period As of December 31, 2025

Waterfall Type Accrued Carried Interest Change in Unrealized Realized Other Adjustments Accrued Carried Interest

Waterfall Type Accrued Performance Income Change in Unrealized Realized Other Adjustments Accrued Performance Income

Accrued Carried Interest

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$ 263.8 $ 49.2 $ (0.2) $ (131.1) $ 181.7

The reduction in LEP XVI accrued carried interest that is presented within other adjustments results from the transfer of our rights to receive the carried interest from this fund in exchange for a capital interest in a structured financing vehicle.

As a result, the value associated with the net carried interest that was transferred is now reflected as an investment in the structured financing vehicle.

Secondaries Group—Assets Under Management

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Secondaries Credit

Secondaries Other (1)

Total Secondaries

Secondaries Total Secondaries

Balance at 12/31/2024 $ 15,805 $ 7,779 $ 3,691 $ 1,878 $ 29,153

Net new par/equity commitments 2,489 279 1,192 493 — 4,453

Net new debt commitments 625 — — — — 625

New par/equity commitments 5,127 432 3,322 2,974 11,855

New debt commitments 1,083 — — — 1,083

Capital reductions (32) (192) — (56) (280)

Distributions (532) (178) (214) (39) (963)

Redemptions (154) — — — (154)

Net allocations among investment strategies 10 25 — 38 73

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Secondaries Credit

Secondaries Other (1)

Total Secondaries

Secondaries Total Secondaries

Balance at 12/31/2023 $ 13,174 $ 7,826 $ 2,380 $ 1,380 $ 24,760

Net new par/equity commitments 567 952 721 1,358 50 3,648

New par/equity commitments 2,489 279 1,192 493 4,453

New debt commitments 625 — — — 625

Distributions (504) (215) (146) (15) (880)

Redemptions (1) — — — — (1)

Net allocations among investment strategies 15 — — 10 25

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Balance at 12/31/2024 $ 15,805 $ 7,779 $ 3,691 $ 1,878 $ 29,153

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

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

(1) Includes $0.5 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2024 and 2023.

(1) Includes $0.6 billion and $0.5 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2025 and 2024, respectively.

Secondaries Group—Fee Paying AUM

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Secondaries Infrastructure

Secondaries Credit Secondaries Total Secondaries

Secondaries Credit

Secondaries Total Secondaries

Balance at 12/31/2024 $ 12,788 $ 6,441 $ 2,582 $ 590 $ 22,401

Commitments 3,583 194 2,428 — 6,205

Deployment/subscriptions/increase in leverage 125 231 6 33 395

Deployment/increase in leverage 237 104 19 772 1,132

Distributions (92) (183) (73) — (348)

Redemptions (154) — — — (154)

Net allocations among investment strategies 10 25 — 38 73

Change in fund value 228 140 25 (91) 302

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Secondaries Infrastructure

Secondaries Credit Secondaries Total Secondaries

Secondaries Credit

Secondaries Total Secondaries

Balance at 12/31/2023 $ 11,204 $ 5,978 $ 1,763 $ 95 $ 19,040

Commitments 1,783 160 850 — 2,793

Deployment/subscriptions/increase in leverage 51 317 20 85 473

Deployment/increase in leverage 125 231 6 33 395

Distributions (146) (188) (132) (39) (505)

Redemptions (1) — — — (1)

Net allocations among investment strategies 30 — — — 30

Change in fund value (131) 19 95 58 41

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Reported value (1)

Capital commitments Invested capital/other

Capital commitments Invested capital

(1) Amounts represent FPAUM from funds that primarily invest in illiquid strategies.

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Secondaries Group—Fund Performance Metrics as of December 31, 2025

LEP XVI contributed approximately 23% of the Secondaries Group’s management fees for the year ended December 31, 2024.

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

Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

The significant funds presented in the tables below collectively contributed approximately 35% of the Secondaries Group’s management fees for the year ended December 31, 2025.

The following table presents the performance data for our significant perpetual fund in the Secondaries Group as of December 31, 2025 ($ in millions):

Investment Strategy Year of Inception AUM Year-To-Date Since Inception (1)

Fund Gross Net Gross Net

Private Equity Secondaries 2022 $ 5,008 N/A 13.4 N/A 14.2

(1) Since inception returns are annualized.

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

Returns are shown for institutional share class.

Shares of other classes may have lower returns due to higher selling commissions and fees.

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

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

The following table presents the performance data of the significant drawdown fund in the Secondaries Group as of December 31, 2025 ($ in millions):

Primary Investment Strategy Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%) Primary Investment Strategy

Total Value MoIC IRR(%)

Fund Gross (3)

Fund Harvesting Investments

2016 $ 4,347 $ 4,896 $ 3,945 $ 2,079 $ 2,973 $ 5,052 1.4x 1.3x 18.4 11.6 Private Equity Secondaries

For the funds in the Secondaries Group, returns are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period.

Private Equity Secondaries 2016 $ 4,146 $ 4,896 $ 4,318 $ 2,079 $ 3,264 $ 5,343 1.4x 1.2x 14.2 8.6

Returns for LEP XVI are calculated from results of the underlying portfolio that are generally reported on a three month lag and may not include the impact of economic and market activities occurring in the current reporting period.

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

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The net MoIC is after giving effect to management fees and other expenses, carried interest and credit facility interest expense, as applicable.

The funds may utilize a short-term credit facility for general cash management purposes, as well as a long-term credit facility as permitted by the respective fund’s governing documentation.

The funds may utilize a short-term credit facility for general cash management purposes, as well as a

long-term credit facility as permitted by the respective fund’s governing documentation.

The net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.

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(7) The results of the fund are presented on a combined basis with the affiliated parallel funds or accounts, given that the investments are substantially the same.

Private Equity Group—Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

Fee Related Earnings

The following table presents the components of the Private Equity Group’s FRE ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2025 2024 $ Change % Change

Management fees $ 139,172 $ 137,130 $ 2,042 1%

Other fees 1,824 1,695 129 8

Compensation and benefits (60,701) (56,830) (3,871) (7)

General, administrative and other expenses (21,975) (21,449) (526) (2)

Fee Related Earnings $ 58,320 $ 60,546 (2,226) (4)

Management Fees.

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

The following table presents the components of and causes for changes in the Private Equity Group’s management fees for the year ended December 31, 2025 compared to the prior year ($ in millions):

Year-over-year

Fees from Ares Corporate Opportunities Fund VII, L.P.

(“ACOF VII”), which started generating fees in the fourth quarter of 2025 $ 7.3

Fees from acquired APAC private equity funds effective August 2025 4.2

Catch-up fees from Ares Asia Private Equity Fund III, L.P.

(“AAPE III”) 1.7

Corporate private equity extended value fund that stopped paying fees at the end of the fourth quarter of 2024

Distributions that reduced the fee base of ACOF V as the fund is past its investment period (2.2)

Cumulative effect of other changes (2.3)

We expect a decrease in management fees from ACOF VI of approximately $40.0 million in 2026 due to the step down in fee rate and change in fee base beginning in the first quarter of 2026 following the commencement of fees for ACOF VII.

The increase in effective management fee rate for the year ended December 31, 2025 compared to the year ended December 31, 2024 was primarily driven by a corporate private equity extended value fund, that stopped paying fees at the end of the fourth quarter of 2024 and had a lower effective management fee rate than the average effective management fee rate of funds within the Private Equity Group.

Compensation and Benefits.

The increase in compensation and benefits for the year ended December 31, 2025 compared to the year ended December 31, 2024 primarily due to higher incentive-based compensation.

Full-time equivalent headcount increased by 6% to 109 investment and investment support professionals for the year-to-date period in 2025 from 103 professionals in 2024.

Realized Income

The following table presents the components of the Private Equity Group’s RI ($ in thousands):

Year ended December 31, Favorable (Unfavorable)

2025 2024 $ Change % Change

Fee Related Earnings $ 58,320 $ 60,546 $ (2,226) (4)%

Performance income—realized 42,402 43,299 (897) (2)

Performance related compensation—realized (31,994) (36,334) 4,340 12

Realized net performance income 10,408 6,965 3,443 49

Investment income (loss)—realized (15,659) 1,926 (17,585) NM

Interest income 2,025 1,970 55 3

Interest expense (15,555) (18,906) 3,351 18

Realized net investment loss (29,189) (15,010) (14,179) (94)

Realized Income $ 39,539 $ 52,501 (12,962) (25)

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

Year ended December 31, 2025 Year ended December 31, 2024

Realized net performance income

Carried interest:

• Distributions from partial sales of ACOF VI’s investment in Frontier Communications Parent, Inc.

(“FYBR”) and ACOF IV’s investments in various energy companies

Carried interest:

• Distributions from partial sales of ACOF IV’s investments in various energy companies and ACOF VI’s investment in FYBR

Realized investment income (loss) and interest income

• Realized investment losses of $10.8 million in connection with liquidating an APAC private equity fund

• Income from our corporate private equity funds

Interest expense allocated to the Private Equity Group decreased for the year ended December 31, 2025 compared to the prior year as a significant portion of the current year’s interest expense was allocated based on capital used to finance the GCP Acquisition, which occurred within the Real Assets Group.

Private Equity Group—Performance Income

The following table presents the accrued carried interest, also referred to as accrued performance income, and related performance compensation for the Private Equity Group ($ in millions):

As of December 31,

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

ACOF IV $ 142.8 $ 114.4 $ 28.4 $ 166.8 $ 133.6 $ 33.2

ACOF VI 594.3 584.1 10.2 523.1 442.8 80.3

Other Private Equity funds 11.1 8.9 2.2 20.9 14.8 6.1

Total Private Equity Group $ 748.2 $ 707.4 $ 40.8 $ 710.8 $ 591.2 $ 119.6

The following table presents the change in accrued carried interest for the Private Equity Group ($ in millions):

As of December 31, 2024 Activity during the period As of December 31, 2025

Waterfall Type Accrued Carried Interest Change in Unrealized Realized Other Adjustments Accrued Carried Interest

ACOF IV American $ 166.8 $ (4.8) $ (19.2) $ — $ 142.8

ACOF VI American 523.1 191.5 (23.2) (97.1) 594.3

Other Private Equity funds European 13.1 (12.2) — — 0.9

Other Private Equity funds American 7.8 2.4 — — 10.2

Total Private Equity Group $ 710.8 $ 176.9 $ (42.4) $ (97.1) $ 748.2

The reduction in ACOF VI accrued carried interest that is presented within other adjustments results from the transfer of our rights to receive the carried interest from this fund in exchange for capital interests in certain structured financing vehicles.

As a result, the value associated with the transferred carried interest is now reflected as investments in these structured financing vehicles.

Private Equity Group—Assets Under Management

The tables below present rollforwards of AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Other Total Private

Balance at 12/31/2024 $ 21,064 $ 2,977 $ — $ 24,041

Acquisitions — 856 — 856

New par/equity commitments 2,191 91 — 2,282

Capital reductions (55) — — (55)

Distributions (1,878) (153) — (2,031)

Change in fund value 553 (358) — 195

Balance at 12/31/2025 $ 21,875 $ 3,413 $ — $ 25,288

Corporate Private

Equity APAC Private

Equity Other (1)

Total Private

Balance at 12/31/2023 $ 20,998 $ 3,414 $ 139 $ 24,551

New par/equity commitments 458 3 58 519

Capital reductions (4) — — (4)

Distributions (685) (19) — (704)

Redemptions — (2) — (2)

Net allocations among investment strategies 150 — (197) (47)

Change in fund value 147 (419) — (272)

Balance at 12/31/2024 $ 21,064 $ 2,977 $ — $ 24,041

(1) Amounts represent equity commitments to the platform that have not yet been allocated to an investment strategy.

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

FPAUM Non-fee paying (1)

AUM not yet paying fees

(1) Includes $1.1 billion and $1.2 billion of non-fee paying AUM from our general partner and employee commitments as of December 31, 2025 and 2024, respectively.

Private Equity Group—Fee Paying AUM

The tables below present rollforwards of fee paying AUM for the Private Equity Group ($ in millions):

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2024 $ 9,860 $ 1,567 $ 11,427

Acquisitions — 1,118 1,118

Commitments 516 48 564

Deployment/increase in leverage 52 13 65

Capital reductions (11) — (11)

Distributions (916) — (916)

Change in fund value (81) (203) (284)

Change in fee basis 2,786 (312) 2,474

Balance at 12/31/2025 $ 12,206 $ 2,231 $ 14,437

Corporate Private

Equity APAC Private

Equity Total Private

Balance at 12/31/2023 $ 11,459 $ 1,665 $ 13,124

Deployment/increase in leverage 28 19 47

Distributions (54) — (54)

Redemptions — (2) (2)

Change in fund value (21) — (21)

Change in fee basis (1,552) (115) (1,667)

Balance at 12/31/2024 $ 9,860 $ 1,567 $ 11,427

The charts below present FPAUM for the Private Equity Group by its fee bases ($ in billions):

Capital commitments Invested capital

Private Equity Group—Fund Performance Metrics as of December 31, 2025

The significant funds presented in the table below collectively contributed approximately 69% of the Private Equity Group’s management fees for the year ended December 31, 2025.

The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of December 31, 2025 ($ in millions):

Primary Investment Strategy Year of Inception AUM Original Capital Commitments Capital Invested to Date Realized Value (1)

Unrealized Value (2)

Total Value MoIC IRR(%)

Fund Gross (3)

Fund Deploying Capital

ACOF VI Corporate Private Equity 2020 $ 8,852 $ 5,743 $ 5,966 $ 2,224 $ 8,417 $ 10,641 1.7x 1.5x 21.3 16.0

Fund Harvesting Investments

ACOF V Corporate Private Equity 2017 6,332 7,850 7,611 4,499 5,891 10,390 1.4x 1.2x 6.2 4.4