What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-02-25 compared with 2025-02-27 · 615 added, 512 removed, 2061 unchanged (35% of the section changed)

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Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a material misstatement of our consolidated financial statements would be prevented or detected.

Management has excluded the GCP Acquisition from its assessment of internal control over financial reporting as the acquisition was completed during 2025, and the GCP Acquisition did not have a material effect on the Company’s financial condition, results of operations or cash flows in 2025.

GCP International constituted approximately 2% of total assets of the Company as of December 31, 2025 and approximately 6% of revenues for the year then ended.

Management expects to include GCP International in the assessment of internal control over financial reporting and audit of internal control over financial reporting for 2026.

Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

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In our opinion, Ares Management Corporation (the “Company”) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

As indicated in the accompanying Report of Management on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), which is included in the 2025 consolidated financial statements of the Company and constituted 2% of total assets as of December 31, 2025 and 6% of revenues for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of GCP International.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial condition of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 25, 2026 expressed an unqualified opinion thereon.

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Rule 10b5-1 Trading Plans

During the three months ended December 31, 2024, certain of our executive officers and directors or a vehicle controlled by them (each, a “Plan Participant”) entered into Rule 10b5-1 trading plan (a “Rule 10b5-1 Trading Plan”) to sell shares of our Class A common stock, in each case, subject to any applicable volume limitations.

The table below provides certain information regarding each Plan Participant’s Rule 10b5-1 Trading Plan.

Name and Title Plan Date Maximum Shares That May Be Sold Under the Plan Plan Expiration Date

Bennett Rosenthal , Director, Co-Founder and Chairman of Private Equity Group

November 19, 2024 100,000 August 15, 2025

David Kaplan , Director and Co-Founder

November 19, 2024 100,000 August 15, 2025

Michael Arougheti , Co-Founder & Chief Executive Officer

December 13, 2024 1,880,845 January 31, 2026

A Rule 10b5-1 Trading Plan is a written document that pre-establishes the amounts, prices and dates (or formulas for determining the amounts, prices and dates) of future purchases or sales of our common stock, including, if applicable, shares issued upon exercise of stock options or vesting of unvested awards.

Each Plan Participant’s Rule 10b5-1 Trading Plan was adopted during an authorized trading period and when such Plan Participant was not in possession of material non-public information and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act.

During the three months ended December 31, 2025, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”, as such term is defined in Item 408(a) of Regulation S-K.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

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Second Amended and Restated Certificate of Incorporation of Ares Management Corporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

001-36429) filed with the SEC on November 7, 2022).

001-36429) filed with the SEC on May 6, 2021).

Bylaws of Ares Management Corporation (incorporated by reference to Exhibit 99.4 to the Registrant’s Current Report on Form 8-K (File No.

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001-36429) filed with the SEC on October 11, 2024).

Fifth Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., dated October 10, 2024 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No.

001-36429) filed with the SEC on October 10, 2024).

Sixth Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., dated May 8, 2025 (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

001-36429) filed with the SEC on May 12, 2025).

Investor Rights Agreement, dated November 26, 2018 (incorporated by reference to Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2021 (File No.

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001-36429) filed with the SEC on February 28, 2022).

Fifth Amended and Restated Exchange Agreement, dated April 1, 2021 (incorporated by reference to Exhibit 10.4 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2021 (File No.

001-36429) filed with the SEC on February 28, 2022).

Fourth Amended and Restated Tax Receivable Agreement, dated May 1, 2023 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

Sixth Amended and Restated Exchange Agreement, dated May 8, 2025 (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

001-36429) filed with the SEC on May 12, 2025).

Fifth Amended and Restated Tax Receivable Agreement, dated February 24, 2026.

Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings LLC, Ares Domestic Holdings L.P., Ares Investments LLC, Ares Real Estate Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A.

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001-36429) filed with the SEC on April 2, 2021).

Amendment No.

11, dated as of March 31, 2022, to the Sixth Amended and Restated Senior Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A.

(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

001-36429) filed with the SEC on April 6, 2022).

Amendment No.

12, dated as of March 28, 2024, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A.

(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

001-36429) filed with the SEC on April 3, 2024).

Amendment No.

13, dated as of April 22, 2025, to the Sixth Amended and Restated Credit Agreement, dated as of April 21, 2014, by and among Ares Holdings L.P., the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A.

(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

001-36429) filed with the SEC on April 25, 2025).

Second Amended and Restated Investment Advisory and Management Agreement, dated June 6, 2019, between Ares Capital Corporation and Ares Capital Management LLC (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

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001-36429) filed with the SEC on February 28, 2022).

Amendment No.

(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

001-36429) filed with the SEC on April 6, 2022).

Form of Restricted Unit Agreement under the Third Amended & Restated 2014 Equity Incentive Plan.

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SEC on February 27, 2024).

Amendment No.

(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

001-36429) filed with the SEC on April 3, 2024).

Insider Trading Policy.

Insider Trading Policy (incorporated by reference to Exhibit 19 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024 (File No.

001-36429) filed with the SEC on February 27, 2025).

Subsidiaries of Ares Management Corporation.

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Section 1350.

Policy Relating to Recovery of Erroneously Awarded Compensation (Clawback Policy).

Policy Relating to Recovery of Erroneously Awarded Compensation (Clawback Policy) (incorporated by reference to Exhibit 97 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024 (File No.

001-36429) filed with the SEC on February 27, 2025).

101.INS* Inline XBRL Instance Document.

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February 25, 2026

Director, Co-Founder & Chief Executive Officer

Co-Founder & Chief Executive Officer

(Principal Executive Officer)

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of underlying investments of equity method investments

Description of the Matter At December 31, 2024, the carrying value of the Company’s investments totaled $4,644.8 million, primarily consisting of equity method private investment partnership interests - principal of $536.9 million and equity method - carried interest of $3,495.1 million.

Description of the Matter At December 31, 2025, the carrying value of the Company’s investments totaled $5,508.4 million, primarily consisting of equity method - carried interest of $3,972.7 million, equity method private investment partnership interests - principal of $526.4 million and equity method private investment partnership interests and other (held at fair value) of $675.8 million.

Management applies valuation techniques using significant unobservable inputs to arrive at the fair value of the underlying investments held by the equity method private investment partnership (“underlying investments”).

The fair value of the underlying investments, as estimated by management, impacts the Company’s equity method private investment partnership interests and equity method - carried interest.

The fair value of the underlying investments, as estimated by management, impacts the Company’s equity method - carried interest and equity method private investment partnership interests - principal.

The valuation techniques applied and the significant unobservable inputs are discussed in Note 2.

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We also evaluated subsequent events and transactions and considered whether they corroborated or contradicted the year-end valuations.

Accounting for the acquisition of GCP International

Description of the Matter As disclosed in Note 3 of the consolidated financial statements, the Company acquired the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”) in 2025 for total consideration of $3,916.5 million.

The transaction was accounted for as a business combination.

Identifiable intangible assets acquired through this business combination primarily consisted of indefinite-lived management contracts, finite-lived intangible assets-management contracts (collectively, “management contracts”) and finite-lived intangible assets-client relationships with acquisition-date fair values of $749.6 million, $473.3 million and $107.2 million, respectively.

Auditing the Company’s accounting for its acquisition of GCP International was complex due to the significant estimation uncertainty in determining the fair value of management contracts.

The significant estimation uncertainty was primarily due to the sensitivity of the fair value to underlying assumptions about future performance of the acquired business in the Company’s discounted cash flow model used to measure the management contracts.

These significant assumptions included the revenue growth rates and future fundraising assumptions, which form the basis of the forecasted results, and the discount rate.

These significant assumptions are forward-looking and could be affected by future economic and market conditions.

How We Addressed the Matter

in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s acquisition process.

This included management’s review controls over the fair valuation techniques and significant assumptions and inputs used to estimate the fair value of the management contracts, as well as management’s review of the completeness and accuracy of the data used in the management contracts valuation model.

To test the fair value of the management contracts, our procedures included, among others, involving internal valuation specialists to assist in our evaluation of the Company’s valuation methodology and significant assumptions included in the fair value estimate, including testing the revenue growth rates and future fundraising assumptions that form the basis of the forecasted results, the discount rate, as well as testing the mathematical accuracy of the Company’s valuation model.

For example, we performed sensitivity analyses for certain significant assumptions by comparing such assumptions to current industry, market, and/or economic trends;

assumptions used to value similar intangible assets of other acquisitions;

and the historical results of the acquired business.

/s/ Ernst & Young LLP

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Accounts payable, accrued expenses and other liabilities 105,137 323,100

Due to affiliates — 3,554

Payable for securities purchased 165,391 332,406

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Total liabilities 19,931,981 17,485,922

Commitments and contingencies (Note 8)

Commitments and contingencies

Redeemable interest in Consolidated Funds — 550,700

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Stockholders’ Equity

Series B mandatory convertible preferred stock, $ 0.01 par value, 1,000,000,000 shares authorized ( 30,000,000 shares issued and outstanding as of December 31, 2024)

Series B mandatory convertible preferred stock, $ 0.01 par value, 1,000,000,000 shares authorized ( 30,000,000 shares issued and outstanding as of December 31, 2025 and 2024)

1,460,030 1,458,771

Class A common stock, $ 0.01 par value, 1,500,000,000 shares authorized ( 218,465,429 shares and 199,872,571 shares issued and outstanding as of December 31, 2025 and 2024, respectively)

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Accumulated deficit ( 1,452,259 ) ( 837,294 )

Accumulated other comprehensive loss, net of tax ( 17,757 ) ( 5,630 )

Accumulated other comprehensive income (loss), net of tax 21,743 ( 17,757 )

Total stockholders’ equity 4,275,463 3,543,646

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Interest expense ( 171,642 ) ( 142,966 ) ( 106,276 )

Other income, net 627 4,819 13,119

Other income (expense), net ( 319,745 ) 627 4,819

Net realized and unrealized gains on investments of Consolidated Funds 551,076 313,963 262,700

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Net income attributable to Ares Operating Group entities 834,454 814,963 885,796

Net income (loss) attributable to redeemable interest in Ares Operating Group entities 103 226 ( 851 )

Net income attributable to redeemable interest in Ares Operating Group entities 1,349 103 226

Net income attributable to non-controlling interests in Ares Operating Group entities 305,743 351,118 411,244

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Capital contributions — — — — — — — 3,887 320,185 324,072

Dividends/distributions — — — — — ( 447,634 ) — ( 386,843 ) ( 178,291 ) ( 1,012,768 )

Dividends and distributions — — — — — ( 599,934 ) — ( 427,849 ) ( 101,128 ) ( 1,128,911 )

Net income — — — — — 474,326 — 411,244 274,296 1,159,866

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Changes in ownership interests and related tax benefits — 96 — ( 73 ) ( 87,278 ) — — ( 23,841 ) ( 30,954 ) ( 142,050 )

Issuance of Series B mandatory convertible preferred stock

1,458,771 — — — — — — — — 1,458,771

Issuances of common stock — 31 — 1 407,093 — — 7,724 — 414,849

Capital contributions — — — — — — — 3,373 639,154 642,527

Dividends/distributions — — — — — ( 599,934 ) — ( 427,849 ) ( 101,128 ) ( 1,128,911 )

Dividends and distributions ( 22,781 ) — — — — ( 783,172 ) — ( 527,422 ) ( 124,021 ) ( 1,457,396 )

Net income 22,781 — — — — 440,961 — 351,118 295,772 1,110,632

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Changes in ownership interests and related tax benefits — 82 — ( 50 ) ( 825,335 ) — — 239,241 454,068 ( 131,994 )

Issuance of Series B mandatory convertible preferred stock

1,458,771 — — — — — — — — 1,458,771

Adjustment to issuance costs of Series B mandatory convertible preferred stock 1,259 — — — — — — — — 1,259

Issuances of common stock — 104 — 3 1,642,214 — — 15,561 — 1,657,882

Capital contributions — — — — — — — 1,463 1,017,538 1,019,001

Dividends/distributions ( 22,781 ) — — — — ( 783,172 ) — ( 527,422 ) ( 124,021 ) ( 1,457,396 )

Dividends and distributions ( 101,250 ) — — — — ( 1,041,077 ) — ( 591,280 ) ( 866,535 ) ( 2,600,142 )

Net income 101,250 — — — — 426,112 — 305,743 253,904 1,087,009

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Equity compensation — — — — 489,005 — — 251,544 — 740,549

Stock option exercises — 1 — — 1,510 — — — — 1,511

Balance as of December 31, 2025 $ 1,460,030 $ 2,185 $ 35 $ 1,051 $ 4,242,678 $ ( 1,452,259 ) $ 21,743 $ 1,496,771 $ 2,903,858 $ 8,676,092

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Depreciation and amortization 243,149 158,578 231,712

Net realized and unrealized (gains) losses on investments ( 21,463 ) ( 90,737 ) 10,929

Other non-cash amounts 11,755 74 —

Net realized and unrealized gains on investments ( 315,369 ) ( 21,463 ) ( 90,737 )

Changes in value of contingent earnout arrangements 349,706 — —

Investments purchased ( 220,846 ) ( 580,744 ) ( 507,932 )

Proceeds from sale of investments 324,434 683,638 206,163

Other non-cash amounts 923 11,755 74

Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments ( 551,076 ) ( 313,963 ) ( 262,700 )

Other non-cash amounts ( 48,963 ) ( 101,465 ) ( 33,822 )

Investments purchased ( 8,284,076 ) ( 5,927,444 ) ( 8,847,856 )

Proceeds from sale of investments 9,830,928 7,569,165 8,149,617

Other non-cash amounts ( 212,962 ) ( 48,963 ) ( 101,465 )

Cash flows due to changes in operating assets and liabilities:

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(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Ares Management Corporation (the “Company”), a Delaware corporation, together with its subsidiaries, is a leading global alternative investment manager operating integrated groups across Credit, Real Assets, Private Equity and Secondaries .

Information about segments should be read together with “Note 15.

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The Company manages or controls certain entities that have been consolidated in the accompanying financial statements as described in “Note 2.

Summary of Significant Accounting Policies.” These entities include Ares funds, co-investment vehicles, collateralized loan obligations or funds (collectively “CLOs”) and special purpose acquisition companies (“SPACs”) (collectively, the “Consolidated Funds”).

Summary of Significant Accounting Policies.” These entities include Ares Funds, co-investment vehicles, structured financing vehicles, collateralized loan obligations (“CLOs”) and special purpose acquisition companies (“SPACs”) (collectively, the “Consolidated Funds”).

Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows within the accompanying consolidated financial statements.

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Basis of Presentation

The accompanying consolidated financial statements are prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”).

The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”).

The Company’s Consolidated Funds are investment companies under GAAP based on the following characteristics:

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Principles of Consolidation

The Company consolidates those entities in which it has a direct or indirect controlling financial interest based on either a variable interest model (“VIEs”) or voting interest model (“VOE”).

As such, the Company consolidates (i) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (ii) entities that the Company concludes are variable interest entities in which the Company has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which the Company is deemed to be the primary beneficiary.

The Company consolidates those entities in which it has a direct or indirect controlling financial interest based on either a variable interest entity (“VIE”) model or voting interest entity (“VOE”) model.

As such, the Company consolidates (i) entities that the Company concludes are VIEs in which the Company has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which the Company is deemed to be the primary beneficiary and (ii) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity.

The Company determines whether an entity should be consolidated by first evaluating whether it holds a variable interest in the entity.

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As the Company’s interests in funds are primarily management fees, carried interest, incentive fees, and/or insignificant direct or indirect equity interests through related parties, the Company is not considered to have a variable interest in these entities.

Entities that are not VIEs are further evaluated for consolidation under the voting interest model.

Variable Interest Model

Entities that are not VIEs are further evaluated for consolidation under the VOE model.

Variable Interest Entities

The Company considers an entity to be a VIE if any of the following conditions exist:

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The Company consolidates all VIEs for which it is the primary beneficiary.

The Company determines it is the primary beneficiary when it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company determines it is the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and continuously reconsiders the conclusion.

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and (v) evaluating the nature of relationships and activities of the parties involved in determining which party within a related-party group is most closely associated with a VIE and hence would be deemed the primary beneficiary.

Consolidated CLOs

As of December 31, 2024 and 2023, the Company consolidated 27 and 28 CLOs (“Consolidated CLOs”), respectively.

The Company has determined that the fair value of the financial assets of the Consolidated CLOs, which are mostly Level II assets within the GAAP fair value hierarchy, are more observable than the fair value of the financial liabilities of its Consolidated CLOs, which are mostly Level III liabilities within the GAAP fair value hierarchy.

As a result, the financial assets of Consolidated CLOs are measured at fair value and the financial liabilities of the Consolidated CLOs are measured in consolidation as:

(i) the sum of the fair value of the financial assets, and the carrying value of any nonfinancial assets held

The Company has transferred certain financial interests to structured financing vehicles that it manages, including but not limited to collateralized fund obligations, rated note feeders and private asset-backed notes, among other secondary solutions.

These financial interests include the Company’s capital interests and rights to performance income in its managed funds.

The transfer of these financial interests subjects the Company to a maximum risk of loss equal to the value of the transferred financial interests in the event that these structured financing vehicles or the underlying financial interests do not meet stated performance thresholds, which typically results in a variable interest and the consolidation of these investment vehicles by the Company.

Ares Management Corporation

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(Dollars in Thousands, Except Share Data and As Otherwise Noted)

temporarily, less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services), and the Company’s carrying value of any beneficial interests that represent compensation for services.

Consolidated CLOs

As a result, the financial assets of Consolidated CLOs are measured at fair value and the financial liabilities of the Consolidated CLOs are measured in consolidation as:

(i) the sum of the fair value of the financial assets, and the carrying value of any nonfinancial assets held temporarily, less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services), and the Company’s carrying value of any beneficial interests that represent compensation for services.

The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by the Company).

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Management’s determination of fair value includes various valuation techniques.

These techniques may include market approach, recent transaction price, net asset value (“NAV”) approach, discounted cash flows, and may use one or more significant unobservable inputs such as EBITDA or revenue multiples, discount rates, weighted average cost of capital, exit multiples, terminal growth rates and other unobservable inputs.

These techniques may include market approach, recent transaction price, net asset value (“NAV”), discounted cash flows, as well as probability distributed models, and may use one or more significant unobservable inputs such as EBITDA or revenue multiples, broker quotes and/or third-party pricing services, discount rates, weighted average cost of capital, volatility, exit multiples, terminal growth rates and other unobservable inputs.

In some instances, an instrument may fall into more than one level of the fair value hierarchy.

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The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument.

The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period (see “Note 5.

Fair Value” for further detail).

The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period.

Financial Instrument Valuations

The valuation techniques used by the Company to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs.

The valuation techniques applied to investments held by the Company and by the Consolidated Funds vary depending on the nature of the investment.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

CLOs and CLO loan obligations:

The fair value of CLOs held by the Company are estimated based on either a third-party pricing service or broker quote and are classified as Level III.

The Company measures its CLO loan obligations of the Consolidated Funds by first determining whether the fair values of the financial assets or financial liabilities of its Consolidated CLOs are more observable.

Contingent consideration:

The Company generally determines the fair value of its contingent consideration liabilities by using a probability weighted expected return method, including the Monte Carlo simulation.

These models consider a range of assumptions including historical experience, prior period performance, current progress towards targets, probability-weighted scenarios, and management’s own assumptions.

The discount rate used is determined based on the weighted average cost of capital for the Company.

Once the associated targets are achieved, the contingent consideration is reported at the settlement amount.

The fair value of the Company’s contingent consideration liabilities are classified as Level III.

Liabilities recorded in connection with the Company’s contingent consideration are included within accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition and the associated changes in fair value are included within other income (expense), net in the Consolidated Statements of Operations.

Corporate debt, bonds, bank loans, securitization vehicles and derivative instruments:

The fair value of corporate debt, bonds, bank loans, securitization vehicles and derivative instruments is estimated based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs.

These investments are generally classified as Level II.

The Company obtains prices from independent pricing services that generally utilize broker quotes and may use various other pricing techniques, which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data.

If management is only able to obtain a single broker quote, or utilizes a pricing model, such securities will generally be classified as Level III.

Equity and equity-related securities:

Securities traded on a national securities exchange are stated at the last reported sales price on the day of valuation.

To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I.

Securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II.

Securities that have market prices that are not readily available, utilize valuation models of third-party pricing service or internal models using unobservable inputs to determine the fair value are classified as Level III.

Money market funds and U.S.

treasury securities:

The fair value of money market funds that invest in treasury-backed securities and U.S.

treasury securities is estimated using quoted market prices in active markets.

These investments are classified as Level I.

Partnership interests:

The Company generally values its investments using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining an independent fair value or estimates based on various valuation models of third-party pricing services, as well as internal models.

The Company does not categorize within the fair value hierarchy investments where fair value is measured using the NAV per share practical expedient.

In limited circumstances, the Company may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value.

In such circumstances, the Company will estimate the fair value in good faith and in a manner that it reasonably chooses.

As of December 31, 2025 and 2024, NAV per share represented the fair value of the Company’s investments in partnership interests.

The substantial majority of the Company’s private commingled funds are closed-ended, and accordingly, do not permit investors to redeem their interests other than in limited circumstances that are beyond the control of the Company, such as instances in which retaining the interest could cause the investor to violate a law, regulation or rule.

The Company also has open-ended and evergreen funds where investors have the right to withdraw their capital, subject to the terms of the respective constituent documents, over periods generally ranging from one month to three years .

In addition, the Company has minority investments in vehicles that may only have a single other investor that may allow such investors to terminate the fund pursuant to the terms of the applicable constituent documents of such vehicle.

Cash and Cash Equivalents

Cash and cash equivalents for the Company includes investments with maturities at purchase of less than three months, money market funds and demand deposits.

Cash and cash equivalents held at Consolidated Funds represents cash that, although not legally restricted, is not available to support the general liquidity needs of the Company, as the use of such amounts is generally limited to the activities of the Consolidated Funds.

Cash and cash equivalents held at Consolidated Funds represents cash that, although

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

not legally restricted, is not available to support the general liquidity needs of the Company, as the use of such amounts is generally limited to the activities of the Consolidated Funds.

As of December 31, 2025 and 2024, the Company had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits.

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Investments held in trust account represents funds raised through the initial public offerings of the Company’s sponsored SPACs that are presented within Consolidated Funds.

The funds raised are held in a trust account that is restricted for

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement.

The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement.

The portfolio of investments for the SPACs is comprised of United States (“U.S.”) government securities or money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act that invest only in direct U.S.

government treasury obligation.

Treasury securities typically have original maturities of six months or less when purchased and are recorded at fair value.

government treasury obligations.

The investments typically have original maturities of six months or less when purchased and are recorded at fair value.

Interest income received on such investments is separately presented from the overall change in fair value and is recognized within interest and other income of Consolidated Funds within the Consolidated Statements of Operations.

Any remaining change in fair value of such investments, that is not recognized as interest income, is recognized within net realized and unrealized gains on investments of Consolidated Funds within the Consolidated Statements of Operations.

As of December 31, 2024 and 2023, the SPACs are invested in U.S Treasury securities.

The investments of the Company are reflected within the Consolidated Statements of Financial Condition at fair value, with unrealized appreciation (depreciation) resulting from changes in fair value reflected as a component of net realized and unrealized gains on investments within the Consolidated Statements of Operations.

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In the normal course of business, the Company and the Consolidated Funds are exposed to certain risks relating to their ongoing operations and use various types of derivative instruments primarily to mitigate against interest rate and foreign exchange risk.

The derivative instruments are not designated as hedging instruments under the accounting standards for derivatives and hedging.

The derivative instruments are not designated as hedging instruments.

The Company uses various derivative instruments from time to time depending on the risks being managed and generally include foreign currency forward contracts, interest rate swaps, asset swaps and warrants.

The Company reports each of its derivative instruments at fair value within the Consolidated Statements of Financial Condition as either other assets or accounts payable, accrued expenses and other liabilities, respectively.

These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

Derivative instruments are marked-to-market daily based upon quotations from pricing services or by the Company and the change in value, if any, is recorded as an unrealized gain (loss).

Upon settlement of the instrument, the Company records any realized gain (loss).

Changes in value are reflected within net realized and unrealized gains on investments within the Consolidated Statements of Operations.

Ares Management Corporation

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These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

Derivative instruments are marked-to-market based upon quotations from pricing services or by the Company and the change in value, if any, is recorded as an unrealized gain (loss).

Upon settlement of the instrument, the Company records any realized gain (loss).

Changes in value are reflected within net realized and unrealized gains on investments within the Consolidated Statements of Operations.

Business Combinations

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Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities assumed is recorded as goodwill.

Conversely, any excess of the fair value of the net assets acquired over the purchase consideration is recognized as a bargain purchase gain.

Critical estimates in valuing certain of the intangible assets acquired include, but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life, discount rates and income tax rates.

Conversely, any excess of the fair value of the net assets acquired in excess of the purchase consideration is recognized as a bargain purchase gain.

Critical estimates in valuing certain of the intangible assets acquired include, but are not limited to, future expected cash flows, future fundraising assumptions, expected useful life, discount rates and income tax rates.

The acquisition method of accounting allows for a measurement period for up to one year after the acquisition date to make adjustments to the purchase price allocation as the Company obtains more information regarding asset valuations and liabilities assumed.

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Intangible Assets

The Company’s finite-lived intangible assets consists primarily of contractual rights to earn future management fees from the acquired management contracts.

The Company’s finite-lived intangible assets consist primarily of contractual rights to earn future management fees from the acquired management contracts.

Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from approximately 1.0 to 13.5 years.

The purchase price of an acquired management contract is treated as an intangible asset and is amortized over the life of the contract.

The fair value of an acquired management contract is recorded as an intangible asset and is amortized over the life of the contract.

Amortization is included as part of general, administrative and other expenses within the Consolidated Statements of Operations.

The Company tests finite-lived intangible assets for impairment if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable.

The Company evaluates impairment by comparing the estimated undiscounted cash flows attributable to the intangible asset being evaluated with its carrying amount.

If, after assessing qualitative factors, the Company believes that it is more likely than not that the fair value of the finite-lived intangible asset is less than its carrying amount, the Company will evaluate impairment quantitatively.

The Company evaluates if the carrying amount of the intangible asset is recoverable by comparing the estimated undiscounted cash flows attributable to the intangible asset being evaluated with its carrying amount.

If an impairment is determined to exist by management, the Company accelerates amortization expense so that the carrying amount represents fair value.

The Company estimates fair value using a discounted future cash flow methodology.

The Company tests indefinite-lived intangible assets annually for impairment.

The Company’s indefinite-lived intangible assets consist of contractual rights to earn future management fees from the acquired management contracts that were determined to have indefinite useful lives.

The Company tests indefinite-lived intangible assets annually for impairment, or if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable or if these assets are subsequently determined to have a finite useful life.

If, after assessing qualitative factors, the Company believes that it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the Company will evaluate impairment quantitatively to determine and record the amount of impairment as the excess of the carrying amount of the indefinite-lived intangible asset over its fair value.

The Company also tests indefinite-lived intangible assets for impairment if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable or if these assets are subsequently determined to have a finite useful life.

Inherent in such fair value determinations are certain judgments and estimates relating to future cash flows, including the Company’s strategic plans with regard to the indefinite-lived intangible assets.

Goodwill represents the excess of purchase price of an acquired business over the fair value of its identifiable net assets.

The Company tests goodwill annually for impairment.

If, after assessing qualitative factors, the Company believes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company will evaluate impairment quantitatively and record the amount of goodwill impairment as the excess of the carrying amount of the reporting unit over its fair value.

The Company also tests goodwill for impairment in other periods if an event occurs or circumstances change such that it is more likely than not to reduce the fair value of the reporting unit below its carrying amount.

Inherent in such fair value determinations are certain judgments and estimates relating to future cash flows, including the Company’s interpretation of current economic indicators and market valuations, and assumptions about the Company’s strategic plans with regard to its operations.

Due to the uncertainties associated with such estimates, actual results could differ from such estimates .

The Company tests goodwill annually for impairment, or if an event occurs or circumstances change such that it is more likely than not to reduce the fair value of the reporting unit below its carrying amount.

If, after assessing qualitative factors, the

Ares Management Corporation

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Company believes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company will evaluate impairment quantitatively and record the amount of goodwill impairment as the excess of the carrying amount of the reporting unit over its fair value.

Due to the uncertainties associated with such estimates, actual results could differ from such estimates .

Fixed assets, consisting of furniture, fixtures, computer hardware, equipment, internal-use software and leasehold improvements are recorded at cost, less accumulated depreciation and amortization.

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Fixed assets are depreciated or amortized on a straight-line basis over an asset’s estimated useful life, with the corresponding depreciation and amortization expense presented within general, administrative and other expenses within the Company’s Consolidated Statements of Operations.

The estimated useful life for leasehold improvements is the lesser of the lease term or the life of the asset, with a maximum of ten years , while other fixed assets and internal-use software are generally depreciated between three and seven years .

The estimated useful life for leasehold improvements is the lesser of the lease term or the life of the asset, while other fixed assets and internal-use software are generally depreciated between three and seven years .

Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

The Company has entered into operating and finance leases for corporate offices and certain equipment and makes the determination if an arrangement constitutes a lease at inception.

The Company enters into operating and finance leases for corporate offices and certain equipment and makes the determination if an arrangement constitutes a lease at inception.

Operating leases are presented within right-of-use operating lease assets and operating lease liabilities within the Company’s Consolidated Statements of Financial Condition.

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Lease terms may include options to extend or terminate the lease when it is reasonably certain that the company will exercise that option.

Lease expense is primarily recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately.

Lease expense is primarily recognized on a straight-line basis over the lease term.

Right-of-use operating lease assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Non-Controlling Interests

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Non-controlling interests in AOG entities are adjusted for contributions to and distributions from AOG during the reporting period and are allocated income from the AOG entities either based on their historical ownership percentage for the proportional number of days in the reporting period or based on the activity associated with certain membership interests.

The non-controlling interests in Consolidated Funds represents a component of equity and net income attributable to ownership interests that third parties hold in Consolidated Funds.

Redeemable Interest

Redeemable interest in AOG entities was established in connection with the SSG Acquisition as described in “Note 13.

Equity and Redeemable Interest.” Redeemable interest in AOG entities was initially recorded at fair value on the date of acquisition within mezzanine equity within the Consolidated Statements of Financial Condition.

Income (loss) is allocated based on the ownership percentage attributable to the redeemable interest.

The Company determined that the redemption of the

Ares Management Corporation

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redeemable interest is probable as of the date of acquisition.

The non-controlling interests in Consolidated Funds represents a component of equity and net income attributable to ownership interests that third parties hold in Consolidated Funds.

Redeemable Interest

Redeemable interest in AOG entities represents third-party ownership interests in investments that were acquired in connection with a historical acquisition.

Income (loss) is allocated based on the ownership percentage attributable to the redeemable interest.

At each balance sheet date, the carrying value of the redeemable interest is presented at the redemption amount, to the extent that the redemption amount exceeds the initial measurement on the date of acquisition.

The Company recognizes changes in the redemption amount with corresponding adjustments against retained earnings, or additional paid-in-capital in the absence of retained earnings, within stockholders’ equity within the Consolidated Statements of Financial Condition.

Redeemable interest in Consolidated Funds represent the Class A ordinary shares issued by each of the Company’s sponsored SPACs, as applicable.

The Class A ordinary shares issued by the SPACs (the “Class A ordinary shares”) are redeemable for cash by the public shareholders in the event that they do not complete a business combination or tender offer associated with shareholder approval provisions.

The Class A ordinary shareholders have redemption rights that are considered to be outside of the SPAC’s control.

Redeemable interest in Consolidated Funds represented the Class A ordinary shares issued by the Company’s sponsored SPAC (the “Class A ordinary shares”), as applicable.

The Class A ordinary shares were redeemable for cash by the public shareholders until the completion of a business combination or tender offer associated with shareholder approval provisions.

The Class A ordinary shareholders had redemption rights that were considered to be outside of the SPAC’s control.

Revenue Recognition

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Management Fees

Management fees are generally based on a defined percentage of fair value of assets, total commitments, invested capital, NAV, NAV plus unfunded commitments, total assets or par value of the investment portfolios managed by the Company.

Principally all management fees are earned from affiliated funds of the Company.

Management fees are generally based on a defined percentage of capital commitments, invested capital, NAV or the fair value of assets, among others.

Substantially all management fees are earned from affiliated funds of the Company.

The contractual terms of management fees vary by fund structure and investment strategy.

Management fees are recognized as revenue in the period advisory services are rendered, subject to the Company’s assessment of collectability.

Management fees also include a quarterly fee on the net investment income (“Part I Fees”) of the following publicly-traded and perpetual wealth vehicles:

Vehicle Annual Fee Rate Strategy Fee Base

ARCC Part I Fees 20.00 % U.S.

Direct Lending 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 the Company receives 20.00 % of the net investment income from the first dollar earned

ASIF Part I Fees

Direct Lending 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 the Company receives 12.50 % of the net investment income from the first dollar earned

CADC Part I Fees 15.00 % U.S.

Direct Lending 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 the Company receives 15.00 % of the net investment income from the first dollar earned

Open-ended European Direct Lending Fund Part I Fees 12.50 % European Direct Lending 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.

Real Assets Group

Infrastructure Private BDC Part I Fees 12.50 % Infrastructure Opportunities 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.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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Management fees also include a quarterly fee on the net investment income (“Part I Fees”) from certain publicly-traded funds and perpetual wealth vehicles.

Part I Fees are predictable and recurring in nature, not subject to contingent repayment and generally cash-settled each quarter, unless subject to a payment deferral.

Carried Interest Allocation

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Since carried interest is subject to reversal, the Company may need to accrue for potential repayment of previously received carried interest.

This accrual represents all amounts previously distributed to the Company that would need to be repaid to the funds if the funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date.

This accrual represents all

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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amounts previously distributed to the Company that would need to be repaid to the funds if the funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date.

The actual repayment obligations, however, generally does not become realized until the end of a fund’s life.

The Company accounts for carried interest, which represents a performance-based capital allocation from an investment fund to the Company, as earnings from financial assets within the scope of ASC 323, Investments—Equity Method and Joint Ventures .

The Company accounts for carried interest, which represents a performance-based capital allocation from an investment fund to the Company, as earnings from financial assets.

The Company recognizes carried interest allocation as a separate revenue line item in the Consolidated Statements of Operations with accrued carried interest as of the reporting date reported within investments within the Consolidated Statements of Financial Condition.

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Incentive Fees

Incentive fees earned on the performance of certain fund structures, typically in credit funds and certain real estate and secondaries funds, are recognized based on the fund’s performance during the period, subject to the achievement of minimum return levels in accordance with the respective terms set out in each fund’s investment management agreement.

Incentive fees earned on the performance of certain fund structures that are recognized based on the fund’s performance during a measurement period, subject to the achievement of minimum return levels in accordance with the respective terms set out in each fund’s investment management agreement.

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

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Principal Investment Income

Principal investment income consists of interest and dividend income and net realized and unrealized gain (loss) from the equity method investments that the Company manages.

Principal investment income consists of interest and dividend income and net realized and unrealized gains (losses) from the equity method investments where the Company serves as general partner.

Administrative, Transaction and Other Fees

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These fees may either reflect expense reimbursements for costs incurred by certain professionals in performing services for a fund or may be based on fixed percentage of a fund’s invested capital.

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

Other fees includes sales-based and asset-based fees from the Company’s perpetual wealth vehicles and 1031 exchange programs.

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

Other fees includes various property-related fees earned from certain real estate and digital infrastructure funds, such as acquisition, leasing, development and property management.

Other fees may also include:

(i) various property-related fees earned from certain real estate funds, such as acquisition, development and property management;

(i) sales-based and asset-based fees from the Company’s perpetual wealth vehicles and 1031 exchange programs;

and (ii) capital markets transaction fees earned for participating as an underwriter and/or acting as an advisor on capital markets transactions.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Equity-Based Compensation

The Company recognizes expense related to equity-based compensation for which it receives employee services in exchange for equity instruments of the Company.

Equity-based compensation expense represents expenses associated with restricted units and restricted stock (collectively, “unvested awards”) granted under the 2023 Equity Incentive Plan (the “Equity Incentive Plan”).

Equity-based compensation expense is associated with restricted units and restricted stock (collectively, “unvested awards”) granted under the 2023 Equity Incentive Plan (the “Equity Incentive Plan”).

Equity-based compensation expense for unvested awards is determined based on the fair value of the respective equity award on the grant date and is recognized on a straight-line basis over the requisite service period with a corresponding increase in additional paid-in-capital.

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When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense within the Consolidated Statements of Operations.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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The Company records deferred tax assets or liabilities for equity compensation plan awards based on deductions for income tax purposes of equity-based compensation recognized at the statutory tax rate in the jurisdiction in which the Company is expected to receive a tax deduction.

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Performance Related Compensation

The Company has agreed to pay to certain professionals a portion of the carried interest and incentive fees earned from certain funds, including income from Consolidated Funds that is eliminated in consolidation.

Depending on the nature of each fund, carried interest and incentive fees may be structured as a fixed percentage subject to vesting based on continued employment or service (a period not to exceed six years ) or as an annual award that is payable for the particular performance year if the recipient remains employed through the payment date.

The Company has agreed to pay to certain professionals a portion of the carried interest and incentive fees earned from certain funds, including revenue from Consolidated Funds that is eliminated in consolidation.

Depending on the nature of each fund, carried interest and incentive fees may be structured as a fixed percentage subject to vesting based on continued employment or service (generally a period from six to 10 years) or as an annual award that is payable for the particular performance year if the recipient remains employed through the payment date.

Other limitations may apply to carried interest and incentive fees as set forth in the applicable governing documents of the fund or award documentation.

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Performance related compensation can be reversed during periods when there is a reversal of carried interest that was previously recognized.

Performance related compensation may also include a portion of the profits from certain of the Company’s 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.

Performance related compensation payable represents the amounts payable to professionals who are entitled to a proportionate share of carried interest in one or more funds and include the associated payroll-related taxes.

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Also, the Company’s share of the investee’s income and expenses for the Company’s equity method investments that it does not manage is presented within net realized and unrealized gains on investments.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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Interest and Dividend Income

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dollars monthly using the average exchange rates during the respective transaction period.

Foreign exchange revaluation arising from these transactions is recognized within other income, net within the Consolidated Statements of Operations.

For the year ended December 31, 2024, the Company recognized $ 0.6 million in transaction gains related to foreign currencies revaluation.

Foreign exchange revaluation arising from these transactions is recognized within other income (expense), net within the Consolidated Statements of Operations.

For the years ended December 31, 2025 and 2023, the Company recognized $ 17.0 million and $ 9.1 million, respectively, in transaction losses related to foreign currencies revaluation.

For the year ended December 31, 2024, the Company recognized $ 0.6 million in transaction gain related to foreign currencies revaluation.

In addition, the consolidated results include certain foreign subsidiaries that use functional currencies other than the U.S.

Assets and liabilities of these foreign subsidiaries are translated to U.S.

dollars at the prevailing exchange rates as of the reporting date.

dollars at the prevailing exchange rates as of

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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the reporting date.

Translation adjustments resulting from this process are recorded to currency translation adjustment in accumulated other comprehensive income.

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The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized.

The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination.

Both accrued interest and penalties related to UTBs, when incurred, are presented within general, administrative and other expenses within the Consolidated Statements of Operations.

The amount of unrecognized tax benefits is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination.

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities.

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Basic earnings per share of Class A and non-voting common stock is computed by dividing income available to Class A and non-voting common stockholders by the weighted-average number shares of Class A and non-voting common stock outstanding during the period.

Income available to Ares Management Corporation represents net income attributable to Class A

Ares Management Corporation

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and non-voting common stockholders after giving effect to the Series B mandatory convertible preferred stock dividends declared.

Income available to Ares Management Corporation represents net income attributable to Class A and non-voting common stockholders after giving effect to the Series B mandatory convertible preferred stock dividends declared.

Basic earnings per share of Class A and non-voting common stock is computed by using the two-class method.

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Diluted earnings per share of Class A and non-voting common stock is computed by dividing income available to Class A and non-voting common stockholders by the weighted-average number of shares of Class A and non-voting common stock outstanding during the period, increased to include the number of additional shares of Class A common stock that would have been outstanding if the potentially dilutive securities had been issued.

Potentially dilutive securities include outstanding options to acquire shares of Class A common stock, unvested restricted units, Series B mandatory convertible preferred stock and AOG Units exchangeable for shares of Class A common stock.

Potentially dilutive securities include unvested restricted units, Series B mandatory convertible preferred stock and AOG Units exchangeable for shares of Class A common stock.

The effect of potentially dilutive securities is reflected in diluted earnings per share of Class A and non-voting common stock using the more dilutive result of the treasury stock and if-converted methods or the two-class method.

The treasury stock method is used to determine potentially dilutive securities resulting from options and unvested restricted units granted under the Equity Incentive Plan.

The treasury stock method is used to determine potentially dilutive securities resulting from unvested restricted units granted under the Equity Incentive Plan.

The if-converted method is used to determine the potentially dilutive effect resulting from the conversion of shares of the Series B mandatory convertible preferred stock to shares of Class A common stock as of the beginning of the period.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

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Comprehensive Income

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ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures.

ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the Company’s CODM.

The amendments in this update also expand the interim segment disclosure requirements.

ASU 2023-07 is effective for the Company’s fiscal year ending December 15, 2024 and for the Company’s interim periods beginning with the first quarter ended 2025.

Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis.

The Company has concluded this guidance does not have a material impact on its consolidated financial statements.

Information presented within “Note 14.

Segment Reporting” reflects the impact from adoption of ASU 2023-07.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures.

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Early adoption is permitted and the amendments in this update should be applied on a prospective basis, though retrospective adoption is permitted.

The Company is currently evaluating the impact of this guidance.

Information presented within “Note 11.

Income Taxes” reflects the impact from the prospective adoption of ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

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The Company is currently evaluating the impact of this guidance.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software.

ASU 2025-06 clarifies the threshold for capitalizing internal-use software costs to be based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

ASU 2025-06 is effective for the Company’s fiscal year ending December 31, 2028.

Early adoption is permitted and the amendments in this update may be applied on a prospective, retrospective or modified basis.

The Company is currently evaluating the impact of this guidance.

BUSINESS COMBINATIONS

Acquisition of GCP International

On March 1, 2025, the Company completed the acquisition of the international business of GLP Capital Partners Limited and certain of its affiliates, excluding its operations in Greater China (“GCP International”), and existing capital commitments to certain managed funds (such acquisition of GCP International and the capital commitments, the “GCP Acquisition”).

The GCP Acquisition adds complementary real estate and digital infrastructure investment capabilities and expands the Company’s geographic presence.

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

The acquisition date fair value of the consideration transferred totaled $ 3.9 billion, which consisted of the following:

Cash $ 1,793,557

Contingent consideration (2)

Total $ 3,916,518

(1) 9.6 million shares of Class A common stock and 0.1 million AOG Units were issued in connection with the GCP Acquisition purchase consideration.

(2) See “Note 9.

Commitments and Contingencies” for a further description of the contingent consideration from the GCP Acquisition.

Ares Management Corporation

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(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following is a summary of the fair values of assets acquired and liabilities assumed for the GCP Acquisition as of March 1, 2025, based upon third party valuations of certain intangible assets.

The purchase price allocation is preliminary and subject to change during the measurement period, which may be up to one year from the acquisition date, as additional information is obtained about the facts and circumstances that existed at close of the GCP Acquisition.

The fair value of assets acquired and liabilities assumed are estimated to be:

Cash $ 61,436

Other tangible assets 438,604

Intangible assets

Management contracts 473,300

Client relationships 107,200

Finite-lived intangible assets 580,500

Indefinite-lived management contracts 749,600

Total intangible assets 1,330,100

Total identifiable assets acquired 1,830,140

Accounts payable, accrued expenses and other liabilities 198,943

Net identifiable assets acquired 1,631,197

Goodwill 2,285,321

Net assets acquired $ 3,916,518

Certain management contracts were determined to have indefinite useful lives at the time of the GCP Acquisition and are not subject to amortization.

As of March 1, 2025, the remaining management contracts and client relationships had a weighted average amortization period of 5.8 years and 7.6 years, respectively.

As of March 1, 2025, the carrying value of goodwill associated with GCP Acquisition was $ 2.3 billion, of which $ 1.1 billion is deductible for tax purposes.

The goodwill is entirely allocated to the Real Assets Group segment and is attributable primarily to expected synergies and the assembled workforce of GCP International.

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 employees of the Company following the GCP Acquisition.

Because these components are required to be accounted for as compensation, the associated amounts have been excluded from purchase consideration.

For the year ended December 31, 2025, $ 48.5 million of acquisition related compensation costs were expensed and recorded within compensation and benefits within the Consolidated Statements of Operations.

Because the purchase price included components of cash and equity, the individuals that became employees of the Company also received a portion of their sales proceeds in the form of equity, which was recorded as equity compensation expense.

For the year ended December 31, 2025, $ 110.0 million of equity compensation expense was recognized from the immediate vesting of 0.6 million restricted units, of which 0.2 million shares were withheld for taxes.

Additionally, there were 2.3 million unvested equity awards and 0.2 million unvested AOG Unit awards related to these arrangements (collectively, the “Unvested GCP Equity Purchase Price”) as of March 1, 2025.

In connection with the Unvested GCP Equity Purchase Price, equity compensation expense of $ 113.3 million was recognized during the year ended December 31, 2025.

The total compensation expense expected to be recognized in all future periods associated with the Unvested GCP Equity Purchase Price is $ 277.0 million as of December 31, 2025 and is expected to be recognized over the remaining weighted average period of 2.8 years.

The Company has incurred $ 68.7 million of acquisition related costs, of which $ 35.3 million was incurred during the year ended December 31, 2025.

These acquisition related costs were expensed and reported within general, administrative and other expenses.

The acquired business from the GCP Acquisition generated revenues and net income of $ 359.7 million and $ 114.7 million, respectively, are included in the Consolidated Statements of Operations before giving effect to corporate level taxes for the period from March 1, 2025 through December 31, 2025.

The Company did not acquire all of the assets or assume all of the liabilities of the legacy business.

GCP International represents an aggregation of various businesses and components of other businesses that operate in different jurisdictions, each that historically used a different basis of accounting.

There are no historical financial statements that apply consistent management assumptions and use a consistent basis of accounting.

Therefore, it is impracticable to provide pro forma information on revenues and earnings for the GCP Acquisition.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

GOODWILL AND INTANGIBLE ASSETS

10 unchanged sentences

Finite-lived intangible assets, net 798,430 408,028

Management contracts 1,317,400 567,800

Indefinite-lived management contracts 1,317,400 567,800

Intangible assets, net $ 2,115,830 $ 975,828

On December 1, 2024, a subsidiary of the Company completed the acquisition of all the equity interests in Walton Street Capital Mexico S.

and certain of its affiliates (“WSM”) (the “WSM Acquisition”).

WSM is a real estate asset management platform focused primarily on the industrial real estate sector in Mexico.

The results of WSM are presented within the Real Assets Group.

The Company allocated $ 27.0 million and $ 9.8 million of the purchase price to the fair value of the acquired management contracts and client relationships, respectively.

The acquired management contracts and client relationships had a weighted average amortization period from the date of acquisition of 6.7 years and 10.0 years, respectively.

During the year ended December 31, 2025, the Company recorded a non-cash impairment charge of $ 2.3 million to the fair value of management contracts of certain CLOs within the Credit Group.

The primary indicator of impairment was the lower than expected future fee revenue resulting from the earlier than expected end to the useful lives of these CLOs.

During the year ended December 31, 2024, the Company recorded a non-cash impairment charge of $ 8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group.

2 unchanged sentences

The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition.

During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $ 181.6 million related to rebranding of its secondaries group as Ares Secondaries and discontinued the ongoing use of the Landmark trade name, and fair value of management contracts in connection with lower than expected fee paying assets under management.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $ 193.4 million, $ 116.3 million and $ 126.0 million for the years ended December 31, 2025, 2024 and 2023, respectively, and has been presented within general, administrative and other expenses within in the Consolidated Statements of Operations.

During the year ended December 31, 2024, the Company removed $ 47.5 million of fully-amortized management contracts.

During the year ended December 31, 2025, the Company removed $ 40.6 million of fully-amortized cost basis of intangible assets.

As of December 31, 2025, future annual amortization of finite-lived intangible assets for the years 2026 through 2030 and thereafter is estimated to be:

7 unchanged sentences

The following table summarizes the carrying value of the Company’s goodwill:

Credit Group Real Assets Group Private Equity Group Secondaries Group

Credit Group Real Assets Group Secondaries Group

Private Equity Group Total

Balance as of December 31, 2023

5 unchanged sentences

Acquisitions — 2,285,242 — — 2,285,242

Reallocation 55,658 — ( 55,658 ) — — —

Foreign currency translation 1,798 4,418 13 — 6,229

Balance as of December 31, 2025 $ 313,830 $ 2,601,229 $ 417,640 $ 121,408 $ 3,454,107

In connection with the WSM Acquisition, the Company allocated $ 28.4 million of the purchase price to goodwill.

In connection with the segment reorganization of the former special opportunities strategy as described in “Note 14.

Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $ 55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach in the first quarter of 2024.

In connection with the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) in the fourth quarter of 2023, the Company allocated $ 124.4 million of the purchase price to goodwill.

In connection with the SSG Buyout in the first quarter of 2023 as described in “Note 13.

Equity and Redeemable Interest, the former Ares SSG reporting unit has been transferred in its entirety to the Credit Group and the total goodwill of $ 224.6 million has been reallocated accordingly.

In connection with the acquisition of the equity interests in Walton Street Capital Mexico S.

and certain of its affiliates in the fourth quarter of 2024, the Company allocated $ 28.4 million of the purchase price to goodwill.

In the first quarter of 2024, the Company changed its segment composition.

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

In connection with this segment reorganization, the Company had an associated change in its reporting units and reallocated goodwill of $ 55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach.

There was no impairment of goodwill recorded during the years ended December 31, 2025 and 2024.

The impact of foreign currency translation adjustments are reflected within the Consolidated Statements of Comprehensive Income.

The impact of foreign currency translation adjustments is reflected within the Consolidated Statements of Comprehensive Income.

The following table summarizes the Company’s investments:

12 unchanged sentences

Collateralized loan obligations and fixed income securities, at fair value 24,469 41,833 0.4 0.9

Common stock, at fair value 104,037 86,572 2.2 1.9

Common stock and other equity securities, at fair value 247,775 104,037 4.5 2.2

Total investments $ 5,508,447 $ 4,644,775

(1) Includes carried interest held at fair value of $ 118.1 million as of December 31, 2025.

Ares Management Corporation

7 unchanged sentences

As of and for the Year Ended December 31, 2025

Credit Group Real Assets Group Private Equity Group Secondaries Group Other

Credit Group Real Assets Group Secondaries Group Private Equity Group Other

Statement of Financial Condition

4 unchanged sentences

Statement of Operations

Revenues $ 2,357,057 $ 1,018,717 $ 196,756 $ 10,508 $ — $ 3,583,038

Interest and dividend income $ 2,619,911 $ 1,386,146 $ 1,385 $ 114,025 $ — $ 4,121,467

Expenses ( 879,571 ) ( 806,547 ) ( 195,787 ) ( 80,679 ) ( 3,354 ) ( 1,965,938 )

3 unchanged sentences

As of and for the Year Ended December 31, 2024

Credit Group Real Assets Group Private Equity Group Secondaries Group Other

Credit Group Real Assets Group Secondaries Group Private Equity Group Other

Statement of Financial Condition

4 unchanged sentences

Statement of Operations

Revenues $ 2,584,262 $ 1,036,710 $ 133,749 $ 1,960 $ — $ 3,756,681

Interest and dividend income $ 2,357,057 $ 1,018,717 $ 10,508 $ 196,756 $ — $ 3,583,038

Expenses ( 893,272 ) ( 564,678 ) ( 507,192 ) ( 67,667 ) ( 1,001 ) ( 2,033,810 )

Net realized and unrealized gains (losses) from investments 556,170 382,681 208,947 496,096 ( 417 ) 1,643,477

Income tax benefit (expense) ( 28,334 ) ( 10,197 ) 22,587 — ( 19 ) ( 15,963 )

Income tax expense ( 5,884 ) ( 9,341 ) — ( 27,554 ) — ( 42,779 )

Net income (loss) $ 2,014,071 $ 827,379 $ ( 287,737 ) $ 597,631 $ ( 1,418 ) $ 3,149,926

As of and for the Year Ended December 31, 2023

Credit Group Real Assets Group Private Equity Group Secondaries Group Other

Credit Group Real Assets Group Secondaries Group Private Equity Group Other

Statement of Operations

Revenues $ 1,552,306 $ 618,796 $ 60,935 $ 2,874 $ — $ 2,234,911

Interest and dividend income $ 2,584,262 $ 1,036,710 $ 1,960 $ 133,749 $ — $ 3,756,681

Expenses ( 862,257 ) ( 632,433 ) ( 482,478 ) ( 88,841 ) ( 1,658 ) ( 2,067,667 )

5 unchanged sentences

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the Company’s other income, net from its equity method investments, which were included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Consolidated Statements of Operations:

The following table presents the Company’s share of net investment income and net realized and unrealized gains (losses) from its equity method investments, which are included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Consolidated Statements of Operations:

Year ended December 31,

2025 2024 2023

Total other income, net related to equity method investments

$ 52,350 $ 86,729 $ 21,657

With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets.

Total net investment income and net realized and unrealized gains (losses) related to equity method investments $ 319,286 $ 52,350 $ 86,729

With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest and dividend income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets.

Equity Method Investments Held at Fair Value

The following table summarizes the changes in fair value of the Company’s equity method investments held at fair value, which are included within net realized and unrealized gains on investments within the Consolidated Statements of Operations:

5 unchanged sentences

Fair Value as of Percentage of total investments as of

December 31, December 31, December 31, December 31,

December 31, December 31,

2025 2024 2025 2024

1 unchanged sentence

Loans and securitization vehicles $ 5,507,199 $ 7,907,449 42.9 % 62.1 %

Money market funds and U.S.

treasury securities — 550,800 — 4.3

4 unchanged sentences

Total investments, at fair value $ 12,844,886 $ 12,737,844

As of December 31, 2024 and 2023, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0 % of the Company’s total assets.

Financial Instrument Valuations

The valuation techniques used by the Company to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs.

The valuation techniques applied to investments held by the Company and by the Consolidated Funds vary depending on the nature of the investment.

CLOs and CLO loan obligations:

The fair value of CLOs held by the Company are estimated based on either a third-party pricing service or broker quote and are classified as Level III.

Contingent consideration:

The Company generally determines the fair value of its contingent consideration liabilities by using a probability weighted expected return method, including the Monte Carlo simulation model.

The discount rate used is determined based on the weighted average cost of capital for the Company.

Once the associated targets are achieved, the contingent consideration is reported at the

Ares Management Corporation

1 unchanged sentence

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

settlement amount.

The fair value of the Company’s contingent consideration liabilities are classified as Level III.

Liabilities recorded in connection with the Company’s contingent consideration are included within accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition and the associated changes in fair value are included within other income, net in the Consolidated Statements of Operations.

Corporate debt, bonds, bank loans, securitization vehicles and derivative instruments:

These investments are generally classified as Level II.

If management is only able to obtain a single broker quote, or utilizes a pricing model, such securities will generally be classified as Level III.

Equity and equity-related securities:

Securities traded on a national securities exchange are stated at the last reported sales price on the day of valuation.

To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I.

Money market funds and U.S.

treasury securities:

The fair value of money market funds that invest in treasury-backed securities and U.S.

treasury securities is estimated using quoted market prices in active markets.

These investments are classified as Level I.

Partnership interests:

The Company does not categorize within the fair value hierarchy investments where fair value is measured using the net asset value per share practical expedient.

In limited circumstances, the Company may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value.

In such circumstances, the Company will estimate the fair value in good faith and in a manner that it reasonably chooses.

As of December 31, 2024 and 2023, NAV per share represents the fair value of the Company’s investments in partnership interests.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Fair Value of Financial Instruments Held by the Company and Consolidated Funds

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2025:

Financial Instruments of the Company Level I Level II Level III Investments Measured at NAV Total

Financial Instruments of the Company Level I Level II Level III Total

Assets, at fair value

Cash equivalents:

Money market funds $ 1,071,071 $ — $ — $ — $ 1,071,071

Common stock and other equity securities — 104,037 411,179 — 515,216

Common stock, other equity securities and equity method investments $ 152,163 $ 95,612 $ 675,777 $ 923,552

Common stock and other equity securities - carried interest 68,250 — 49,813 118,063

Collateralized loan obligations and fixed income securities

— — 24,469 24,469

Partnership interests — — — 238 238

Total investments, at fair value 220,413 95,612 750,059 1,066,084

9 unchanged sentences

Loans and securitization vehicles $ — $ 4,873,684 $ 633,515 $ — $ 5,507,199

treasury securities 550,800 — — — 550,800

Bonds — 280,911 — — 280,911

3 unchanged sentences

Total investments, at fair value — 5,416,866 3,636,964 3,791,056 12,844,886

Derivatives-foreign currency forward contracts — 2,995 — — 2,995

Foreign currency forward contracts — 4,889 — — 4,889

Total derivative assets, at fair value — 4,889 — — 4,889

Total assets, at fair value $ — $ 5,421,755 $ 3,636,964 $ 3,791,056 $ 12,849,775

11 unchanged sentences

Assets, at fair value

Cash equivalents:

Money market funds $ 1,071,071 $ — $ — $ — $ 1,071,071

Common stock and other equity securities — 104,037 411,179 — 515,216

7 unchanged sentences

Derivatives-foreign currency forward contracts $ — $ ( 216 ) $ — $ — $ ( 216 )

Contingent consideration — — ( 17,550 ) — ( 17,550 )

Total liabilities, at fair value $ — $ ( 216 ) $ ( 17,550 ) $ — $ ( 17,766 )

3 unchanged sentences

Loans and securitization vehicles $ — $ 7,313,632 $ 593,817 $ — $ 7,907,449

Bonds — 575,379 3,570 — 578,949

treasury securities 550,800 — — — 550,800

Bonds — 418,069 — — 418,069

Total fixed income investments 550,800 7,731,701 593,817 — 8,876,318

10 unchanged sentences

Total liabilities, at fair value $ — $ ( 9,675,077 ) $ ( 1,846 ) $ — $ ( 9,676,923 )

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables set forth a summary of changes in the fair value of the Level III measurements:

Level III Assets of the Company Equity Securities Fixed Income Contingent Consideration Total

Level III Assets and Liabilities of the Company Equity Securities Fixed

Income Contingent Consideration Total

Balance as of December 31, 2024

10 unchanged sentences

( 1,348 ) ( 219,961 ) 18,380 ( 202,929 )

Realized and unrealized appreciation, net 489 746 — 1,235

Change in fair value — — ( 301,120 ) ( 301,120 )

Realized and unrealized appreciation (depreciation), net 287,951 ( 470 ) — 287,481

Balance as of December 31, 2025

$ 725,590 $ 24,469 $ ( 765,370 ) $ ( 15,311 )

Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date $ ( 904 ) $ 2,172 $ — $ 1,268

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Level III Net Assets of Consolidated Funds Equity Securities Fixed Income Derivatives, Net Total

Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date $ 287,952 $ 1,036 $ ( 301,120 ) $ ( 12,132 )

Level III Net Assets of Consolidated Funds Equity Securities Fixed

Income Derivatives, Net Total

Balance as of December 31, 2024 $ 1,829,927 $ 593,817 $ ( 1,846 ) $ 2,421,898

7 unchanged sentences

( 61,117 ) ( 1,087,510 ) — ( 1,148,627 )

Realized and unrealized appreciation (depreciation), net 122,289 4,688 ( 685 ) 126,292

Realized and unrealized appreciation, net 185,572 5,658 1,608 192,838

Balance as of December 31, 2025 $ 3,003,449 $ 633,515 $ ( 114 ) $ 3,636,850

2 unchanged sentences

(2) Purchases include paid-in-kind interest and securities received in connection with restructurings.

(3) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Level III Assets of the Company Equity Securities Fixed Income Total

(3) Sales/settlements include distributions, principal redemptions, securities disposed of in connection with restructurings and contingent consideration payments.

Level III Assets and Liabilities of the Company Equity Securities Fixed Income Contingent Consideration Total

Balance as of December 31, 2023

$ 412,491 $ 126,294 $ — $ 538,785

Established in connection with acquisition — — ( 17,550 ) ( 17,550 )

Transfer in (1)

— 39,636 — 39,636

Transfer out (1)

( 872 ) — — ( 872 )

Purchases (2)

2 unchanged sentences

( 2,382 ) ( 561,492 ) — ( 563,874 )

Realized and unrealized appreciation (depreciation), net 46,373 ( 1,788 ) 44,585

Realized and unrealized appreciation, net 489 746 — 1,235

Balance as of December 31, 2024

1 unchanged sentence

Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date $ ( 904 ) $ 2,172 $ — $ 1,268

Level III Net Assets of Consolidated Funds Equity Securities Fixed Income Partnership Interests Derivatives, Net Total

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Level III Net Assets of Consolidated Funds Equity Securities Fixed Income Derivatives, Net Total

Balance as of December 31, 2023 $ 1,190,400 $ 740,113 $ ( 1,291 ) $ 1,929,222

7 unchanged sentences

( 114 ) ( 960,839 ) — ( 960,953 )

Realized and unrealized appreciation, net 153,289 18,764 5,283 2,419 179,755

Realized and unrealized appreciation (depreciation), net 122,289 4,688 ( 685 ) 126,292

Balance as of December 31, 2024 $ 1,829,927 $ 593,817 $ ( 1,846 ) $ 2,421,898

Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date $ 123,659 $ 2,237 $ ( 744 ) $ 125,152

(1) Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds.

(2) Purchases include paid-in-kind interest and securities received in connection with restructurings.

(3) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

(3) Transfers in and out include changes in the observability of inputs used in valuations, and changes due to the consolidation and deconsolidation of funds.

Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs either from independent pricing services or multiple brokers.

7 unchanged sentences

$ 307,942 Transaction price (1)

100,000 Market approach Yield 8.0 %

57,659 Market approach Multiple of book value 1.0 x - 1.1 x

Discounted cash flow Discount rate 10.0 % - 14.0 %

100,000 Market yield analysis Market interest rate 8.0 %

84,737 Market approach Multiple of book value 0.6 x - 1.5 x

81,905 Option pricing model Volatility 50.0 %

8,489 Market approach Earnings multiple

58,060 Monte Carlo simulation Volatility 52.5 % 52.5 %

59,136 Discounted cash flow Discount rate 11.0 % - 17.0 %

33,810 Market approach

EBITDA multiple (2)

11.0 x - 13.0 x

Fixed income investments

22,283 Transaction price (1)

19,040 Broker quotes and/or 3rd party pricing services N/A N/A N/A

510 Other N/A N/A N/A

13,217 Broker quotes and/or third-party pricing services N/A N/A N/A

11,252 Market yield analysis

Market interest rate 16.5 %

Total assets $ 750,059

5 unchanged sentences

$ 1,295,564 Discounted cash flow Discount rate

9.0 % - 20.0 %

1,078,401 Market approach Multiple of book value 1.0 x - 1.7 x

350,000 Transaction price (1)

278,992 Market approach EBITDA multiple (2)

5.4 x - 33.0 x

789 Other N/A N/A N/A

492 Market approach Yield 10.5 % - 14.0 %

Fixed income investments

308,675 Broker quotes and/or 3rd party pricing services N/A N/A N/A

370,588 Market approach Yield 6.1 % - 14.0 %

192 Other N/A N/A N/A

232,261 Broker quotes and/or third-party pricing services N/A N/A N/A

29,484 Transaction price (1)

1,182 Discounted cash flow Discount rate 12.2 % - 20.0 %

Total assets $ 3,636,964

Derivative instruments $ ( 1,846 ) Broker quotes and/or 3rd party pricing services N/A N/A N/A

Derivative instruments $ ( 114 ) Broker quotes and/or third-party pricing services N/A N/A N/A

Total liabilities $ ( 114 )

8 unchanged sentences

Equity securities

$ 168,387 Transaction price (1)

100,000 Market approach Yield 8.0 % 8.0 %

57,659 Market approach Multiple of book value 1.0 x - 1.1 x

Discounted cash flow Discount rate 10.0 % - 14.0 %

56,918 Market approach Multiple of book value 1.2 x - 1.7 x

131,864 Transaction price (1)

19,205 Option pricing model Volatility 35.0 % 35.0 %

8,489 Market approach Earnings multiple 15.4 x

874 Other N/A N/A N/A

521 Discounted cash flow Discount rate 18.5 % - 21.5 %

Fixed income investments

22,283 Transaction price (1)

20,799 Broker quotes and/or 3rd party pricing services N/A N/A N/A

19,040 Broker quotes and/or third-party pricing services N/A N/A N/A

510 Other N/A N/A N/A

Total assets $ 453,012

Contingent consideration $ ( 17,550 ) Monte Carlo simulation Discount rate 6.6 % - 6.9 %

Volatility 11.1 % 11.1 %

Total liabilities $ ( 17,550 )

Level III Measurements of the Consolidated Funds Fair Value Valuation Technique(s) Significant Unobservable Input(s) Range Weighted Average

6 unchanged sentences

Fixed income investments

548,264 Broker quotes and/or 3rd party pricing services N/A N/A N/A

308,675 Broker quotes and/or third-party pricing services N/A N/A N/A

284,950 Market approach Yield 7.4 % - 28.6 %

2,974 Market approach EBITDA multiple (2)

4.5 x - 32.4 x

104 Discounted cash flow Discount rate 12.3 %

449 Other N/A N/A N/A

192 Other N/A N/A

Total assets $ 2,423,745

Derivative instruments $ ( 1,291 ) Broker quotes and/or 3rd party pricing services N/A N/A N/A

Derivative instruments $ ( 1,846 ) Broker quotes and/or third-party pricing services N/A N/A N/A

Total liabilities $ ( 1,846 )

4 unchanged sentences

The terms and conditions of these funds do not allow for redemptions without certain events or approvals that are outside the Company’s control.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share:

2 unchanged sentences

Unfunded commitments 3,658,819 932,473

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table summarizes the Company’s and its subsidiaries’ debt obligations:

As of December 31, 2024 As of December 31, 2023

Debt Origination Date Maturity Original Borrowing Amount Carrying Value Interest Rate Carrying Value Interest Rate

As of December 31,

Original Borrowing Amount Carrying Value Fair Value (1)

Interest Rate Carrying Value Interest Rate

Credit Facility (2)

Revolving 3/31/2029 N/A $ — — % $ 895,000 6.37 %

2024 Senior Notes (2)

10/8/2014 10/8/2024 $ 250,000 N/A N/A 249,427 4.21

2028 Senior Notes (3)

N/A $ 1,380,000 $ 1,380,000 4.86 % $ — — %

Senior notes due 11/10/2028 (3)

500,000 496,785 529,140 6.42 495,677 6.42

2030 Senior Notes (4)

Senior notes due 6/15/2030 (4)

400,000 397,954 379,280 3.28 397,501 3.28

2052 Senior Notes (5)

Senior notes due 2/1/2052 (5)

500,000 485,011 348,840 3.77 484,601 3.77

2054 Senior Notes (6)

10/11/2024 10/11/2054 750,000 736,010 5.65 N/A N/A

2051 Subordinated Notes (7)

Senior notes due 10/11/2054 (6)

750,000 736,355 709,073 5.65 736,010 5.65

Subordinated notes due 6/30/2051 (7)

450,000 445,310 443,943 4.13 445,125 4.13

Total debt obligations $ 3,941,415 $ 3,790,276 $ 2,558,914

(1) On March 28, 2024, the Company amended the Credit Facility to, among other things, increase the revolver commitments from $ 1.325 billion to $ 1.400 billion, with an accordion feature of $ 600.0 million, and extend the maturity date from March 2027 to March 2029.

Ares Holdings is the borrower under the Credit Facility.

The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain environmental, social and governance (“ESG”)-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating.

(1) The senior notes and subordinated notes would be classified as Level II within the fair value hierarchy and fair value is based on quoted prices in inactive markets.

(2) In April 2025, the Company amended its Credit Facility to, among other things:

(i) extend the maturity from March 31, 2029 to April 22, 2030;

(ii) increase commitments from $ 1.400 billion, with an accordion feature of $ 600.0 million, to $ 1.840 billion with an accordion feature of $ 660.0 million;

and (iii) provide a sub-limit for the issuance of swingline loans up to an aggregate amount of $ 75.0 million (with the amount available for borrowing under the Credit Facility amendment being reduced by any swingline loans issued).

The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating.

As of December 31, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00 %.

The unused commitment fee is 0.09 % per annum.

There is a base rate and SOFR floor of zero .

Due to the achievement of ESG-related targets, the Company’s applicable margin and unused commitment fee have been reduced by 0.05 % and 0.01 %, respectively, from July 2023 through June 2025.

(2) The 2024 Senior Notes were issued in October 2014 by Ares Finance Co.

LLC, an indirect subsidiary of the Company, at 98.27 % of the face amount with interest paid semi-annually.

On October 8, 2024 the Company repaid the 2024 Senior Notes at maturity.

(3) The 2028 Senior Notes were issued in November 2023 by the Company, at 99.80 % of the face amount with interest paid semi-annually.

The Credit Facility has a base rate and SOFR floor of zero .

(3) The senior notes were issued by the Company at 99.80 % of the face amount with interest paid semi-annually.

The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(4) The 2030 Senior Notes were issued in June 2020 by Ares Finance Co.

(4) The senior notes were issued by Ares Finance Co.

II LLC, an indirect subsidiary of the Company, at 99.77 % of the face amount with interest paid semi-annually.

The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(5) The 2052 Senior Notes were issued in January 2022 by Ares Finance Co.

(5) The senior notes were issued by Ares Finance Co.

IV LLC, an indirect subsidiary of the Company, at 97.78 % of the face amount with interest paid semi-annually.

The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(6) The 2054 Senior Notes were issued in October 2024 by the Company, at 99.24 % of the face amount with interest paid semi-annually.

(6) The senior notes were issued by the Company at 99.24 % of the face amount with interest paid semi-annually.

The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(7) The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co.

(7) The subordinated notes were issued by Ares Finance Co.

III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125 %.

21 unchanged sentences

Loan Obligations of the Consolidated CLOs

Loan obligations of the Consolidated Funds that are CLOs (“Consolidated CLOs”) represent amounts due to holders of debt securities issued by the Consolidated CLOs.

Loan obligations of the Consolidated Funds that are CLOs and other financing obligations (“Consolidated CLOs”) represent amounts due to holders of debt securities issued by the Consolidated CLOs.

The Company measures the loan obligations of the Consolidated CLOs using the fair value of the financial assets of its Consolidated CLOs.

15 unchanged sentences

instead, holders of the notes receive a variable rate of interest amounting to the excess cash flows generated by each Consolidated CLO.

Loan obligations of the Consolidated CLOs are collateralized by the assets held by the Consolidated CLOs, consisting of cash and cash equivalents, corporate loans, corporate bonds and other securities.

Loan obligations of the Consolidated CLOs are collateralized by the assets held by the Consolidated CLOs, consisting of cash and cash equivalents, corporate loans and corporate bonds, among other securities and financial interests.

The assets of one Consolidated CLO may not be used to satisfy the liabilities of another Consolidated CLO.

5 unchanged sentences

These facilities generally are collateralized by the net assets of the Consolidated Funds or the unfunded capital commitments of the Consolidated Funds’ limited partners, bear an annual commitment fee based on unfunded commitments and contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments and portfolio asset dispositions.

The creditors of these facilities have no recourse to the Company and only have recourse to a subsidiary of the Company to the extent the debt is guaranteed by such subsidiary.

The creditors of these facilities only have recourse to the Company to the extent the debt is guaranteed by the Company.

As of December 31, 2025 and 2024, the Consolidated Funds were in compliance with all covenants under such credit facilities.

2 unchanged sentences

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The Consolidated Funds had the following revolving bank credit facilities outstanding:

The Consolidated Funds had the following credit facilities outstanding:

As of December 31,

Maturity Date Total Capacity Outstanding Loan (1)

Effective Rate Outstanding Loan (1)

Effective Rate

Total Capacity Outstanding Loan Fair Value Weighted

Interest Rate Weighted

Remaining Maturity

(in years) Total Capacity Outstanding Loan Weighted

Interest Rate

Credit Facilities (1)

$ 4,878,724 $ 2,251,780 $ 2,251,780 5.95 % 3.4 $ 554,000 $ 275,000 7.52 %

N/A N/A $ 15,241 6.88 %

9/25/2025 150,000 $ 121,000 8.00 % N/A N/A

9/24/2026 150,000 — — — N/A

6/26/2027 200,000 154,000 7.15 110,000 8.29

9/12/2027 54,000 — — — N/A

Total borrowings of Consolidated Funds $ 275,000 $ 125,241

(1) The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.

(2) Represents a credit facility of a Consolidated Fund that was repaid on maturity date.

The amount represents the total capacity as of December 31, 2023.

(1) The credit facilities have varying maturities and bear interest at spreads to market rates or at stated fixed rates.

The fair values of floating-rate borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.

The fair values of fixed-rate borrowings approximate the carrying value as the facility arrangements were recently entered into.

These liabilities would be classified within Level II of the fair value hierarchy.

The components of other assets were as follows:

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For the years ended December 31, 2025, 2024 and 2023, depreciation expense was $ 45.2 million, $ 32.2 million and $ 31.4 million, respectively, and is included within general, administrative and other expenses within the Consolidated Statements of Operations.

During the year ended December 31, 2024, the Company disposed of $ 71.5 million of fixed assets that were fully depreciated.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

During the year ended December 31, 2025, the Company disposed of $ 8.7 million of fixed assets.

COMMITMENTS AND CONTINGENCIES

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The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Consolidated Statements of Financial Condition.

As of December 31, 2024, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

December 31, 2025, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

As of December 31, 2025 and 2024, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $ 1,172.9 million and $ 1,451.4 million, respectively.

As of December 31, 2025 and 2024, the Company’s maximum exposure to losses from guarantees was $ 7.1 million and $ 1.1 million, respectively.

The guarantee agreements that the Company enters into with financial institutions are primarily to guarantee credit facilities held by certain funds.

In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund.

As of December 31, 2024 and 2023, the Company’s maximum exposure to losses from guarantees was $ 1.1 million and $ 122.3 million, respectively.

Contingent Liabilities

WSM Earnout and WSM MIP

In connection with the WSM Acquisition during the fourth quarter of 2024, the Company established two arrangements with the seller and certain professionals, including (i) an earnout arrangement (“WSM Earnout”) based on the achievement of revenue targets from the fundraising of a real estate equity fund;

and (ii) a management incentive program (the “WSM MIP”) based on the achievement of certain revenue targets associated with growing revenue sources from new business ventures.

The WSM Earnout and WSM MIP represent contingent liabilities not to exceed $ 40.0 million and $ 25.0 million, respectively.

The portion of the WSM Earnout and WSM MIP attributable to the sellers is, 59.1 % and 30.0 %, respectively, and represents a component of purchase consideration that will be accounted for as contingent consideration.

The fair value of these contingent liabilities as of the acquisition date was $ 17.6 million.

The contingent liabilities are subject to change over the measurement periods, which will end:

(i) on the final fundraising date of the real estate equity fund for the WSM Earnout;

and (ii) no later than December 31, 2027 for the WSM MIP.

Changes in fair value from the acquisition date will be recorded within other income (expense), net within the Consolidated Statements of Operations.

Following the measurement period end dates, the contingent liabilities will be settled in cash.

As of December 31, 2024, the fair value of the contingent liabilities was $ 17.6 million and recorded within accrued compensation within the Consolidated Statements of Financial Condition.

The portion of the WSM Earnout and WSM MIP attributable to the professionals is, 40.9 % and 70.0 %, respectively, and requires continued service through the measurement periods.

The Company expects to settle the contingent liabilities at the Company's discretion with a component of cash and the remaining balance in equity awards as follows:

(i) no less than 60.0 % cash for the WSM Earnout;

and (ii) no less than 50.0 % cash for the WSM MIP.

The WSM Earnout and WSM MIP are remeasured each period with incremental changes in fair value for the cash and equity components of these liabilities recognized within compensation and benefits expense within the Consolidated Statements of Operations.

As of December 31, 2024, the fair value of the contingent liabilities were $ 15.6 million.

Compensation expense of $ 0.8 million for the year ended December 31, 2024 is presented within compensation and benefits within the Consolidated Statements of Operations with an equal offset presented within accrued compensation within the Consolidated Statements of Financial Condition.

Contingent Earnout Arrangements

GCP International

In connection with the GCP Acquisition during the first quarter of 2025, the Company established two arrangements with the sellers and with certain of its professionals that became employees of the Company, including (i) an earnout arrangement related to the data center business (“DC Earnout”) based on the achievement of revenue targets of certain digital infrastructure funds;

and (ii) an earnout arrangement related to the Japan business (“Japan Earnout”) based on the achievement of fundraising targets of certain Japanese real estate funds.

The DC Earnout and Japan Earnout represent contingent liabilities not to exceed $ 1.0 billion and $ 0.5 billion, respectively.

The portion of the DC Earnout and Japan Earnout attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration.

As of March 1, 2025, the fair value of these contingent liabilities was $ 465.1 million and was recorded within accounts payable, accrued expenses and other liabilities within the Consolidated Statements of Financial Condition.

The contingent liabilities are subject to change over the measurement periods, which will end no later than June 30, 2028.

For the year ended December 31, 2025, the change in fair value from the acquisition date of $ 298.0 million is presented within other income (expense), net within the Consolidated Statements of Operations.

The Company expects to settle the contingent liabilities at the Company’s discretion with no less than 15.0 % cash and the remaining balance in equity.

As of December 31, 2025, the fair value of the contingent liabilities was $ 763.0 million.

The portion of the DC Earnout and Japan Earnout attributable to the professionals that became employees of the Company requires continued service through the measurement periods.

The Company expects to settle the contingent liabilities at the Company’s discretion with no less than 15.0 % cash and the remaining balance in equity awards.

The DC Earnout and Japan Earnout are remeasured each period with incremental changes in fair value for the cash and equity components of these liabilities recognized within compensation and benefits expense within the Consolidated Statements of Operations.

Following the measurement period end dates, the cash components will be paid and the equity awards will be granted at fair value for the balance of the liability.

As of December 31, 2025, the fair value of the contingent liabilities was $ 327.0 million.

Compensation expense of $ 70.1 million for the year ended December 31, 2025 was recorded within compensation and benefits within the Consolidated Statements of Operations with an equal offset presented within accrued compensation within the Consolidated Statements of Financial Condition.

The unpaid liabilities at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital.

Any compensation expense associated with the WSM Earnout and WSM MIP that was not

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

previously recorded through the final measurement period end dates will be recognized as equity-based compensation expense over the remaining service periods of four years and two years for the WSM Earnout and WSM MIP, respectively.

Crescent Point MIP

In connection with the Crescent Point Acquisition during the fourth quarter of 2023, the Company established a management incentive program (the “Crescent Point MIP”) with certain professionals.

The Crescent Point MIP represents a contingent liability not to exceed $ 75.0 million and is based on the achievement of revenue targets from the fundraising of a future private equity fund during the measurement period, which will end on the final fundraising date for the fund.

The Company expects to settle the liability with a combination of 33.0 % cash and 67.0 % equity awards.

Expense associated with the cash and equity components are recognized ratably over the measurement period.

The Crescent Point MIP is remeasured each period with incremental changes in fair value included within compensation and benefits expense within the Consolidated Statements of Operations.

Following the measurement period end date, the cash component will be paid and the equity component will be settled with shares of the Company’s Class A common stock that will be granted at fair value.

As of December 31, 2024 and 2023, the contingent liability was $ 75.0 million.

As of December 31, 2024 and 2023, the Company has recorded $ 25.0 million and $ 5.0 million, respectively, within accrued compensation within the Consolidated Statements of Financial Condition.

Compensation expense of $ 20.0 million and $ 5.0 million for the years ended December 31, 2024 and 2023, respectively, is presented within compensation and benefits within the Consolidated Statements of Operations.

Infrastructure Debt MIP

In connection with the acquisition of AMP Capital’s infrastructure debt platform (the “Infrastructure Debt Acquisition”) during the first quarter of 2022, the Company established a management incentive program (the “Infrastructure Debt MIP”) with certain professionals.

The Infrastructure Debt MIP represents a contingent liability not to exceed $ 48.5 million and is based on the achievement of revenue targets from the fundraising of three infrastructure debt funds during the measurement periods.

The Company expects to settle each portion of the liability with a combination of 15.0 % cash and 85.0 % equity awards.

Expense associated with the cash components are recognized ratably over the respective measurement periods, which will end on the final fundraising date for each of the infrastructure debt funds.

Expense associated with the equity component is recognized ratably over the service periods, which will continue for four years beyond each of the measurement period end dates.

The Infrastructure Debt MIP is remeasured each period with incremental changes in value included within compensation and benefits expense within the Consolidated Statements of Operations.

Following each of the measurement period end dates, the cash component will be paid and equity awards for the portion of the Infrastructure Debt MIP award earned will be granted at fair value.

The unpaid liability at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital and any difference between the Infrastructure Debt MIP award achieved at the respective measurement period end date and the previously recorded compensation expense will be recognized over the remaining four year service period as equity-based compensation expense.

The revenue target was achieved for one of the infrastructure debt funds during the fourth quarter of 2022 and the associated liability for this portion of the award was settled during the first quarter of 2023.

As of December 31, 2024, the maximum contingent liability associated with the Infrastructure Debt MIP for the two remaining infrastructure debt funds was $ 15.0 million.

During the fourth quarter of 2024, it was determined that it is not probable for one of the infrastructure debt funds to achieve its revenue target by the end of its measurement period.

As a result, the Company reversed previously recorded expenses of $ 1.6 million associated with this fund from compensation and benefits within the Consolidated Statements of Operations.

As of December 31, 2024 and 2023, the fair value of the contingent liability associated with the remaining infrastructure debt fund was $ 9.0 million for both periods.

As of December 31, 2024 and 2023, the Company has recorded $ 4.1 million and $ 2.8 million, respectively, within accrued compensation within the Consolidated Statements of Financial Condition.

Compensation expense associated with the remaining Infrastructure Debt MIP of $ 1.3 million, $ 1.5 million and $ 1.3 million for the years ended December 31, 2024, 2023 and 2022, respectively, is presented within compensation and benefits within the Consolidated Statements of Operations.

Any compensation expense associated with the DC Earnout and Japan Earnout that was not previously recorded through the final measurement period end date will be recognized as equity-based compensation expense over the remaining service periods ranging from three to six years , measured from the GCP Acquisition close date.

Ares Management Corporation

1 unchanged sentence

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Other Arrangements

The Company also entered into various other contingent earnout arrangements in connection with acquisitions.

The revenue target was achieved for one of the earnouts and the associated liability was settled during the year ended December 31, 2025.

The fair value of the contingent liability related to this earnout was $ 31.1 million and the associated liability for this portion of the award was settled with a $ 26.0 million cash payment during the year ended December 31, 2025 and the remaining amount equity-settled was reclassified to additional paid-in-capital.

For the portion of the earnout attributable to employees, compensation expense of $ 8.0 million and $ 0.6 million for the years ended December 31, 2025 and 2024, respectively, is presented within compensation and benefits within the Consolidated Statements of Operations.

For the portion of the earnout classified as contingent consideration, change in fair value of $ 2.9 million was recorded for the year ended December 31, 2025 and is presented within other income (expense), net within the Consolidated Statements of Operations.

The maximum exposure for the remaining contingent earnout arrangements was $ 175.0 million and $ 115.0 million as of December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, the fair value of these contingent liabilities attributable to employees was $ 24.2 million and $ 88.9 million, respectively, of which $ 7.8 million and $ 29.3 million, respectively, has been recorded within accrued compensation within the Consolidated Statements of Financial Condition.

Compensation expense of $( 21.5 ) million, $ 21.5 million and $ 6.5 million for the years ended December 31, 2025, 2024 and 2023, respectively, is presented within compensation and benefits within the Consolidated Statements of Operations.

In connection with anticipated fundraising for a future APAC private equity fund, the Company determined the revenue targets associated with this earnout arrangement are not expected to be achieved.

As a result, the Company reversed $ 25.0 million of previously recognized compensation expense associated with this arrangement during the year ended December 31, 2025.

The remaining portions of these contingent earnout arrangements were classified as contingent consideration.

As of December 31, 2025 and 2024, the fair value of these contingent liabilities was $ 2.3 million and $ 2.1 million, respectively, and has been recorded within accounts payable, accrued expenses and other liabilities within the Consolidated Statements of Financial Condition.

For the year ended December 31, 2025, change in fair value of $ 0.2 million is presented within other income (expense), net within the Consolidated Statements of Operations.

Carried Interest

5 unchanged sentences

However, the governing agreements of certain of the Company’s funds provide that if a current or former professional does not fund his or her respective share for such fund, then the Company may have to fund additional amounts beyond what was received in carried interest, although the Company will generally retain the right to pursue any remedies under such governing agreements against those carried interest recipients who fail to fund their obligations.

Additionally, at the end of the life of the funds there could be a payment due to a fund by the Company if the Company has recognized more carried interest than was ultimately earned.

Additionally, at the end of the life of the funds there could be a payment due to a fund by the Company if the Company has received more carried interest than was ultimately earned.

The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of the fund.

As of December 31, 2024 and 2023, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been approximately $ 59.6 million and $ 78.5 million, respectively, of which approximately $ 39.5 million and $ 54.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest.

As of December 31, 2025 and 2024, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been $ 125.6 million and $ 59.6 million, respectively, of which $ 99.8 million and $ 39.5 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest.

Management believes the possibility of all of the investments becoming worthless is remote.

As of December 31, 2024 and 2023, if the funds were liquidated at their fair values, there would be no contingent repayment obligation or liability.

From time to time, the Company is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business.

Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows.

As of December 31, 2025 and 2024, if the funds were liquidated at their fair values, there would be no material contingent repayment obligation or liability.

Ares Management Corporation

1 unchanged sentence

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

From time to time, the Company is named as a defendant in legal actions relating to transactions and other matters conducted in the ordinary course of business.

The Company’s leases primarily consists of operating leases for office space and certain office equipment.

The Company’s leases have remaining lease terms of one to 19 years.

The Company’s leases have remaining lease terms up to 18 years.

The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:

16 unchanged sentences

Weighted-average discount rate 5.8 % 5.8 %

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

RELATED PARTY TRANSACTIONS

9 unchanged sentences

Such guarantees are several, and not joint, and are limited to distributions received by the relevant recipient.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The Company considers its professionals and non-consolidated funds to be affiliates.

9 unchanged sentences

Tax receivable agreement liability 579,893 402,359

Carried interest and incentive fees payable 78,692 33,374

Realized carried interest and incentive fees payable 206,270 78,692

Payments made by non-consolidated funds on behalf of and payable by the Company 14,049 13,662

Due to affiliates—Company $ 810,409 $ 500,480

Amounts due to portfolio companies and non-consolidated funds $ — $ 3,554

Due to affiliates—Consolidated Funds $ — $ 3,554

Due from and Due to Ares Funds and Portfolio Companies

31 unchanged sentences

federal income tax expense 6,562 8,405 —

6,562 8,405 —

federal income tax expense 6,562 8,405 —

8 unchanged sentences

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The effective income tax rate differed from the federal statutory rate for the following reasons:

The disaggregation of income before taxes is effective with the adoption of ASU 2023-09 and consisted of the following:

Year ended December 31, 2025

2024 2023 2022

Foreign 184,527

Total $ 1,286,893

The reconciliation of taxes from the statutory tax rate to the Company’s effective tax rate changed with the adoption of ASU 2023-09 and is presented below:

Year ended December 31, 2025

federal statutory rate $ 270,248 21.0 %

State and local taxes, net of federal benefit (1)

Effect of cross-border tax laws:

United Kingdom 15,601 1.2

Japan 15,187 1.2

Singapore 5,214 0.4

Other jurisdictions 6,673 0.5

Foreign tax effects

United Kingdom:

Statutory tax rate differential 3,046 0.2

Other rate differential items ( 16,343 ) ( 1.3 )

Statutory tax rate differential 2,800 0.2

Other rate differential items ( 8,377 ) ( 0.7 )

Statutory tax rate differential ( 4,698 ) ( 0.4 )

Other rate differential items 5,833 0.5

Other foreign jurisdictions:

Statutory tax rate differential 1,339 0.1

Other rate differential items ( 4,223 ) ( 0.3 )

Foreign tax credits ( 12,864 ) ( 1.0 )

Research and development tax credits ( 699 ) ( 0.1 )

Other business tax credits ( 1,702 ) ( 0.1 )

Changes in valuation allowance ( 950 ) ( 0.1 )

Nontaxable or nondeductible items

Nondeductible executive compensation expense 19,710 1.5

Other, net 2,874 0.2

Other adjustments

Income passed through to non-controlling interests ( 124,348 ) ( 9.6 )

Effective tax rate $ 198,535 15.3 %

(1) State taxes in California and New York and local taxes New York City comprise the majority of the state and local taxes, net of federal benefit.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The reconciliation of the statutory tax rate to the Company’s effective tax rate for periods prior to the adoption of ASU 2023-09 is as follows:

Year ended December 31,

Income tax expense at federal statutory rate 21.0 % 21.0 %

7 unchanged sentences

Total effective rate 12.9 % 13.0 %

The disaggregated presentation of income taxes paid that is effective with the adoption of ASU 2023-09 is presented below:

Year ended December 31, 2025

Federal income tax $ 35,700

State and local income tax 26,777

Foreign income tax 28,856

Total $ 91,333

The following jurisdictions represent approximately 5% of total income taxes paid (net of refunds), or if less than 5%, represent the largest jurisdictions:

Year ended December 31, 2025

State and local income tax

New York $ 3,415

New York City 10,702

California 3,941

Foreign income tax

United Kingdom $ 14,426

Deferred Taxes

The income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows as of December 31, 2025 and 2024.

Deferred tax assets, net are included within other assets within the Consolidated Statements of Financial Condition.

Deferred tax assets, net of the Company are included within other assets within the Consolidated Statements of Financial Condition.

Deferred tax liabilities, net of the Consolidated Funds are included within accounts payable, accrued expenses and other liabilities within the Consolidated Statements of Financial Condition.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

As of December 31,

21 unchanged sentences

Total deferred tax liabilities ( 23,984 ) ( 15,108 )

Deferred tax assets (liabilities), net $ ( 8,405 ) $ —

Deferred tax liabilities, net $ ( 14,968 ) $ ( 8,405 )

In assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized.

1 unchanged sentence

Valuation allowances are provided to reduce the amounts of deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts.

The Company’s income tax provision includes corporate income taxes and other entity level income taxes, as well as income taxes incurred by Consolidated Funds.

Ares Management Corporation

Notes to the Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

As of December 31, 2024 and 2023, the valuation allowance for the Company’s deferred tax assets was $ 0.9 million.

The deferred tax assets related to operating losses in foreign jurisdictions and certain capital loss carryforwards do not meet the more likely than not threshold and have a valuation allowance recorded for the net balance.

As of December 31, 2024 and 2023, the Company had $ 36.4 million and $ 10.6 million, respectively, of net operating loss (“NOL”) carryforwards and other tax attributes related to its Consolidated Funds available to reduce future income taxes for which a full valuation allowance has been provided.

As of December 31, 2025 and 2024, the Company had net operating loss (“NOLs”) carryforwards in the United States and foreign jurisdictions associated with its subsidiaries.

As of December 31, 2025 and 2024, the Company had $ 99.0 million and $ 7.6 million, respectively, of NOL carryforwards and other tax attributes related to its foreign jurisdictions to reduce future income taxes.

With limited exceptions, the deferred tax assets related to operating losses in foreign jurisdictions and certain capital loss carryforwards meet the more likely than not threshold and do not have a valuation allowance recorded for the net balance.

As of December 31, 2025 and 2024, the valuation allowance for the Company’s deferred tax assets was $ 0.9 million, associated with NOLs in certain foreign jurisdictions.

As of December 31, 2025 and 2024, the Consolidated Funds had $ 42.7 million and $ 36.4 million, respectively, of NOL carryforwards and other tax attribute to reduce future income taxes for which a partial valuation allowance has been provided.

As of December 31, 2025 and 2024, the valuation allowance for the deferred tax assets of the Consolidated Funds was $ 0.3 million and $ 1.2 million, respectively, associated with NOL carryforwards related to its Consolidated funds.

The NOL carryforwards generally have no expiry.

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EQUITY COMPENSATION

Equity-based compensation expense, net of forfeitures, recorded by the Company is presented in the following table:

Year ended December 31,

2025 2024 2023

Unvested awards $ 730,448 $ 352,851 $ 255,965

AOG Unit awards 10,101 — —

Total equity-based compensation expense $ 740,549 $ 352,851 $ 255,965

Equity Incentive Plan

Equity-based compensation is granted under the Company’s Equity Incentive Plan.

Equity-based compensation is generally granted under the 2023 Ares Management Corporation Equity Incentive Plan (the “Equity Incentive Plan”).

The total number of shares available to be issued under the Equity Incentive Plan resets based on a formula defined in the Equity Incentive Plan and may increase on January 1 of each year.

2 unchanged sentences

The Company recognizes forfeitures as a reversal of previously recognized compensation expense in the period the forfeiture occurs.

Equity-based compensation expense, net of forfeitures, recorded by the Company for unvested awards is presented in the following table:

Year ended December 31,

2024 2023 2022

Unvested Awards

Each unvested award represents either a share of the Company’s Class A common stock that is subject to restriction or a restricted unit, representing an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date.

The unvested awards generally vest and the restrictions lapse or are settled in shares of Class A common stock, as applicable, at a rate of either:

(i) one-quarter per year, beginning on the second anniversary of the grant date or the holder’s employment commencement date;

or (ii) one-third per year, beginning on the first anniversary of the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions).

The unvested awards vest and the restrictions lapse or are settled in shares of Class A common stock, as applicable, over service periods up to five years from the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions).

Compensation expense associated with unvested awards is recognized on a straight-line basis over the requisite service period of the award.

2 unchanged sentences

For the year ended December 31, 2024, 4.2 million restricted units vested and 2.3 million shares of Class A common stock were delivered to the holders.

The holders of restricted units, other than awards that have not yet been issued, generally have the right to receive as current compensation an amount in cash equal to:

(i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”).

The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the year ended December 31, 2025:

4 unchanged sentences

December 17, 2025 1.12 21,027

During the first quarter of 2024, the Company approved the future grant of restricted units to certain senior executives in each of 2025 and 2026, subject to the holder’s continued employment and acceleration in certain instances.

These restricted units vest before July 1, 2029, at a rate of either:

(i) one-quarter per year, beginning on the first anniversary of the grant date;

or (ii) one-third per year, beginning on the first anniversary of the grant date.

Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period.

The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date.

Ares Management Corporation

10 unchanged sentences

Balance as of December 31, 2025 19,760,606 $ 118.49

The total compensation expense expected to be recognized in all future periods associated with unvested awards is approximately $ 909.7 million as of December 31, 2024 and is expected to be recognized over the remaining weighted average period of 3.5 years.

Upon exercise, each option entitles the holders to purchase from the Company one share of Class A common stock at the stated exercise price.

A summary of options activity during the year ended December 31, 2024 is presented below:

Options Weighted Average Exercise Price Weighted Average Remaining Life

(in years) Aggregate Intrinsic Value

Balance as of December 31, 2023 79,524 $ 19.00 0.3 $ 7,946

Exercised ( 79,524 ) 19.00 — —

Balance as of December 31, 2024 — $ — — $ —

Net cash proceeds from exercises of options were $ 1.5 million for the year ended December 31, 2024.

The Company realized tax benefits of approximately $ 1.4 million from the exercise of the remaining options during the first quarter of 2024.

The total compensation expense expected to be recognized in all future periods associated with unvested awards is $ 1,532.7 million as of December 31, 2025 and is expected to be recognized over the remaining weighted average period of 3.3 years.

Other Equity-Based Compensation

In connection with the GCP Acquisition, the Company granted 0.3 million AOG Unit awards to certain professionals.

Of the total AOG Unit awards granted, 0.1 million units vested on the close date of the GCP Acquisition and the remaining 0.2 million units vest in three equal installments on each of the first three anniversaries of the GCP Acquisition close date, subject to the holder’s continued employment as of the applicable vesting dates.

The weighted average grant date fair value per unvested AOG Unit award was $ 170.94 .

The total compensation expense expected to be recognized in all future periods associated with unvested AOG Unit awards is $ 26.2 million as of December 31, 2025 and is expected to be recognized over the remaining weighted average period of 2.2 years.

Business Combinations” for a further description of the equity compensation expense from the GCP Acquisition.

EQUITY AND REDEEMABLE INTEREST

8 unchanged sentences

On any date on which the Ares Ownership Condition is not satisfied, holders of shares of the Company’s Class B common stock are not entitled to vote on any matter submitted to a vote of the Company’s stockholders.

The holder of shares of the Company’s Class C common stock is generally entitled to a number of votes equal to the number of AOG Units (as defined in the Certificate of Incorporation) held of record by each Ares Operating Group Limited Partner (as defined in the Certificate of Incorporation) other than the Company and its

Changes in Class C common stock are directly proportional to changes in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

The Company has a stock repurchase program that allows for the repurchase of up to $ 750.0 million of shares of Class A common stock.

Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act.

The renewal of the program is

Ares Management Corporation

1 unchanged sentence

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

subsidiaries.

Issuances of Class C common stock correspond with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities.

The Company has a stock repurchase program that allows for the repurchase of up to $ 150.0 million of shares of Class A common stock.

Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act.

The renewal of the program is subject to authorization by the Company’s board of directors on an annual basis.

subject to authorization by the Company’s board of directors on an annual basis.

As of December 31, 2025, the program was scheduled to expire in March 2026.

In February 2025, the renewal of the program was authorized by the Company’s board of directors and will expire in March 2026, with an increase in size up to $ 750.0 million.

In February 2026, the renewal of the program was authorized by the Company’s board of directors and will expire in March 2027.

Repurchases under the program, if any, will depend on the prevailing market conditions and other factors.

During the years ended December 31, 2025, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program.

The Company issued and sold 3,047,500 shares of Class A common stock during the year ended December 31, 2024 (the “Offering”).

The Offering resulted in net proceeds of approximately $ 407.2 million (after deducting underwriting discounts and offering expenses).

The following table presents the changes in each class of common stock:

1 unchanged sentence

Balance as of December 31, 2024 199,872,571 3,489,911 1,000 109,806,689 313,170,171

Issuance of common stock 3,122,628 — — 63,179 3,185,807

Issuance of common stock, net of shares retired for tax 10,471,054 — — 303,500 10,774,554

Exchanges of AOG Units 5,031,068 — — ( 5,031,068 ) —

Stock option exercises, net of shares withheld for tax 79,524 — — — 79,524

Vesting of restricted unit awards, net of shares withheld for tax 3,090,736 — — — 3,090,736

16 unchanged sentences

This change is reflected as either a reallocation of interest or as dilution within the Consolidated Statements of Changes in Equity.

Preferred Stock

As of December 31, 2025 and 2024, the Company had 30,000,000 shares of Series B mandatory convertible preferred stock outstanding.

When, as and if declared by the Company’s board of directors, dividends on the Series B mandatory convertible preferred stock are payable quarterly at a rate per annum equal to 6.75 %.

Dividends on Series B mandatory convertible preferred stock are cumulative and the Series B mandatory convertible preferred stock, unless previously converted or redeemed, will automatically convert into the Company’s Class A common stock on October 1, 2027.

Unless converted earlier in accordance with its terms, each share of Series B mandatory convertible preferred stock will automatically convert on the mandatory conversion date into between 0.2717 and 0.3260 shares of the Company’s Class A common stock, in each case, subject to customary anti-dilution adjustments.

The conversion rate that will apply to mandatory conversions will be determined based on the average of the daily volume-weighted average prices over the 20 consecutive trading days beginning on, and including, the 21st scheduled trading day immediately before October 1, 2027.

Holders of shares of Series B mandatory convertible preferred stock have the option to convert all or any portion of their shares of Series B mandatory convertible preferred stock at any time.

The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Series B mandatory convertible preferred stock for certain unpaid accumulated dividends.

Ares Management Corporation

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(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Preferred Stock

In October 2024, the Company issued 30,000,000 shares of its Series B mandatory convertible preferred stock for total proceeds of $ 1,462.5 million (after deducting underwriting discounts but before offering expenses).

As of December 31, 2024, the Company had 30,000,000 shares of Series B mandatory convertible preferred stock outstanding.

When, as and if declared by the Company’s board of directors, dividends on the Series B mandatory convertible preferred stock are payable quarterly at a rate per annum equal to 6.75 % on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2025 and concluding on October 1, 2027.

Declared dividends on the Series B mandatory convertible preferred stock will be payable, at the Company’s election, in cash, shares of its Class A common stock or a combination of cash and shares of its Class A common stock.

Redeemable Interest

On July 1, 2020, the Company completed its acquisition of a majority interest in SSG Capital Holdings Limited and its operating subsidiaries (“SSG” and subsequently rebranded as “Ares SSG”) (the “SSG Acquisition”).

In connection with the SSG Acquisition, the former owners of SSG retained a 20 % ownership interest in the operations acquired by the Company.

During the year ended December 31, 2023, the Company purchased a portion of the redeemable interest in AOG entities (the “SSG Buyout”), and the Company now owns 100 % of Ares SSG’s fee-generating business.

The remaining redeemable interest in AOG entities represents ownership in certain investments that were not included in the 20 % ownership interest buyout arrangement, and continues to be presented at the redemption amount within mezzanine equity within the Consolidated Statements of Financial Condition.

During the year ended December 31, 2023, Ares Acquisition Corporation II (NYSE:

AACT) (“AAC II”), the Company’s second sponsored SPAC, consummated its initial public offering and generated gross proceeds of $ 500.0 million.

As of December 31, 2024, the 50,000,000 AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Consolidated Statements of Financial Condition.

Redeemable interest in AOG entities represents third-party ownership interests in certain investments and is presented at the redemption amount within mezzanine equity within the Consolidated Statements of Financial Condition.

As of December 31, 2024, 50,000,000 of AAC II (as defined below) Class A ordinary shares were presented at the redemption amount within mezzanine equity within the Consolidated Statements of Financial Condition.

In September 2025, Kodiak AI, Inc.

KDK) (f/k/a Ares Acquisition Corporation II, or “AAC II”) completed a business combination with Kodiak Robotics, Inc.

In connection with the transaction, AAC II was renamed KDK, and the Company’s investments in AAC II were converted into various interests in KDK, including KDK common shares and warrants, as well as unvested KDK common shares and the potential to receive additional KDK common shares, each subject to certain performance conditions.

These investments represent non-controlling financial interests and are presented within investments within the Consolidated Statements of Financial Condition.

Following the business combination, the Company no longer held a controlling financial interest in AAC II, resulting in the deconsolidation of AAC II.

For the year ended December 31, 2025, changes in value of the Company’s investments in KDK included:

(i) $ 68.3 million of unrealized performance income related to KDK common shares;

and (ii) $ 49.8 million of unrealized performance income related to KDK common shares subject to vesting upon achievement of certain performance conditions.

These investments were received in exchange for previously held AAC II Class A ordinary shares with a nominal cost basis, and the changes in value are presented within carried interest allocation within the Consolidated Statements of Operations.

Additionally, for the year ended December 31, 2025, the Company recognized net unrealized gains of $ 27.8 million related to the remainder of its investments in KDK, presented within net realized and unrealized gains on investments within the Consolidated Statements of Operations.

The Company’s investments in KDK common shares and warrants are classified as Level I in the fair value hierarchy.

The Company’s investments in unvested KDK common shares and the potential to receive additional KDK common shares, each subject to performance conditions, are classified as Level III, with fair value determined using a Monte Carlo simulation.

Ares Management Corporation

3 unchanged sentences

Balance as of December 31, 2022 $ 93,129

Changes in ownership interests and related tax benefits ( 66,507 )

Distributions ( 2,883 )

Net loss ( 851 )

Net income 226

Currency translation adjustment, net of tax ( 41 )

1 unchanged sentence

Balance as of December 31, 2023 24,098

Changes in ownership interests and related tax benefits ( 66,507 )

Distributions ( 302 )

1 unchanged sentence

Currency translation adjustment, net of tax ( 403 )

Equity compensation 174

Balance as of December 31, 2024 23,496

12 unchanged sentences

Balance as of December 31, 2024 550,700

Redemptions from Class A ordinary shares of AAC II ( 509,503 )

Change in redemption value 21,707

Deconsolidation of AAC II ( 62,904 )

Balance as of December 31, 2025 $ —

SEGMENT REPORTING

The Company operates through its distinct operating segments .

On January 1, 2024, the Company changed its segment composition.

The special opportunities strategy, historically part of the Private Equity Group, is now referred to as opportunistic credit and is presented within the Credit Group.

The Company has modified historical results to conform with its current presentation.

The Company operating segments are summarized below:

3 unchanged sentences

The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments.

Private Equity Group :

The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.

Secondaries Group :

The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.

Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually do not meet reporting thresholds.

Private Equity Group :

The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.

These results include activities from:

(i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development;

(ii) the SPACs sponsored by the Company;

and (iii) a venture capital business with fund strategies that are focused on applied artificial intelligence, among others.

Ares Management Corporation

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(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including Ares Wealth Management Solutions, LLC (“AWMS”).

SPACs sponsored by the Company;

(iii) a venture capital business with fund strategies that are focused on growth-stage companies and applied artificial intelligence, among others;

and (iv) other initiatives, such as activities from the Company’s investments in certain structured financing vehicles.

The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including the Company’s wealth distribution platform, Ares Wealth Management Solutions (“AWMS”).

AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel.

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FRE, a non-GAAP measure that is a component of RI, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits.

FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income from Ares Funds and adjusts for certain other items that the Company believes are not indicative of its core operating performance.

FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income and adjusts for certain other items that the Company believes are not indicative of its core operating performance.

Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments.

The Company’s CODM is its Chief Executive Officer.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer.

The CODM makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds.

1 unchanged sentence

Total assets by segments is not disclosed because such information is not used by the Company’s CODM in evaluating the segments.

Many of the Ares Funds managed by the Company have mandates that allow for investing across different geographic regions, including North America, Europe, APAC and the Middle East.

Many of the Ares Funds managed by the Company have mandates that allow for investing across different geographic regions, including North America, South America, Europe, APAC and the Middle East.

The primary geographic region in which the Company invests in is North America and the majority of its revenues are generated in North America.

4 unchanged sentences

Year ended December 31, 2025

Credit Group Real Assets Group Private Equity Group Secondaries Group

Credit Group Real Assets Group Secondaries Group

Private Equity Group Other

Total Segments OMG Total

14 unchanged sentences

Year ended December 31, 2024

Credit Group Real Assets Group Private Equity Group Secondaries Group

Credit Group Real Assets Group Secondaries Group

Private Equity Group Other

Total Segments OMG Total

12 unchanged sentences

Interest expense (1)

( 31,285 ) ( 29,763 ) ( 29,144 ) ( 18,906 ) ( 33,142 ) ( 142,240 ) ( 701 ) ( 142,941 )

Realized net investment income (loss) 1,545 ( 16,930 ) ( 25,607 ) ( 15,010 ) 12,135 ( 43,867 ) 372 ( 43,495 )

Realized income $ 1,688,110 $ 218,210 $ 101,036 $ 52,501 $ 27,821 $ 2,087,678 $ ( 620,558 ) $ 1,467,120

(1) Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments.

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

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

Ares Management Corporation

2 unchanged sentences

Year ended December 31, 2023

Credit Group Real Assets Group Private Equity Group Secondaries Group

Credit Group Real Assets Group Secondaries Group

Private Equity Group Other

Total Segments OMG Total

12 unchanged sentences

Interest expense (1)

( 20,643 ) ( 23,433 ) ( 27,119 ) ( 14,331 ) ( 20,593 ) ( 106,119 ) ( 156 ) ( 106,275 )

Realized net investment income (loss) 25,635 ( 16,876 ) ( 22,252 ) ( 15,005 ) ( 3,800 ) ( 32,298 ) 592 ( 31,706 )

Realized income $ 1,454,404 $ 210,153 $ 82,917 $ 50,784 $ 4,730 $ 1,802,988 $ ( 537,460 ) $ 1,265,528

(1) Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments.

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

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income (loss):

57 unchanged sentences

(1) Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

(2) Represents bonus payments and contingent liabilities (“earnouts”) resulting from the acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Consolidated Statements of Operations.

Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

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

Commitments and Contingencies” for a further description of the various contingent earnout arrangements.

Ares Management Corporation

6 unchanged sentences

Investment income—unrealized ( 467,995 ) ( 5,613 ) ( 178,481 )

Other income, net from Consolidated Funds added in consolidation ( 379,090 ) ( 492,848 ) ( 250,144 )

Other expense, net from Consolidated Funds eliminated in consolidation ( 12,835 ) ( 16,485 ) ( 16,484 )

Interest and other investment loss—unrealized 27,299 — —

Other income, net of Consolidated Funds added in consolidation ( 526,448 ) ( 379,090 ) ( 492,848 )

Total consolidated other expense (income), net of Consolidated Funds eliminated in consolidation 34,932 ( 12,835 ) ( 16,485 )

OMG other (income) expense ( 11,119 ) ( 4,413 ) 1,074

1 unchanged sentence

Other (income) expense, net 303,200 ( 12,172 ) 976

( 12,172 ) 976 1,873

Other (income) loss of non-controlling interests in consolidated subsidiaries 2,627 ( 1,203 ) 6,005

Other loss (income) of non-controlling interests in consolidated subsidiaries 7,444 2,627 ( 1,203 )

Total consolidation adjustments and reconciling items ( 494,079 ) ( 373,129 ) ( 531,335 )

8 unchanged sentences

105,202 38,150 7,334

Acquisition and merger-related expense 57,360 12,000 15,197

Acquisition, merger and transaction-related expense 65,363 57,360 12,000

Placement fee adjustment ( 3,891 ) 5,715 ( 5,819 )

12 unchanged sentences

Fee related earnings $ 2,583,501 $ 1,982,667 $ 1,701,793

(1) Represents bonus payments and earnouts resulting from the acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Consolidated Statements of Operations.

Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

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

Commitments and Contingencies” for a further description of the various contingent earnout arrangements.

Ares Management Corporation

3 unchanged sentences

Deconsolidation of Funds

Certain funds that have historically been consolidated in the financial statements that are no longer consolidated because, as of the reporting period:

As of the end of the reporting period, certain funds that have historically been consolidated in the financial statements are no longer consolidated because:

(i) such funds have been liquidated or dissolved;

or (ii) the Company is no longer deemed to be the primary beneficiary of the VIE as it no longer has a significant economic interest.

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

During the year ended December 31, 2023, the Company deconsolidated one SPAC as a result of liquidation and one private fund experienced a significant change in ownership that resulted in deconsolidation of the entity.

During the year ended December 31, 2022, the Company did not deconsolidate any entity.

or (ii) the Company is no longer deemed to be the primary beneficiary of the VIEs as it no longer has a significant economic interest.

Investments in Consolidated Variable Interest Entities

11 unchanged sentences

Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs (1)

1,346,592 791,133

Assets of consolidated VIEs

2 unchanged sentences

9,354,024 10,879,735

(1) The Company’s maximum exposure of loss for CLO securities was $ 78.4 million as of December 31, 2025, which represents the fair value of its capital interests in CLOs that are managed by the Company.

Year ended December 31,

19 unchanged sentences

Cash and cash equivalents — 959,088 — 959,088

Investments held in trust account — 550,800 — 550,800

Investments, at fair value — 12,844,886 — 12,844,886

16 unchanged sentences

Commitments and contingencies

Redeemable interest in Consolidated Funds — 550,700 — 550,700

Redeemable interest in Ares Operating Group entities 25,296 — — 25,296

12 unchanged sentences

Accumulated deficit ( 1,452,259 ) — — ( 1,452,259 )

Accumulated other comprehensive loss, net of tax ( 17,757 ) — — ( 17,757 )

Accumulated other comprehensive income, net of tax 21,743 — — 21,743

Total stockholders’ equity 4,374,848 — ( 99,385 ) 4,275,463

41 unchanged sentences

Stockholders’ Equity

Series B mandatory convertible preferred stock, $ 0.01 par value, 1,000,000,000 shares authorized ( 30,000,000 shares issued and outstanding)

1,458,771 — — 1,458,771

Class A common stock, $ 0.01 par value, 1,500,000,000 shares authorized ( 199,872,571 shares issued and outstanding)

31 unchanged sentences

Interest expense ( 171,642 ) — — ( 171,642 )

Other income, net 605 — 22 627

Other expense, net ( 320,324 ) — 579 ( 319,745 )

Net realized and unrealized gains on investments of the Consolidated Funds — 554,513 ( 3,437 ) 551,076

33 unchanged sentences

Interest expense ( 142,966 ) — — ( 142,966 )

Other income (expense), net ( 10,285 ) — 15,104 4,819

Other income, net 605 — 22 627

Net realized and unrealized gains on investments of the Consolidated Funds — 291,534 22,429 313,963

9 unchanged sentences

Net income attributable to non-controlling interests in Ares Operating Group entities 351,118 — — 351,118

Net income attributable to Ares Management Corporation 463,742 — — 463,742

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

Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $ 440,961 $ — $ — $ 440,961

3 unchanged sentences

Year ended December 31, 2023

Entities Consolidated

Company Entities Consolidated

Funds Eliminations Consolidated

11 unchanged sentences

Other income (expense)

Net realized and unrealized gains (losses) on investments ( 27,924 ) — 32,656 4,732

Net realized and unrealized gains on investments 76,415 — 1,158 77,573

Interest and dividend income 29,850 — ( 10,574 ) 19,276

Interest expense ( 106,276 ) — — ( 106,276 )

Other income, net 11,904 — 1,215 13,119

Other income (expense), net ( 10,285 ) — 15,104 4,819

Net realized and unrealized gains on investments of the Consolidated Funds — 239,802 22,898 262,700

7 unchanged sentences

Net income attributable to Ares Operating Group entities 885,796 — — 885,796

Net loss attributable to redeemable interest in Ares Operating Group entities ( 851 ) — — ( 851 )

Net income attributable to redeemable interest in Ares Operating Group entities 226 — — 226

Net income attributable to non-controlling interests in Ares Operating Group entities 411,244 — — 411,244

12 unchanged sentences

Net realized and unrealized gains on investments ( 438,992 ) — 123,623 ( 315,369 )

Other non-cash amounts 11,755 — — 11,755

Changes in value of contingent earnout arrangements 349,706 — — 349,706

Investments purchased ( 349,387 ) — 128,541 ( 220,846 )

Proceeds from sale of investments 474,211 — ( 149,777 ) 324,434

Other non-cash amounts 923 — — 923

Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments — ( 554,513 ) 3,437 ( 551,076 )

Other non-cash amounts — ( 48,963 ) — ( 48,963 )

Investments purchased — ( 8,284,076 ) — ( 8,284,076 )

Proceeds from sale of investments — 9,830,928 — 9,830,928

Other non-cash amounts — ( 212,962 ) — ( 212,962 )

Cash flows due to changes in operating assets and liabilities:

15 unchanged sentences

Cash flows from financing activities

Net proceeds from issuance of Series B mandatory convertible preferred stock 1,458,771 — — 1,458,771

Net proceeds from issuance of Class A common stock 407,124 — — 407,124

Proceeds from Credit Facility 2,860,000 — — 2,860,000

Proceeds from issuance of senior notes 736,010 — — 736,010

Repayments of Credit Facility ( 1,480,000 ) — — ( 1,480,000 )

Repayment of senior notes ( 250,000 ) — — ( 250,000 )

Dividends and distributions ( 1,756,688 ) — — ( 1,756,688 )

Stock option exercises 1,511 — — 1,511

Taxes paid related to net share settlement of equity awards ( 436,869 ) — — ( 436,869 )

3 unchanged sentences

Distributions to non-controlling interests in Consolidated Funds — ( 889,978 ) 23,443 ( 866,535 )

Redemptions of redeemable interests in Consolidated Funds — ( 509,503 ) — ( 509,503 )

Borrowings under loan obligations by Consolidated Funds — 1,551,874 — 1,551,874

18 unchanged sentences

Net income $ 814,963 $ 302,696 $ ( 6,924 ) $ 1,110,735

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Equity compensation expense 352,851 — — 352,851

1 unchanged sentence

Net realized and unrealized gains on investments ( 3,399 ) — ( 18,064 ) ( 21,463 )

Other non-cash amounts 74 — — 74

Investments purchased ( 606,536 ) — 25,792 ( 580,744 )

Proceeds from sale of investments 799,221 — ( 115,583 ) 683,638

Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments — ( 239,802 ) ( 22,898 ) ( 262,700 )

Other non-cash amounts 11,755 — — 11,755

Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments — ( 291,534 ) ( 22,429 ) ( 313,963 )

Investments purchased — ( 5,927,444 ) — ( 5,927,444 )

Proceeds from sale of investments — 7,569,165 — 7,569,165

Other non-cash amounts — ( 48,963 ) — ( 48,963 )

Cash flows due to changes in operating assets and liabilities:

9 unchanged sentences

Change in other liabilities and payables held at Consolidated Funds — 47,464 ( 466 ) 46,998

Net cash provided by (used in) operating activities 473,107 ( 479,141 ) ( 227,227 ) ( 233,261 )

Net cash provided by operating activities 1,404,724 1,560,532 ( 174,102 ) 2,791,154

Cash flows from investing activities

3 unchanged sentences

Cash flows from financing activities

Net proceeds from issuance of Series B mandatory convertible preferred stock 1,458,771 — — 1,458,771

Net proceeds from issuance of Class A common stock 407,124 — — 407,124

Proceeds from Credit Facility 1,210,000 — — 1,210,000

1 unchanged sentence

Repayments of Credit Facility ( 2,105,000 ) — — ( 2,105,000 )

Repayment of senior notes ( 250,000 ) — — ( 250,000 )

Dividends and distributions ( 1,310,896 ) — — ( 1,310,896 )

3 unchanged sentences

Allocable to non-controlling interests in Consolidated Funds:

Contributions from non-controlling interests in Consolidated Funds — 1,071,575 ( 216,119 ) 855,456

Contributions from redeemable and non-controlling interests in Consolidated Funds — 569,479 69,675 639,154

Distributions to non-controlling interests in Consolidated Funds — ( 150,470 ) 26,449 ( 124,021 )

Redemptions of redeemable interests in Consolidated Funds — ( 1,045,874 ) — ( 1,045,874 )

Borrowings under loan obligations by Consolidated Funds — 359,351 — 359,351

Repayments under loan obligations by Consolidated Funds — ( 2,228,351 ) — ( 2,228,351 )

Net cash provided by (used in) financing activities ( 404,761 ) 894,530 ( 197,643 ) 292,126

Net cash used in financing activities ( 77,727 ) ( 1,449,991 ) 96,124 ( 1,431,594 )

Effect of exchange rate changes ( 7,892 ) ( 32,562 ) — ( 40,454 )

4 unchanged sentences

Equity issued in connection with acquisition-related activities $ 21,002 $ — $ — $ 21,002

Equity issued in connection with settlement of management incentive program $ 245,647 $ — $ — $ 245,647

Supplemental disclosure of cash flow information:

5 unchanged sentences

Year ended December 31, 2023

Entities Consolidated

Company Entities Consolidated

Funds Eliminations Consolidated

4 unchanged sentences

Depreciation and amortization 231,712 — — 231,712

Net realized and unrealized losses on investments 15,717 — ( 4,788 ) 10,929

Net realized and unrealized gains on investments ( 197,874 ) — 107,137 ( 90,737 )

Investments purchased ( 726,051 ) — 218,119 ( 507,932 )

Proceeds from sale of investments 214,938 — ( 8,775 ) 206,163

Adjustments to reconcile net income to net cash used in operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments — ( 87,287 ) 13,901 ( 73,386 )

Other non-cash amounts 74 — — 74

Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds:

Net realized and unrealized gains on investments — ( 239,802 ) ( 22,898 ) ( 262,700 )

Investments purchased — ( 8,847,856 ) — ( 8,847,856 )

Proceeds from sale of investments — 8,149,617 — 8,149,617

Other non-cash amounts — ( 101,465 ) — ( 101,465 )

Cash flows due to changes in operating assets and liabilities:

6 unchanged sentences

Change in cash and cash equivalents held at Consolidated Funds — — ( 424,870 ) ( 424,870 )

Net cash relinquished with deconsolidation of Consolidated Funds — ( 623 ) — ( 623 )

Change in other assets and receivables held at Consolidated Funds — ( 53,916 ) 33,669 ( 20,247 )

16 unchanged sentences

Distributions to non-controlling interests in Consolidated Funds — ( 119,604 ) 18,476 ( 101,128 )

Redemptions of redeemable interests in Consolidated Funds — ( 1,045,874 ) — ( 1,045,874 )

Borrowings under loan obligations by Consolidated Funds — 1,387,297 — 1,387,297

Repayments under loan obligations by Consolidated Funds — ( 398,864 ) — ( 398,864 )

Net cash provided by financing activities ( 238,500 ) 1,289,005 77,558 1,128,063

Net cash provided by (used in) financing activities ( 404,761 ) 894,530 ( 197,643 ) 292,126

Effect of exchange rate changes 1,020 9,481 — 10,501

4 unchanged sentences

Equity issued in connection with acquisition-related activities $ 239,545 $ — $ — $ 239,545

Equity issued in connection with settlement of management incentive program $ 245,647 $ — $ — $ 245,647

Supplemental disclosure of cash flow information:

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures