Ares Management Corp
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
ARES$133.98+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001628280-25-024412
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001628280-25-039330
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 331 previous paragraphs and 336 current paragraphs.
200 unchanged; 88 reworded; 42 added; 38 removed; 5 previous and 6 current paragraphs rearranged.
Tables are not compared: 91 previous and 94 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
During the second quarter of 2025, global equity and debt markets experienced volatility driven by shifting trade policies and geopolitical uncertainty. Despite the volatility, global markets largely performed well during the quarter. The U.S. public equity markets recovered as investor sentiment regarding the impact of the proposed tariffs remained stable, while international markets continued to outperform with recent interest rate cuts in key regions outside of the U.S. driving positive momentum. Globally, positive performance across markets was supported by positive trade developments, resilient macroeconomic indicators and optimism for heightened deal activity going into the second half of the year.
Current report
We have contributed certain financial interests, such as capital interests and rights to performance income earned by us in funds that we manage, as collateral or other forms of similar credit-enhancement, including subordination and liquidity support, to structured investment vehicles that we manage, including but not limited to collateralized fund obligations and fund-backed loans. These structured investment vehicles are typically designed to meet investors’ risk-return, liquidity, diversification and risk-based capital treatment objectives and to support capital raising efforts across our platform. The contribution of these financial interests subjects us to a maximum risk of loss equal to the value of the contributed financial interests in the event that these structured investment vehicles or the underlying financial interests do not perform at required levels, which results in a variable interest and often the consolidation of these investment vehicles by us. As a result, the financial interests that we contribute will typically be reclassified from investments in the funds that we manage and/or from accrued performance income to investments of the Consolidated Funds. Any future investment income and performance income resulting from these financial interests will be presented within the results of operations of our Consolidated Funds.
Current report
Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Current report
•Net cash used, primarily driven by investments in various real estate funds
Current report
The activity for the three and six months ended June 30, 2024 was primarily attributable to:
Current report
In addition, the GCP Acquisition contributed incremental employment related costs of $45.2 million and $63.1 million to the three and six months ended June 30, 2025, respectively.
Current report
Salary expense for the three and six months ended June 30, 2025 compared to the same periods in 2024 increased by $15.7 million and $28.4 million, respectively, primarily attributable to headcount growth to support the expansion of our business. In addition, incentive-based compensation which is dependent on our operating performance and is expected to fluctuate during the year, increased over the comparative periods.
Current report
Full-time equivalent headcount increased by 31% to 3,776 professionals for the year-to-date period in 2025 from 2,879 professionals in 2024. The acquisition of GCP International added 844 professionals to our period end headcount as of June 30, 2025, which represents 567 full-time equivalents for the year-to-date period.
Current report
Supplemental distribution fees increased by $4.2 million and $12.9 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due toincreases in sales volumes and net asset values of our wealth products, fromthe ongoing development of our distribution relationships and expansion of our wealth product offerings.
Current report
The activity for the three and six months ended June 30, 2025 was primarily attributable to:
Current report
•Unrealized gains, primarily from our investments in J-REIT and Ares Private Markets Fund (“APMF”)
Current report
•Net cash used, primarily driven by a strategic investment made in a U.S. technology company, which is the potential business combination target of our sponsored SPAC, Ares Acquisition Corporation II (NYSE: AACT). Net cash used for the six months ended June 30, 2025 also included investments in J-REIT and in our open-ended infrastructure fund, partially offset by the collection of principal from loan investments within our real estate debt strategy
Current report
The activity for the three and six months ended June 30, 2024 was primarily attributable to:
Current report
Interest Expense. Interest expense increased for the three and six months ended June 30, 2025 compared to the same periods in 2024 due to higher collective interest expense associated with our term debt obligations. However, we benefited from savings driven by lower average interest rates over the comparative periods, as well as lower average outstanding balance of our Credit Facility over theyear-to-date periods.
Current report
The increases in income tax expense were primarily attributable to higher pre-tax income allocable to AMC and higher entity level taxes in foreign and local jurisdictions for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.
Current report
Credit Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Current report
Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily driven by higher administrative service fees of $2.1 million and $3.0 million, respectively, which are earned from certain private funds that pay on invested capital.
Current report
Compensation and Benefits. The increases in compensation and benefits for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily driven by: (i) increases in incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year; (ii) higher Part I Fee compensation of $7.0 million and $13.4 million, respectively, corresponding to the increases in Part I Fees; and (iii) increases in salary expense of $3.0 million and $5.1 million, respectively, primarily attributable to headcount growth to support the expansion of our business. We reduced Part I Fee compensation by $4.9 million and $3.5 million for the three months ended June 30, 2025 and 2024, respectively, and $9.7 million and $4.7 million for the six months ended June 30, 2025 and 2024, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.
Current report
Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.
Current report
(5)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for the Euro hedged distributing institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees, and currency hedging. Actual individual stockholder returns will vary. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.
Current report
Real Assets Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Current report
The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 ($ in millions):
Current report
Compensation and benefits, excluding the impact from the GCP Acquisition, increased by $7.2 million and $12.4 million, or 18% and 16%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in compensation and benefits over the comparative periods were driven by increases in incentive-based compensation, which is dependent on our operating performance and is expected to fluctuate during the year.
Current report
Full-time equivalent headcount increased by 112% to 806 investment and investment support professionals for the year-to-date period in 2025 from 381 professionals for the same period in 2024, including the impact of GCP International previously discussed.
Current report
General, Administrative and Other Expenses. The GCP Acquisition contributed $14.1 million and $17.5 million in general, administrative and other expenses for the three and six months ended June 30, 2025, respectively. These expenses were driven by occupancy costs and information technology costs to support existing operations. These expenses collectively contributed $5.6 million and $6.6 million for the three and six months ended June 30, 2025, respectively. The three and six months ended June 30, 2025 also include certain non-recurring integration costs and temporary transition services agreement of $0.9 million and $1.2 million, respectively. The impact from the GCP Acquisition has been excluded from the discussion below.
Current report
General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $1.3 million and $4.3 million, or 9% and 14%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in general, administrative and other expenses over the comparative periods were driven by occupancy costs and information technology costs. These expenses collectively increased by $1.2 million and $2.5 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 to support our growing headcount and the expansion of our business.
Current report
In addition, supplemental distribution fees increased by $1.5 million for the six months ended June 30, 2025 compared to the same period in 2024 as we expand our wealth product offerings with our open-ended infrastructure fund.
Current report
(1) Includes $1.4 billion and $0.7 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.
Current report
Private Equity Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Current report
Compensation and Benefits. The changes in compensation and benefits largely reflect increases in incentive-based compensation that has been recorded in anticipation of the management fees from our seventh corporate private equity fund turning on in the second half of the year. Full-time equivalent headcount increased by 1% to 105 investment and investment support professionals for the year-to-date period in 2025 from 104 professionals in 2024.
Current report
Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.
Current report
Secondaries Group—Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Current report
Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the same periods in 2024 were attributable to capital markets transaction fees associated with services provided by Ares Management Capital Markets LLC (“AMCM”) during the second quarter of 2025.
Current report
Full-time equivalent headcount remained flat at 112 investment and investment support professionals for the year-to-date period in both 2025 and 2024.
Current report
General, Administrative and Other Expenses. The increases in general, administrative and other expenses were primarily due to costs incurred to support distribution of shares in our perpetual wealth vehicles. Supplemental distribution fees increased by $0.5 million and $1.5 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.
Current report
Conversely, placement fee expense decreased by $1.1 million for the six months ended June 30, 2025 compared to the same period in 2024. The activity for thesix months ended June 30, 2024 included$1.1 million of investor service fees that were fully recognized through the service period that ended in the third quarter of 2024.
Current report
Interest expense decreased for the three and six months ended June 30, 2025 when compared to the same periods in 2024, as our recent change in methodology results in allocating a significant portion of interest expense to our most recent acquisitions.
Current report
The reduction in LEP XVI accrued carried interest was driven by a partial contribution to a structured investment vehicle that represents the amount retained by us after compensating our employees. This structured investment vehicle is required to be consolidated by us. As a result, the amount of LEP XVI accrued carried interest, including the associated compensation payable to our employees, was reclassified to investments of a Consolidated Fund.
Current report
The following table presents the performance data for our significant fund that is not a drawdown fund in the Secondaries Group as of June 30, 2025 ($ in millions):
Current report
Other Fees. The increases in other fees for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were primarily attributable to capital markets transaction services that were provided by AMCM in the second quarter of 2025.
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Removed paragraphs (38)
Previous report
During the first quarter of 2025, global equity and debt markets experienced volatility driven by elevated inflation, economic slowdown and potential implications of U.S. trade tariffs. The U.S. public equity markets declined amid investor concerns regarding the impact of the proposed tariffs while international markets outperformed. European markets showed positive performance due to potential increased defense spending. The APAC markets performed favorably, with macroeconomic conditions supporting consumption in Southeast Asia, India and Australia. The U.S. announced tariffs on all imports from China and plans for reciprocal tariffs on countries imposing duties on U.S. imports. Despite these challenges, APAC transaction volumes remained steady as optimism for heightened deal activity focusing on companies in Southeast Asia with market-leading positions.
Previous report
Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
•Net capital activities driven by investments made in various real estate funds, partially offset by the return of capital associated with an investment in a European real estate debt fund
Previous report
The increase in compensation and benefits for the three months ended March 31, 2025 compared to the same period in 2024 was also driven by: (i) an increase in payroll-related taxes of $17.2 million, primarily due to the higher stock price associated with equity awards that vested during the current quarter; and (ii) an increase in salary expense of $12.7 million primarily attributable to headcount growth to support the expansion of our business.
Previous report
Average headcount increased by 22% to 3,504 professionals for the year-to-date period in 2025 from 2,868 professionals in 2024. The acquisition of GCP International added 950 professionals to our period end headcount as of March 31, 2025, which represents an average of 316 professionals for the year-to-date period.
Previous report
Marketing costs include supplemental distribution fees and placement fees. Supplemental distribution fees increased by $8.7 million for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to ongoing development of our distribution relationships and expansion of our wealth product offerings, and also due to increases in sales volumes and net asset value of our wealth products. Conversely, placement fee expense decreased by $5.0 million for the three months ended March 31, 2025 compared to the same period in 2024. The activity for thethree months ended March 31, 2025 primarily included placement fee expense of $5.6 million due tonew commitments to our third opportunistic credit fund, while thethree months ended March 31, 2024 primarily included placement fee expense of $9.1 million due tonew commitments to Ares Senior Direct Lending Fund III, L.P. (“SDL III”).
Previous report
•Net capital activities driven by investments made in various real estate funds and in our open-ended infrastructure fund, partially offset by the collection of principal associated with loans that we made within our real estate strategy
Previous report
•Net capital activity driven by the collection of principal associated with loans that we made within our real estate strategy
Previous report
Interest Expense. Interest expense decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily because savings from the reduction in use ofour Credit Facility exceeded the collective interest expense associated with our term debt obligations. The balance of our Credit Facility will vary with needs.
Previous report
The decrease in income tax expense was attributable to lower pre-tax income allocable to AMC for the three months ended March 31, 2025 compared to the same period in 2024 as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes. As income tax expense also includes any taxes accrued in foreign or local jurisdictions, the calculation of total income taxes is sensitive to any changes in income subject to tax at the entity level.
Previous report
Credit Group—Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
The decrease in effective management fee rate for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily attributable to deployment in certain funds within our U.S. direct lending and alternative credit strategies, which have effective management fee rates lower than the average effective management fee rate of funds within the Credit Group.
Previous report
The change in allocated interest expense for the Credit Group over the comparative period is consistent with the change in interest expense as presented within our consolidated results of operations. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidated Results of Operations of the Company” for further discussion of the changes in consolidated interest expense.
Previous report
(1)Since inception returns are annualized.
Previous report
Real Assets Group—Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
The following table presents the components of and causes for changes in the Real Assets Group’s management fees for the three months ended March 31, 2025 compared to the prior year period ($ in millions):
Previous report
The increase in compensation and benefits for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was also driven by (i) an increase in payroll-related taxes of $3.0 million, primarily due to the higher stock price associated with equity awards that vested during the current quarter; and (ii) an increase in salary expenses of $2.0 million, primarily attributable to headcount growth to support the expansion of our business.
Previous report
Average headcount increased by 71% to 645 investment and investment support professionals for the year-to-date period in 2025 from 378 professionals for the same period in 2024. The acquisition of GCP International added 683 professionals to our period end headcount as of March 31, 2025, which represents an average of 227 professionals for the year-to-date period.
Previous report
General, Administrative and Other Expenses. The GCP Acquisition has contributed $3.5 million in general, administrative and other expenses to the three months ended March 31, 2025. These expenses were driven by travel and marketing expenses and occupancy costs. These expenses collectively contributed $1.9 million to the three months ended March 31, 2025. The impact from the GCP Acquisition has been excluded from the discussion below.
Previous report
The increase in general, administrative and other expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was also driven by marketing and fundraising activities, including supplemental distribution fees charged in connection with an amended servicing arrangement that became effective subsequent to the first quarter of 2024. Supplemental distribution fees increased by $1.3 million for the three months ended March 31, 2025 compared to the same period in 2024. Marketing expenses for the comparative period also increased by $1.3 million driven by investor events held during the current quarter and non-reimbursable fund formation costs for certain real estate debt funds.
Previous report
(1)In the first quarter of 2025, we combined the presentation of real estate strategies within Real Assets. Real estate includes Americas real estate equity, European real estate equity, APAC real estate equity and real estate debt.
Previous report
(2)In first quarter of 2025, we combined the presentation of infrastructure strategies within Real Assets. Infrastructure includes digital infrastructure, infrastructure opportunities and infrastructure debt.
Previous report
(1) Includes $1.5 billion and $0.6 billion of non-fee paying AUM from our general partner and employee commitments as of March 31, 2025 and 2024, respectively.
Previous report
(1)In the first quarter of 2025, we combined the presentation of real estate strategies within Real Assets. Real estate includes Americas real estate equity, European real estate equity, APAC real estate equity and real estate debt.
Previous report
(2)In first quarter of 2025, we combined the presentation of infrastructure strategies within Real Assets. Infrastructure includes digital infrastructure, infrastructure opportunities and infrastructure debt.
Previous report
(1)Since inception returns are annualized.
Previous report
Private Equity Group—Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
Compensation and Benefits. The change in compensation and benefits largely reflects the decrease in salary expense and incentive-based compensation, partially offset by an increase in payroll-related taxes of $0.6 million, primarily due to the higher stock price associated with equity awards that vested during the first quarter of 2025. Average headcount decreased by 2% to 104 investment and investment support professionals for the year-to-date period in 2025 from 106 professionals in 2024.
Previous report
General, Administrative and Other Expenses. The decrease in general, administrative and other expenses for the three months ended March 31, 2025 compared to the same period in 2024 was primarily attributable to lower professional service fees incurred during the current quarter.
Previous report
The change in allocated interest expense for the Private Equity Group over the comparative period is consistent with the change in interest expense as presented within our consolidated results of operations. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Consolidated Results of Operations of the Company” for further discussion of the changes in consolidated interest expense.
Previous report
Secondaries Group—Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
Average headcount increased slightly to 112 investment and investment support professionals for the year-to-date period in 2025 from 111 professionals in 2024.
Previous report
General, Administrative and Other Expenses. The decrease in general, administrative and other expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was driven by the decrease in travel related expenses of $0.5 million.
Previous report
Interest expense is allocated among our segments primarily based on the cost basis of our balance sheet investments and the cost of acquisitions. While interest expense in prior periods associated with the acquisition of Landmark Partners, LLC was largely allocated to the Secondaries Group, recent acquisitions warrant larger allocations in the current year.
Previous report
LEP XVI contributed approximately 20% of the Secondaries Group’s management fees for the three months ended March 31, 2025.
Previous report
Other Fees. The increase in other fees for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily driven by an increase in facilitation fees from the 1031 exchange program associated with our non-traded REITs .
Previous report
Average headcount increased by 20% to 1,910 professionals for the year-to-date period in 2025 from 1,593 professionals in 2024. The acquisition of GCP International added 267 professionals to our period end headcount as of March 31, 2025, which represents an average of 89 professionals for the year-to-date period.
Previous report
General, Administrative and Other Expenses. The GCP Acquisition has contributed $3.6 million in general, administrative and other expenses to the three months ended March 31, 2025. These expenses were primarily driven by professional service fees of $2.1 million, of which $1.4 million related to temporary transition services. The impact from the GCP Acquisition has been excluded from the discussion below.
Reworded paragraphs (88)
Previous wording
We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles. For the three months ended March 31, 2025, 92% of our management fees were derived from perpetual capital vehicles or long-dated funds. Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility. However, our results from operations, including the fair value of our AUM, are affected by a variety of factors. Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).
Current wording
We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles. For the three months ended June 30, 2025, 91% of our management fees were derived from perpetual capital vehicles or long-dated funds. Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility. However, our results from operations, including the fair value of our AUM, are affected by a variety of factors. Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).
Previous wording
The commercial real estate markets experienced a slowdown in the current quarter due to heightened interest rates and the uncertainty around the recent trade policy shifts. Despite these headwinds, property values and capitalization rates remained steady. The European real estate markets are continuing to show slower signs of recovery, with the volatility in interest rates having a greater impact on performance during the quarter. While performance varies by sector and geography, we believe multifamily and industrial properties will continue to benefit from favorable long-term structural trends. In addition, renewable energy transaction volume remained strong, which has supported elevated renewable energy revenue contract prices. The convergence of digital infrastructure and artificial intelligence adoption, paired with surging power demand expectations continue to support infrastructure investment opportunities.
Current wording
The commercial real estate markets experienced mixed performance with transaction volumes continuing to increase and property valuations and capitalization rates remaining steady. The European real estate markets began to recover, with interest rate cuts from European central banks driving positive momentum. However, the U.S. real estate markets slightly declined during the quarter primarily due to the uncertainty in interest rates and trade policy. While performance varies by sector and geography, we believe multifamily and industrial properties will continue to benefit from favorable long-term structural trends. In addition, renewable energy continues to scale and transaction volume remained strong, which has supported elevated renewable energy revenue contract prices amid the positive momentum in demand. The climate infrastructure market remained resilient, supported by clean energy deployment and digital infrastructure expansion. The convergence of digital infrastructure and artificial intelligence adoption, paired with surging power demand expectations continue to support infrastructure investment opportunities.
Previous wording
The private equity industry navigated a dynamic landscape shaped by evolving macroeconomic conditions and policy shifts, particularly the impact that the macroeconomic and global trade environment may have on exit activity. This environment has contributed to heightened focus on companies with strong organic growth and attractive strategic transaction opportunities. We believe that shifting towards value creation strategies emphasizing operational improvements, talent optimization and digital transformation is essential to ensure long-term competitiveness.
Current wording
Following a strong start to the year, private equity transaction volume slowed during the quarter as the macroeconomic and global trade environment weighed on exit activity. This environment has contributed to heightened focus on disciplined underwriting and on companies with strong organic growth and attractive strategic transaction opportunities. We believe that shifting towards value creation strategies emphasizing operational improvements, talent optimization and digital transformation is essential to ensure long-term competitiveness.
Previous wording
We believe our portfolios across all strategies are well positioned for a fluctuating interest rate environment. On a market value basis, approximately 85% of our debt assets and 52% of our total assets were floating rate instruments as of March 31, 2025.
Current wording
We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 85% of our debt assets and 52% of our total assets were floating rate instruments as of June 30, 2025.
Previous wording
(1) Includes $14.1 billion and $14.7 billion of AUM of funds from which we indirectly earn management fees as of March 31, 2025 and 2024, respectively, and includes $5.2 billion and $4.1 billion of non-fee paying AUM from our general partner and employee commitments as of March 31, 2025 and 2024, respectively.
Current wording
(1) Includes $13.8 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of June 30, 2025 and 2024, respectively, and includes $5.6 billion and $4.2 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2025 and 2024, respectively.
Previous wording
(1)Other consists of ACRE’s FPAUM, which is based on ACRE’s stockholders’ equity.
Current wording
(1)Other consists of Ares Commercial Real Estate Corporation’s (NYSE: ACRE) (“ACRE”) FPAUM, which is based on ACRE’s stockholders’ equity.
Previous wording
(2)Includes $76.7 billion and $60.3 billion from funds that primarily invest in illiquid strategies as of March 31, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.
Current wording
(2)Includes $81.2 billion and $64.6 billion from funds that primarily invest in illiquid strategies as of June 30, 2025 and 2024, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.
Previous wording
We view the duration of funds we manage as a metric to measure the stability of our future management fees. For the three months ended March 31, 2025 and 2024, 92% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.
Current wording
We view the duration of funds we manage as a metric to measure the stability of our future management fees. For the three months ended June 30, 2025 and 2024, 91% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.
Previous wording
As of March 31, 2025, AUM Not Yet Paying Fees includes $81.5 billion of AUM available for future deployment that could generate approximately $764.4 million in potential incremental annual management fees, which represents 29% embedded gross base management fee growth upon deployment. As of March 31, 2024, AUM Not Yet Paying Fees included $64.6 billion of AUM available for future deployment that could generate approximately $621.5 million in potential incremental annual management fees. Development assets not yet stabilized represents fund assets that are in the development stage. Upon completion of development, management fees generally increase with a change in fee base, in fee rate or both. As of March 31, 2025, development assets not yet stabilized could generate approximately $22.7 million in potential incremental annual management fees.
Current wording
As of June 30, 2025, AUM Not Yet Paying Fees includes $86.8 billion of AUM available for future deployment that could generate approximately $822.7 million in potential incremental annual management fees, which represents 30% embedded gross base management fee growth from the last twelve month period upon deployment. Development assets not yet stabilized represents fund assets that are in the development stage. Upon completion of development, management fees generally increase with a change in fee base, in fee rate or both. As of June 30, 2025, development assets not yet stabilized could generate approximately $22.9 million in potential incremental annual management fees.
Previous wording
Fee related performance revenues are not recognized by us until such fees are crystallized and no longer subject to reversal. As of March 31, 2025, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $25.7 billion, composed of $19.5 billion within the Credit Group, $3.5 billion within the Real Assets Group and $2.7 billion within the Secondaries Group. As of March 31, 2024, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $19.2 billion, composed of $18.2 billion within the Credit Group and $1.0 billion within the Secondaries Group. As of March 31, 2025 and 2024, IGAUM included $37.9 billion and $37.6 billion, respectively, of AUM from funds generating incentive income that is not recognized by Ares until such fees are crystallized or no longer subject to reversal.
Current wording
Fee related performance revenues are not recognized by us until such fees are crystallized and no longer subject to reversal. As of June 30, 2025, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $30.2 billion, composed of $19.8 billion within the Credit Group, $7.3 billion within the Real Assets Group and $3.1 billion within the Secondaries Group. As of June 30, 2024, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $19.8 billion, composed of $18.3 billion within the Credit Group and $1.5 billion within the Secondaries Group.
Previous wording
The activities of GCP International are reflected within our results of operations beginning on March 1, 2025. Therefore, our analysis compared to the prior year period will lack comparability, particularly in our Real Assets Group segment. Because the activities of GCP International represent one month of activity within the current quarter, we will separately discuss the significant impact of the GCP Acquisition within our discussion of our results of operations.
Current wording
The activities of GCP International are reflected within our results of operations beginning on March 1, 2025. Therefore, our analysis compared to the prior year periods will lack comparability, particularly in our Real Assets Group segment. Because the activities of GCP International represent four months of activity within the six months ended June 30, 2025, we will separately discuss the significant impact of the GCP Acquisition within our discussion of our results of operations.
Previous wording
In addition, various components of the agreed upon purchase price for the GCP Acquisition are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees on March 1, 2025. Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration and will have a varying impact on our results of operations in the current quarter as well as in future periods. Following the integration period, we expect to generate cost savings as we begin to execute on synergy opportunities.
Current wording
In addition, various components of the agreed upon purchase price for the GCP Acquisition are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees on March 1, 2025. Because they are required to be accounted for as compensation, these amounts have been excluded from purchase consideration and will have a varying impact on our results of operations in the current periods as well as in future periods. Following the integration period, we expect to generate cost savings as we begin to execute on synergy opportunities.
Previous wording
In connection with the GCP Acquisition, we also entered into contingent compensation arrangements with the sellers and with certain of its professionals that became Ares employees. The portion of the arrangements that are attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. The portion of the arrangements that are attributable to the professionals that became Ares employees requires continued service through the measurement periods and will be accounted for as compensation. These arrangements will have a varying impact on our results of operations in the current quarter as well as in future periods that is dependent on these classifications as well as the expected attainment of the measurement criteria.
Current wording
In connection with the GCP Acquisition, we also entered into contingent compensation arrangements with the sellers and with certain of its professionals that became Ares employees. The portion of the arrangements that are attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. The portion of the arrangements that are attributable to the professionals that became Ares employees requires continued service through the measurement periods and will be accounted for as compensation. These arrangements will have a varying impact on our results of operations in the current periods as well as in future periods that is dependent on these classifications as well as the expected attainment of the measurement criteria.
Previous wording
Management Fees. Details regarding our management fees from J-REIT are presented below:
Current wording
Management Fees. Details regarding management fees from GLP J-REIT (TSE: 3281) (“J-REIT”) are presented below:
Previous wording
Details regarding our management fees by strategy, excluding J-REIT described above, are presented below:
Current wording
Details regarding management fees by strategy, excluding J-REIT described above, are presented below:
Previous wording
Incentive Fees. Details regarding our fee related performance revenues, excluding publicly-traded and perpetual wealth vehicles, are presented below:
Current wording
Incentive Fees. Details regarding fee related performance revenues, excluding publicly-traded and perpetual wealth vehicles, are presented below:
Previous wording
Carried Interest Allocation. Details regarding our carried interest, which is generally based on a fund’s eligible profits, are presented below:
Current wording
Carried Interest Allocation. Details regarding carried interest, which is generally based on a fund’s eligible profits, are presented below:
Previous wording
Administrative, Transaction and Other Fees. Details regarding our other fees are presented below:
Current wording
Administrative, Transaction and Other Fees. Details regarding other fees are presented below:
Previous wording
Consolidated Funds represented approximately 3% of our AUM as of March 31, 2025 and 2% of total revenues for the three months ended March 31, 2025. As of March 31, 2025, we consolidated 27 CLOs, 11 private funds and one SPAC, and as of March 31, 2024, we consolidated 28 CLOs, 10 private funds and one SPAC.
Current wording
Consolidated Funds represented approximately 3% of our AUM as of June 30, 2025 and 5% of total revenues for the six months ended June 30, 2025. As of June 30, 2025, we consolidated 25 CLOs, 15 private funds and one SPAC, and as of June 30, 2024, we consolidated 28 CLOs, 10 private funds and one SPAC.
Previous wording
We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity. During the three months ended March 31, 2025 and 2024, we did not deconsolidate any entities.
Current wording
We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity. During the six months ended June 30, 2025, we deconsolidated three CLOs as a result of liquidation. During the six months ended June 30, 2024, we did not deconsolidate any entity.
Previous wording
Management Fees. Within the Credit Group, capital raised by our publicly-traded and perpetual wealth vehicles contributed to an increase in management fees of$41.6 millionfor thethree months ended March 31, 2025 compared to the same period in 2024. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to an increase in management fees of$23.4 million for thethree months ended March 31, 2025 compared to the same period in 2024. Part I Fees increased by $15.1 million for thethree months ended March 31, 2025 compared to the same period in 2024. The increase in Part I Fees was primarily due to the increase in pre-incentive fee net investment income generated by ASIF, CADC and our open-ended European direct lending fund, driven by an increase in the average size of their portfolios. Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition and the acquisition of Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”) (“WSM Acquisition”), generated $29.4 million in additional management fees for the three months ended March 31, 2025. For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”
Current wording
Management Fees. Within the Credit Group, capital raised by our publicly-traded and perpetual wealth vehicles contributed to increases in management fees of$41.8 million and $83.3 millionfor thethree and six months ended June 30, 2025, respectively, compared to the same periods in 2024. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to increases in management fees of$30.1 million and $53.4 million for thethree and six months ended June 30, 2025, respectively, compared to the same periods in 2024. Part I Fees increased by $13.0 million and $28.1 million for thethree and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in Part I Fees were primarily due to the increases in pre-incentive fee net investment income generated by Ares Strategic Income Fund (“ASIF”), CION Ares Diversified Credit Fund (“CADC”) and our open-ended European direct lending fund, driven by increases in net investment income from their growing portfolio of investments.
Previous wording
We earned higher incentive fees for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily from a European direct lending fund and from APMF. For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”
Current wording
The majority of our incentive fees crystallize in the fourth quarter. For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”
Previous wording
Principal Investment Income. For equity method investments where we serve as general partner, we present the activity of net realized and unrealized gains on investments and realized investment income together with net capital activity. The following tables present the change in fair value of our equity method investments where we serve as general partner ($ in millions):
Current wording
Principal Investment Income. For equity method investments where we serve as general partner, we present the activity of net realized and unrealized gains on investments and realized investment income together with net cash received or used. The following tables present the change in fair value of our equity method investments where we serve as general partner ($ in millions):
Previous wording
The activity for the three months ended March 31, 2025 was primarily attributable to:
Current wording
The activity for the three and six months ended June 30, 2025 was primarily attributable to:
Previous wording
•Principal investment income, primarily due to: (i) realized gains generated from various real estate debt and U.S. real estate equity funds; and (ii) interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs
Current wording
•Realized investment income generated from our investments in various real estate debt and infrastructure debt funds. The six months ended June 30, 2025 also included: (i) interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs; and (ii) realized gains generated from our investments in various U.S. real estate equity funds
Previous wording
•Net capital activities from investments in European direct lending, alternative credit and infrastructure debt funds, partially offset by transfers of capital investments within APAC credit funds to employee co-investment vehicles
Current wording
•Net cash received, primarily driven by transfers of our investments in APAC credit funds to employee co-investment vehicles, partially offset by investments in European real estate debt funds. Net cash used for the six months ended June 30, 2024 also included investments in European direct lending, alternative credit and infrastructure debt funds
Previous wording
Administrative, Transaction and Other Fees. The increase for the three months ended March 31, 2025 compared to the same period in 2024 was primarily driven by incremental fees following the completion of the GCP Acquisition. GCP International enhances our vertically integrated capabilities in real estate which enables us to generate additional leasing, development and property management fees. These fees contributed $13.6 million for the three months ended March 31, 2025.
Current wording
Administrative, Transaction and Other Fees. The increases for the three and six months ended June 30, 2025 compared to the same periods in 2024 were primarily driven by incremental fees following the completion of the GCP Acquisition. GCP International enhances our vertically integrated capabilities in real estate, which enables us to earn additional leasing, development and property management fees. These fees contributed $38.1 million and $51.8 million for the three and six months ended June 30, 2025, respectively.
Previous wording
The increase in fees over the comparative period was also driven by higher administrative service fees of $3.9 million primarily from private funds within our Credit Group that are based on invested capital and from our perpetual wealth vehicles.
Current wording
The increases in fees over the comparative periods were also driven by higher administrative service fees of $5.5 million and $9.3 million, respectively, primarily from: (i) our perpetual wealth vehicles, including two new products launched in the current year; and (ii) private funds within our Credit Group that are based on invested capital.
Previous wording
Compensation and Benefits. In connection with the GCP Acquisition, various components of the agreed upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees following the GCP Acquisition. The GCP Acquisition contributed $151.0 million in incremental compensation and benefits for the three months ended March 31, 2025. The current quarter included equity-based compensation expense of $119.1 million from newly issued equity awards, including $108.8 million from the immediately vested portion of these awards. The three months ended March 31, 2025 also included: (i) one month of employment related costs of $17.9 million; (ii) other compensation costs of $8.8 million that were settled in cash at the close of the GCP Acquisition; and (iii) compensation expense of $5.2 million for certain contingent compensation arrangements established in connection with the GCP Acquisition. See “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of the contingent liabilities related to the GCP Acquisition arrangements.
Current wording
Compensation and Benefits. In connection with the GCP Acquisition, various components of the agreed upon purchase price are required to be accounted for as compensation because the payments were made to certain individuals that became Ares employees following the GCP Acquisition. The three and six months ended June 30, 2025 included the following acquisition-related compensation expenses: (i) equity-based compensation expense of $40.8 million and $159.9 million, respectively, from awards associated with the purchase price of the GCP Acquisition, with $108.8 million of expense from the portion of these awards that immediately vested in the first quarter of 2025; (ii) other compensation costs of $20.8 million and $29.6 million, respectively, that were settled in cash; and (iii) compensation expense of $15.4 million and $20.6 million, respectively, for certain contingent compensation arrangements established in connection with the GCP Acquisition. See “Note 8. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of the contingent liabilities related to the GCP Acquisition arrangements.
Previous wording
Compensation and benefits, excluding the impact from the GCP Acquisition, increased by $93.2 million or 23%for the three months ended March 31, 2025 compared to the same period in 2024. The increase in expenses reflects the continued growth in salary and benefits for increased staff levels. The most significant expense increases were equity-based compensation, salary expense and payroll-related taxes. Equity-based compensation expense increased by $46.5 million from the prior year period as a result of newly issued unvested awards, magnified by our increased stock price. In addition, we accelerated expense for certain awards requiring no future service as retirement provisions have been achieved. These provisions increased expense by $25.0 million and $17.4 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $101.6 million and $194.8 million, or 24% and 23%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflects the continued growth in salary and benefits for increased staff levels. The most significant expense increases were equity-based compensation, incentive-based compensation and salary expense. Equity-based compensation expense for the three and six months ended June 30, 2025 compared to the same periods in 2024 increased by $35.9 million and $82.4 million, respectively, as a result of newly issued unvested awards, magnified by our increased stock price. The higher stock price associated with equity awards that vested during the first quarter of 2025 also drove the increase in payroll-related taxes of $19.6 million from the prior year-to-date period. In addition, we accelerated expense for certain awards requiring no future service as retirement provisions have been achieved. These provisions increased expense by $25.0 million and $17.4 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
General, Administrative and Other Expenses. The GCP Acquisition has contributed $50.2 million in general, administrative and other expenses to the three months ended March 31, 2025. These expenses were driven by: (i) acquisition-related costs of $33.7 million; (ii) amortization expense of $8.8 million for the three months ended March 31, 2025 related to the intangible assets recorded in connection with the GCP Acquisition; and (iii) one month of operating costs of $7.7 million, including temporary transition services agreement in connection with the GCP Acquisition of $1.5 million. The impact from the GCP Acquisition has been excluded from the discussion below.
Current wording
General, Administrative and Other Expenses. The GCP Acquisition has contributed $54.7 million and $104.9 million of general, administrative and other expenses to the three and six months ended June 30, 2025, respectively. These expenses were driven by: (i) operating costs of $28.1 million and $35.7 million, respectively, including non-recurring integration costs and temporary transition services agreement of $6.2 million and $8.4 million, respectively; (ii) amortization expense of $25.7 million and $34.5 million, respectively, related to the intangible assets recorded in connection with the GCP Acquisition; and (iii) acquisition-related costs of $0.9 million and $34.7 million, respectively, largely paid to advisors and professional services providers to assist in completing the transaction. The impact from the GCP Acquisition has been excluded from the discussion below.
Previous wording
General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $6.8 million or 4%for the three months ended March 31, 2025 compared to the same period in 2024. The increase in expenses reflects the continued growth to support staff levels and fundraising activities. The most significant expense increases were marketing costs, occupancy costs, information services costs and information technology costs.
Current wording
General, administrative and other expenses, excluding the impact from the GCP Acquisition, increased by $8.0 million and $14.8 million, or 5% and 4%, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth to support staff levels and fundraising activities. The most significant expense increases were supplemental distribution fees, occupancy costs and information technology costs.
Previous wording
In addition, occupancy costs, information services and information technology costs collectively increased by $7.9 million for the three months ended March 31, 2025 compared to the same period in 2024. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, with occupancy costs also being impacted by the expansion of our New York office.
Current wording
In addition, occupancy costs and information technology costs collectively increased by $8.7 million and $15.3 million, for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increases in these expenses were primarily to support our growing headcount and the expansion of our business, including the expansion of our New York headquarters.
Previous wording
Net Realized and Unrealized Gains on Investments; Interest and Dividend Income. For investments where we do not serve as general partner, we present the activity of net realized and unrealized gains on investments and interest and dividend income together with net capital activity. The following tables present the change in fair value of these investments ($ in millions):
Current wording
Net Realized and Unrealized Gains on Investments; Interest and Dividend Income. For investments where we do not serve as general partner, we present the activity of net realized and unrealized gains on investments and interest and dividend income together with net cash received or used.
Previous wording
•Interest and dividend income, primarily due to: (i) interest income generated from our investments in CLOs; and (ii) $11.9 million of interest income earned from treasury-backed securities. Such treasury-backed securities were sold during the first quarter of 2025 and the proceeds from the sale were used to fund the GCP Acquisition. The interest income earned from treasury-backed securities will subside in future periods following the sale of these treasury-backed securities
Current wording
•Interest and dividend income, primarily due to: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) interest income generated from our investments in CLOs. The six months ended June 30, 2025 included $11.9 million of interest income earned from treasury-backed securities. These treasury-backed securities were sold and the proceeds from the sale were used to fund the GCP Acquisition
Previous wording
•Unrealized gains from our strategic investments in a U.S. energy company, primarily as a result of the increase in value of our various common and preferred equity investments, as well as unrealized gains on our investments from: (i) APMF; (ii) certain strategic investments in a company that manages real estate owned properties; partially offset by (iii) unrealized losses from our strategic investment in a non-core insurance related investment and a company that manages portfolios of non-performing loans
Current wording
•Unrealized gains, primarily from our investment in APMF, partially offset by unrealized losses from our strategic investments in a company that manages portfolios of non-performing loans and in a non-core insurance related investment. The six months ended June 30, 2024 also included unrealized gains from our strategic investments in a U.S. energy company, primarily as a result of the increases in value of our various common and preferred equity investments, as well as unrealized gains from our strategic investment in a company that manages real estate owned properties
Previous wording
•Interest and dividend income, primarily due to interest income generated from our investments in CLOs
Current wording
•Interest and dividend income, primarily due to: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) interest income generated from our investments in CLOs.
Previous wording
Other Income (Expense), Net. The activity for the three months ended March 31, 2025 and 2024 included transaction gains (losses) associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency. Transaction losses for the three months ended March 31, 2025 were primarily attributable to the U.S. dollar weakening against the British Pound and Euro and the associated impact on entities with functional currencies other than the U.S. dollar.
Current wording
Other Expense, Net. The activity for the three and six months ended June 30, 2025 and 2024 included transaction losses associated with currency fluctuations impacting the revaluation of assets and liabilities denominated in foreign currencies other than an entity’s functional currency. Transaction losses for the three and six months ended June 30, 2025 were primarily attributable to the U.S. dollar weakening against the British Pound and Euro and the associated impact of revaluing net liabilities on entities with functional currencies other than the U.S. dollar. The three and six months ended June 30, 2024 included an insignificant amount of transaction losses associated with currency fluctuations.
Previous wording
The purchase agreement in connection with the WSM Acquisition contains contingent consideration that is dependent on the achievement of revenue targets from the fundraising of a real estate equity fund and certain revenue targets associated with growing revenue sources from new business ventures. Other income (expense), net includes $2.3 million of expenses from the revaluation of these contingent liabilities for the three months ended March 31, 2025.
Current wording
The purchase agreement for the GCP Acquisition contains contingent consideration that is dependent on the achievement of revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds. The purchase agreement for the WSM Acquisition contains contingent consideration that is dependent on the achievement of revenue targets from the fundraising of a real estate equity fund and revenue targets associated with growing revenue sources from new business ventures. Other income (expense), net includes non-cash expense from the revaluation of these contingent liabilities of $25.6 million and $27.9 million for the three and six months ended June 30, 2025, respectively.
Previous wording
The calculation of income taxes is also sensitive to any changes in weighted average daily ownership. The following table summarizes weighted average daily ownership:
Current wording
The allocation of taxable income is sensitive to any changes in weighted average daily ownership as the income attributed to redeemable and non-controlling interests is generally passed through to partners and not subject to corporate income taxes. Although income before taxes decreased over the comparative periods, the allocation of taxable income to AMC increased over the same periods. The following table summarizes weighted average daily ownership:
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Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition and the acquisition of Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”) (“WSM Acquisition”), collectively generated $67.6 million and $97.0 million in additional management fees for the three and six months ended June 30, 2025, respectively. For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”
Current report — wording carried from elsewhere
•Interest income from newly admitted investors in an insurance fund, where capital account balances are reallocated from existing investors in exchange for interest to compensate for carrying costs
Current report — wording carried from elsewhere
The following tables present the change in fair value of these investments ($ in millions):
Current report — wording carried from elsewhere
The significant funds presented in the tables below collectively contributed approximately 38% of the Real Assets Group’s management fees for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
(2)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution. Additional information related to APMF can be found in its filings with the SEC, which are not part of this report.
Current report — wording carried from elsewhere
net cash from investment related activities including purchases, sales, realized net investment income and interest expense. We generated meaningful cash flow from operations in each period presented.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The activity for the three months ended March 31, 2024 was primarily attributable to:
Previous report — wording carried elsewhere
•Principal investment income, primarily due to interest income from newly admitted investors in an insurance fund
Previous report — wording carried elsewhere
The activity for the three months ended March 31, 2025 was primarily attributable to:
Previous report — wording carried elsewhere
The activity for the three months ended March 31, 2024 was primarily attributable to:
Previous report — wording carried elsewhere
In addition, we issued 30,000,000 shares of Series B mandatory convertible preferred stock in October 2024. Net cash used in the Company’s financing activities included dividend payments made during the three months ended March 31, 2025 to preferred stockholders.