Ares Management Corp

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 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”).

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 September 30, 2025, 94% 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 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.

Current wording

The commercial real estate markets continued to recover during the quarter, driven by increased transaction volumes and steady property valuations and capitalization rates. The U.S. real estate markets improved, with interest rate cuts also driving positive momentum during the quarter. However, the European real estate markets declined primarily due to political uncertainty and lower rent growth expectations in certain regions. 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, with strong transaction volumes supporting elevated revenue contract prices amid positive demand momentum. The climate infrastructure market remained resilient, bolstered by continued progress in clean energy deployment and the expansion of digital infrastructure and adoption of artificial intelligence.

Previous 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.

Current wording

(1) Includes $14.0 billion and $14.4 billion of AUM of funds from which we indirectly earn management fees as of September 30, 2025 and 2024, respectively, and includes $5.7 billion and $4.2 billion of non-fee paying AUM from our general partner and employee commitments as of September 30, 2025 and 2024, respectively.

Previous 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.

Current wording

(2)Includes $87.8 billion and $67.8 billion from funds that primarily invest in illiquid strategies as of September 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 June 30, 2025 and 2024, 91% 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 September 30, 2025 and 2024, 94% and 95%, respectively, of management fees were earned from perpetual capital or long-dated funds.

Previous wording

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

Current wording

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

Previous 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.

Current wording

As of September 30, 2025, AUM Not Yet Paying Fees includes $81.0 billion of AUM available for future deployment that could generate approximately $756.3 million in potential incremental annual management fees, which represents 26% 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 September 30, 2025, development assets not yet stabilized could generate approximately $22.4 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 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.

Current wording

Fee related performance revenues are not recognized by us until such fees are crystallized and no longer subject to reversal. As of September 30, 2025, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $32.1 billion, composed of $20.3 billion within the Credit Group, $7.4 billion within the Real Assets Group and $4.4 billion within the Secondaries Group. As of September 30, 2024, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $20.4 billion, composed of $18.5 billion within the Credit Group and $1.9 billion within the Secondaries Group. As of September 30, 2025 and 2024, IGAUM included $58.3 billion and $42.8 billion, respectively, of AUM from funds generating incentive income that is not recognized by us until such fees are crystallized or no longer subject to reversal.

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 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.

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 seven months of activity within the nine months ended September 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 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.

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 an integration period, we expect to generate cost savings as we begin to execute on synergy opportunities.

Previous 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.

Current wording

Consolidated Funds represented approximately 3% of our AUM as of September 30, 2025 and 5% of total revenues for the nine months ended September 30, 2025. As of September 30, 2025, we consolidated 23 CLOs and 16 private funds, and as of September 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 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.

Current wording

We generally deconsolidate funds and CLOs when we are no longer deemed to have a controlling interest in the entity. During the nine months ended September 30, 2025, we deconsolidated four CLOs as a result of liquidation, one CLO as a result of a significant change in ownership and Ares Acquisition Corporation II (“AAC II”), as we no longer hold a controlling financial interest in Kodiak AI, Inc. (Nasdaq: KDK) (f/k/a AAC II) following the business combination described in “Note 13. Equity and Redeemable Interest.” During the nine months ended September 30, 2024, we did not deconsolidate any entity.

Previous wording

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 wording

We have contributed certain financial interests to structured investment vehicles that we manage, including but not limited to collateralized fund obligations and fund-backed loans. These financial interests include our capital interests and rights to performance income in funds that we manage. The purpose of these contributions is to provide collateral or other forms of similar credit-enhancement, including subordination and liquidity support, to the structured investment vehicles. 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 as a result of consolidation.

Previous 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.

Current wording

Management Fees. Within the Credit Group, our publicly-traded and perpetual wealth vehicles contributed to increases in management fees of$44.4 million and $127.8 millionfor thethree and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily driven by increases in the average size of their portfolios. 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$30.4 million and $83.8 million for thethree and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. 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”)

Previous 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.”

Current wording

The majority of our incentive fees crystallize in the fourth quarter. The increases in incentive fees for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were primarily due to higher incentive fees from an open-ended core alternative credit fund that has an annual measurement period in the third quarter, driven by increased IGAUM and improved fund performance. For further detail regarding the incentive fees within each of our segments, see discussion of fee related performance revenues and realized net performance income within “—Results of Operations by Segment.”

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 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):

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 interest and dividend 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

•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

Current wording

•Interest and dividend income primarily generated from our investments in various funds within our real estate strategy. The nine months ended September 30, 2025 also included 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.

Previous wording

•Net cash used, primarily driven by investments in various real estate funds

Current wording

•Net cash used was primarily driven by investments in various infrastructure opportunities funds. Net cash used for the nine months ended September 30, 2025 was also driven by investments in various real estate funds.

Previous wording

•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

•Interest and dividend income for the nine months ended September 30, 2024 included 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

Previous 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

Current wording

•Net cash received was primarily driven by transfers of our investments in alternative credit funds to employee co-investment vehicles, partially offset by investments in European real estate debt and U.S. direct lending funds. Net cash received for the nine months ended September 30, 2024 also included transfers of our investments in APAC credit funds to employee co-investment vehicles, partially offset by investments in European direct lending and infrastructure debt funds.

Previous 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.

Current wording

Administrative, Transaction and Other Fees. The increases for the three and nine months ended September 30, 2025 compared to the same periods in 2024 were driven by incremental fees of $50.0 million and $107.9 million, respectively, following the completion of the GCP Acquisition. The GCP Acquisition enhances our vertically integrated capabilities, which enables us to earn various forms of property-related fees. For the three and nine months ended September 30, 2025, these incremental fees largely represented leasing, development and property management fees.

Previous 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.

Current wording

The increases in fees over the comparative periods, excluding the aforementioned impact from the GCP Acquisition, were also driven by higher administrative service fees of $4.8 million and $14.2 million, respectively, primarily from: (i) our perpetual wealth vehicles, including two new products launched during the second half of 2024; 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 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.

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 nine months ended September 30, 2025 included the following acquisition-related compensation expenses: (i) equity-based compensation expense of $35.1 million and $195.0 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 $17.6 million and $47.2 million, respectively, that were settled in cash; and (iii) compensation expense of $16.7 million and $37.3 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

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 wording

In addition, the GCP Acquisition contributed incremental employment related costs of $58.2 million and $121.3 million for the three and nine months ended September 30, 2025, respectively, largely reflecting salary expense and incentive-based compensation.

Previous 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.

Current wording

Compensation and benefits, excluding the aforementioned impact from the GCP Acquisition, increased by $96.4 million and $291.2 million, or 22% and 23%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth in salary and benefits for our increased staffing levels. The most significant expense increases were equity-based compensation, salary expense and incentive-based compensation. Equity-based compensation expense increased by $39.4 million and $121.8 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 as a result of newly issued 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 $23.2 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 nine months ended September 30, 2025 and 2024, respectively.

Previous wording

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 wording

Salary expense increased by $15.1 million and $43.5 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due 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.

Previous wording

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 wording

Full-time equivalent headcount increased by 33% to 3,891 professionals for the year-to-date period in 2025 from 2,918 professionals in 2024. The acquisition of GCP International added 818 professionals to our period end headcount as of September 30, 2025, which represents 651 full-time equivalents for the year-to-date period.

Previous 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.

Current wording

General, Administrative and Other Expenses. General, administrative and other expenses incurred in connection with the activities resulting from the GCP Acquisition were $53.3 million and $123.6 million for the three and nine months ended September 30, 2025, respectively. These expenses were driven by: (i) operating costs of $27.4 million and $63.2 million, respectively, including non-recurring integration costs of $7.6 million and $16.0 million, respectively; and (ii) amortization expense of $25.9 million and $60.4 million, respectively, related to the intangible assets recorded in connection with the GCP Acquisition.

Previous 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.

Current wording

General, administrative and other expenses, excluding the aforementioned impact from the GCP Acquisition, increased by $14.3 million and $29.2 million, or 8% and 6%, for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increases in expenses reflect the continued growth to support staffing levels and fundraising activities. The most significant expense increases were supplemental distribution fees, occupancy costs and information technology costs.

Previous wording

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 wording

Supplemental distribution fees increased by $10.2 million and $23.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due toincreases in sales volumes and net asset values of our perpetual wealth vehicles, fromthe ongoing development of our distribution relationships and expansion of our wealth product offerings.

Previous 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.

Current wording

In addition, occupancy costs and information technology costs collectively increased by $7.0 million and $22.3 million for the three and nine months ended September 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 cash received or used.

Current wording

Net Realized and Unrealized Gains (Losses) 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) 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

Current wording

•Interest and dividend income primarily included: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) income from our investments in CLOs and CLO-based investments. The nine months ended September 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

•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 wording

•Net cash used for the nine months ended September 30, 2025 was primarily driven by our investments in J-REIT and in an open-ended infrastructure fund, partially offset by the collection of principal from loan investments within our real estate debt strategy

Previous wording

•Unrealized gains, primarily from our investments in J-REIT and Ares Private Markets Fund (“APMF”)

Current wording

•Net realized and unrealized gains (losses) primarily included unrealized losses from our strategic investments in a U.S. nuclear energy company. The nine months ended September 30, 2024 also included unrealized gains primarily from our investment in Ares Private Markets Fund (“APMF”) and an unrealized loss from our strategic, non-core insurance related investment.

Previous 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.

Current wording

•Interest and dividend income primarily included: (i) dividend income from our strategic investment in a Brazilian alternative asset manager; and (ii) income from our investments in CLOs and CLO-based investments

Previous wording

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 wording

Interest Expense. Interest expense increased for the three and nine months ended September 30, 2025 compared to the same periods in 2024 due to higher collective interest expense associated with our term debt obligations. Interest expense also increased for the three months ended September 30, 2025 comparedto the same period in 2024 due to higher average outstanding balance of our Credit Facility over the comparative periods. However, average interest rates and average outstanding balance of our Credit Facility were lower during the current year when compared to the same period a year ago.

Previous 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.

Current wording

Other Expense, Net. 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 $17.4 million and $45.3 million for the three and nine months ended September 30, 2025, respectively.

Previous 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.

Current wording

Additionally, the activity for the three and nine months ended September 30, 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. While we recognized transaction gains for the three months ended September 30, 2025 due to the U.S. dollar strengthening against the British Pound and Euro, we recognized transaction losses for the nine months ended September 30, 2025 due 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 for the year-to-date period. Transaction losses for the three and nine months ended September 30, 2024 were primarily attributable to the British Pound strengthening against the U.S. dollar and Euro.

Previous wording

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 wording

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 nine months ended September 30, 2025, respectively, compared to the same periods in 2024.