Ares Management Corp
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
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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, 2026 · Filed Aug 7, 2026
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 2026-03-31; filed 2026-05-08.
0001628280-26-032990
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001628280-26-054538
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 297 previous paragraphs and 300 current paragraphs.
182 unchanged; 77 reworded; 38 added; 27 removed; 11 previous and 3 current paragraphs rearranged.
Tables are not compared: 85 previous and 86 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 (38)
Current report
During the second quarter of 2026, global markets continued to experience heightened volatility amid geopolitical tension in the Middle East and evolving expectations regarding monetary and U.S. trade policies. However, the possibility of a ceasefire between the U.S. and Iran eased energy market pressures, and resilient macroeconomic conditions supported positive returns across U.S. and European high yield bonds and leveraged loans. U.S. and international equity markets were also supported by first quarter corporate earnings growth and improving investor sentiment.
Current report
Renewable energy deployment also continued at a meaningful scale, underpinned by stable demand for clean energy and an expanding development pipeline. While performance varies by sector and geography, we believe increasing power demand, continued renewable energy deployment and the expansion of digital infrastructure will provide meaningful opportunities for infrastructure investment in coming periods.
Current report
(1) Includes $6.1 billion and $5.6 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2026 and 2025, respectively.
Current report
In connection with the acquisition of the international business of GLP Capital Partners Limited excluding its operations in Greater China (“GCP International”) (the “GCP Acquisition”), the activities of GCP International are reflected within our results of operations beginning on March 1, 2025. Since the activities of GCP International contributed four months of results during the six months ended June 30, 2025, our year-over-year analysis of the six months ended June 30, 2026 will lack comparability.
Current report
Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025
Current report
•Dividend income of $3.3 million and $8.8 million, respectively, primarily generated from our investments in various real estate secondaries, real estate debt and U.S. direct lending funds, as well as $1.7 million for the six months ended June 30, 2026 from our Japanese open-ended industrial real estate fund, which distributes dividends semi-annually. We have contributed certain capital interests to structured financing vehicles that are presented as Consolidated Funds; therefore, any income earned after our contribution of these capital interests is presented as net realized and unrealized gains on investments of Consolidated Funds within our Condensed Consolidated Statements of Operations, contributing to the reduction in principal investment income when comparing to prior period results.
Current report
The activity for the three and six months ended June 30, 2025 was primarily attributable to:
Current report
For the three and six months ended June 30, 2025, acquisition-related compensation expense included cash-based compensation costs of $20.8 million and $29.6 million, respectively, in connection with the GCP Acquisition.
Current report
Full-time equivalent headcount increased by 15% to 4,343 professionals for the year-to-date period in 2026 from 3,776 professionals in 2025.
Current report
General, Administrative and Other Expenses. The increases ingeneral, administrative and other expenses over the comparative periods reflect growing headcount and fundraising activities andwere driven by: (i) higher marketing costs of $14.4 million and $17.1 million, respectively, associated with costs related to our firmwide annual general meeting with investors (“AGM”), as well as program sponsorships and fund formation costs; (ii)higher professional service fees of $8.0 million and $15.0 million, respectively, primarily from consulting fees to support various ongoing technology initiatives to enhance our operations; (iii) information technology of $4.8 million and $10.5 million, respectively, driven by higher internally developed software costs and our growing headcount; and (iv) occupancy costs of $3.2 million and $5.1 million, respectively, to support our growing business, including the expansion of our New York headquarters; partially offset by (v) lower placement fees of$4.6 million and $10.6 million, respectively, primarily due to commitments to an opportunistic credit fund in the prior year periods.
Current report
In addition, the increase in general, administrative and other expenses for the six months ended June 30, 2026 included two additional months of activities from the operations that we acquired in connection with the GCP Acquisition, including (i) operating costs of $13.2 million; and (ii) amortization expense of $17.1 million related to the intangible assets recorded in connection with the GCP Acquisition.
Current report
•Net gains of $5.9 million and $12.0 million, respectively, from the settlement of foreign currency hedges, primarily related to capital interests we hold in Japanese real estate equity funds
Current report
•The six months ended June 30, 2026 also included dividend income of $1.9 million from J-REIT, which distributes dividends semi-annually
Current report
The activity for the three and six months ended June 30, 2025 was primarily attributable to:
Current report
•Unrealized gains of $14.0 million and $12.4 million, respectively, from our investments in J-REIT and APMF
Current report
Credit Group—Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025
Current report
Other Fees. The increases in other fees for the three and six months ended June 30, 2026 compared to the same periods in 2025 were primarily driven by: (i) higher administrative service fees of $2.9 million and $6.1 million, respectively, which are earned on invested capital from certain private funds; and (ii) higher capital markets transaction fees of $2.3 million and $4.1 million, respectively, reflecting increased transaction volumes.
Current report
Compensation and Benefits. The increases in compensation and benefits for the three and six months ended June 30, 2026 compared to the same periods in 2025 were primarily driven by: (i) higher Part I Fee compensation of $15.1 million and $30.0 million, respectively, corresponding to the increases in Part I Fees; and (ii) higher salary expenses of $2.3 million and $5.2 million, respectively, primarily attributable to headcount growth. The increase in compensation and benefits for the six months ended June 30, 2026 compared to the same period in 2025 was partially offset by lower fee related performance compensation of $11.7 million corresponding to the decrease in fee related performance revenues. In order to reclaim a portion of the supplemental distribution fees we paid, we reduced: (i) fee related performance compensation by $2.3 million for both the three and six months ended June 30, 2026; and (ii) Part I Fee compensation by $1.3 million and $4.9 million for the three months ended June 30, 2026 and 2025, respectively, and $5.2 million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
General, Administrative and Other Expenses. The increases in general, administrative and other expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 reflect growing headcount and fundraising activities, including our firmwide AGM event. The increases over the comparative periods were partially offset by decreases in supplemental distribution fees of $7.7 million and $5.1 million, respectively, primarily driven by lower sales in ASIF and our open-ended European direct lending fund in the current quarter.
Current report
Real Assets Group—Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025
Current report
Full-time equivalent headcount increased by 28% to 1,030 investment and investment support professionals for the year-to-date period in 2026 from 806 professionals for the same period in 2025, including the impact from the GCP Acquisition of 166 full-time equivalents.
Current report
In addition, the increase in general, administrative and other expenses for the six months ended June 30, 2026 included $9.4 million from two additional months of activities from the operations that we acquired in connection with the GCP Acquisition.
Current report
(1) Includes $2.1 billion and $1.4 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2026 and 2025, respectively.
Current report
The significant funds presented in the table below collectively contributed approximately 39% of the Real Assets Group’s management fees for the six months ended June 30, 2026.
Current report
(6)Returns are time-weighted rates of return and include the reinvestment of income and other earnings from securities or other investments and reflect the deduction of all trading expenses. Returns are shown for institutional share class. Shares of other classes may have lower returns due to higher selling commissions and fees. Net returns are calculated using the fund’s NAV and assume distributions are reinvested at the NAV on the date of distribution.
Current report
Secondaries Group—Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025
Current report
The following table presents the components of and causes for changes in the Secondaries Group’s management fees for the three and six months ended June 30, 2026 compared to the prior year periods ($ in millions):
Current report
The decrease in effective management fee rate for the three months ended June 30, 2026 compared to the same period in 2025 was primarily driven by the deployment of capital by ACS at a lower effective management fee rate, partially offset by additional capital raised by APMF that has a fee rate of 1.40%.
Current report
Other Fees. For the comparable periods, other fees largely represent capital markets transaction fees that will vary based on the timing and nature of the investment and financing activities of our funds.
Current report
General, Administrative and Other Expenses. The increases in general, administrative and other expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 were driven by: (i) higher marketing costs of $2.1 million and $1.4 million, respectively, largely attributable to fund formation costs for ASIS III that exceeded amounts contractually recoverable from the fund and to investor events, including our firmwide AGM event; and (ii) higher supplemental distribution fees of $1.6 million for both periods to support distribution of APMF shares.
Current report
Private Equity Group—Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025
Current report
Compensation and Benefits. Total compensation and benefits decreased over the comparative periods, reflecting changes as we seek to optimize the composition of our investment and investment support professionals within our corporate opportunities team. The increase in headcount when compared to the prior year results from the acquisition of an APAC private equity company during the third quarter of 2025. Full-time equivalent headcount increased by 7% to 112 investment and investment support professionals for the year-to-date period in 2026 from 105 professionals in 2025.
Current report
As a result of transferring of our rights to receive the carried interest from ACOF VI in exchange for capital interests in certain structured financing vehicles, the value associated with the transferred carried interest is now reflected as investments in these structured financing vehicles. We remain obligated to compensate our professionals who retain the rights to their allocation of performance income, which continue to be reported within performance related compensation.
Current report
In addition, the increase in compensation and benefits for the six months ended June 30, 2026 included $8.8 million from two additional months of activities from the operations that we acquired in connection with the GCP Acquisition.
Current report
Full-time equivalent headcount increased by 13% to 2,293 professionals for the year-to-date period in 2026 from 2,021 professionals in 2025, including the impact from the GCP Acquisition of 67 full-time equivalents.
Current report
General, Administrative and Other Expenses. The increases in general, administrative and other expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 were driven by: (i)higher professional service fees of$9.3 million and $10.7 million, respectively, primarily from tax related service fees and from consulting fees to support various ongoing technology initiatives to enhance our operations; (ii) higher information technology and occupancy costs of $6.1 million and $11.0 million, respectively, to support our growing headcount, including the expansion of our New York headquarters; and (iii) higher marketing costs of $5.0 million and $8.1 million, respectively, largely attributable to program sponsorships and to investor events, including our firmwide AGM event.
Current report
In addition, the increase in general, administrative and other expenses for the six months ended June 30, 2026 included $3.7 million from two additional months of activities from the operations that we acquired in connection with the GCP Acquisition.
Current report
One of our sources of cash from operations is Part I Fees that we receive from certain publicly-traded funds such as ARCC and certain perpetual wealth funds. We typically receive payments of Part I Fees in the quarter after they are earned. Under certain circumstances, the collection of ARCC Part I Fees that have been earned and recorded by us as revenue may be deferred under the terms of the investment advisory agreement. The collection of ARCC Part I Fees that we have earned are deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made by ARCC, the sum of (a) aggregate distributions to ARCC’s stockholders and (b) ARCC’s change in net assets (defined as ARCC’s total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee accrued during the period) is less than 7.0% of ARCC’s net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Once earned, ARCC Part I Fees are not reversible even when deferred. All deferred ARCC Part I Fees are carried over and paid by ARCC in the period when the payment hurdle is achieved in accordance with the investment advisory agreement with ARCC. In such cases, we may still recognize the revenue, however, it would also result in a larger receivable from affiliates. Collection of ARCC Part I Fees earned during the three months ended June 30, 2026 will be deferred. No other funds from which we are entitled to earn Part I Fees have a deferral provision in their governing documents and accordingly, no other Part I Fees have been or can be deferred. The impact of ARCC’s deferral provision to our liquidity is limited by the fact that 60% of ARCC Part I Fees are paid to certain professionals as compensation, which is recorded as a liability but will not be paid until the cash is received by us. Therefore, the potential liquidity impact of a deferral of the collection of ARCC Part I Fees is approximately 40% of the total amount earned. While the deferral of the collection of the ARCC Part I Fees for the three months ended June 30, 2026 will temporarily reduce our liquidity by $33.8 million, we do not believe this limits our ability to meet our primary liquidity needs.
Removed paragraphs (27)
Previous report
During the first quarter of 2026, global markets experienced heightened volatility amid the geopolitical tension and conflicts in the Middle East, elevated energy prices and changes in monetary policy expectations. As a result, U.S. and European high yield bonds and leveraged loans were pressured, with European markets more sensitive to the conflicts in the Middle East due to greater dependency on oil flows. U.S. and international equity markets also declined amid inflationary pressures and broader macroeconomic uncertainty. Developed and emerging international markets modestly outperformed U.S. equities, reflecting stronger performance in select regions.
Previous report
(1) Includes $5.4 billion and $5.2 billion of non-fee paying AUM from our general partner and employee commitments as of March 31, 2026 and 2025, respectively.
Previous report
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
•Dividend income of $7.2 million primarily generated from our investments in various U.S. direct lending, Japanese real estate equity and real estate debt funds
Previous report
Full-time equivalent headcount increased by 24% to 4,297 professionals for the year-to-date period in 2026 from 3,474 professionals in 2025, including the impact from the GCP Acquisition of 511 full-time equivalents.
Previous report
General, Administrative and Other Expenses. The increase ingeneral, administrative and other expenses reflect growing staffing levels and fundraising activities, as well as the full quarter impact of operating costs of $13.2 million from the GCP Acquisition. Excluding the impact from the GCP Acquisition, information technology costs for software licenses and capitalized software amortization increased by $5.7 million for the three months ended March 31, 2026 compared to the same period in 2025, driven by continued build-out of internally developed software and to support our growing headcount. Travel and marketing costs also increased by $4.4 million over the comparative period, driven by new sponsorships and investor events held during the quarter. Furthermore, supplemental distribution fees increased by $4.2 million over the comparative period due to the expansion of our distribution relationships and wealth product offerings.
Previous report
Amortization of intangible assets increased by $9.8 million over the comparative period, primarily due to the full quarter impact from the GCP Acquisition.
Previous report
Credit Group—Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
Other Fees. The increase in other fees for the three months ended March 31, 2026 compared to the same period in 2025 was primarily driven an increase in administrative service fees of $3.1 million, which are earned from certain private funds that pay on invested capital. In addition, capital markets transaction fees were higher by $1.7 million, reflecting increased transaction volumes.
Previous report
Compensation and Benefits. The increase in compensation and benefits for the three months ended March 31, 2026 compared to the same period in 2025 was primarily driven by an increase in: (i) Part I Fee compensation of $14.9 million, corresponding to the increase in Part I Fees; (ii) incentive-based compensation of $6.3 million; and (iii) salary expenses of $2.9 million, primarily attributable to headcount growth; partially offset by (iv) lower fee related performance compensation of $9.8 million, corresponding to the decrease in fee related performance revenues. We reduced Part I Fee compensation by $3.9 million and $4.8 million for the three months ended March 31, 2026 and 2025, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.
Previous report
General, Administrative and Other Expenses. The increase in general, administrative and other expenses for the three months ended March 31, 2026 compared to the same period in 2025 was driven by: (i) an increase in professional service fees of $4.4 million; (ii) an increase insupplemental distribution fees of $2.6 millionas we continue to expand our wealth product offerings and distribution relationships; and (iii) an increase in information technology costs of $1.1 million to support our growing headcount.
Previous report
Interest expense allocated to the Credit Group decreased for the three months ended March 31, 2026 compared to the same period in 2025 as a significant portion of the current period’s interest expense was allocated based on capital used to finance the GCP Acquisition in the prior year, which occurred within the Real Assets Group.
Previous report
Real Assets Group—Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
Full-time equivalent headcount increased by 66% to 1,019 investment and investment support professionals for the year-to-date period in 2026 from 615 professionals for the same period in 2025, including the impact from the GCP Acquisition of 351 full-time equivalents.
Previous report
(1) Includes $1.5 billion of non-fee paying AUM from our general partner and employee commitments as of March 31, 2026 and 2025.
Previous report
The following table presents the performance data of the Real Assets Group’s significant drawdown fund as of March 31, 2026 ($ in millions):
Previous report
(1)Realized proceeds include distributions of operating income, sales and financing proceeds received to the limited partners.
Previous report
(7)EIP II is a Euro-denominated fund. Original capital commitments are converted to U.S. Dollars at the prevailing exchange rate at the time of fund’s closing. All other values for EIP II are converted to U.S. Dollars at the prevailing quarter-end exchange rate.
Previous report
Secondaries Group—Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
Other Fees. The increase in other fees for the three months ended March 31, 2026 compared to the same period in 2025 was primarily attributable to capital markets transaction fees, reflecting increased transaction volumes.
Previous report
Private Equity Group—Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Previous report
Compensation and Benefits. Although salary and benefits costs have increased over the comparative periods to reflect changes from the increase in headcount in connection with the acquisition of an APAC private equity company, compensation and benefits remained relatively flat for the three months ended March 31, 2026 compared to the same period in 2025.
Previous report
Full-time equivalent headcount increased by 9% to 113 investment and investment support professionals for the year-to-date period in 2026 from 104 professionals in 2025.
Previous report
General, Administrative and Other Expenses. The increases in general, administrative and other expenses for the three months ended March 31, 2026 compared to the same period in 2025 largely reflect the increase in operating expenses to support our growth in APAC.
Previous report
The following table presents the performance data of the Private Equity Group’s significant drawdown fund as of March 31, 2026 ($ in millions):
Previous report
Full-time equivalent headcount increased by 19% to 2,270 professionals for the year-to-date period in 2026 from 1,910 professionals in 2025, including the impact from the GCP Acquisition of 158 full-time equivalents.
Previous report
General, Administrative and Other Expenses. The increase in general, administrative and other expenses for the three months ended March 31, 2026 compared to the same period in 2025 was driven by: (i) an increase in information technology and occupancy costs of $4.8 million to support our growing headcount; (ii) an increase of $3.7 million reflecting the full quarter impact of operating costs from the GCP Acquisition; and (iii) an increase in marketing costs of $3.1 million, driven by new sponsorships and investor events held during the quarter.
Reworded paragraphs (77)
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, 2026, 93% 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, 2026, 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
Despite elevated uncertainty from the market volatility, global commercial real estate fundamentals strengthened in the first quarter of 2026. Transaction volumes continued to increase, debt availability improved and property values appreciated across markets. Notwithstanding overall strengthening trends, the European and APAC real estate markets demonstrated greater sensitivity to global conditions compared to the U.S. While performance varies by sector and geography, we believe constrained new supply will be a meaningful tailwind for the commercial real estate markets over the next few years. In addition, renewable energy continued to scale, supported by record battery storage additions and strong corporate demand for clean energy. The climate infrastructure market remained resilient, bolstered by continued progress in clean energy deployment, the expansion of digital infrastructure and sustained adoption of artificial intelligence.
Current wording
Despite elevated uncertainty stemming from disruptions in energy markets, global commercial real estate markets continued to improve in the second quarter of 2026. Transaction volumes continued to increase, debt availability improved and property values appreciated across markets. Rising Japanese government bond yields pressured REIT performance during the quarter, however, we do not believe this reflects deterioration in our portfolio’s underlying fundamentals. While performance varies by sector and geography, we believe constrained new supply will be a meaningful tailwind for commercial real estate markets. Infrastructure investment remained robust, particularly across the digital infrastructure, energy and utilities sectors.
Previous wording
Private equity activity moderated during the quarter, with dealmaking and exit activity softening amid continued market selectivity and elevated uncertainty in private credit markets. Sponsors remained highly selective, prioritizing businesses with resilient fundamentals and clear paths to value creation, including differentiated technology and artificial intelligence capabilities. We believe a renewed focus on value creation strategies that emphasize operational improvements, selective deployment, talent optimization and digital transformation are essential to support long-term momentum.
Current wording
Private equity activity moderated during the quarter with the concentration in a smaller number of large transactions. Dealmaking and exit activity continued to reflect market selectivity and elevated uncertainty in private credit markets. Sponsors continued to prioritize businesses with resilient fundamentals and clear paths to value creation, including differentiated technology and artificial intelligence capabilities. We believe a renewed focus on value creation strategies that emphasize operational improvements, selective deployment, talent optimization and digital transformation are essential to support long-term momentum.
Previous wording
We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 83% of our debt assets and 51% of our total assets were floating rate instruments as of March 31, 2026.
Current wording
We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 82% of our debt assets and 51% of our total assets were floating rate instruments as of June 30, 2026.
Previous wording
(1)Includes $98.2 billion and $76.7 billion from funds that primarily invest in illiquid strategies as of March 31, 2026 and 2025, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.
Current wording
(1)Includes $99.9 billion and $81.2 billion from funds that primarily invest in illiquid strategies as of June 30, 2026 and 2025, 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, 2026 and 2025, 93% and 92%, 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, 2026 and 2025, 94% and 91%, respectively, of management fees were earned from perpetual capital or long-dated funds.
Previous wording
As of March 31, 2026, AUM not yet paying fees includes $79.4 billion of AUM available for future deployment and $4.2 billion of development assets not yet stabilized that could collectively generate approximately $715.9 million in potential incremental annual management fees, representing a 22% embedded growth rate in our base management fees from the last twelve month period.
Current wording
As of June 30, 2026, AUM not yet paying fees includes $92.6 billion of AUM available for future deployment and $4.1 billion of development assets not yet stabilized that could collectively generate approximately $828.2 million in potential incremental annual management fees, representing a 24% embedded growth rate in our base management fees from the last twelve month period.
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, 2026, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $42.1 billion, composed of $23.0 billion within the Credit Group, $13.9 billion within the Real Assets Group and $5.2 billion within the Secondaries Group. 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, 2026 and 2025, IGAUM included $51.9 billion and $37.9 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.
Current wording
As of June 30, 2026 and 2025, IGAUM included $75.7 billion and $56.2 billion, respectively, of AUM from funds generating unrealized incentive fees that are not recognized by us until such fees are crystallized or no longer subject to reversal. As of June 30, 2026, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $44.3 billion, composed of $24.0 billion within the Credit Group, $14.4 billion within the Real Assets Group and $5.9 billion within the Secondaries Group. 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.
Previous wording
We consolidate (i) entities that we have both the power to direct significant activities of the entity and a significant economic interest; and (ii) entities in which we hold a majority voting interest or have majority ownership and control over the operational, financial and investing decisions of that entity. Certain funds that have historically been consolidated in the financial statements may no longer be consolidated because: (i) such funds have been liquidated or dissolved; or (ii) we are no longer deemed to have a controlling interest in the entity. Consolidated Funds represented approximately 6% of our AUM as of March 31, 2026 and 5% of total revenues for the three months ended March 31, 2026.
Current wording
We consolidate (i) entities that we have both the power to direct significant activities of the entity and a significant economic interest; and (ii) entities in which we hold a majority voting interest or have majority ownership and control over the operational, financial and investing decisions of that entity. Certain funds that have historically been consolidated in the financial statements may no longer be consolidated because: (i) such funds have been liquidated or dissolved; or (ii) we are no longer deemed to have a controlling interest in the entity. Consolidated Funds represented approximately 4% of our AUM as of June 30, 2026 and 4% of total revenues for the six months ended June 30, 2026.
Previous wording
Management Fees. Within the Credit Group, our publicly-traded and our perpetual wealth funds contributed$37.4 million of the increase in management fees for thethree months ended March 31, 2026 compared to the same period in 2025, 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$29.6 millionof the increase in management fees for thethree months ended March 31, 2026 compared to the same period in 2025. Within the Real Assets Group, funds that we manage as a result of the acquisition of the international business of GLP Capital Partners Limited excluding its operations in Greater China (the “GCP Acquisition”) generated $34.6 million in additional management fees for the three months ended March 31, 2026 compared to one month of fees for the three months ended March 31, 2025.
Current wording
Management Fees. Within the Credit Group, our publicly-traded and our perpetual wealth funds contributed$29.4 million and $66.8 million of the increases in management feesfor thethree and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by increases in FPAUM associated with fundraising. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing$27.0 million and $56.6 millionof the increase in management fees for thethree and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition contributed $30.8 million of the increase in management fees for the six months ended June 30, 2026 compared to the same period in 2025, driven by fees generated for two additional months in the current year period.
Previous wording
In addition, Part I Fees increased by $29.2 million for thethree months ended March 31, 2026 compared to the same period in 2025. The increase in Part I Fees was primarily attributable to ASIF and our open-ended European direct lending fund, driven by increases in net investment income from their growing portfolios of investments.
Current wording
In addition, Part I Fees increased by $25.9 million and $55.1 million for thethree and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases in Part I Fees were primarily attributable to ASIF, to our open-ended European direct lending fund and to our open-ended core infrastructure fund, driven by increases in net investment income from their growing portfolios of investments.
Previous wording
The increase in incentive fees for the three months ended March 31, 2026 compared to the same period in 2025 was primarily due to (i) fees of $138.5 million generated by SDL I in connection with the sale of its remaining assets to a continuation vehicle; and (ii) higher fees generated from APMF resulting from increased IGAUM over the comparative period. 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 increase in incentive fees for the three months ended June 30, 2026 compared to the same period in 2025 was primarily due to higher fees generated from APMF due to NAV appreciation. The increase in incentive fees for the six months ended June 30, 2026 compared to the same period in 2025 was mostly driven by fees of $138.5 million generated by SDL I in connection with the sale of its remaining assets to a continuation vehicle during the first quarter of 2026. 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. The activity for the three months ended March 31, 2026 was primarily attributable to:
Current wording
Principal Investment Income. The activity for the three and six months ended June 30, 2026 was primarily attributable to:
Previous wording
•Unrealized losses of $10.5 million from our investment in a U.S. real estate equity fund, partially offset by unrealized gains of $3.1 million from our investments in various European real estate equity funds and opportunistic credit funds
Current wording
•Unrealized losses of $5.3 million and $4.3 million, respectively, from our investments in various European real estate equity and real estate secondaries funds, as well as $10.6 million from our investment in a U.S. real estate equity fund for the six months ended June 30, 2026, partially offset by unrealized gains of $5.1 million and $5.7 million, respectively, from our investments in various digital infrastructure and Japanese real estate equity funds
Previous wording
•Dividend income of $4.7 million generated from our investments in various real estate debt funds
Current wording
•Dividend income of $7.8 million and $16.4 million, respectively, primarily generated from our investments in various real estate debt and infrastructure debt funds
Previous wording
•Interest income of $7.7 million 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
•The activity for the six months ended June 30, 2025 also included (i) interest income of $7.7 million 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) net realized gains of $3.1 million generated from our investments in various U.S. real estate equity funds
Previous wording
Administrative, Transaction and Other Fees. The increase for the three months ended March 31, 2026 compared to the same period in 2025 was driven by: (i) an increase of $21.0 million reflecting the full quarter impact of property-related fees and administrative service fees earned from funds acquired in the GCP Acquisition; (ii) an increase in administrative service fees of $6.5 million, earned from new and existing private funds within our Credit Group that are based on invested capital and from our perpetual wealth funds; and (iii) an increase in capital markets transaction fees of $5.2 million, reflecting increased transaction volumes.
Current wording
Administrative, Transaction and Other Fees. The increases for the three and six months ended June 30, 2026 compared to the same periods in 2025 were driven by: (i) $8.7 million and $29.9 million, respectively, of property-related fees and administrative service fees earned from funds acquired in the GCP Acquisition; (ii) $5.1 million and $11.7 million, respectively, of additional administrative service fees earned from new and existing private funds within our Credit Group and from our perpetual wealth funds; and (iii) $5.0 million and $9.7 million, respectively, of higher property management fees earned as we expand these services across more properties and earn the fees for services that were previously provided by third-parties.
Previous wording
Compensation and Benefits. The following table presents the components of change in compensation and benefits for the three months ended March 31, 2026 compared to the same period in 2025 ($ in millions):
Current wording
Compensation and Benefits. The following table presents the components of change in compensation and benefits for the three and six months ended June 30, 2026 compared to the same periods in 2025 ($ in millions):
Previous wording
The increase in cash-based compensation and benefits reflected the continued growth in salary and benefits for our increased staffing levels, as well as the full quarter impact of employment related costs of $30.8 million from the GCP Acquisition.
Current wording
The increases in cash-based compensation and benefits reflected the continued growth in salary and benefits for our increased headcount. The six months ended June 30, 2026 included $30.8 million of incremental expense, reflecting two additional months of activities from the operations that we acquired in connection with the GCP Acquisition.
Previous wording
In addition, Part I Fee compensation increased over the comparative period, corresponding to the increase in Part I Fees. We reduced Part I Fee compensation by $7.5 million and $4.8 million for the three months ended March 31, 2026 and 2025, respectively, to reclaim a portion of the supplemental distribution fees that we paid to distribution partners.
Current wording
In addition, Part I Fee compensation increased over the comparative periods, corresponding to the increases in Part I Fees. We reduced Part I Fee compensation by $5.7 million and $4.9 million for the three months ended June 30, 2026 and 2025, respectively, and $13.2 million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively, to reclaim a portion of the supplemental distribution fees we paid.
Previous wording
Equity compensation increased over the comparative period as a result of newly issued discretionary and bonus-related awards granted at higher stock prices relative to previously granted awards that have since fully vested. Acquisition-related equity compensation expense decreased over the comparative period as the prior year period included $108.8 million of expense from the portion of the awards associated with the purchase price of the GCP Acquisition that immediately vested.
Current wording
Equity compensation increased over the comparative periods as a result of newly issued discretionary and bonus-related awards granted during the first quarter of 2026 at higher stock prices relative to previously granted awards that have since fully vested. Acquisition-related equity compensation expense decreased for the six months ended June 30, 2026 compared to the same period in 2025, as the prior year period included $108.8 million of expense from the portion of these awards associated with the purchase price of the GCP Acquisition that immediately vested in the first quarter of 2025.
Previous wording
Conversely, acquisition-related costs decreased by $33.4 million for the three months ended March 31, 2026 compared to the same period in 2025. Acquisition-related costs generally precede a business combination, vary with the complexity of the transaction and may occur even when acquisitions are not successfully completed. We incurred costs in the current quarter primarily related to the acquisition of the remaining outstanding shares of BlueCove Limited (the “BlueCove Acquisition”), while we incurred $33.7 million during thethree months ended March 31, 2025 related to the GCP Acquisition.
Current wording
Acquisition-related costs generally precede a business combination, vary with the complexity of the transaction and may occur even when acquisitions are not successfully completed. Acquisition-related costs decreased by $35.5 million for the six months ended June 30, 2026 compared to the same period in 2025. We incurred $34.7 million during thesix months ended June 30, 2025 related to the GCP Acquisition.
Previous wording
Net Realized and Unrealized Gains on Investments; Interest and Dividend Income. The activity for the three months ended March 31, 2026 was primarily attributable to:
Current wording
Net Realized and Unrealized Gains on Investments; Interest and Dividend Income. The activity for the three and six months ended June 30, 2026 was primarily attributable to:
Previous wording
•Unrealized gains of $42.7 million from our strategic investments in X‑Energy, Inc., which completed its initial public offering after the first quarter of 2026 (Nasdaq: XE), partially offset by unrealized losses of $36.4 million primarily from our investments in KDK and J-REIT
Current wording
•Unrealized gains of $67.2 million and $109.9 million, respectively, from our investments in X‑Energy, Inc., which completed its initial public offering in the second quarter of 2026 (Nasdaq: XE), partially offset by unrealized losses of $12.8 million and $38.2 million, respectively, from our investments in KDK
Previous wording
•Interest and dividend income primarily included: (i) dividend income of $3.9 million from our strategic investment in a Brazilian alternative asset manager and from our investment in J-REIT; and (ii) income of $1.1 million from our investments in CLOs and CLO-based investments
Current wording
•Interest and dividend income primarily included: (i) dividend income of $2.0 million and $4.0 million, respectively, from our strategic investment in a Brazilian alternative asset manager; and (ii) income of $1.5 million and $2.6 million, respectively, from our investments in CLOs and CLO-based investments. We have contributed certain capital interests to structured financing vehicles that are presented as Consolidated Funds; therefore, any income earned after our contribution of these capital interests is presented as net realized and unrealized gains on investments of Consolidated Funds within our Condensed Consolidated Statements of Operations, contributing to the reduction in interest and dividend income when comparing to prior period results.
Previous wording
•Interest and dividend income primarily included: (i) income of $2.1 million from our investments in CLOs and CLO-based investments; (ii) dividend income of $2.0 million from our strategic investment in a Brazilian alternative asset manager; and (iii) $11.9 million of interest income earned from treasury-backed securities. These treasury-backed securities were sold in the first quarter of 2025 and the proceeds from the sale were used to fund the GCP Acquisition.
Current wording
•Interest and dividend income primarily included: (i) income of $2.0 million and $4.2 million, respectively, from our investments in CLOs and CLO-based investments; and (ii) dividend income of $2.0 million and $4.0 million, respectively, from our strategic investment in a Brazilian alternative asset manager. The six months ended June 30, 2025 also included $11.9 million of interest income earned from treasury-backed securities. These treasury-backed securities were sold in the first quarter of 2025 and the proceeds from the sale were used to fund the GCP Acquisition.
Previous wording
Interest Expense. Interest expense increased for the three months ended March 31, 2026 compared to the same period in 2025 due to a higher average outstanding balance of our Credit Facility. At the end of March 2026, we borrowed $400.0 million under the Term Loan. We expect interest expense attributable to the Term Loan to be approximately $4.7 million per quarter in future periods.
Current wording
Interest Expense. Interest expense increased for the three and six months ended June 30, 2026 compared to the same periods in 2025 due to (i) higher interest expense from our Credit Facility due to its higher average outstanding balance; and (ii) the full quarter impact of interest expense from the Term Loan that was executed in March 2026.
Previous wording
Other income (expense), net for the three months ended March 31, 2026 also included non-cash expense of $14.3 million from an increase in fair value of contingent consideration, reflecting our progress toward achieving the earnouts established in connection with the GCP Acquisition. These earnouts are based on revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds. See “Note 7. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of these contingent earnout arrangements.
Current wording
Other Income (Expense), Net. Other income (expense), net included non-cash expense of $13.6 million and $27.9 million for the three and six months ended June 30, 2026, respectively, and $25.5 million for both the three and six months ended June 30, 2025, attributable to increases in fair value of contingent consideration that reflect our progress toward achieving the earnouts established in connection with the GCP Acquisition. These earnouts are based on revenue targets of certain digital infrastructure funds and fundraising targets of certain Japanese real estate funds. See “Note 7. Commitments and
Previous wording
Other Income (Expense), Net. Other income (expense), net for the three months ended March 31, 2026 included a $37.4 million bargain purchase gain from the BlueCove Acquisition. A bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets acquired exceeding the purchase consideration. A portion of the purchase price payable to certain senior professionals is dependent upon the achievement of revenue targets and has been excluded from purchase consideration as it is subject to continued and future service.
Current wording
Other income (expense), net during the six months ended June 30, 2026 also included a $37.3 million bargain purchase gain from the BlueCove Acquisition. A bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets acquired exceeding the purchase consideration. A portion of the purchase price payable to certain senior professionals is dependent upon the achievement of revenue targets and has been excluded from purchase consideration as it is subject to continued and future service.
Previous wording
The increase in income tax expense was primarily attributable to higher pre-tax income allocable to AMC and higher entity level taxes in foreign and local jurisdictions for the three months ended March 31, 2026 compared to the same period in 2025.
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, with both increasing the effective tax rate for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Previous wording
The change in ownership compared to the prior year period was primarily driven by the issuances of shares of Class A common stock in connection with the vesting of restricted unit awards and exchanges of AOG Units.
Current wording
The changes in ownership compared to the prior year periods were primarily driven by the issuances of shares of Class A common stock in connection with the vesting of restricted unit awards and with exchanges of AOG Units.
Previous wording
The change in net income attributable to non-controlling interests in AOG entities compared to the prior year period was primarily a result of the respective change in income before taxes of the Company as presented above.
Current wording
The changes in net income attributable to non-controlling interests in AOG entities compared to the prior year periods were primarily a result of the respective changes in ownership and in income before taxes of the Company, as presented above.
Previous wording
The following table presents the components of and causes for changes in the Credit Group’s management fees for the three months ended March 31, 2026 compared to the prior year period ($ in millions):
Current wording
The following table presents the components of and causes for changes in the Credit Group’s management fees for the three and six months ended June 30, 2026 compared to the prior year period ($ in millions):
Previous wording
The decrease in effective management fee rate for the three months ended March 31, 2026 compared to the same period in 2025 was primarily attributable to increases in FPAUM from our funds in the liquid credit strategy, which have an effective fee rate of less than 0.50%.
Current wording
The decreases in effective management fee rates for the three and six months ended June 30, 2026 compared to the same periods in 2025 were primarily attributable to increases in FPAUM from funds in our liquid credit strategy, which have an effective fee rate of less than 0.50%.
Previous wording
Fee Related Performance Revenues. Fee related performance revenues decreased for the three months ended March 31, 2026 compared to the same period in 2025. Fee related performance revenues for the three months ended March 31, 2026 were primarily attributable to incentive fees from our open-ended sports, media and entertainment opportunities fund, which has a quarterly measurement period and a fee waiver that expired at the end of 2025. Fee related performance revenues for the three months ended March 31, 2025 were primarily attributable to incentive fees from a European direct lending fund that crystallized fees following the restructuring of its hold back provisions.
Current wording
Fee Related Performance Revenues. Fee related performance revenues for the three and six months ended June 30, 2026 were primarily attributable to incentive fees from our open-ended sports, media and entertainment opportunities fund, which has a quarterly measurement period and a fee waiver that expired at the end of 2025. Fee related performance revenues for the six months ended June 30, 2025 were primarily attributable to incentive fees from a European direct lending fund that crystallized a deferred payment during the first quarter of 2025 due to the restructuring of its hold back provisions.
Previous wording
Full-time equivalent headcount increased by 4% to 729 investment and investment support professionals for the year-to-date period in 2026 from 698 professionals in 2025 primarily due to the impact of the BlueCove Acquisition and also to support our growing direct lending and alternative credit platforms.
Current wording
Full-time equivalent headcount increased by 6% to 739 investment and investment support professionals for the year-to-date period in 2026 from 698 professionals in 2025 primarily due to the impact of the BlueCove Acquisition and also to support our growing direct lending and alternative credit platforms.
Previous wording
(1) Includes $2.3 billion and $2.0 billion of non-fee paying AUM from our general partner and employee commitments as of March 31, 2026 and 2025, respectively.
Current wording
(1) Includes $2.4 billion and $2.0 billion of non-fee paying AUM from our general partner and employee commitments as of June 30, 2026 and 2025, respectively.
Previous wording
(1)Includes $61.9 billion and $50.4 billion from funds that primarily invest in illiquid strategies as of March 31, 2026 and 2025, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.
Current wording
(1)Includes $62.5 billion and $54.1 billion from funds that primarily invest in illiquid strategies as of June 30, 2026 and 2025, respectively. The underlying investments held in these funds are generally subject to less market volatility than investments held in liquid strategies.
Previous wording
ARCC contributed approximately 29% of the Credit Group’s total management fees for the three months ended March 31, 2026. In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 45% of the Credit Group’s management fees for the three months ended March 31, 2026.
Current wording
ARCC contributed approximately 28% of the Credit Group’s total management fees for the six months ended June 30, 2026. In addition, the Credit Group’s other significant funds, which are presented in the tables below, collectively contributed approximately 45% of the Credit Group’s management fees for the six months ended June 30, 2026.
Previous wording
(3)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 CADC and ASIF can be found in its filings with the SEC, which are not part of this report.
Current wording
(3)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 CADC and ASIF can be found in their respective filings with the SEC, which are not part of this report.
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Current report — wording carried from elsewhere
Contingencies” within our unaudited condensed consolidated financial statements for a further description of these contingent earnout arrangements.
Current report — wording carried from elsewhere
Interest expense is allocated among our segments primarily based on the cost basis of our balance sheet investments and the cost of acquisitions. We have contributed certain capital interests to structured financing vehicles; therefore, the cost basis of our balance sheet investments during the current year periods was lower than the comparative periods. As a result, interest expense allocated to the Credit Group decreased for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Current report — wording carried from elsewhere
The following table presents the performance data of the Private Equity Group’s significant drawdown funds as of June 30, 2026 ($ in millions):
Rearranged previous paragraphs (11)
Previous report — wording carried elsewhere
The activity for the three months ended March 31, 2025 was primarily attributable to:
Previous report — wording carried elsewhere
•Net realized gains of $3.5 million generated from our investments in various U.S. real estate equity funds
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 significant funds presented in the tables below collectively contributed approximately 28% of the Real Assets Group’s management fees for the three months ended March 31, 2026.
Previous report — wording carried elsewhere
(2)Unrealized value represents the fund’s NAV reduced by the accrued incentive allocation, if applicable. There can be no assurance that unrealized values will be realized at the valuations indicated.
Previous report — wording carried elsewhere
(3)The gross MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The gross MoIC is before giving effect to management fees, carried interest, as applicable, and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the gross fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
Previous report — wording carried elsewhere
(4)The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and, if applicable, excludes interests attributable to the non fee-paying limited partners and/or the general partner which does not pay management fees or carried interest. The net MoIC is after giving effect to management fees, carried interest, as applicable, credit facility interest expense, as applicable, and other expenses. The funds may utilize a credit facility during the investment period and for general cash management purposes. Early in the life of a fund, the net fund-level MoICs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
Previous report — wording carried elsewhere
(5)The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRR reflects returns to the fee-paying limited partners and, if applicable, excludes interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the gross IRR calculation are based on the actual dates of the cash flows. The gross IRRs are calculated before giving effect to management fees, carried interest and other expenses, but after giving effect to credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Gross fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
Previous report — wording carried elsewhere
(6)The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the fee-paying limited partners and, if applicable, exclude interests attributable to the non-fee paying limited partners and/or the general partner which does not pay management fees or carried interest. The cash flow dates used in the net IRR calculations are based on the actual dates of the cash flows. The net IRRs are calculated after giving effect to management fees and carried interest, other expenses and credit facility interest expenses, as applicable. The funds may utilize a credit facility during the investment period and for general cash management purposes. Net fund-level IRRs would generally have been lower had such fund called capital from its limited partners instead of utilizing the credit facility.
Previous report — wording carried elsewhere
The following table presents the components of and causes for changes in the Secondaries Group’s management fees for the three months ended March 31, 2026 compared to the prior year period ($ in millions):
Previous report — wording carried elsewhere
Contingencies” within our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.