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, 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”).

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, 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, including the impact of the upcoming U.S. midterm elections, may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).

Previous wording

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 wording

During the third quarter of 2026, global markets continued to experience volatility amid renewed geopolitical tension in the Middle East and evolving expectations regarding U.S. trade policies, elevated energy prices and continued inflationary pressures. Despite these headwinds, U.S. leveraged loan markets generated positive performance benefiting from higher floating rates while U.S. and international equity markets proved resilient, supported by robust second quarter corporate earnings growth.

Previous wording

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 wording

Despite uncertainty stemming from rising global interest rates and ongoing geopolitical developments, global commercial real estate fundamentals continued to improve during the third quarter of 2026 as net absorption strengthened and new supply remained limited. Although higher interest rates weighed on capital markets activity and transaction volumes and contributed to weaker performance across global REIT markets during the quarter, we do not believe this performance reflects a deterioration in our portfolio’s underlying fundamentals. Rather, we expect constrained new supply to continue providing a meaningful tailwind across sectors and geographies for commercial real estate markets. In addition, renewable energy deployment also remained at a meaningful scale, supported by stable demand for clean energy and a strong development pipeline. Demand for digital infrastructure remained strong, driven by continued data center development and growing demand from artificial intelligence based companies. While performance varies by sector and geography, we believe strong underlying demand trends and continued investment activity across the sector will provide meaningful opportunities for infrastructure investment in coming periods.

Previous 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.

Current wording

We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 81% of our debt assets and 51% of our total assets were floating rate instruments as of September 30, 2026.

Previous 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.

Current wording

(1)Includes $99.9 billion and $87.8 billion from funds that primarily invest in illiquid strategies as of September 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 June 30, 2026 and 2025, 94% and 91%, 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, 2026 and 2025, 93% and 94%, respectively, of management fees were earned from perpetual capital or long-dated funds.

Previous 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.

Current wording

As of September 30, 2026, AUM not yet paying fees includes $93.8 billion of AUM available for future deployment and $2.3 billion of development assets not yet stabilized that could collectively generate approximately $826.9 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

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.

Current wording

As of September 30, 2026 and 2025, IGAUM included $79.8 billion and $58.3 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 September 30, 2026, perpetual capital IGAUM that could potentially result in crystallized fee related performance revenues totaled $46.7 billion, composed of $25.5 billion within the Credit Group and $21.2 billion within the Real Assets Group. 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.

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 4% of our AUM as of June 30, 2026 and 4% of total revenues for the six months ended June 30, 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.

Previous wording

The activity of the Consolidated Funds is reflected within the unaudited condensed consolidated financial statement line items indicated by reference thereto. The impact of consolidation also typically will decrease revenues reported under GAAP to the extent these amounts are eliminated upon consolidation.

Current wording

The activity of the Consolidated Funds is reflected within the unaudited condensed consolidated financial statement line items indicated by reference thereto. Consolidated Funds represented approximately 4% of our AUM as of September 30, 2026. We have eliminated approximately 5% of total revenues that we earned from Consolidated Funds upon consolidation.

Previous wording

The assets and liabilities of our Consolidated Funds are held within separate legal entities and, as a result, the liabilities of our Consolidated Funds are typically non-recourse to us. Generally, the consolidation of our Consolidated Funds has a significant gross-up effect on our assets, liabilities and cash flows but has no net effect on the net income attributable to us or our stockholders’ equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. The net economic ownership interests of our Consolidated Funds, to which we have no economic rights, are reflected as redeemable and non-controlling interests in the Consolidated Funds within our unaudited condensed consolidated financial statements.

Current wording

The assets and liabilities of our Consolidated Funds are held within separate legal entities and, as a result, the liabilities of our Consolidated Funds are typically non-recourse to us. Generally, the consolidation of our Consolidated Funds has a significant gross-up effect on our assets, liabilities and cash flows but has no net effect on the net income attributable to us or our stockholders’ equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. The net economic ownership interests of our Consolidated Funds, to which we have no economic rights, are reflected as redeemable and non-controlling interests in the Consolidated Funds within our unaudited condensed consolidated financial statements. See “Note 12. Equity and Redeemable Interest” within our unaudited condensed consolidated financial statements for a further description of our redeemable interest in Consolidated Funds.

Previous wording

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 wording

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 seven months of results during the nine months ended September 30, 2025, our year-over-year analysis of the nine months ended September 30, 2026 will lack comparability.

Previous 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.

Current wording

Management Fees. Within the Credit Group, capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing$28.2 million and $84.7 millionof the increase in management fees for thethree and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. In addition, our publicly-traded and our perpetual wealth funds contributed$15.9 million and $82.8 million of the increases in management feesfor thethree and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily driven by increases in FPAUM associated with fundraising. Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition contributed $31.4 million of the increase in management fees for the nine months ended September 30, 2026 compared to the same period in 2025, primarily driven by fees generated for two additional months in the current year period.

Previous 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.

Current wording

In addition, Part I Fees increased by $29.2 million and $84.3 million for thethree and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increases in Part I Fees were primarily attributable to our open-ended core infrastructure fund, ASIF and to our open-ended European direct lending fund, driven by increases in net investment income from their growing portfolios of investments.

Previous wording

Carried Interest Allocation. The following table sets forth carried interest allocation by segment ($ in millions):

Current wording

Carried Interest Allocation. The following table sets forth the change in carried interest allocation by segment ($ in millions):

Previous 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.”

Current wording

The decrease in incentive fees for the three months ended September 30, 2026 compared to the same period in 2025 was primarily due to (i) lower recognition of fees earned from APMF; and (ii) incentive fees from an alternative credit fund that crystallized in connection with a loan repayment in the prior year period. The increase in incentive fees for the nine months ended September 30, 2026 compared to the same period in 2025 was driven by $138.5 million of fees 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 and six months ended June 30, 2026 was primarily attributable to:

Current wording

Principal Investment Income. The activity for the three and nine months ended September 30, 2026 was primarily attributable to:

Previous wording

•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 wording

•Dividend income of $7.6 million and $18.0 million, respectively, primarily generated from our investments in various real estate debt funds and from our Japanese open-ended industrial real estate fund that pays dividends semi-annually, as well as various U.S. direct lending and real estate secondaries funds for the nine months ended September 30, 2026. 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 no longer presented within principal investment income, instead it is presented as net realized and unrealized gains on investments of Consolidated Funds within our Condensed Consolidated Statements of Operations.

Previous 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

Current wording

•Unrealized gains of $12.2 million and $17.4 million, respectively, from our investments in various digital infrastructure, Japanese real estate equity and private equity secondaries funds, partially offset by unrealized losses of $14.6 million from our investments in certain U.S. real estate equity funds for the nine months ended September 30, 2026.

Previous 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

Current wording

•Dividend income of $7.9 million and $24.4 million, respectively, primarily generated from our investments in various funds within our real estate debt strategy.

Previous 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

Current wording

•The activity for the nine months ended September 30, 2025 also included 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.

Previous 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.

Current wording

Administrative, Transaction and Other Fees. The increases for the three and nine months ended September 30, 2026 compared to the same periods in 2025 were driven by: (i) $7.9 million and $20.8 million, respectively, of higher property-related fees, mostly from 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; and (ii) $7.4 million and $27.1 million, respectively, of additional administrative service fees earned from new and existing private funds within our Credit Group, from our perpetual wealth funds and from funds acquired in the GCP Acquisition.

Previous 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):

Current wording

Compensation and Benefits. The following table presents the components of change in compensation and benefits for the three and nine months ended September 30, 2026 compared to the same periods in 2025 ($ in millions):

Previous 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.

Current wording

The increases in cash-based compensation and benefits reflected the continued growth in salary and benefits for our increased headcount. The nine months ended September 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. Full-time equivalent headcount increased by 13% to 4,393 professionals for the year-to-date period in 2026 from 3,891 professionals in 2025.

Previous 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.

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 $8.7 million and $7.0 million for the three months ended September 30, 2026 and 2025, respectively, and $21.9 million and $16.7 million for the nine months ended September 30, 2026 and 2025, respectively, to reclaim a portion of the supplemental distribution fees we paid.

Previous 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.

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.

Previous wording

Contingencies” within our unaudited condensed consolidated financial statements for a further description of these contingent earnout arrangements.

Current wording

In connection with the GCP Acquisition, we agreed to pay sellers and employees different forms of consideration. A portion of the consideration represented purchase price that was accounted for as compensation and included both cash and equity. Additionally, we committed to paying certain employees for services to be performed over the initial 12 months following the transaction close date. Acquisition-related compensation expense and acquisition-related equity compensation expense decreased for the nine months ended September 30, 2026 compared to the same period in 2025 primarily due to (i) equity-based compensation expense of $108.8 million from awards issued that included a portion that immediately vested in the first quarter of 2025; and (ii) retention related payments to certain employees of $47.2 million that were settled in cash within the first year of the acquisition. Conversely, acquisition-related compensation expense recorded in connection with contingent earnout arrangements increased when compared to the prior year periods. See “Note 7. Commitments and Contingencies” within our unaudited condensed consolidated financial statements for a further description of these contingent earnout arrangements.

Previous wording

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 wording

General, Administrative and Other Expenses. The increases ingeneral, administrative and other expenses for the three and nine months ended September 30, 2026 compared to the same periods in 2025 reflect growing headcount and fundraising activities andwere driven by: (i) higher marketing costs of $5.5 million and $22.6 million, respectively, associated with program sponsorships and fund formation costs, as well as costs incurred during the second quarter of 2026 for our firmwide annual general meeting with limited partners (“AGM”); (ii) information technology of $9.2 million and $19.6 million, respectively, driven by data architecture and software and our growing headcount; and (iii) occupancy costs of $4.1 million and $9.2 million, respectively, to support our growing business, including the expansion of our New York headquarters.

Previous wording

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 wording

In addition, the increase in general, administrative and other expenses for the nine months ended September 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.

Previous 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.

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 $38.8 million for the nine months ended September 30, 2026 compared to the same period in 2025. We incurred $35.3 million during thenine months ended September 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 and six months ended June 30, 2026 was primarily attributable to:

Current wording

Net Realized and Unrealized Gains (Losses) on Investments; Interest and Dividend Income. The activity for the three and nine months ended September 30, 2026 was primarily attributable to:

Previous 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

Current wording

•Unrealized losses of $113.7 million and $3.8 million, respectively, from our investments in X‑Energy, Inc. (Nasdaq: XE), and unrealized losses of $22.5 million and $60.7 million, respectively, from our investments in KDK.

Previous wording

•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 wording

•Net gains of $12.0 million for the nine months ended September 30, 2026 from the settlement of foreign currency hedges during the second quarter of 2026, primarily related to capital interests we hold in Japanese real estate equity funds.

Previous 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.

Current wording

•Interest and dividend income primarily included: (i) dividend income of $2.0 million and $6.0 million, respectively, from our strategic investment in a Brazilian alternative asset manager; (ii) dividend income of $2.0 million and $3.9 million, respectively, from J-REIT, which pays dividends semi-annually; and (iii) income of $1.0 million and $3.6 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 no longer presented within interest and dividend income, instead it is presented as net realized and unrealized gains on investments and as interest and other income of Consolidated Funds within our Condensed Consolidated Statements of Operations.

Previous 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.

Current wording

•Interest and dividend income primarily included: (i) dividend income of $2.0 million and $6.0 million, respectively, from our strategic investment in a Brazilian alternative asset manager; (ii) income of $1.4 million and $5.5 million, respectively, from our investments in CLOs and CLO-based investments; and (iii) the first semi-annual dividend of $2.1 million from J-REIT. The nine months ended September 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 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.

Current wording

Interest Expense. Interest expense increased for the three and nine months ended September 30, 2026 compared to the same periods in 2025 due to (i) higher interest expense from our Credit Facility from higher average outstanding balance; (ii) interest expense from the Term Loan that was executed in March 2026; and (iii) higher interest expense from the subordinated notes resulting from an interest rate reset.

Previous 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.

Current wording

Other expense, net during the nine months ended September 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 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.

Current wording

The decreases in income tax expense were primarily attributable to lower pre-tax income allocable to AMC, partially offset by higher entity level taxes in foreign and local jurisdictions, and contributed to an overall decrease to the effective tax rate for the three and nine months ended September 30, 2026 compared to the same periods in 2025.

Previous 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):

Current wording

The following table presents the components of and causes for changes in the Credit Group’s management fees for the three and nine months ended September 30, 2026 compared to the prior year period ($ in millions):

Previous 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%.

Current wording

The decreases in effective management fee rates for the three and nine months ended September 30, 2026 compared to the same periods in 2025 were primarily attributable to increases in FPAUM from our liquid credit and alternative credit strategies, which have effective management fee rates lower than the average effective management fee rate of funds within the Credit Group.