Ares Management Corp

From time to time, we, our executive officers, directors and our funds and their investment advisers, and their respective affiliates and/or any of their respective principals and employees are subject to legal proceedings, including those arising from our management of such funds. Additionally, we and our funds and their investment advisers are also subject to extensive regulation, which, from time to time, results in requests for information from us or our funds and their investment advisers or legal or regulatory proceedings or investigations against us or our funds and their investment advisers, respectively. We incur significant costs and expenses in connection with any such proceedings, information requests and investigations.

On May 26, 2026, a derivative action was brought by Martin Siegel purportedly on behalf of Ares Capital Corporation (“ARCC”), as plaintiff, in the United States District Court for the Southern District of New York, alleging that Ares Capital Management LLC (“Ares Capital Management”), one of our indirect subsidiaries, received excessive advisory fees in violation of its statutory fiduciary duty under Section 36(b) of the Investment Company Act of 1940, as amended, (the “Siegel Action”). On October 27, 2026, the Siegel Action was consolidated with a derivative action originally brought on August 14, 2026 by Steven Simons purportedly on ARCC’s behalf, as plaintiff, asserting a similar claim based on similar allegations. The consolidated action seeks recovery of damages, including disgorgement of investment advisory fees paid to Ares Capital Management, injunctive relief, costs and rescission of the investment advisory and management agreement.

This litigation is in its preliminary stages. We dispute the allegations and intend to vigorously defend against them. The outcome of this matter is inherently uncertain, and we are unable to predict the ultimate outcome or estimate the amount or range of loss, if any, that may result from this matter.