GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

3. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:




	Weighted Average Amortization Period (in years) as of March 31, 2023	As of March 31, 2023		As of December 31, 2022
Management contracts	4.8	$	580,692	$	586,077
Client relationships	9.4	262,301		262,301
Trade name	0.0	—		11,079
Other	1.6	500		500
Finite-lived intangible assets		843,493		859,957
Foreign currency translation		461		935
Total finite-lived intangible assets		843,954		860,892
Less: accumulated amortization		(245,147)		(220,472)
Finite-lived intangible assets, net		598,807		640,420
Management contracts		567,800		567,800

Indefinite-lived intangible assets		567,800		567,800
Intangible assets, net		$	1,166,607	$	1,208,220

During the three months ended March 31, 2023, the Company rebranded Ares SSG as Asia credit and discontinued the use of the SSG trade name. As a result, the Company recorded a non-cash impairment charge equal to the SSG trade name’s carrying value of $7.8 million to accelerate the amortization expense for the three months ended March 31, 2023.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $33.6 million and $33.2 million for the three months ended March 31, 2023 and 2022, respectively, and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the first quarter of 2023, the Company removed $16.5 million of impaired and fully-amortized intangible assets.

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:


	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total




Balance as of December 31, 2022	$	32,196	$	48,070	$	277,183	$	417,620	$	224,587	$	999,656
Acquisitions	—		—		22		—		—		22
Reallocation	224,587		—		—		—		(224,587)		—
Foreign currency translation	(744)		—		—		3		—		(741)
Balance as of March 31, 2023	$	256,039	$	48,070	$	277,205	$	417,623	$	—	$	998,937

In connection with the SSG Buyout described in “Note 2. Summary of Significant Accounting Policies,” the former Ares SSG reporting unit has been transferred in its entirety to the Credit Group and the total goodwill of $224.6 million has been reallocated accordingly.

There was no impairment of goodwill recorded during the three months ended March 31, 2023 and 2022. The impact of foreign currency translation is reflected within other comprehensive income within the Condensed Consolidated Statements of Comprehensive Income.