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EQUITY AND REDEEMABLE INTEREST | 6 Months Ended
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Jun. 30, 2023
Stockholders' Equity Note [Abstract] |
EQUITY AND REDEEMABLE INTEREST | 12. EQUITY AND REDEEMABLE INTEREST Common Stock The Company’s common stock consists of Class A, Class B, Class C and non-voting common stock, each $0.01 par value per share. The non-voting common stock has the same economic rights as the Class A common stock. Sumitomo Mitsui Banking Corporation (“SMBC”) is the sole holder of the non-voting common stock. The Class B common stock and Class C common stock are non-economic and holders are not entitled to dividends from the Company or to receive any assets of the Company in the event of any dissolution, liquidation or winding up of the Company. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock. In February 2023, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $150 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2024. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the six months ended June 30, 2023 and 2022, the Company did not repurchase any shares as part of the stock repurchase program. The following table presents the changes in each class of common stock:
| Class A Common Stock |  | Non-Voting Common Stock |  | Class B Common Stock |  | Class C Common Stock |  | Total
Balance - December 31, 2022 | 173,892,036 |  |  | 3,489,911 |  |  | 1,000 |  |  | 117,231,288 |  |  | 294,614,235 |
Issuance of stock | 1,391,426 |  |  | — |  |  | — |  |  | — |  |  | 1,391,426 |
Issuance of AOG Units(1) | — |  |  | — |  |  | — |  |  | 3,473,026 |  |  | 3,473,026 |
Exchanges of AOG Units | 1,029,993 |  |  | — |  |  | — |  |  | (1,029,993) |  |  | — |
Stock option exercises, net of shares withheld for tax | 2,972,093 |  |  | — |  |  | — |  |  | — |  |  | 2,972,093 |
Vesting of restricted stock awards, net of shares withheld for tax | 1,946,260 |  |  | — |  |  | — |  |  | — |  |  | 1,946,260 |
Balance - June 30, 2023 | 181,231,808 |  |  | 3,489,911 |  |  | 1,000 |  |  | 119,674,321 |  |  | 304,397,040 |
(1) Represents issuance of AOG Units to the recipients of the management incentive program from the acquisition of Black Creek Group’s real estate investment advisory and distribution business (the “Black Creek Acquisition”), which relieved the associated liability following the maximum contingent payment being met as of December 31, 2022. Pursuant to an agreement with the recipients of the Black Creek Acquisition management incentive program, a portion of such AOG Units were issued in lieu of cash consideration which was payable pursuant to the Black Creek Acquisition management incentive program. Issuances of Class C Common stock corresponds with increases in Ares Owners Holdings L.P.’s ownership interest in the AOG entities. The following table presents each partner’s AOG Units and corresponding ownership interest in each of the Ares Operating Group entities, as well as its daily average ownership of AOG Units in each of the Ares Operating Group entities:
|  |  |  |  |  |  |  |  |  | Daily Average Ownership
|  | As of June 30, 2023 |  | As of December 31, 2022 |  | Three months ended June 30, |  | Six months ended June 30,
|  | AOG Units |  | Direct Ownership Interest |  | AOG Units |  | Direct Ownership Interest |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |
Ares Management Corporation |  | 184,721,719 |  |  | 60.68 | % |  | 177,381,947 |  |  | 60.21 | % |  | 60.37 | % |  | 59.66 | % |  | 60.25 | % |  | 59.58 | % |  |  |
Ares Owners Holdings, L.P. |  | 119,674,321 |  |  | 39.32 |  |  | 117,231,288 |  |  | 39.79 |  |  | 39.63 |  |  | 40.34 |  |  | 39.75 |  |  | 40.42 |  |  |  |
Total |  | 304,396,040 |  |  | 100.00 | % |  | 294,613,235 |  |  | 100.00 | % |  |  |  |  |  |  |  |  |  |  |
Redeemable Interest The following table summarizes the activities associated with the redeemable interest in Ares Operating Group entities:
| Total
Balance - December 31, 2021 | $ | 96,008 |
Changes in ownership interests and related tax benefits | 231 |
Net income | 399 |
Currency translation adjustment, net of tax | (331) |
Equity compensation | 48 |
Distributions | (8) |
Balance - March 31, 2022 | 96,347 |
Changes in ownership interests and related tax benefits | (1,445) |
Net loss | (457) |
Currency translation adjustment, net of tax | (996) |
Equity compensation | 77 |
Distributions | (8) |
Balance - June 30, 2022 | 93,518 |
Changes in ownership interests and related tax benefits | 1,214 |
Net income | 93 |
Currency translation adjustment, net of tax | (933) |
Equity compensation | 77 |
Distributions | (1,861) |
Balance - September 30, 2022 | 92,108 |
Net loss | (886) |
Currency translation adjustment, net of tax | 1,834 |
Equity compensation | 83 |
Distribution | (10) |
Balance - December 31, 2022 | 93,129 |
Changes in ownership interests and related tax benefits | (66,506) |
Net loss | (1,824) |
Currency translation adjustment, net of tax | (148) |
Equity compensation | 174 |
Distributions | (2,883) |
Balance - March 31, 2023 | 21,942 |
Net income | 734 |
Currency translation adjustment, net of tax | (159) |
Balance- June 30, 2023 | $ | 22,517 |
The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:
| Total
Balance - December 31, 2021 | $ | 1,000,000 |
Change in redemption value | — |
Balance - March 31, 2022 | 1,000,000 |
Change in redemption value | — |
Balance - June 30, 2022 | 1,000,000 |
Change in redemption value | 4,994 |
Balance - September 30, 2022 | 1,004,994 |
Change in redemption value | 8,288 |
Balance - December 31, 2022 | 1,013,282 |
Change in redemption value | 10,504 |
Redemption | (538,985) |
Balance - March 31, 2023 | 484,801 |
Gross proceeds from the initial public offering of AAC II | 500,000 |
Change in redemption value | 15,948 |
Balance - June 30, 2023 | $ | 1,000,749 |

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