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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 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 December 31, 2023 |  | As of December 31,
|  | 2023 |  | 2022
Management contracts | 4.3 |  | $ | 604,242 |  |  | $ | 586,077 |
Client relationships | 8.5 |  | 200,920 |  |  | 262,301 |
Trade name | N/A |  | — |  |  | 11,079 |
Other | 0.8 |  | 500 |  |  | 500 |
Finite-lived intangible assets |  |  | 805,662 |  |  | 859,957 |
Foreign currency translation |  |  | 1,126 |  |  | 935 |
Total finite-lived intangible assets |  |  | 806,788 |  |  | 860,892 |
Less: accumulated amortization |  |  | (316,093) |  |  | (220,472) |
Finite-lived intangible assets, net |  |  | 490,695 |  |  | 640,420 |
Indefinite-lived management contracts |  |  | 567,800 |  |  | 567,800 |
Intangible assets, net |  |  | $ | 1,058,495 |  |  | $ | 1,208,220 |
On October 2, 2023, the Company completed the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”). The Crescent Point Acquisition adds complementary investment capabilities to expand the Company’s presence in the Asia-Pacific region. Following the completion of the Crescent Point Acquisition, the results of Crescent Point are presented within the Private Equity Group. The Company allocated $32.7 million and $22.3 million of the purchase price to the fair value of the acquired management contracts and client relationships, respectively. The acquired management contracts and client relationships had a weighted average amortization period from the date of acquisition of 5.5 years and 9.0 years, respectively. During the year ended December 31, 2023, the Company recorded non-cash impairment charges of $78.7 million, including: (i) $65.7 million to the carrying value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”) that are included within the Secondaries Group, where the primary indicator of impairment was the lower expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition; (ii) $4.6 million and $0.7 million to the fair value of management contracts of certain funds within the Real Assets Group and Credit Group, respectively, in connection with lower than expected future fee revenue generated from these funds; and (iii) $7.8 million to the carrying value of SSG trade name as the Company rebranded Ares SSG as APAC credit and discontinued the use of the SSG trade name. During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $181.6 million to the fair value of a trade name and management contracts related to: (i) the decision to rebrand its secondaries group as Ares Secondaries and to discontinue the ongoing use of the Landmark trade name; (ii) the fair value of certain management contracts in connection with lower than expected fee paying assets under management; and (iii) the shorter expected lives of certain funds as a result of returning capital to fund investors sooner than initially planned. Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $126.0 million, $133.6 million and $91.3 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is presented within general, administrative and other expenses within the Consolidated Statements of Operations. During the year ended December 31, 2023, the Company removed $109.3 million of impaired and fully-amortized intangible assets. As of December 31, 2023, future annual amortization of finite-lived intangible assets for the years 2024 through 2028 and thereafter is estimated to be:
Year | Amortization
2024 | $ | 115,722 |
2025 | 102,987 |
2026 | 77,047 |
2027 | 62,907 |
2028 | 38,904 |
Thereafter | 93,128 |
Total | $ | 490,695 |
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, 2021 | $ | 32,196 |  |  | $ | 58,600 |  |  | $ | 53,339 |  |  | $ | 417,738 |  |  | $ | 226,099 |  |  | $ | 787,972 |
Acquisitions | — |  |  | — |  |  | 213,314 |  |  | (96) |  |  | — |  |  | 213,218 |
Reallocation | — |  |  | (10,530) |  |  | 10,530 |  |  | — |  |  | — |  |  | — |
Foreign currency translation | — |  |  | — |  |  | — |  |  | (22) |  |  | (1,512) |  |  | (1,534) |
Balance as of December 31, 2022 | 32,196 |  |  | 48,070 |  |  | 277,183 |  |  | 417,620 |  |  | 224,587 |  |  | 999,656 |
Acquisitions | — |  |  | 124,392 |  |  | 22 |  |  | — |  |  | — |  |  | 124,414 |
Reallocation | 224,587 |  |  | — |  |  | — |  |  | — |  |  | (224,587) |  |  | — |
Foreign currency translation | (104) |  |  | — |  |  | — |  |  | 10 |  |  | — |  |  | (94) |
Balance as of December 31, 2023 | $ | 256,679 |  |  | $ | 172,462 |  |  | $ | 277,205 |  |  | $ | 417,630 |  |  | $ | — |  |  | $ | 1,123,976 |
In connection with the Crescent Point Acquisition, the Company allocated $124.4 million of the purchase price to goodwill. In connection with the SSG Buyout described in “Note 13. Equity and Redeemable Interest,” 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 years ended December 31, 2023 and 2022. The impact of foreign currency translation is reflected within other comprehensive income within the Consolidated Statements of Comprehensive Income.

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