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EQUITY AND REDEEMABLE INTEREST | 9 Months Ended
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Sep. 30, 2024
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. 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. In January 2024, 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 2025. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the nine months ended September 30, 2024 and 2023, the Company did not repurchase any shares as part of the stock repurchase program. The Company entered into an underwriting agreement pursuant to which the Company agreed to issue and sell 2,650,000 shares of Class A common stock in June 2024 and an additional 397,500 shares of Class A common stock following the subsequent exercise of the underwriters’ 30-day option to purchase additional shares in July 2024 (the “Offering”). The Offering resulted in net proceeds of approximately $407.2 million (after deducting underwriting discounts and offering expenses). 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 as of December 31, 2023 | 187,069,907 |  |  | 3,489,911 |  |  | 1,000 |  |  | 117,024,758 |  |  | 307,585,576 |
Issuances of common stock(1) | 3,047,500 |  |  | — |  |  | — |  |  | 63,179 |  |  | 3,110,679 |
Exchanges of common stock | 5,912,781 |  |  | — |  |  | — |  |  | (5,912,781) |  |  | — |
Stock option exercises | 79,524 |  |  | — |  |  | — |  |  | — |  |  | 79,524 |
Vesting of restricted stock awards, net of shares withheld for tax | 2,224,962 |  |  | — |  |  | — |  |  | — |  |  | 2,224,962 |
Balance as of September 30, 2024 | 198,334,674 |  |  | 3,489,911 |  |  | 1,000 |  |  | 111,175,156 |  |  | 313,000,741 |
(1) 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 Ares Operating Group Units (“AOG Units”) and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities:
|  |  |  |  |  |  |  |  |  | Daily Average Ownership
|  | As of September 30, 2024 |  | As of December 31, 2023 |  | Three months ended September 30, |  | Nine months ended September 30,
|  | AOG Units |  | Direct Ownership Interest |  | AOG Units |  | Direct Ownership Interest |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  |
Ares Management Corporation |  | 201,824,585 |  |  | 64.48 | % |  | 190,559,818 |  |  | 61.95 | % |  | 64.14 | % |  | 61.03 | % |  | 63.23 | % |  | 60.52 | % |  |
Ares Owners Holdings, L.P. |  | 111,175,156 |  |  | 35.52 |  |  | 117,024,758 |  |  | 38.05 |  |  | 35.86 |  |  | 38.97 |  |  | 36.77 |  |  | 39.48 |  |  |
Total |  | 312,999,741 |  |  | 100.00 | % |  | 307,584,576 |  |  | 100.00 | % |  |  |  |  |  |  |  |  |  |
Redeemable Interest The following table summarizes the activities associated with the redeemable interest in AOG entities:
| Total
Balance as of 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 as of March 31, 2023 | 21,942 |
Net income | 734 |
Currency translation adjustment, net of tax | (159) |
Balance as of June 30, 2023 | 22,517 |
Net income | 758 |
Currency translation adjustment, net of tax | (99) |
Balance as of September 30, 2023 | 23,176 |
Net income | 558 |
Currency translation adjustment, net of tax | 364 |
Balance as of December 31, 2023 | 24,098 |
Net income | 73 |
Currency translation adjustment, net of tax | (257) |
Distributions | (302) |
Balance as of March 31, 2024 | 23,612 |
Net loss | (387) |
Currency translation adjustment, net of tax | (47) |
Balance as of June 30, 2024 | 23,178 |
Net income | 1,319 |
Currency translation adjustment, net of tax | 614 |
Balance as of September 30, 2024 | $ | 25,111 |
The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:
| Total
Balance as of December 31, 2022 | $ | 1,013,282 |
Change in redemption value | 10,504 |
Redemptions from Class A ordinary shares of Ares Acquisition Corporation (formerly NYSE: AAC) (“AAC I”) | (538,985) |
Balance as of March 31, 2023 | 484,801 |
Gross proceeds from the initial public offering of Ares Acquisition Corporation II (NYSE: AACT) (“AAC II”) | 500,000 |
Change in redemption value | 15,948 |
Balance as of June 30, 2023 | 1,000,749 |
Change in redemption value | 16,571 |
Redemptions from Class A ordinary shares of AAC I | (14,733) |
Balance as of September 30, 2023 | 1,002,587 |
Change in redemption value | 12,507 |
Redemptions from Class A ordinary shares of AAC I | (492,156) |
Balance as of December 31, 2023 | 522,938 |
Change in redemption value | 6,849 |
Balance as of March 31, 2024 | 529,787 |
Change in redemption value | 6,959 |
Balance as of June 30, 2024 | 536,746 |
Change in redemption value | 7,408 |
Balance as of September 30, 2024 | $ | 544,154 |
As of September 30, 2024 and December 31, 2023, 50,000,000 of AAC II Class A ordinary shares are presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition.

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