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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2024
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, 2024 |  | As of December 31,
|  | 2024 |  | 2023
Management contracts | 4.0 |  | $ | 590,675 |  |  | $ | 604,242 |
Client relationships | 7.7 |  | 210,720 |  |  | 200,920 |
Other | 0.0 |  | 500 |  |  | 500 |
Finite-lived intangible assets |  |  | 801,895 |  |  | 805,662 |
Foreign currency translation |  |  | (789) |  |  | 1,126 |
Total finite-lived intangible assets |  |  | 801,106 |  |  | 806,788 |
Less: accumulated amortization |  |  | (393,078) |  |  | (316,093) |
Finite-lived intangible assets, net |  |  | 408,028 |  |  | 490,695 |
Indefinite-lived management contracts |  |  | 567,800 |  |  | 567,800 |
Intangible assets, net |  |  | $ | 975,828 |  |  | $ | 1,058,495 |
On December 1, 2024, a subsidiary of the Company completed the acquisition of all the equity interests in Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates (“WSM”) (the “WSM Acquisition”). WSM is a real estate asset management platform focused primarily on the industrial real estate sector in Mexico. The results of WSM are presented within the Real Assets Group. The Company allocated $27.0 million and $9.8 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 6.7 years and 10.0 years, respectively. During the year ended December 31, 2024, the Company recorded a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group. The primary indicator of impairment was the lower than expected future fee revenue generated from these funds. During the year ended December 31, 2023, the Company recorded a non-cash impairment charge of $78.7 million primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”). The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition. During the year ended December 31, 2022, the Company recorded non-cash impairment charges of $181.6 million related to rebranding of its secondaries group as Ares Secondaries and discontinued the ongoing use of the Landmark trade name, and fair value of management contracts in connection with lower than expected fee paying assets under management. Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $116.3 million, $126.0 million and $133.6 million for the years ended December 31, 2024, 2023 and 2022, respectively, and has been presented within general, administrative and other expenses within in the Consolidated Statements of Operations. During the year ended December 31, 2024, the Company removed $47.5 million of fully-amortized management contracts. As of December 31, 2024, future annual amortization of finite-lived intangible assets for the years 2025 through 2029 and thereafter is estimated to be:
Year | Amortization
2025 | $ | 107,317 |
2026 | 81,538 |
2027 | 70,153 |
2028 | 46,236 |
2029 | 39,859 |
Thereafter | 62,925 |
Total | $ | 408,028 |
Goodwill The following table summarizes the carrying value of the Company’s goodwill:
| Credit Group |  | Real Assets Group |  | Private Equity Group |  | Secondaries Group |  | Other |  | Total
Balance as of December 31, 2022 | $ | 32,196 |  |  | $ | 277,183 |  |  | $ | 48,070 |  |  | $ | 417,620 |  |  | $ | 224,587 |  |  | $ | 999,656 |
Acquisitions | — |  |  | 22 |  |  | 124,392 |  |  | — |  |  | — |  |  | 124,414 |
Reallocation | 224,587 |  |  | — |  |  | — |  |  | — |  |  | (224,587) |  |  | — |
Foreign currency translation | (104) |  |  | — |  |  | — |  |  | 10 |  |  | — |  |  | (94) |
Balance as of December 31, 2023 | 256,679 |  |  | 277,205 |  |  | 172,462 |  |  | 417,630 |  |  | — |  |  | 1,123,976 |
Acquisitions | — |  |  | 35,091 |  |  | 4,605 |  |  | — |  |  | — |  |  | 39,696 |
Reallocation | 55,658 |  |  | — |  |  | (55,658) |  |  | — |  |  | — |  |  | — |
Foreign currency translation | (305) |  |  | (727) |  |  | (1) |  |  | (3) |  |  | — |  |  | (1,036) |
Balance as of December 31, 2024 | $ | 312,032 |  |  | $ | 311,569 |  |  | $ | 121,408 |  |  | $ | 417,627 |  |  | $ | — |  |  | $ | 1,162,636 |
In connection with the WSM Acquisition, the Company allocated $28.4 million of the purchase price to goodwill. In connection with the segment reorganization of the former special opportunities strategy as described in “Note 14. Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach in the first quarter of 2024. In connection with the acquisition of the investment management business and related operating entities collectively doing business as Crescent Point Capital (“Crescent Point”) (the “Crescent Point Acquisition”) in the fourth quarter of 2023, the Company allocated $124.4 million of the purchase price to goodwill. In connection with the SSG Buyout in the first quarter of 2023 as 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, 2024 and 2023. The impact of foreign currency translation adjustments are reflected within the Consolidated Statements of Comprehensive Income.

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