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DEBT (Tables) | 3 Months Ended
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Mar. 31, 2025
Debt Disclosure [Abstract] |
Schedule of Borrowings Outstanding | The following table summarizes the Company’s and its subsidiaries’ debt obligations:
|  |  |  |  |  |  | As of March 31, 2025 |  | As of December 31, 2024
| Debt Origination Date |  | Maturity |  | Original Borrowing Amount |  | Carrying Value |  | Interest Rate |  | Carrying Value |  | Interest Rate
Credit Facility(1) | Revolving |  | 3/31/2029 |  | N/A |  | $ | 985,000 |  |  | 5.37% |  | $ | — |  |  | —%
2028 Senior Notes(2) | 11/10/2023 |  | 11/10/2028 |  | 500,000 |  |  | 495,952 |  |  | 6.42 |  | 495,677 |  |  | 6.42
2030 Senior Notes(3) | 6/15/2020 |  | 6/15/2030 |  | 400,000 |  |  | 397,614 |  |  | 3.28 |  | 397,501 |  |  | 3.28
2052 Senior Notes(4) | 1/21/2022 |  | 2/1/2052 |  | 500,000 |  |  | 484,702 |  |  | 3.77 |  | 484,601 |  |  | 3.77
2054 Senior Notes(5) | 10/11/2024 |  | 10/11/2054 |  | 750,000 |  |  | 736,087 |  |  | 5.65 |  | 736,010 |  |  | 5.65
2051 Subordinated Notes(6) | 6/30/2021 |  | 6/30/2051 |  | 450,000 |  |  | 445,172 |  |  | 4.13 |  | 445,125 |  |  | 4.13
Total debt obligations |  |  |  |  |  |  | $ | 3,544,527 |  |  |  |  | $ | 2,558,914 |  |  |
(1)As of March 31, 2025, the revolver commitments were $1.400 billion, with an accordion feature of $600.0 million. The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.10%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero. Due to the achievement of the certain targets, the Company’s applicable margin and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through April 2025. In April 2025, the Company amended its Credit Facility to, among other things: (i) extend the maturity to April 22, 2030; (ii) increase commitments to $1.840 billion, with an accordion feature of $660.0 million; and (iii) provide a sub-limit for the issuance of swingline loans up to an aggregate amount of $75.0 million (with the amount available for borrowing under the Credit Facility amendment being reduced by any swingline loans issued). As of May 12, 2025, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.09% per annum. (2)The 2028 Senior Notes were issued in November 2023 by the Company at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the 2028 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2028 Senior Notes. (3)The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Senior Notes. (4)The 2052 Senior Notes were issued in January 2022 by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the 2052 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2052 Senior Notes. (5)The 2054 Senior Notes were issued in October 2024 by the Company at 99.24% of the face amount with interest paid semi-annually. The Company may redeem the 2054 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2054 Senior Notes. (6)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. Beginning June 30, 2026, the interest rate will reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the 2051 Subordinated Notes prior to maturity or defer interest payments up to five consecutive years, subject to the terms of the indenture governing the 2051 Subordinated Notes. The following table presents the activity of the Company’s debt issuance costs:
| Credit Facility |  | Senior Notes |  | Subordinated Notes |  |  |  |
Unamortized debt issuance costs as of December 31, 2024 | $ | 4,858 |  |  | $ | 18,725 |  |  | $ | 4,875 |  |  |  |  |
Debt issuance costs incurred | — |  |  | 11 |  |  | — |  |  |  |  |
Amortization of debt issuance costs | (286) |  |  | (436) |  |  | (46) |  |  |  |  |
Unamortized debt issuance costs as of March 31, 2025 | $ | 4,572 |  |  | $ | 18,300 |  |  | $ | 4,829 |  |  |  |  |
The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:
|  |  | As of March 31, 2025 |  |  | As of December 31, 2024
|  |  | Fair Value of Loan Obligations |  | Weighted Average Interest Rate |  | Weighted Average Remaining Maturity (in years) |  |  | Fair Value of Loan Obligations |  | Weighted Average Interest Rate |  | Weighted Average Remaining Maturity (in years)
Senior secured notes |  |  | $ | 7,806,027 |  |  | 5.77% |  | 8.0 |  |  | $ | 8,937,972 |  |  | 6.08% |  | 8.0
Subordinated notes(1) |  |  | 715,975 |  |  | N/A |  | 5.2 |  |  | 734,217 |  |  | N/A |  | 5.6
Total loan obligations of Consolidated CLOs |  |  | $ | 8,522,002 |  |  |  |  |  |  |  | $ | 9,672,189 |  |  |  |  |
(1)The notes do not have contractual interest rates; instead, holders of the notes receive a variable rate of interest amounting to the excess cash flows generated by each Consolidated CLO. The Consolidated Funds had the following revolving bank credit facilities outstanding:
|  |  |  |  |  | As of March 31, 2025 |  | As of December 31, 2024 |
|  | Maturity Date |  | Total Capacity |  | Outstanding Loan(1) |  | Effective Rate |  | Outstanding Loan(1) |  | Effective Rate |
Credit Facilities: |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 9/25/2025 |  | $ | 150,000 |  |  | $ | 121,000 |  |  | 8.00% |  | $ | 121,000 |  |  | 8.00% |
|  | 1/28/2026 |  | 100,000 |  |  | 81,300 |  |  | 6.51 |  | N/A |  | N/A |
|  | 9/24/2026 |  | 150,000 |  |  | — |  |  | N/A |  | — |  |  | N/A |
|  | 6/26/2027 |  | 200,000 |  |  | 200,000 |  |  | 7.15 |  | 154,000 |  |  | 7.15 |
|  | 9/12/2027 |  | 54,000 |  |  | — |  |  | N/A |  | — |  |  | N/A |
|  | 6/23/2032 |  | 201,007 |  |  | 201,007 |  |  | 7.23 |  | N/A |  | N/A |
Total borrowings of Consolidated Funds |  |  |  |  |  | $ | 603,307 |  |  |  |  | $ | 275,000 |  |  |  |
(1)The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.

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- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
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