XML 81 R39.htm IDEA: XBRL DOCUMENT v3.25.1

SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Financial Results for Company's Operating Segments and OMG

The following tables present the financial results for the Company’s operating segments, as well as the OMG:

			Three months ended March 31, 2025
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	585,396					$	130,453					$	31,998					$	57,650					$	12,879					$	818,376					$	—					$	818,376
Fee related performance revenues			18,395						—						—						9,656						—						28,051						—						28,051
Other fees			10,598						21,380						397						122						136						32,633						5,537						38,170
Compensation and benefits			(164,747)						(56,702)						(13,831)						(18,371)						(7,063)						(260,714)						(116,468)						(377,182)
General, administrative and other expenses			(41,048)						(20,852)						(4,257)						(8,473)						(1,483)						(76,113)						(64,026)						(140,139)
Fee related earnings			408,594						74,279						14,307						40,584						4,469						542,233						(174,957)						367,276
Performance income—realized			54,112						65,305						6,031						—						—						125,448						—						125,448
Performance related compensation—realized			(34,258)						(46,807)						(3,351)						—						—						(84,416)						—						(84,416)
Realized net performance income			19,854						18,498						2,680						—						—						41,032						—						41,032
Investment income (loss)—realized			5,379						7,919						(4,602)						138						2,530						11,364						331						11,695
Interest income			4,420						2,618						2,022						957						11,688						21,705						603						22,308
Interest expense(1)			(6,308)						(15,717)						(4,180)						(2,008)						(7,918)						(36,131)						(256)						(36,387)
Realized net investment income (loss)			3,491						(5,180)						(6,760)						(913)						6,300						(3,062)						678						(2,384)
Realized income			$	431,939					$	87,597					$	10,227					$	39,671					$	10,769					$	580,203					$	(174,279)					$	405,924
			Three months ended March 31, 2024
			Credit Group						Real Assets Group						Private Equity Group						Secondaries Group						Other						Total Segments						OMG						Total
Management fees			$	510,966					$	93,814					$	34,933					$	44,421					$	9,231					$	693,365					$	—					$	693,365
Fee related performance revenues			755						—						—						2,962						—						3,717						—						3,717
Other fees			9,911						5,075						439						4						114						15,543						4,333						19,876
Compensation and benefits			(134,849)						(37,918)						(14,785)						(12,714)						(5,592)						(205,858)						(94,157)						(300,015)
General, administrative and other expenses			(34,366)						(14,453)						(5,216)						(9,068)						(1,690)						(64,793)						(50,480)						(115,273)
Fee related earnings			352,417						46,518						15,371						25,605						2,063						441,974						(140,304)						301,670
Performance income—realized			16,766						3,677						2,738						—						—						23,181						—						23,181
Performance related compensation—realized			(8,734)						(2,228)						(2,194)						—						—						(13,156)						—						(13,156)
Realized net performance income			8,032						1,449						544						—						—						10,025						—						10,025
Investment income—realized			1,765						2,678						298						187						2,000						6,928						11						6,939
Interest income			2,767						700						6						23						4,409						7,905						441						8,346
Interest expense(1)			(8,753)						(7,406)						(4,662)						(8,229)						(8,734)						(37,784)						(40)						(37,824)
Realized net investment income (loss)			(4,221)						(4,028)						(4,358)						(8,019)						(2,325)						(22,951)						412						(22,539)
Realized income			$	356,228					$	43,939					$	11,557					$	17,586					$	(262)					$	429,048					$	(139,892)					$	289,156

(1)    Interest expense was historically allocated among our segments based only on the cost basis of the Company’s balance sheet investments. Beginning in the first quarter of 2025, the Company changed its interest expense allocation methodology to consider the growing sources of financing requirements, including the cost of acquisitions in addition to the cost basis of its balance sheet investments. Prior period amounts have been reclassified to conform to the current period presentation.

Schedule of Segment Revenue, Expenses and Realized Net Investment Income (Expense)

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income (loss):

			Three months ended March 31,
			2025						2024
Segment revenues
Management fees			$	818,376					$	693,365
Fee related performance revenues			28,051						3,717
Other fees			32,633						15,543
Performance income—realized			125,448						23,181
Total segment revenues			$	1,004,508					$	735,806
Segment expenses
Compensation and benefits			$	260,714					$	205,858
General, administrative and other expenses			76,113						64,793
Performance related compensation—realized			84,416						13,156
Total segment expenses			$	421,243					$	283,807
Segment realized net investment income (loss)
Investment income—realized			$	11,364					$	6,928
Interest income			21,705						7,905
Interest expense			(36,131)						(37,784)
Total segment realized net investment loss			$	(3,062)					$	(22,951)

Schedule of Segment Revenues Components

The following table reconciles the Company’s consolidated revenues to segment revenue:

			Three months ended March 31,
			2025						2024
Total consolidated revenue			$	1,088,805					$	707,363
Performance (income) loss—unrealized			(64,443)						45,476
Management fees of Consolidated Funds eliminated in consolidation			9,894						12,453
Performance income of Consolidated Funds eliminated in consolidation			5,128						5,925
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation			124						113
Administrative fees(1)			(19,728)						(16,407)
OMG revenue			(5,537)						(4,333)
Principal investment income, net of eliminations			(21,998)						(7,050)
Net (revenue) expense of non-controlling interests in consolidated subsidiaries			12,263						(7,734)
Total consolidation adjustments and reconciling items			(84,297)						28,443
Total segment revenue			$	1,004,508					$	735,806

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

Schedule of Segment Expenses Components

The following table reconciles the Company’s consolidated expenses to segment expenses:

			Three months ended March 31,
			2025						2024
Total consolidated expenses			$	1,014,328					$	538,493
Performance related compensation-unrealized			(40,550)						64,514
Expenses of Consolidated Funds added in consolidation			(16,684)						(17,708)
Expenses of Consolidated Funds eliminated in consolidation			10,028						12,995
Administrative fees(1)			(19,728)						(16,407)
OMG expenses			(180,494)						(144,637)
Acquisition and merger-related expense			(34,608)						(10,578)
Equity compensation expense			(257,862)						(92,422)
Acquisition-related compensation expense(2)			(21,999)						(5,504)
Placement fee adjustment			6						(5,540)
Depreciation and amortization expense			(48,229)						(36,644)
Expense of non-controlling interests in consolidated subsidiaries			17,035						(2,755)
Total consolidation adjustments and reconciling items			(593,085)						(254,686)
Total segment expenses			$	421,243					$	283,807

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

(2)Represents bonus payments, contingent liabilities (“earnouts”) and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 8. Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

Schedule of Segment Other Income Components

The following table reconciles the Company’s consolidated other income to segment realized net investment loss:

			Three months ended March 31,
			2025						2024
Total consolidated other income			$	66,561					$	62,178
Investment income—unrealized			(21,638)						(3,685)
Interest and other investment (income) loss—unrealized			3,774						(602)
Other income, net from Consolidated Funds added in consolidation			(86,422)						(79,977)
Other expense, net from Consolidated Funds eliminated in consolidation			1,800						902
OMG other (income) expense			4,197						(549)
Principal investment income (loss)			26,839						(2,666)
Other expense, net			2,526						131
Other (income) loss of non-controlling interests in consolidated subsidiaries			(699)						1,317
Total consolidation adjustments and reconciling items			(69,623)						(85,129)
Total segment realized net investment loss			$	(3,062)					$	(22,951)

Schedule of Reconciliation of Segment Results to the Company's Income Before Taxes and Total Assets

The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE:

			Three months ended March 31,
			2025						2024
Income before taxes			$	141,038					$	231,048
Adjustments:
Depreciation and amortization expense			48,229						36,644
Equity compensation expense			257,862						92,421
Acquisition-related compensation expense(1)			21,999						5,504
Acquisition and merger-related expense			34,608						10,578
Placement fee adjustment			(6)						5,540
OMG expense, net			179,154						139,755
Other expense, net			2,526						131
Income before taxes of non-controlling interests in consolidated subsidiaries			(5,471)						(3,662)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations			(57,979)						(65,586)
Total performance (income) loss—unrealized			(64,443)						45,476
Total performance related compensation—unrealized			40,550						(64,514)
Total net investment income—unrealized			(17,864)						(4,287)
Realized income			580,203						429,048
Total performance income—realized			(125,448)						(23,181)
Total performance related compensation—realized			84,416						13,156
Total net investment loss—realized			3,062						22,951
Fee related earnings			$	542,233					$	441,974

(1)Represents bonus payments, earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 8. Commitments and Contingencies” for a further description of the contingent liabilities related to the various acquisitions.

X

- Definition

Tabular disclosure of segment expenses which consists of compensation and benefits, and general, administrative and other expenses, as well as realized and unrealized performance fee expenses.

+ References

No definition available.

+ Details

Name:	ares_ScheduleOfSegmentExpensesTableTextBlock
Namespace Prefix:	ares_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of segment other income which consists of realized and unrealized investment income and expenses, interest and other income and interest expenses.

+ References

No definition available.

+ Details

Name:	ares_ScheduleOfSegmentOtherIncomeTableTextBlock
Namespace Prefix:	ares_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of the entity's operating segments revenue, expenses and other income (loss).

+ References

No definition available.

+ Details

Name:	ares_ScheduleOfSegmentReportingInformationComponentsOfRevenuesExpensesAndOtherIncomeTableTextBlock
Namespace Prefix:	ares_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of segment revenues which consists of management fees, administrative fees and other income, as well as realized and unrealized performance fees.

+ References

No definition available.

+ Details

Name:	ares_ScheduleOfSegmentRevenuesTableTextBlock
Namespace Prefix:	ares_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

+ Details

Name:	us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-25

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration