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SEGMENT REPORTING | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENT REPORTING | 14. SEGMENT REPORTING The Company operates through its distinct operating segments. The Company operating segments are summarized below: Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit. Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments. Private Equity Group: The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity. Secondaries Group: The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. Other: Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually do not meet reporting thresholds. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; (ii) the SPACs sponsored by the Company; and (iii) a venture capital business with fund strategies that are focused on applied artificial intelligence, among others. The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including Ares Wealth Management Solutions, LLC (“AWMS”). AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which may reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance. Segment Profit Measure: Realized income (“RI”), which includes fee related earnings (“FRE”) as a component, supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP. RI, a non-GAAP measure, is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes but have been expensed in advance in accordance with GAAP. For periods in which the amortization of upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations. FRE, a non-GAAP measure that is a component of RI, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income from Ares Funds and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, is presented within FRE because it represents incentive fees from perpetual capital vehicles that is measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds. Consequently, all segment data excludes the assets, liabilities and operating results related to the Consolidated Funds and non-consolidated funds. Total assets by segments is not disclosed because such information is not used by the Company’s CODM in evaluating the segments. The following tables present the financial results for the Company’s operating segments, as well as the OMG:
| Three months ended September 30, 2025
| Credit Group |  | Real Assets Group |  | Private Equity Group |  | Secondaries Group |  | Other |  | Total Segments |  | OMG |  | Total
Management fees | $ | 651,964 |  |  | $ | 177,655 |  |  | $ | 33,284 |  |  | $ | 91,303 |  |  | $ | 16,400 |  |  | $ | 970,606 |  |  | $ | — |  |  | $ | 970,606 |
Fee related performance revenues | 62,389 |  |  | 5,904 |  |  | — |  |  | 17,110 |  |  | — |  |  | 85,403 |  |  | — |  |  | 85,403 |
Other fees | 13,471 |  |  | 55,556 |  |  | 467 |  |  | 196 |  |  | 2,280 |  |  | 71,970 |  |  | 9,235 |  |  | 81,205 |
Compensation and benefits | (212,709) |  |  | (85,513) |  |  | (15,752) |  |  | (24,952) |  |  | (10,247) |  |  | (349,173) |  |  | (144,405) |  |  | (493,578) |
General, administrative and other expenses | (46,510) |  |  | (27,515) |  |  | (4,892) |  |  | (9,624) |  |  | (2,139) |  |  | (90,680) |  |  | (81,746) |  |  | (172,426) |
Fee related earnings | 468,605 |  |  | 126,087 |  |  | 13,107 |  |  | 74,033 |  |  | 6,294 |  |  | 688,126 |  |  | (216,916) |  |  | 471,210 |
Performance income—realized | 19,438 |  |  | 1,200 |  |  | 3,744 |  |  | 177 |  |  | — |  |  | 24,559 |  |  | — |  |  | 24,559 |
Performance related compensation—realized | (11,421) |  |  | (769) |  |  | (2,999) |  |  | (106) |  |  | — |  |  | (15,295) |  |  | — |  |  | (15,295) |
Realized net performance income | 8,017 |  |  | 431 |  |  | 745 |  |  | 71 |  |  | — |  |  | 9,264 |  |  | — |  |  | 9,264 |
Investment income—realized | 2,095 |  |  | 10,415 |  |  | 513 |  |  | 221 |  |  | 1,607 |  |  | 14,851 |  |  | 2,090 |  |  | 16,941 |
Interest income | 577 |  |  | 1,639 |  |  | 1 |  |  | 68 |  |  | 1,271 |  |  | 3,556 |  |  | 853 |  |  | 4,409 |
Interest expense | (4,722) |  |  | (26,521) |  |  | (3,785) |  |  | (2,076) |  |  | (9,201) |  |  | (46,305) |  |  | (10) |  |  | (46,315) |
Realized net investment income (loss) | (2,050) |  |  | (14,467) |  |  | (3,271) |  |  | (1,787) |  |  | (6,323) |  |  | (27,898) |  |  | 2,933 |  |  | (24,965) |
Realized income | $ | 474,572 |  |  | $ | 112,051 |  |  | $ | 10,581 |  |  | $ | 72,317 |  |  | $ | (29) |  |  | $ | 669,492 |  |  | $ | (213,983) |  |  | $ | 455,509 |
| Three months ended September 30, 2024
| Credit Group |  | Real Assets Group |  | Private Equity Group |  | Secondaries Group |  | Other |  | Total Segments |  | OMG |  | Total
Management fees | $ | 557,450 |  |  | $ | 105,733 |  |  | $ | 34,621 |  |  | $ | 48,084 |  |  | $ | 11,374 |  |  | $ | 757,262 |  |  | $ | — |  |  | $ | 757,262 |
Fee related performance revenues | 41,761 |  |  | — |  |  | — |  |  | 2,508 |  |  | — |  |  | 44,269 |  |  | — |  |  | 44,269 |
Other fees | 10,520 |  |  | 7,263 |  |  | 372 |  |  | 58 |  |  | 114 |  |  | 18,327 |  |  | 5,253 |  |  | 23,580 |
Compensation and benefits | (179,987) |  |  | (42,360) |  |  | (13,877) |  |  | (14,432) |  |  | (7,245) |  |  | (257,901) |  |  | (102,112) |  |  | (360,013) |
General, administrative and other expenses | (41,046) |  |  | (14,118) |  |  | (4,576) |  |  | (8,464) |  |  | (1,459) |  |  | (69,663) |  |  | (56,124) |  |  | (125,787) |
Fee related earnings | 388,698 |  |  | 56,518 |  |  | 16,540 |  |  | 27,754 |  |  | 2,784 |  |  | 492,294 |  |  | (152,983) |  |  | 339,311 |
Performance income—realized | 6,192 |  |  | 15,441 |  |  | 475 |  |  | — |  |  | — |  |  | 22,108 |  |  | — |  |  | 22,108 |
Performance related compensation—realized | (3,451) |  |  | (9,403) |  |  | (380) |  |  | — |  |  | — |  |  | (13,234) |  |  | — |  |  | (13,234) |
Realized net performance income | 2,741 |  |  | 6,038 |  |  | 95 |  |  | — |  |  | — |  |  | 8,874 |  |  | — |  |  | 8,874 |
Investment income—realized | 6,733 |  |  | 3,729 |  |  | 526 |  |  | 76 |  |  | 4,065 |  |  | 15,129 |  |  | 58 |  |  | 15,187 |
Interest income | 1,266 |  |  | 245 |  |  | 4 |  |  | 20 |  |  | 3,144 |  |  | 4,679 |  |  | 438 |  |  | 5,117 |
Interest expense(1) | (5,859) |  |  | (6,190) |  |  | (4,454) |  |  | (5,566) |  |  | (7,529) |  |  | (29,598) |  |  | (135) |  |  | (29,733) |
Realized net investment income (loss) | 2,140 |  |  | (2,216) |  |  | (3,924) |  |  | (5,470) |  |  | (320) |  |  | (9,790) |  |  | 361 |  |  | (9,429) |
Realized income | $ | 393,579 |  |  | $ | 60,340 |  |  | $ | 12,711 |  |  | $ | 22,284 |  |  | $ | 2,464 |  |  | $ | 491,378 |  |  | $ | (152,622) |  |  | $ | 338,756 |
(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.
| Nine months ended September 30, 2025
| Credit Group |  | Real Assets Group |  | Private Equity Group |  | Secondaries Group |  | Other |  | Total Segments |  | OMG |  | Total
Management fees | $ | 1,854,501 |  |  | $ | 484,032 |  |  | $ | 97,049 |  |  | $ | 210,596 |  |  | $ | 43,089 |  |  | $ | 2,689,267 |  |  | $ | — |  |  | $ | 2,689,267 |
Fee related performance revenues | 81,098 |  |  | 6,051 |  |  | — |  |  | 43,002 |  |  | — |  |  | 130,151 |  |  | — |  |  | 130,151 |
Other fees | 37,431 |  |  | 125,494 |  |  | 1,298 |  |  | 6,119 |  |  | 2,548 |  |  | 172,890 |  |  | 22,603 |  |  | 195,493 |
Compensation and benefits | (537,661) |  |  | (222,504) |  |  | (46,379) |  |  | (66,390) |  |  | (23,780) |  |  | (896,714) |  |  | (395,518) |  |  | (1,292,232) |
General, administrative and other expenses | (131,860) |  |  | (79,062) |  |  | (14,708) |  |  | (28,173) |  |  | (6,330) |  |  | (260,133) |  |  | (214,949) |  |  | (475,082) |
Fee related earnings | 1,303,509 |  |  | 314,011 |  |  | 37,260 |  |  | 165,154 |  |  | 15,527 |  |  | 1,835,461 |  |  | (587,864) |  |  | 1,247,597 |
Performance income—realized | 95,465 |  |  | 70,186 |  |  | 39,733 |  |  | 177 |  |  | — |  |  | 205,561 |  |  | — |  |  | 205,561 |
Performance related compensation—realized | (58,927) |  |  | (49,893) |  |  | (29,856) |  |  | (106) |  |  | — |  |  | (138,782) |  |  | — |  |  | (138,782) |
Realized net performance income | 36,538 |  |  | 20,293 |  |  | 9,877 |  |  | 71 |  |  | — |  |  | 66,779 |  |  | — |  |  | 66,779 |
Investment income (loss)—realized | 11,570 |  |  | 24,878 |  |  | (3,720) |  |  | 376 |  |  | 6,244 |  |  | 39,348 |  |  | 1,528 |  |  | 40,876 |
Interest income | 6,132 |  |  | 4,922 |  |  | 2,024 |  |  | 1,048 |  |  | 14,044 |  |  | 28,170 |  |  | 2,102 |  |  | 30,272 |
Interest expense | (15,744) |  |  | (66,808) |  |  | (11,775) |  |  | (5,946) |  |  | (25,732) |  |  | (126,005) |  |  | (272) |  |  | (126,277) |
Realized net investment income (loss) | 1,958 |  |  | (37,008) |  |  | (13,471) |  |  | (4,522) |  |  | (5,444) |  |  | (58,487) |  |  | 3,358 |  |  | (55,129) |
Realized income | $ | 1,342,005 |  |  | $ | 297,296 |  |  | $ | 33,666 |  |  | $ | 160,703 |  |  | $ | 10,083 |  |  | $ | 1,843,753 |  |  | $ | (584,506) |  |  | $ | 1,259,247 |
| Nine months ended September 30, 2024
| Credit Group |  | Real Assets Group |  | Private Equity Group |  | Secondaries Group |  | Other |  | Total Segments |  | OMG |  | Total
Management fees | $ | 1,603,080 |  |  | $ | 299,156 |  |  | $ | 103,126 |  |  | $ | 140,650 |  |  | $ | 30,726 |  |  | $ | 2,176,738 |  |  | $ | — |  |  | $ | 2,176,738 |
Fee related performance revenues | 48,920 |  |  | — |  |  | — |  |  | 20,633 |  |  | — |  |  | 69,553 |  |  | — |  |  | 69,553 |
Other fees | 30,912 |  |  | 18,783 |  |  | 1,258 |  |  | 116 |  |  | 396 |  |  | 51,465 |  |  | 15,066 |  |  | 66,531 |
Compensation and benefits | (457,494) |  |  | (119,403) |  |  | (42,737) |  |  | (47,971) |  |  | (17,937) |  |  | (685,542) |  |  | (294,639) |  |  | (980,181) |
General, administrative and other expenses | (116,022) |  |  | (43,857) |  |  | (15,282) |  |  | (26,428) |  |  | (5,041) |  |  | (206,630) |  |  | (160,514) |  |  | (367,144) |
Fee related earnings | 1,109,396 |  |  | 154,679 |  |  | 46,365 |  |  | 87,000 |  |  | 8,144 |  |  | 1,405,584 |  |  | (440,087) |  |  | 965,497 |
Performance income—realized | 121,214 |  |  | 24,324 |  |  | 9,032 |  |  | 361 |  |  | — |  |  | 154,931 |  |  | — |  |  | 154,931 |
Performance related compensation—realized | (73,127) |  |  | (15,134) |  |  | (7,235) |  |  | 110 |  |  | — |  |  | (95,386) |  |  | — |  |  | (95,386) |
Realized net performance income | 48,087 |  |  | 9,190 |  |  | 1,797 |  |  | 471 |  |  | — |  |  | 59,545 |  |  | — |  |  | 59,545 |
Investment income (loss)—realized | 17,889 |  |  | (592) |  |  | 1,287 |  |  | 390 |  |  | 9,716 |  |  | 28,690 |  |  | 297 |  |  | 28,987 |
Interest income | 5,719 |  |  | 3,543 |  |  | 12 |  |  | 64 |  |  | 31,469 |  |  | 40,807 |  |  | 1,291 |  |  | 42,098 |
Interest expense(1) | (23,079) |  |  | (21,472) |  |  | (13,801) |  |  | (21,511) |  |  | (24,914) |  |  | (104,777) |  |  | (280) |  |  | (105,057) |
Realized net investment income (loss) | 529 |  |  | (18,521) |  |  | (12,502) |  |  | (21,057) |  |  | 16,271 |  |  | (35,280) |  |  | 1,308 |  |  | (33,972) |
Realized income | $ | 1,158,012 |  |  | $ | 145,348 |  |  | $ | 35,660 |  |  | $ | 66,414 |  |  | $ | 24,415 |  |  | $ | 1,429,849 |  |  | $ | (438,779) |  |  | $ | 991,070 |
(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. The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income (loss):
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Segment revenues |  |  |  |  |  |  |  |  |
Management fees | $ | 970,606 |  |  | $ | 757,262 |  |  | $ | 2,689,267 |  |  | $ | 2,176,738 |  |  |
Fee related performance revenues | 85,403 |  |  | 44,269 |  |  | 130,151 |  |  | 69,553 |  |  |
Other fees | 71,970 |  |  | 18,327 |  |  | 172,890 |  |  | 51,465 |  |  |
Performance income—realized | 24,559 |  |  | 22,108 |  |  | 205,561 |  |  | 154,931 |  |  |
Total segment revenues | $ | 1,152,538 |  |  | $ | 841,966 |  |  | $ | 3,197,869 |  |  | $ | 2,452,687 |  |  |
Segment expenses |  |  |  |  |  |  |  |  |
Compensation and benefits | $ | 349,173 |  |  | $ | 257,901 |  |  | $ | 896,714 |  |  | $ | 685,542 |  |  |
General, administrative and other expenses | 90,680 |  |  | 69,663 |  |  | 260,133 |  |  | 206,630 |  |  |
Performance related compensation—realized | 15,295 |  |  | 13,234 |  |  | 138,782 |  |  | 95,386 |  |  |
Total segment expenses | $ | 455,148 |  |  | $ | 340,798 |  |  | $ | 1,295,629 |  |  | $ | 987,558 |  |  |
Segment realized net investment income (loss) |  |  |  |  |  |  |  |  |
Investment income—realized | $ | 14,851 |  |  | $ | 15,129 |  |  | $ | 39,348 |  |  | $ | 28,690 |  |  |
Interest income | 3,556 |  |  | 4,679 |  |  | 28,170 |  |  | 40,807 |  |  |
Interest expense | (46,305) |  |  | (29,598) |  |  | (126,005) |  |  | (104,777) |  |  |
Total segment realized net investment loss | $ | (27,898) |  |  | $ | (9,790) |  |  | $ | (58,487) |  |  | $ | (35,280) |  |  |
The following table reconciles the Company’s consolidated revenues to segment revenue:
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Total consolidated revenue | $ | 1,657,628 |  |  | $ | 1,129,739 |  |  | $ | 4,096,561 |  |  | $ | 2,625,784 |  |  |
Performance income—unrealized | (463,933) |  |  | (263,553) |  |  | (828,968) |  |  | (95,759) |  |  |
Management fees of Consolidated Funds eliminated in consolidation | 8,519 |  |  | 11,660 |  |  | 27,367 |  |  | 36,115 |  |  |
Performance income of Consolidated Funds eliminated in consolidation | 8,375 |  |  | 1,032 |  |  | 20,599 |  |  | 18,484 |  |  |
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation | 2,905 |  |  | 128 |  |  | 9,584 |  |  | 409 |  |  |
Administrative fees(1) | (24,255) |  |  | (18,093) |  |  | (66,010) |  |  | (52,201) |  |  |
OMG revenue | (9,235) |  |  | (5,252) |  |  | (22,603) |  |  | (15,066) |  |  |
Principal investment income, net of eliminations | (17,976) |  |  | (8,036) |  |  | (50,937) |  |  | (44,547) |  |  |
Net (revenue) expense of non-controlling interests in consolidated subsidiaries | (9,490) |  |  | (5,659) |  |  | 12,276 |  |  | (20,532) |  |  |
Total consolidation adjustments and reconciling items | (505,090) |  |  | (287,773) |  |  | (898,692) |  |  | (173,097) |  |  |
Total segment revenue | $ | 1,152,538 |  |  | $ | 841,966 |  |  | $ | 3,197,869 |  |  | $ | 2,452,687 |  |  |
(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. The following table reconciles the Company’s consolidated expenses to segment expenses:
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Total consolidated expenses | $ | 1,308,216 |  |  | $ | 854,887 |  |  | $ | 3,460,122 |  |  | $ | 1,957,924 |  |  |
Performance related compensation-unrealized | (330,960) |  |  | (180,174) |  |  | (579,241) |  |  | (8,478) |  |  |
Expenses of Consolidated Funds added in consolidation | (6,778) |  |  | (14,083) |  |  | (66,240) |  |  | (48,200) |  |  |
Expenses of Consolidated Funds eliminated in consolidation | 8,646 |  |  | 11,355 |  |  | 34,445 |  |  | 36,520 |  |  |
Administrative fees(1) | (24,255) |  |  | (18,093) |  |  | (66,010) |  |  | (52,201) |  |  |
OMG expenses | (226,151) |  |  | (158,236) |  |  | (610,467) |  |  | (455,153) |  |  |
Acquisition and merger-related expense | (5,427) |  |  | (25,166) |  |  | (42,826) |  |  | (39,394) |  |  |
Equity compensation expense | (160,130) |  |  | (85,613) |  |  | (583,083) |  |  | (266,267) |  |  |
Acquisition-related compensation expense(2) | (42,448) |  |  | (5,435) |  |  | (108,752) |  |  | (16,374) |  |  |
Placement fee adjustment | 2,415 |  |  | 4,485 |  |  | 3,513 |  |  | (825) |  |  |
Depreciation and amortization expense | (65,956) |  |  | (46,005) |  |  | (177,365) |  |  | (118,900) |  |  |
Expense of non-controlling interests in consolidated subsidiaries | (2,024) |  |  | 2,876 |  |  | 31,533 |  |  | (1,094) |  |  |
Total consolidation adjustments and reconciling items | (853,068) |  |  | (514,089) |  |  | (2,164,493) |  |  | (970,366) |  |  |
Total segment expenses | $ | 455,148 |  |  | $ | 340,798 |  |  | $ | 1,295,629 |  |  | $ | 987,558 |  |  |
(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, a portion of 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. The following table reconciles the Company’s consolidated other income to segment realized net investment loss:
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Total consolidated other income | $ | 302,859 |  |  | $ | 52,254 |  |  | $ | 443,808 |  |  | $ | 207,619 |  |  |
Investment (income) loss—unrealized | (269,895) |  |  | (4,950) |  |  | (398,112) |  |  | 13,836 |  |  |
Interest and other investment (income) loss—unrealized | (1,691) |  |  | 15,258 |  |  | 26,166 |  |  | 15,093 |  |  |
Other income, net of Consolidated Funds added in consolidation | (148,108) |  |  | (87,804) |  |  | (380,235) |  |  | (276,107) |  |  |
Other expense (income), net of Consolidated Funds eliminated in consolidation | 4,020 |  |  | 194 |  |  | 16,791 |  |  | (137) |  |  |
OMG other income | (9,802) |  |  | (220) |  |  | (10,532) |  |  | (1,002) |  |  |
Principal investment income | 73,543 |  |  | 14,101 |  |  | 191,759 |  |  | 12,038 |  |  |
Other (income) expense, net | 17,571 |  |  | 3,389 |  |  | 47,260 |  |  | (7,910) |  |  |
Other loss (income) of non-controlling interests in consolidated subsidiaries | 3,605 |  |  | (2,012) |  |  | 4,608 |  |  | 1,290 |  |  |
Total consolidation adjustments and reconciling items | (330,757) |  |  | (62,044) |  |  | (502,295) |  |  | (242,899) |  |  |
Total segment realized net investment loss | $ | (27,898) |  |  | $ | (9,790) |  |  | $ | (58,487) |  |  | $ | (35,280) |  |  |
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 September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Income before taxes | $ | 652,271 |  |  | $ | 327,106 |  |  | $ | 1,080,247 |  |  | $ | 875,479 |  |  |
Adjustments: |  |  |  |  |  |  |  |  |
Depreciation and amortization expense | 65,956 |  |  | 46,005 |  |  | 177,365 |  |  | 118,900 |  |  |
Equity compensation expense | 160,130 |  |  | 85,612 |  |  | 583,083 |  |  | 266,267 |  |  |
Acquisition-related compensation expense(1) | 42,448 |  |  | 5,435 |  |  | 108,752 |  |  | 16,374 |  |  |
Acquisition and merger-related expense | 5,427 |  |  | 25,166 |  |  | 42,826 |  |  | 39,394 |  |  |
Placement fee adjustment | (2,415) |  |  | (4,485) |  |  | (3,513) |  |  | 825 |  |  |
OMG expense, net | 207,114 |  |  | 152,763 |  |  | 577,332 |  |  | 439,085 |  |  |
Other (income) expense, net | 17,571 |  |  | 3,389 |  |  | 47,260 |  |  | (7,910) |  |  |
Income before taxes of non-controlling interests in consolidated subsidiaries | (3,861) |  |  | (10,544) |  |  | (14,649) |  |  | (18,148) |  |  |
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations | (70,590) |  |  | (65,998) |  |  | (133,277) |  |  | (242,065) |  |  |
Total performance income—unrealized | (463,933) |  |  | (263,553) |  |  | (828,968) |  |  | (95,759) |  |  |
Total performance related compensation—unrealized | 330,960 |  |  | 180,174 |  |  | 579,241 |  |  | 8,478 |  |  |
Total net investment (income) loss—unrealized | (271,586) |  |  | 10,308 |  |  | (371,946) |  |  | 28,929 |  |  |
Realized income | 669,492 |  |  | 491,378 |  |  | 1,843,753 |  |  | 1,429,849 |  |  |
Total performance income—realized | (24,559) |  |  | (22,108) |  |  | (205,561) |  |  | (154,931) |  |  |
Total performance related compensation—realized | 15,295 |  |  | 13,234 |  |  | 138,782 |  |  | 95,386 |  |  |
Total net investment loss—realized | 27,898 |  |  | 9,790 |  |  | 58,487 |  |  | 35,280 |  |  |
Fee related earnings | $ | 688,126 |  |  | $ | 492,294 |  |  | $ | 1,835,461 |  |  | $ | 1,405,584 |  |  |
(1)Represents bonus payments, a portion of 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.

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