XML 60 R20.htm IDEA: XBRL DOCUMENT v3.25.3
EQUITY AND REDEEMABLE INTEREST
 9 Months Ended
Sep. 30, 2025
Stockholders' Equity Note [Abstract]  
EQUITY AND REDEEMABLE INTEREST
13. 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. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock.
In February 2025, the Company's board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $750.0 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 2026. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the nine months ended September 30, 2025 and 2024, the Company did not repurchase any shares as part of the stock repurchase program.
The following table presents the changes in each class of common stock:

Class A Common StockNon-Voting Common StockClass B Common StockClass C Common StockTotal
Balance as of December 31, 2024199,872,571 3,489,911 1,000 109,806,689 313,170,171 
Issuances of common stock10,442,517 — — 303,500 10,746,017 
Exchanges of common stock3,583,329 — — (3,583,329)— 
Vesting of restricted unit awards, net of shares withheld for tax2,936,376 — — — 2,936,376 
Balance as of September 30, 2025216,834,793 3,489,911 1,000 106,526,860 326,852,564 
The following table presents each partner’s 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, 2025As of December 31, 2024Three months ended September 30,Nine months ended September 30,
AOG UnitsDirect Ownership InterestAOG UnitsDirect Ownership Interest2025202420252024
Ares Management Corporation220,324,704 67.41%203,362,482 64.94%67.29%64.14%66.71%63.23%
Ares Owners Holdings, L.P.106,526,860 32.59 109,806,689 35.06 32.71 35.86 33.29 36.77 
Total326,851,564 100.00 %313,169,171 100.00 %

Preferred Stock

As of September 30, 2025 and December 31, 2024, the Company had 30,000,000 shares of Series B mandatory convertible preferred stock outstanding. When, as and if declared by the Company’s board of directors, dividends on the Series B mandatory convertible preferred stock are payable quarterly at a rate per annum equal to 6.75%. Dividends on Series B mandatory convertible preferred stock are cumulative and the Series B mandatory convertible preferred stock, unless previously converted or redeemed, will automatically convert into the Company’s Class A common stock on October 1, 2027. Unless converted earlier in accordance with its terms, each share of Series B mandatory convertible preferred stock will automatically convert on the mandatory conversion date into between 0.2717 and 0.3260 shares of the Company’s Class A common stock, in each case, subject to customary anti-dilution adjustments. The conversion rate that will apply to mandatory conversions will be determined based on the average of the daily volume-weighted average prices over the 20 consecutive trading days beginning on, and including, the 21st scheduled trading day immediately before October 1, 2027.
Holders of shares of Series B mandatory convertible preferred stock have the option to convert all or any portion of their shares of Series B mandatory convertible preferred stock at any time. The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Series B mandatory convertible preferred stock for certain unpaid accumulated dividends.
Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in AOG entities:
Total
Balance as of December 31, 2023
$24,098 
Net income73 
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 income1,319 
Currency translation adjustment, net of tax614 
Balance as of September 30, 2024
25,111 
Net loss(902)
Currency translation adjustment, net of tax(713)
Balance as of December 31, 2024
23,496 
Net income316 
Currency translation adjustment, net of tax198 
Distributions(300)
Balance as of March 31, 2025
23,710 
Net loss(274)
Currency translation adjustment, net of tax699 
Balance as of June 30, 2025
24,135 
Net income1,797 
Currency translation adjustment, net of tax(182)
Balance as of September 30, 2025
$25,750 

The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:
Total
Balance as of December 31, 2023$522,938 
Change in redemption value6,849 
Balance as of March 31, 2024529,787 
Change in redemption value6,959 
Balance as of June 30, 2024536,746 
Change in redemption value7,408 
Balance as of September 30, 2024544,154 
Change in redemption value6,546 
Balance as of December 31, 2024550,700 
Change in redemption value5,698 
Balance as of March 31, 2025556,398 
Redemptions from Class A ordinary shares of AAC II (as defined below)(7,143)
Change in redemption value8,795 
Balance as of June 30, 2025558,050 
Redemptions from Class A ordinary shares of AAC II (as defined below)(502,360)
Change in redemption value7,214 
Deconsolidation of AAC II (as defined below)(62,904)
Balance as of September 30, 2025$— 

As of December 31, 2024, 50,000,000 of AAC II (as defined below) Class A ordinary shares were presented at the redemption amount within mezzanine equity within the Condensed Consolidated Statements of Financial Condition.
In September 2025, Kodiak AI, Inc. (Nasdaq: KDK) (f/k/a Ares Acquisition Corporation II, or “AAC II”) completed a business combination with Kodiak Robotics, Inc. In connection with the transaction, AAC II was renamed KDK, and the Company’s investments in AAC II were converted into various interests in KDK, including KDK common shares and warrants, as well as unvested KDK common shares and the potential to receive additional KDK common shares, each subject to certain performance conditions. These investments represent non-controlling financial interests and are presented within investments within the Condensed Consolidated Statements of Financial Condition. Following the business combination, the Company no longer held a controlling financial interest in AAC II, resulting in the deconsolidation of AAC II.

For the three months ended September 30, 2025, changes in value of the Company’s investments in KDK included: (i) $42.7 million of unrealized performance income related to KDK common shares; and (ii) $23.3 million of unrealized performance income related to KDK common shares subject to vesting upon achievement of certain performance conditions. These investments were received in exchange for previously held AAC II Class A ordinary shares with a nominal cost basis, and the changes in value are presented within carried interest allocation within the Condensed Consolidated Statements of Operations.

Additionally, for the three months ended September 30, 2025, the Company recognized net unrealized gains of $1.9 million related to the remainder of its investments in KDK, presented within net realized and unrealized gains (losses) on investments within the Condensed Consolidated Statements of Operations.
The Company’s investments in KDK common shares and warrants are classified as Level I in the fair value hierarchy. The Company’s investments in unvested KDK common shares and the potential to receive additional KDK common shares, each subject to performance conditions, are classified as Level III, with fair value determined using a Monte Carlo simulation model.