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SEGMENT REPORTING
 9 Months Ended
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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group

Other
Total SegmentsOMGTotal
Management fees$651,964 $177,655 $33,284 $91,303 $16,400 $970,606 $— $970,606 
Fee related performance revenues62,389 5,904 — 17,110 — 85,403 — 85,403 
Other fees13,471 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 earnings468,605 126,087 13,107 74,033 6,294 688,126 (216,916)471,210 
Performance income—realized19,438 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 income8,017 431 745 71 — 9,264 — 9,264 
Investment income—realized2,095 10,415 513 221 1,607 14,851 2,090 16,941 
Interest income577 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 GroupReal Assets GroupPrivate Equity GroupSecondaries Group
Other
Total SegmentsOMGTotal
Management fees$557,450 $105,733 $34,621 $48,084 $11,374 $757,262 $— $757,262 
Fee related performance revenues41,761 — — 2,508 — 44,269 — 44,269 
Other fees10,520 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 earnings388,698 56,518 16,540 27,754 2,784 492,294 (152,983)339,311 
Performance income—realized6,192 15,441 475 — — 22,108 — 22,108 
Performance related compensation—realized(3,451)(9,403)(380)— — (13,234)— (13,234)
Realized net performance income2,741 6,038 95 — — 8,874 — 8,874 
Investment income—realized6,733 3,729 526 76 4,065 15,129 58 15,187 
Interest income1,266 245 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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group
Other
Total SegmentsOMGTotal
Management fees$1,854,501 $484,032 $97,049 $210,596 $43,089 $2,689,267 $— $2,689,267 
Fee related performance revenues81,098 6,051 — 43,002 — 130,151 — 130,151 
Other fees37,431 125,494 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 earnings1,303,509 314,011 37,260 165,154 15,527 1,835,461 (587,864)1,247,597 
Performance income—realized95,465 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 income36,538 20,293 9,877 71 — 66,779 — 66,779 
Investment income (loss)—realized11,570 24,878 (3,720)376 6,244 39,348 1,528 40,876 
Interest income6,132 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 GroupReal Assets GroupPrivate Equity Group
Secondaries Group
Other
Total SegmentsOMGTotal
Management fees$1,603,080 $299,156 $103,126 $140,650 $30,726 $2,176,738 $— $2,176,738 
Fee related performance revenues48,920 — — 20,633 — 69,553 — 69,553 
Other fees30,912 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 earnings1,109,396 154,679 46,365 87,000 8,144 1,405,584 (440,087)965,497 
Performance income—realized121,214 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 income48,087 9,190 1,797 471 — 59,545 — 59,545 
Investment income (loss)—realized17,889 (592)1,287 390 9,716 28,690 297 28,987 
Interest income5,719 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,
2025202420252024
Segment revenues
Management fees$970,606 $757,262 $2,689,267 $2,176,738 
Fee related performance revenues85,403 44,269 130,151 69,553 
Other fees71,970 18,327 172,890 51,465 
Performance income—realized24,559 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 expenses90,680 69,663 260,133 206,630 
Performance related compensation—realized15,295 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 $28,690 
Interest income3,556 4,679 28,170 40,807 
Interest expense(46,305)(29,598)(126,005)(104,777)
Total segment realized net investment loss$(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,
2025202420252024
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 consolidation8,519 11,660 27,367 36,115 
Performance income of Consolidated Funds eliminated in consolidation8,375 1,032 20,599 18,484 
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation2,905 128 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,
2025202420252024
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 consolidation8,646 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 adjustment2,415 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,
2025202420252024
Total consolidated other income$302,859 $52,254 $443,808 $207,619 
Investment (income) loss—unrealized(269,895)(4,950)(398,112)13,836 
Interest and other investment (income) loss—unrealized(1,691)15,258 26,166 15,093 
Other income, net of Consolidated Funds added in consolidation(148,108)(87,804)(380,235)(276,107)
Other expense (income), net of Consolidated Funds eliminated in consolidation4,020 194 16,791 (137)
OMG other income(9,802)(220)(10,532)(1,002)
Principal investment income73,543 14,101 191,759 12,038 
Other (income) expense, net17,571 3,389 47,260 (7,910)
Other loss (income) of non-controlling interests in consolidated subsidiaries3,605 (2,012)4,608 1,290 
Total consolidation adjustments and reconciling items(330,757)(62,044)(502,295)(242,899)
Total segment realized net investment loss$(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,
2025202420252024
Income before taxes$652,271 $327,106 $1,080,247 $875,479 
Adjustments:
Depreciation and amortization expense65,956 46,005 177,365 118,900 
Equity compensation expense160,130 85,612 583,083 266,267 
Acquisition-related compensation expense(1)
42,448 5,435 108,752 16,374 
Acquisition and merger-related expense5,427 25,166 42,826 39,394 
Placement fee adjustment(2,415)(4,485)(3,513)825 
OMG expense, net207,114 152,763 577,332 439,085 
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—unrealized330,960 180,174 579,241 8,478 
Total net investment (income) loss—unrealized(271,586)10,308 (371,946)28,929 
Realized income669,492 491,378 1,843,753 1,429,849 
Total performance income—realized(24,559)(22,108)(205,561)(154,931)
Total performance related compensation—realized15,295 13,234 138,782 95,386 
Total net investment loss—realized27,898 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.