# Ares Management Corp (ARES)

Informational only - not investment advice.

CIK: 0001176948
SIC: 6282 Investment Advice
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Security And Commodity Brokers, Dealers, Exchanges, And Services](/major-group/62/) > [SIC 6282 Investment Advice](/industry/6282/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=1176948
Filing source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0001628280-26-011413 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001176948.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,755,618,000 USD | 2025 | verified |
| Net income | 527,362,000 USD | 2025 | verified |
| Assets | 28,633,369,000 USD | 2025 | verified |
| Net margin | 11.09% | 2025 | computed |
| Revenue YoY | +28.86% | 2025 | computed |
| ROE | 12.33% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Asset managers and investment advisers](/compare/asset-managers/) · SIC 6282 Investment Advice

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including ARES

- Asset managers and investment advisers: [peer review](/compare/asset-managers/) · [market-risk page](/compare/asset-managers/risk/)

### Peer percentile fingerprint

| Ratio | ARES | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.1% | 15.3% | 36 | 34 |
| Revenue growth | 28.9% | 7.6% | 85 | 34 |
| ROE | 12.3% | 15.5% | 39 | 34 |
| ROA | 1.8% | 4.8% | 24 | 35 |
| Liabilities / equity | 4.66 | 1.57 | 85 | 34 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6282 Investment Advice, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4755618000 | USD | 2025 | 2026-02-25 |
| Net income | 527362000 | USD | 2025 | 2026-02-25 |
| Assets | 28633369000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001176948.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 964,800,000 | 1,085,043,000 | 1,218,239,000 | 1,433,126,000 | 1,753,729,000 | 2,288,876,000 | 2,880,007,000 | 3,236,285,000 | 3,690,668,000 | 4,755,618,000 |
| Net income | 111,808,000 | 76,178,000 | 57,020,000 | 148,884,000 | 152,142,000 | 408,837,000 | 167,541,000 | 474,326,000 | 463,742,000 | 527,362,000 |
| Operating cash flow | -625,655,000 | -1,863,014,000 | -1,417,058,000 | -2,083,021,000 | -425,659,000 | -2,596,045,000 | -734,112,000 | -233,261,000 | 2,791,154,000 | 3,266,959,000 |
| Assets | 5,829,712,000 | 8,563,522,000 | 10,154,692,000 | 12,014,196,000 | 15,168,992,000 | 21,605,164,000 | 22,002,839,000 | 24,730,500,000 | 24,884,308,000 | 28,633,369,000 |
| Liabilities | 4,452,450,000 | 7,103,230,000 | 8,760,351,000 | 10,155,598,000 | 12,596,852,000 | 16,694,730,000 | 17,097,810,000 | 19,709,151,000 | 17,485,922,000 | 19,931,981,000 |
| Stockholders' equity | 292,851,000 | 1,460,292,000 | 587,924,000 | 768,290,000 | 1,193,685,000 | 1,825,227,000 | 1,589,239,000 | 1,893,399,000 | 3,543,646,000 | 4,275,463,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 11.59% | 7.02% | 4.68% | 10.39% | 8.68% | 17.86% | 5.82% | 14.66% | 12.57% | 11.09% |
| Return on equity | 38.18% | 5.22% | 9.70% | 19.38% | 12.75% | 22.40% | 10.54% | 25.05% | 13.09% | 12.33% |
| Return on assets | 1.92% | 0.89% | 0.56% | 1.24% | 1.00% | 1.89% | 0.76% | 1.92% | 1.86% | 1.84% |
| Liabilities / equity | 15.20 | 4.86 | 14.90 | 13.22 | 10.55 | 9.15 | 10.76 | 10.41 | 4.93 | 4.66 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ARES/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001176948.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2021-Q3 | 2021-09-30 |  | 84,726,000 |  | reported discrete quarter |
| 2021-Q4 | 2021-12-31 |  | 124,089,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2022-Q1 | 2022-03-31 |  | 45,863,000 |  | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  | 39,731,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  | -35,546,000 |  | reported discrete quarter |
| 2022-Q4 | 2022-12-31 |  | 117,493,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q3 | 2023-09-30 | 677,689,000 |  |  | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,119,808,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 735,806,000 |  |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 874,915,000 |  |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 841,966,000 |  |  | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,237,981,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,004,508,000 | 47,170,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,040,823,000 | 137,062,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,152,538,000 | 288,882,000 |  | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,557,749,000 | 54,248,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,298,861,000 | 142,589,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,293,657,000 | 150,635,000 |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ARES's latest 10-K: [/company/ARES/business/](/company/ARES/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ARES's latest 10-K: [/company/ARES/risk-factors/](/company/ARES/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026054538/ares-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-07
Report date: 2026-06-30

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Ares Management Corporation is a Delaware corporation. Unless the context otherwise requires, references to “Ares,” “we,” “us,” “our,” and the “Company” are intended to mean the business and operations of Ares Management Corporation and its consolidated subsidiaries. The following discussion analyzes the financial condition and results of operations of the Company. “Consolidated Funds” refers collectively to certain Ares funds, co-investment vehicles, CLOs and SPACs that are required under U.S. GAAP to be consolidated in our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. Additional terms used by the Company are defined in the Glossary and throughout the Management’s Discussion and Analysis in this Quarterly Report on Form 10-Q.

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements of Ares Management Corporation and the related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and the related notes included in the 2025 Annual Report on Form 10-K of Ares Management Corporation.

Amounts and percentages presented throughout our discussion and analysis of financial condition and results of operations may reflect rounded results in thousands (unless otherwise indicated) and consequently, totals may not appear to sum. In addition, illustrative charts may not be presented at scale.

The changes from current year compared to prior year may be deemed to be not meaningful and are designated as “NM” within the discussion and analysis of financial condition and results of operations.

Trends Affecting Our Business

We believe that our disciplined investment philosophy across our distinct but complementary investment groups contributes to the stability of our performance throughout market cycles. For the three months ended June 30, 2026, 94% of our management fees were derived from perpetual capital vehicles or long-dated funds. Our funds have a stable base of committed capital enabling us to invest in assets with a long-term focus over different points in a market cycle and to take advantage of market volatility. However, our results from operations, including the fair value of our AUM, are affected by a variety of factors. Conditions in the global financial markets and economic and political environments may impact our business, particularly in the U.S., Europe and Asia-Pacific (“APAC”).

    The following table presents returns of selected market indices:-

[[GREPCENT_TABLE]]
[["","","","","","","Returns (%)"],["Type of Index","","Name of Index","","Region","","Three months ended June 30, 2026","","Six months ended June 30, 2026"],["High yield bonds","","ICE BAML High Yield Master II Index","","U.S.","","2.5","","1.9"],["High yield bonds","","ICE BAML European Currency High Yield Index","","Europe","","3.7","","1.9"],["Leveraged loans","","S&P UBS Leveraged Loan Index","","U.S.","","1.9","","1.4"],["Leveraged loans","","S&P UBS Western European Leveraged Loan Index","","Europe","","2.6","","1.8"],["Equities","","S&P 500 Index","","U.S.","","15.2","","10.2"],["Equities","","MSCI All Country World Ex-U.S. Index","","Non-U.S.","","14.7","","14.0"],["Infrastructure equities","","S&P Global Infrastructure Index","","Global","","1.6","","10.0"],["Real estate equities","","FTSE NAREIT All Equity REITs Index","","U.S.","","9.7","","12.7"],["Real estate equities","","FTSE EPRA/NAREIT Developed Europe Index","","Europe","","5.4","","(0.2)"],["Real estate equities","","Tokyo Stock Exchange REIT Index","","APAC","","(2.3)","","(10.3)"]]
[[/GREPCENT_TABLE]]

During the second quarter of 2026, global markets continued to experience heightened volatility amid geopolitical tension in the Middle East and evolving expectations regarding monetary and U.S. trade policies. However, the possibility of a ceasefire between the U.S. and Iran eased energy market pressures, and resilient macroeconomic conditions supported positive returns across U.S. and European high yield bonds and leveraged loans. U.S. and international equity markets were also supported by first quarter corporate earnings growth and improving investor sentiment.

Despite elevated uncertainty stemming from disruptions in energy markets, global commercial real estate markets continued to improve in the second quarter of 2026. Transaction volumes continued to increase, debt availability improved and property values appreciated across markets. Rising Japanese government bond yields pressured REIT performance during the quarter, however, we do not believe this reflects deterioration in our portfolio’s underlying fundamentals. While performance varies by sector and geography, we believe constrained new supply will be a meaningful tailwind for commercial real estate markets. Infrastructure investment remained robust, particularly across the digital infrastructure, energy and utilities sectors.

55

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Renewable energy deployment also continued at a meaningful scale, underpinned by stable demand for clean energy and an expanding development pipeline. While performance varies by sector and geography, we believe increasing power demand, continued renewable energy deployment and the expansion of digital infrastructure will provide meaningful opportunities for infrastructure investment in coming periods.

Private equity activity moderated during the quarter with the concentration in a smaller number of large transactions. Dealmaking and exit activity continued to reflect market selectivity and elevated uncertainty in private credit markets. Sponsors continued to prioritize businesses with resilient fundamentals and clear paths to value creation, including differentiated technology and artificial intelligence capabilities. We believe a renewed focus on value creation strategies that emphasize operational improvements, selective deployment, talent optimization and digital transformation are essential to support long-term momentum.

We believe our portfolios across all strategies remain well positioned for a fluctuating interest rate environment. On a market value basis, approximately 82% of our debt assets and 51% of our total assets were floating rate instruments as of June 30, 2026.

Managing Business Performance

Operating Metrics

We measure our business performance using certain operating metrics that are common to the alternative investment management industry and are discussed below.

Assets Under Management

AUM refers to the assets we manage and is viewed as a metric to measure our investment and fundraising performance as it reflects assets generally at fair value plus available uncalled capital.

56

Table of Contents

The tables below present rollforwards of our total AUM by segment ($ in millions):

[[GREPCENT_TABLE]]
[["","","Credit Group","","Real Assets Group","","SecondariesGroup","","Private Equity Group","","Other Businesses","","Total AUM"],["Balance at 3/31/2026","","$","422,624","","","$","143,384","","","$","42,629","","","$","24,674","","","$","10,942","","","$","644,253"],["New par/equity commitments","","12,887","","","6,667","","","1,329","","","\u2014","","","1,325","","","22,208"],["New debt commitments","","10,799","","","3,072","","","345","","","\u2014","","","\u2014","","","14,216"],["Capital reductions","","(3,923)","","","(888)","","","\u2014","","","\u2014","","","\u2014","","","(4,811)"],["Distributions","","(3,318)","","","(2,304)","","","(402)","","","(551)","","","(382)","","","(6,957)"],["Redemptions","","(1,416)","","","(481)","","","(130)","","","\u2014","","","\u2014","","","(2,027)"],["Net allocations among investment strategies","","682","","","407","","","152","","","\u2014","","","(1,241)","","","\u2014"],["Change in fund value","","2,209","","","1,373","","","256","","","328","","","271","","","4,437"],["Balance at 6/30/2026","","$","440,544","","","$","151,230","","","$","44,179","","","$","24,451","","","$","10,915","","","$","671,319"],["","","Credit Group","","Real Assets Group","","Secondaries Group","","Private Equity Group","","Other Businesses","","Total AUM"],["Balance at 3/31/2025","","$","359,076","","","$","124,187","","","$","31,312","","","$","24,727","","","$","6,571","","","$","545,873"],["New par/equity commitments","","8,922","","","2,094","","","2,519","","","\u2014","","","1,921","","","15,456"],["New debt commitments","","9,161","","","1,619","","","\u2014","","","\u2014","","","\u2014","","","10,780"],["Capital reductions","","(3,862)","","","(386)","","","\u2014","","","(19)","","","\u2014","","","(4,267)"],["Distributions","","(5,000)","","","(1,719)","","","(160)","","","(1,056)","","","(410)","","","(8,345)"],["Redemptions","","(944)","","","(131)","","","(40)","","","\u2014","","","(7)","","","(1,122)"],["Net allocations among investment strategies","","185","","","50","","","72","","","\u2014","","","(307)","","","\u2014"],["Change in fund value","","9,568","","","4,060","","","246","","","114","","","22","","","14,010"],["Balance at 6/30/2025","","$","377,106","","","$","129,774","","","$","33,949","","","$","23,766","","","$","7,790","","","$","572,385"],["","","Credit Group","","Real Assets Group","","Secondaries Group","","Private Equity Group","","Other Businesses","","Total AUM"],["Balance at 12/31/2025","","$","406,866","","","$","139,088","","","$","42,156","","","$","25,288","","","$","9,107","","","$","622,505"],["Acquisitions","","5,544","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","5,544"],["New par/equity commitments","","24,462","","","11,919","","","2,070","","","858","","","2,640","","","41,949"],["New debt commitments","","19,584","","","4,064","","","345","","","\u2014","","","\u2014","","","23,993"],["Capital reductions","","(7,149)","","","(1,223)","","","(88)","","","\u2014","","","\u2014","","","(8,460)"],["Distributions","","(8,491)","","","(3,818)","","","(745)","","","(1,638)","","","(738)","","","(15,430)"],["Redemptions","","(2,782)","","","(668)","","","(156)","","","\u2014","","","\u2014","","","(3,606)"],["Net allocations among investment strategies","","53","","","529","","","167","","","\u2014","","","(749)","","","\u2014"],["Change in fund value","","2,457","","","1,339","","","430","","","(57)","","","655","","","4,824"],["Balance at 6/30/2026","","$","440,544","","","$","151,230","","","$","44,179","","","$","24,451","","","$","10,915","","","$","671,319"],["","","Credit Group","","Real Assets Group","","Secondaries Group","","Private Equity Group","","Other Businesses","","Total AUM"],["Balance at 12/31/2024","","$","348,858","","","$","75,298","","","$","29,153","","","$","24,041","","","$","7,096","","","$","484,446"],["Acquisitions","","\u2014","","","45,281","","","\u2014","","","\u2014","","","\u2014","","","45,281"],["New par/equity commitments","","14,865","","","4,556","","","4,807","","","975","","","3,017","","","28,220"],["New debt commitments","","13,982","","","4,233","","","\u2014","","","\u2014","","","\u2014","","","18,215"],["Capital reductions","","(7,275)","","","(1,154)","","","(58)","","","(54)","","","\u2014","","","(8,541)"],["Distributions","","(8,271)","","","(3,177)","","","(399)","","","(1,205)","","","(548)","","","(13,600)"],["Redemptions","","(1,326)","","","(290)","","","(63)","","","\u2014","","","(7)","","","(1,686)"],["Net allocations among investment strategies","","1,494","","","50","","","72","","","\u2014","","","(1,616)","","","\u2014"],["Change in fund value","","14,779","","","4,977","","","437","","","9","","","(152)","","","20,050"],["Balance at 6/30/2025","","$","377,106","","","$","129,774","","","$","33,949","","","$","23,766","","","$","7,790","","","$","572,385"]]
[[/GREPCENT_TABLE]]

57

Table of Contents

The components of our AUM are presented below ($ in billions):

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm
Complete FY 2025 MD&A: /company/ARES/mda/fy2025/

Extracted from a substantive MD&A body after the formal Item 7 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Results of Operations

Consolidated Results of Operations

Although the consolidated results presented below include the results of our operations together with those of the Consolidated Funds and other joint ventures, we separate our analysis of those items primarily impacting the Company from those of the Consolidated Funds.

The following table presents our summarized consolidated results of operations ($ in thousands):

[[GREPCENT_TABLE]]
[["","","","","","Year ended December 31,","","Favorable (Unfavorable)"],["","","","","","","","","","2025","","2024","","$ Change","","% Change"],["Total revenues","","","","","","","","","$","5,601,482","","","$","3,884,781","","","$","1,716,701","","","44%"],["Total expenses","","","","","","","","","(4,708,766)","","","(2,938,691)","","","(1,770,075)","","","(60)"],["Total other income, net","","","","","","","","","394,177","","","329,262","","","64,915","","","20"],["Less: Income tax expense","","","","","","","","","198,535","","","164,617","","","(33,918)","","","(21)"],["Net income","","","","","","","","","1,088,358","","","1,110,735","","","(22,377)","","","(2)"],["Less: Net income attributable to non-controlling interests in Consolidated Funds","","","","","","","","","253,904","","","295,772","","","(41,868)","","","(14)"],["Net income attributable to Ares Operating Group entities","","","","","","","","","834,454","","","814,963","","","19,491","","","2"],["Less: Net income attributable to redeemable interest in Ares Operating Group entities","","","","","","","","","1,349","","","103","","","1,246","","","NM"],["Less: Net income attributable to non-controlling interests in Ares Operating Group entities","","","","","","","","","305,743","","","351,118","","","(45,375)","","","(13)"],["Net income attributable to Ares Management Corporation","","","","","","","","","527,362","","","463,742","","","63,620","","","14"],["Less: Series B mandatory convertible preferred stock dividends declared","","","","","","","","","101,250","","","22,781","","","78,469","","","NM"],["Net income attributable to Ares Management Corporation Class A and non-voting common stockholders","","","","","","","","","$","426,112","","","$","440,961","","","(14,849)","","","(3)"]]
[[/GREPCENT_TABLE]]

Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 

Consolidated Results of Operations of the Company

The following discussion sets forth information regarding our consolidated results of operations:

Revenues

[[GREPCENT_TABLE]]
[["","","","","","Year ended December 31,","","Favorable (Unfavorable)"],["","","","","","","","","","2025","","2024","","$ Change","","% Change"],["Revenues"],["Management fees","","","","","","","","","$","3,680,467","","","$","2,942,126","","","$","738,341","","","25%"],["Carried interest allocation","","","","","","","","","1,153,976","","","390,180","","","763,796","","","196"],["Incentive fees","","","","","","","","","362,453","","","344,157","","","18,296","","","5"],["Principal investment income","","","","","","","","","48,149","","","45,424","","","2,725","","","6"],["Administrative, transaction and other fees","","","","","","","","","356,437","","","162,894","","","193,543","","","119"],["Total revenues","","","","","","","","","$","5,601,482","","","$","3,884,781","","","1,716,701","","","44"]]
[[/GREPCENT_TABLE]]

Management Fees. Within the Credit Group, our publicly-traded funds and our perpetual wealth vehicles contributed an increase in management fees of $172.8 million for the year ended December 31, 2025 compared to the prior year, primarily driven by increases in the average size of their portfolios. Capital deployment in private funds within our direct lending and alternative credit strategies led to a rise in FPAUM, contributing to an increase in management fees of $112.5 million for the year ended December 31, 2025 compared to the prior year. Within the Real Assets Group, funds that we manage as a result of the GCP Acquisition generated $202.8 million in additional management fees for the year ended December 31, 2025. In addition, management fees also increased by $20.3 million for the year ended December 31, 2025 compared to the prior year, driven by the WSM Acquisition, which began generating fees in the fourth quarter of 2024.

In addition, Part I Fees increased by $74.5 million for the year ended December 31, 2025 compared to the prior year. The increase in Part I Fees were primarily attributable to ASIF, our open-ended European direct lending fund, our open-ended core infrastructure fund and CADC driven by increase in net investment income from their growing portfolio of investments.

For detail regarding the fluctuations of management fees within each of our segments, see “—Results of Operations by Segment.”

119

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Carried Interest Allocation. The following table sets forth carried interest allocation by segment ($ in millions):

[[GREPCENT_TABLE]]
[["","","","Year ended December 31,"],["","","","","","2025","","2024"],["Credit funds","","","","","$","756.0","","","$","607.2"],["Real Assets funds","","","","","100.4","","","105.7"],["Secondaries funds","","","","","49.0","","","(19.5)"],["Private Equity funds","","","","","177.0","","","(294.4)"],["Other businesses","","","","","143.0","","","26.8"],["Elimination of carried interest from Consolidated Funds","","","","","(31.6)","","","(26.8)"],["Carried interest of non-controlling interests in consolidated subsidiaries","","","","","(39.8)","","","(8.8)"],["Carried interest allocation","","","","","$","1,154.0","","","$","390.2"]]
[[/GREPCENT_TABLE]]

The activity was principally composed of the following:

[[GREPCENT_TABLE]]
[["Year ended December 31, 2025","","Year ended December 31, 2024"],["Credit funds"],["\u2022Primarily from one opportunistic credit fund, four direct lending funds and two alternative credit funds with $42.6 billion of IGAUM generating returns in excess of their hurdle rates:\u25e6Within our opportunistic credit funds, Ares Special Opportunities Fund II, L.P. (\u201cASOF II\u201d) generated carried interest allocation of $174.7 million, driven by improved profitability of portfolio companies that operate in the services, healthcare and industrial industries\u25e6Within our direct lending funds, Ares Capital Europe V, L.P. (\u201cACE V\u201d), Ares Capital Europe VI, L.P. (\u201cACE VI\u201d), Ares Private Credit Solutions II, L.P. (\u201cPCS II\u201d) and Ares Capital Europe IV, L.P. (\u201cACE IV\u201d) generated carried interest allocation of $130.7 million, $119.2 million, $89.7 million and $36.5 million, respectively, driven by net investment income during the period\u25e6Within our alternative credit funds, Ares Pathfinder Fund II, L.P. (\u201cPathfinder II\u201d) and Ares Pathfinder Fund, L.P. (\u201cPathfinder I\u201d) generated carried interest allocation of $88.1 million and $63.0 million, respectively, driven by market appreciation of certain investments and net investment income during the period","","\u2022Primarily from five direct lending funds, one opportunistic credit fund and two alternative credit funds with $36.2 billion of IGAUM generating returns in excess of their hurdle rates:\u25e6Within our opportunistic credit funds, ASOF II generated carried interest allocation of $177.3 million, driven by improved operating performance metrics from portfolio companies that operate in the services and retail industries\u25e6Within our direct lending funds, ACE V, PCS II, ACE IV, ACE VI and Ares Private Credit Solutions, L.P. (\u201cPCS I\u201d) generated carried interest allocation of $153.2 million, $131.1 million, $57.0 million, $54.5 million and $22.9 million, respectively, driven by net investment income during the period\u25e6Within our alternative credit funds, Pathfinder I and Pathfinder II generated carried interest allocation of $62.6 million and $39.1 million, respectively, driven by market appreciation of certain investments and net investment income during the period\u2022Reversal of unrealized carried interest of $99.8 million and $23.7 million from Ares Special Situations Fund IV, L.P. (\u201cSSF IV\u201d) and Ares Special Opportunities Fund I, L.P. (\u201cASOF I\u201d) respectively, primarily due to the market depreciation of their investments in Savers Value Village, Inc. (\u201cSVV\u201d), driven by its lower stock price and lower operating performance of portfolio companies that primarily operate in the retail, services and healthcare industries\u2022Reversal of unrealized carried interest of $68.9 million from Ares Capital Europe III, L.P. (\u201cACE III\u201d) due to lower valuations of certain investments"],["Real Assets funds"],["\u2022Ares Infrastructure Debt Fund V, L.P. (\u201cIDF V\u201d) generated carried interest allocation of $42.0 million, driven by net investment income during the period\u2022Ares Climate Infrastructure Partners II, L.P. (\u201cACIP II\u201d) and Ares Energy Investors Fund V, L.P. (\u201cEIF V\u201d) generated carried interest allocation of $26.6 million and $22.1 million, respectively, driven by the appreciation of certain portfolio investments","","\u2022IDF V generated carried interest allocation of $63.8 million, driven by net investment income during the period \u2022Ares Climate Infrastructure Partners, L.P. (\u201cACIP I\u201d) and EIF V generated carried interest allocation of $44.0 million and $27.7 million, respectively, due to appreciation of certain investments \u2022Reversal of unrealized carried interest of $26.3 million from Ares European Real Estate Fund IV SCSp (\u201cEF IV\u201d), primarily driven by the lower valuation of a residential property investment"],["Secondaries funds"],["\u2022Landmark Real Estate Fund IX, L.P. (\u201cLREF IX\u201d) and Landmark Equity Partners XVII, L.P. (\u201cLEP XVII\u201d) generated carried interest allocation of $27.1 million and $20.4 million, respectively, primarily driven by appreciation of certain portfolio investments","","\u2022Ares Secondaries Infrastructure Solutions III, L.P. (\u201cASIS III\u201d) and four private equity secondaries funds collectively generated carried interest allocation of $27.0 million, primarily driven by the appreciation of certain portfolio investments\u2022Reversal of unrealized carried interest of $28.9 million from Landmark Equity Partners XVI, L.P. (\u201cLEP XVI\u201d), due to the lower valuation of certain portfolio investments\u2022Reversal of unrealized carried interest of $19.8 million from Landmark Real Estate Fund VIII, L.P. (\u201cLREF VIII\u201d), primarily driven by the lower valuation of certain investments with underlying interests in multifamily portfolios"]]
[[/GREPCENT_TABLE]]

120

Table of Contents

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ARES/mda/fy2025/
All MD&A years: /company/ARES/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ARES/mda/fy2024/): filed 2025-02-27; accession 0001628280-25-008665 (https://www.sec.gov/Archives/edgar/data/1176948/000162828025008665/ares-20241231.htm)
- [FY 2023 MD&A](/company/ARES/mda/fy2023/): filed 2024-02-27; accession 0001628280-24-007014 (https://www.sec.gov/Archives/edgar/data/1176948/000162828024007014/ares-20231231.htm)
- [FY 2022 MD&A](/company/ARES/mda/fy2022/): filed 2023-02-24; accession 0001628280-23-005081 (https://www.sec.gov/Archives/edgar/data/1176948/000162828023005081/ares-20221231.htm)
- [FY 2021 MD&A](/company/ARES/mda/fy2021/): filed 2022-02-28; accession 0001628280-22-004289 (https://www.sec.gov/Archives/edgar/data/1176948/000162828022004289/ares-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6282 Investment Advice) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [M2SL](/indicator/M2SL/): M2

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ARES.md · JSON record: /company/ARES.json · verified financials: /company/ARES/financials.json / /company/ARES/financials.csv · machine TOC for the whole site: /llms.txt